Core Viewpoint - The company has demonstrated impressive growth in its financial performance, with a strong focus on high-end brand development and a positive outlook for the pet food industry in China [1][2][7]. Financial Performance - In 2024, the company achieved revenue of 5.245 billion yuan, a year-on-year increase of 21.22%, and a net profit attributable to shareholders of 625 million yuan, up 45.68% [2]. - For Q1 2025, the company reported revenue of 1.48 billion yuan, a growth of 34.82%, and a net profit of 204 million yuan, increasing by 37.68% [2]. - The direct sales revenue in 2024 showed significant growth, with pet food and supplies generating 5.220 billion yuan, a 21.11% increase [3]. Product and Sales Breakdown - In 2024, the revenue from snacks, staple food, health products, and other businesses was 2.484 billion yuan, 2.690 billion yuan, 46 million yuan, and 25 million yuan, respectively, with year-on-year growth rates of 14.66%, 28.88%, -18.90%, and 49.41% [3]. - Domestic and international revenues were 3.551 billion yuan and 1.693 billion yuan, respectively, with year-on-year growth of 24.03% and 15.70% [3]. - The company’s self-owned brand revenue increased by 29.14% to 3.545 billion yuan, while OEM and ODM revenue grew by 19.07% [3]. Profitability Metrics - The gross margin for 2024 was 42.27%, an increase of 5.43 percentage points year-on-year, while the net profit margin improved to 11.96% [4]. - The sales expense ratio increased to 20.11% in 2024, attributed to the growth in self-owned brand and direct sales revenue [4]. Brand Development - The company has successfully advanced its high-end brand strategy, with its main brand, Mai Fu Di, leading the industry and achieving a 150% increase in sales during the 2024 Double 11 shopping festival [5]. - The introduction of new high-end products, such as the "0 Pressure Fresh Meat Cat Food" series, has also contributed to its market leadership [5]. Industry Outlook - The pet food industry in China is still in its early stages, with pet food penetration rates for dogs and cats at 25% and 43%, respectively, indicating significant growth potential [6]. - The high-end pet food market share in China is currently low, with only 29.4% for cat food and 33.4% for dog food, compared to much higher rates in the US and Japan [6]. Investment Forecast - The company is expected to achieve revenues of 6.405 billion yuan, 7.929 billion yuan, and 9.957 billion yuan for 2025, 2026, and 2027, respectively, with corresponding net profits of 800 million yuan, 1.009 billion yuan, and 1.272 billion yuan [7]. - The company has been given an "Accumulate" rating based on its strong brand development and the growth potential in the pet food industry [7].
华龙证券：首次覆盖乖宝宠物给予增持评级