Petpal Tech.(300673) 光大证券·2024-08-29 07:11Investment Rating - The report maintains a "Buy" rating for Petty Co., Ltd. (300673.SZ) [4] Core Views - Petty Co., Ltd. reported strong performance in the first half of 2024, achieving revenue of 846 million yuan, a year-on-year increase of 71.64%, and a net profit of 98 million yuan, compared to a loss of 43 million yuan in the same period of 2023 [1] - The company is seeing positive growth in both overseas orders and domestic self-owned brands, with overseas revenue increasing by 87.79% and domestic revenue by 24.55% in the first half of 2024 [1] - The gross margin improved significantly, reaching 26.35% in the first half of 2024, driven by scale effects and a higher proportion of high-margin products [2] - The company has adjusted its profit forecasts for 2024-2026, raising the net profit estimates to 174 million yuan, 215 million yuan, and 257 million yuan respectively, reflecting a positive outlook for its overseas business and production capacity [2] Summary by Sections Financial Performance - In the first half of 2024, Petty Co., Ltd. achieved a revenue of 846 million yuan, with a net profit of 98 million yuan, a significant turnaround from a loss in the previous year [1] - The second quarter of 2024 saw a revenue of 461 million yuan, marking a year-on-year increase of 38.06% [1] - The gross margin for the first half of 2024 was 26.35%, with a notable increase in the second quarter to 28.02% [2] Market and Product Development - The company reported strong growth in its overseas market, with revenue from international sales reaching 689 million yuan in the first half of 2024 [1] - Domestic self-owned brands, particularly the "Jueyan" brand, are performing well, with plans to introduce new staple food products in the second half of 2024 [1] - The company’s various product categories, including animal skin chew toys and plant-based chew toys, showed significant revenue growth, with increases of 87.85% and 114.62% respectively [1] Profitability and Forecasts - The report indicates an upward revision of profit forecasts for 2024-2026, with net profit estimates adjusted to 174 million yuan for 2024, reflecting a 39.38% increase from previous estimates [2] - The expected earnings per share (EPS) for 2024 is projected at 0.70 yuan, with corresponding price-to-earnings (P/E) ratios of 17, 14, and 12 for 2024-2026 [2]