Petpal Tech.(300673) 海通证券·2024-09-09 07:41Investment Rating - The investment rating for the company is "Outperform the Market" [2] Core Insights - The company reported a significant increase in revenue and profit in the first half of 2024, with total revenue reaching 846 million yuan, a year-on-year growth of 71.64%, and a net profit of 98 million yuan, up 329.38% year-on-year [6][7] - The company has successfully navigated the fluctuations in the overseas market, with strong performance in both domestic and international markets, meeting its operational expectations [6] - The company's gross margin has been improving for six consecutive quarters, reaching 28.02% in Q2 2024, an increase of 11.91 percentage points year-on-year [7] Financial Performance Summary - In H1 2024, the company achieved revenue of 846 million yuan, with the main business segments showing strong growth: plant-based chewing gum revenue increased by 114.62% to 298 million yuan, and animal skin chewing gum revenue rose by 87.85% to 263 million yuan [6] - The company’s ODM business is primarily supported by production bases in Vietnam and Cambodia, with the Vietnam base being a major profit contributor [6] - The company’s net profit forecast for 2024-2026 is projected to be 168 million, 202 million, and 250 million yuan respectively, indicating a return to profitability and continued growth [8][11] Valuation and Earnings Forecast - The current closing price corresponds to a PE ratio of 18 and 15 times for 2024 and 2025 respectively, with a target valuation range of 14.86 to 15.54 yuan based on a PE of 22-23 times for 2024 [7][10] - The company’s revenue is expected to grow from 1.41 billion yuan in 2023 to 1.88 billion yuan in 2024, reflecting a year-on-year growth of 33% [8][11]