CHINA PET FOODS(002891) 东吴证券·2025-02-04 04:47Investment Rating - The report gives a "Buy" rating for the company, Zhongchong Co., Ltd. (中宠股份) [5] Core Views - Zhongchong Co., Ltd. is a leading player in the domestic pet food industry, with its own brands entering a rapid growth phase. The company has maintained strong revenue growth, achieving 3.747 billion yuan in revenue in 2023, a year-on-year increase of 15.4% [2][5] - The company has a solid foundation in overseas OEM/ODM business, with overseas revenue accounting for 68% of total revenue in 2023. The company is expanding its production capacity in various countries, which is expected to boost performance [4][5] Summary by Sections 1. Domestic Pet Food Leader, Own Brands Entering Growth Phase - Established in 1998, Zhongchong Co., Ltd. has developed a strong presence in the pet food industry, with products sold in over 70 countries. The company operates three core brands: "Wanpy," "ZEAL," and "Toptrees," covering various product categories [2][18] - The company has seen rapid revenue growth from 2013 to 2023, with a compound annual growth rate (CAGR) of 22.15%. In 2023, the company achieved a net profit of 233.16 million yuan, a year-on-year increase of 120.12% [2][5] 2. Dual-Engine Growth from Domestic and Overseas Markets - Domestic revenue from self-owned brands reached 1.41 billion yuan in 2023, accounting for 32% of total revenue. The company has focused on adjusting its self-owned brands to enhance growth, particularly in staple food products [3][5] - The overseas business generated 2.66 billion yuan in revenue in 2023, driven by strong demand and the expansion of production capacity in multiple countries [4][5] 3. Financial Data: Strong Performance and Profitability Improvement - The company has shown significant revenue growth, with total revenue increasing from 507 million yuan in 2013 to 3.747 billion yuan in 2023, reflecting a CAGR of 22.1%. The net profit has also increased significantly, with a CAGR of 30.7% [25] - The company expects net profit for 2024 to be between 360 million and 400 million yuan, representing a year-on-year growth of 54% to 72% [25][5] 4. Investment Forecast and Recommendations - The report forecasts net profits of 380 million yuan, 450 million yuan, and 550 million yuan for 2024, 2025, and 2026, respectively, with corresponding price-to-earnings ratios of 29, 25, and 20 [5]