CHINA PET FOODS(002891) 渤海证券·2025-03-20 03:08Investment Rating - The report assigns an "Accumulate" rating to the company [2]. Core Viewpoints - The company, Zhongchong Co., Ltd., has been focused on the pet food sector for 27 years and has established itself as a leading enterprise in the industry. It operates 22 modern production bases globally and has a national-level R&D center [3][22]. - The pet food industry is experiencing favorable growth trends, with significant market expansion projected in both the U.S. and China. The U.S. pet food market is expected to exceed 140 billion, with the U.S. and Europe being key markets. The CAGR for the U.S. pet food market from 2024 to 2030 is expected to be over 8% [4][42]. - In China, the pet food market is rapidly growing, with domestic brands gaining popularity and market share [4][42]. Strategic Initiatives - The company has adopted a focus strategy to streamline its brand management and enhance profitability through high-margin products and effective channel pricing control. This has resulted in a 23.91% year-on-year increase in domestic revenue for the first half of 2024 [5][40]. - The company is enhancing its global footprint by expanding its product offerings and strengthening its brand presence in international markets [5][26]. Profitability Outlook - The company expects to achieve significant profit growth in 2024, with a projected net profit of ¥360 million to ¥400 million, driven by increased sales and improved margins [3][33].