Event: the company announces 2022 and 2023Q1 results. In 22 years, the income was 954 million yuan,-10.77% compared with the same period last year, and the net profit was 159 million yuan, + 15.87% compared with the same period last year. 23Q1 achieved revenue of 188 million yuan in a single quarter,-46.23% of the same period last year, and net profit of 21 million yuan,-63.71% of the same period last year.
Orders in overseas markets are under pressure, affecting short-term performance. The company achieved revenue of 954 million yuan in 2022,-10.77% of the same period last year, mainly affected by weak consumer demand and inventory backlog of overseas customers.
1) by product, the pet traction appliance / pet snack / pet injection toy business achieved an income of RMB 4.72 million, which was RMB 3.82 billion, compared with the same period last year.-23.01%, 8.29%, 127.47%, revenue, 49.46%, 40.04%, 2.63%, respectively. Pet injection toys have a small volume and rapid growth, and the decline in revenue from pet products and snacks is mainly due to the decline in demand. 2) Sub-region: the company's income mainly comes from overseas. In the past 22 years, the company realized 917 million yuan of revenue outside / within China, which was 5.51% compared with the same period last year. Revenue accounted for 96.11% and 3.89% of revenue respectively. The decline in overseas income is mainly due to the fact that the problem of customer inventory backlog has not been alleviated, and the pace of orders is slower than in the past.
The profitability has been improved in the past 22 years, and the cost investment has been stable. 1) profitability: in 22 years, the company realized gross profit / net profit of RMB 230 million RMB 171 million; the company's comprehensive gross profit margin / net profit margin was 24.13% and 17.98% respectively, compared with the same period last year + 1.33pct/+3.57pct. Specifically, the gross profit margin of the company's traction appliance / pet snack / pet injection toy business is 33.20% 13.04% 25.18% respectively, year-on-year change + 5.61/-2.61pct/-5.10pc. 23Q1, the company realized gross profit / net profit of 0.45 yuan / 0.23 million yuan; the company's comprehensive gross profit margin / net profit margin was 23.74% / 12.17% respectively, year-on-year-2.72pct/-6.00pct. 2) cost delivery: for 22 years, the company's sales / management / R & D rate is 1.63%, 3.58%, 2.17%, and + 0.16, 0.76, 0.76, 0.21, 2.66%, 2.66%, 2.66%, 1.83%, 4.01%, 2.66% and + 0.71pct/+1.87pct/+1.00pct, respectively.
Expand production to alleviate capacity bottlenecks, with equal emphasis on domestic and export markets. 1) capacity expansion: in order to alleviate the company's capacity bottleneck, the company's investment project "annual production capacity of 3000 tons of glue and 25 million pet traction appliances" will expand the production scale and increase the proportion of self-production, and further enhance profitability. 2) Market layout: in terms of export, the United States and European markets will continue to be the focus, and further expand Japan, Australia, South America and other countries; domestic sales will be made in both online and offline channels, online relying on Tmall and other e-commerce platforms to accumulate market experience and basic data, offline select a suitable region to cut into the domestic market.
Profit forecast: we estimate that the EPS of the company from 2023 to 2025 will be 1.06, 1.22 and 1.43 yuan respectively, and the current price corresponding to PE will be times that of 20-18-15, maintaining the company's "overweight" rating.
Risk tips: exchange rate fluctuations; increased competition in the industry; overseas geopolitical risks.