Main points of investment
Event: the company released its 2023 semi-annual report. 2023H1 achieved operating income of 431 million yuan, year-on-year-21.43%, net profit of 66 million yuan, year-on-year-35.55%, and non-net profit of 65 million yuan, year-on-year-35.79%. In a single quarter, the company's Q2 revenue was 243 million yuan, + 22.3% compared with the same period last year; realized net profit of 45 million yuan, + 1.95% year-on-year; and deducted 44 million yuan from non-net profit, + 2.56% year-on-year.
The change of business structure affects the gross profit margin, and demand repair is on the way. 1) at the profit end, 2023H1, the company realized a sales gross profit margin of 22.14% (- 3.73pct.) and a net return rate of 15.29% (- 3.35pct.). In a single quarter, Q2 gross profit margin was 20.9% (- 3.91pct.), and home net profit margin was 18.41% (- 3.68pct). The decline in income from traction equipment with higher gross profit margin affects the overall gross profit margin, and the increase in interest income increases Q2 profit (Q2 single-quarter financial expenses-27 million, expense rate-10.97%). 2) on the expense side, 2023H1, the rates of sales, management, R & D and financial expenses of the company are 2.35%, 3.74%, 2.28% and-5.68% respectively, + 0.9,0.85, + 0.17 and-2.71pct respectively.
Export is gradually repaired, and domestic sales expand e-commerce channels. In the first half of the year, the company's revenue from export and domestic sales was 4.03 yuan and 27 million yuan respectively, which was-24.2% and + 71.11% compared with the same period last year. Export: under pressure under the influence of downstream demand and customers going to the warehouse, Q2 has been repaired gradually; Cambodia Amoy and Ryder 2023H1 have revenue of 131 million yuan and 52 million yuan respectively, with a net profit of 1857 and 16.69 million respectively. Domestic sales: in the initial stage of development, the company acquired / newly established Hangzhou Feiyuan Network / Juyuan Pet Company in the first half of the year to expand domestic e-commerce channels.
The growth of required attribute snack products is good, and the business of fashion attribute traction appliances still needs to be restored. In terms of products, in the first half of the year, 1) traction appliances: realized revenue of 182 million yuan, year-on-year-41.15%; gross profit margin 33.53% (+ 1.13pct.). 2) Pet snacks: realized revenue of 204 million yuan, year-on-year + 9.17%; gross profit margin 12.75% (- 1.64pct.). 3) injection toys and other pet products: revenue reached 7 million yuan and 30 million yuan, respectively, compared with the same period last year.-18.69% and-32.53% respectively. 4) Pet staple food: in the first half of the year, the company expanded its staple grain business and realized revenue of 85 million yuan.
Pet food, pet products two-wheel drive, layout of the domestic market to share industry dividends. According to Euromonitor, the global pet products market grew by 10.7% to US $44.76 billion in 2022 and is expected to reach US $54.83 billion in 2021-2025. Among them, the United States and Western Europe are the main consumer regions, and CAGR4.3%, 7.6% to US $253.3 and US $12.31 billion are expected in 21-25. The steady expansion of the global pet products market, the company's in-depth foreign trade services PetSmart, Petco, Walmart and other large integrated retailers and pet retail giants, deep customer resources, while the layout of domestic e-commerce channels, is expected to share the growth dividend of the industry.
Investment suggestion: the company's export business is sound, the domestic pet market is growing prominently, and the company's profitability is leading. We estimate that the company is expected to achieve 9.4 million yuan in revenue from 2023 to 2025, which is-1.5%, 13.5% and 13.2%, respectively, compared with the same period last year. The net profit is 1.43 million and 1.64 million, respectively. (taking into account the pace of demand repair and changes in product structure, the profit forecast is 151 million yuan in 23-24). Compared with the same period last year, the year-on-year-on-year rating of-9.8% Universe 14.4% Universe 14.1% cognac EPS is 0.75 Universe 0.86 Compact 0.98 yuan, maintaining the "overweight" rating.
Risk hint: downstream demand is lower than expected risk; market competition aggravates risk; raw material price fluctuation risk; capacity construction schedule is not as expected risk