$Chewy (CHWY.US)$Excluded from the March 2022 inventory due ...

Launched in 2019, mainly engaged in pet medicine, food, treatment and health care business. Single US market, current price is 16.8.

Since listing, revenue has increased continuously for 2 years, with an increase of 13.6% in 2023. Operating profit reversed losses of 56 million in 2023, and net profit reversed losses of 49 million in 2023. Net interest income in 2023 was 9.3 million, with no interest burden. The gross margin increased from 26.7% to 28% in the past 2 years.

Revenue increased by 12.3% in the first three quarters of 2024, operating profit turned into a slight loss due to a sharp increase in expenses, and net profit of 5.32 million, supported by interest income.

Currently, the price-earnings ratio is 140 and the price-earnings ratio is TTM560. Assuming that revenue increases 13% over the next 12 months, operating expenses do not increase, and gross margin remains at 28%, then the increase of 1.3 billion dollars in revenue can bring in additional gross profit of 360 million yuan, 290 million after tax, and the corresponding price-earnings ratio is 25. Since it is impossible to assume that operating expenses do not increase, the actual price-earnings ratio will be far higher than 25. Not an underestimate, and the profit margin is not very attractive for the time being.