Summary of Conference Call on Pet Industry and Companies Industry Overview - The pet industry is experiencing rapid growth, with an annual compound growth rate of approximately 10% driven by increasing pet ownership and the rising penetration of pet food products [2][10] - The pet medical market is projected to reach 80-90 billion by 2025, making it the second-largest segment after pet food [10] Key Companies and Their Performance 1. Guibao Pet - Guibao Pet's self-owned brand has shown strong performance, with revenue of approximately 3.5 billion, accounting for nearly 70% of total revenue, and a net profit margin of 12% [1][4] - The high-end cat food brand, Fliegate, achieved a growth rate of 100% last year and maintained the same growth rate in Q1 of this year [4] - Guibao is expected to become a leading enterprise with projected revenues nearing 25 billion and net profits around 5 billion in the medium to long term [1][4] 2. Zhongchong Co., Ltd. - Zhongchong Co., Ltd. experienced a significant growth of nearly 200%-300% from its previous low, with total revenue from its three domestic brands (Wangpi, Lingxian, and ZIP) reaching 1.4 billion last year [5] - The company aims for overseas revenue of 400 million this year, maintaining a growth rate of 50% [5][6] - The net profit margin for its North American subsidiary is reported to be between 15%-20% [6] 3. Petty Co., Ltd. - Petty's overseas business accounts for a significant portion of its operations, with a focus on exports to the U.S. [8] - Domestic revenue was approximately 290 million last year, with a target of 400-450 million this year, reflecting a growth of over 40% [9] - The company is adjusting its product lines and plans to launch new baked grain products in Q2 and Q3 [8][9] Market Dynamics and Future Outlook - The pet medical sector is characterized by a lack of dominant players, with foreign brands leading in pharmaceuticals and vaccines, indicating substantial room for domestic companies to grow [11][12] - The average medical expenses for pets have doubled due to increasing age, leading to a rigid demand for medical services [10] - Companies like Ruipuhua and KQ Bio are recommended for their comprehensive industry layouts and potential for growth in the pet medical field [13][15] Additional Insights - The overall pet industry is expected to continue expanding, with self-owned brands focusing on product innovation to enhance profitability [2] - The competitive landscape in the pet medical sector is still developing, with many local companies poised to capture market share as the industry matures [12] - Other companies to watch include Baisha Technology, Biological Shares, and Zhongmu Shares, which have varying degrees of involvement in the pet medical sector [18]

Core Insights - The pet economy in China has surpassed 500 billion yuan, maintaining over 20% growth for five consecutive years, driven by social changes, evolving consumer attitudes, and technological advancements [1][4]. Group 1: Observations on the Pet Economy - The pet product consumption is experiencing a refined upgrade, with functional cat food and high-end products growing over 50%, and smart pet products expanding at an annual rate of 35% [4][5]. - The pet service sector has developed a dual-layer consumption structure, with basic services like pet grooming seeing a 180% increase in search volume, and pet insurance adoption rates quadrupling over three years [5]. Group 2: Driving Factors Behind Pet Economy Growth - Social changes, such as aging and declining birth rates, have redefined family structures, with pets providing emotional support for lonely individuals [6]. - There is a shift in consumer perception, with younger generations viewing pets as family members, leading to increased spending on pet-related products and services [7]. - Technological innovations, including IoT and AI, are reshaping the pet industry, enhancing efficiency and standardization [8]. Group 3: Challenges and Concerns in the Industry - The pet market faces issues such as fraudulent practices in live pet trading and a lack of standards in pet food, leading to a 120% increase in consumer complaints in 2024 [10]. - Intense competition has emerged due to significant capital influx, resulting in a "price war" among brands, particularly in the pet supplies sector [11]. - Regulatory frameworks are lagging, with a lack of unified standards in emerging areas like pet insurance and veterinary services [12]. Group 4: Future Trends in the Pet Economy - The industry is expected to see a parallel growth in smart and health-focused products, with health-related spending projected to exceed 40% of total pet expenditures [13]. - Professionalization and standardization of services are anticipated, with leading companies enhancing service quality through brand and chain development [14]. - Cross-industry integration is likely to create new business models, such as pet-themed hotels and training courses, expanding the consumption landscape [15]. Group 5: Benefiting Companies - Guobao Pet is projected to generate 5.244 billion yuan in revenue in 2024, leading the domestic pet business sector, with a 34.82% year-on-year increase in Q1 2025 revenue [16]. - Zhongchong Co. is expected to achieve 4.464 billion yuan in revenue in 2024, ranking second, with a 25.41% year-on-year increase in Q1 2025 revenue [16]. - Tianyuan Pet is anticipated to reach 2.764 billion yuan in revenue in 2024, ranking third among domestic pet companies [16]. - Yuanfei Pet, a leading global pet leash manufacturer, has over 90% of its products exported, with a significant portion of high-margin products [17]. - Ruipu Bio is collaborating with veterinary hospitals to enhance its pet medical services, projecting 690 million yuan in revenue for 2024 [17]. - Yiyi Co. is focusing on disposable pet hygiene products, with a projected revenue of 1.798 billion yuan in 2024 [19].

5月20日，A股今天"有点甜"，三大指数集体上涨。截至收盘，沪指涨0.38%，深成指涨0.77%，创业板指涨0.77%，北证50指数涨1.22%创历史新高。全市 场成交额为12112亿元，较上一日增量923亿元。全市场超3800只个股上涨。 在板块题材上，美容护理、宠物经济、创新药、IP经济板块领涨，港口航运、化学纤维板块领跌。 艾媒咨询发布的《2024—2025年中国宠物行业运行状况及消费市场监测报告》数据显示， 2023年中国宠物经济产业规模达5928亿元，保持积极增长态 势，预计到2028年市场规模有望达到11500亿元。 据《2025中国宠物行业白皮书（消费报告）》，宠物食品是宠物消费的最大细分市场，2024年的市场份额为52.8%。从细分结构看，2024年宠物主粮、零 食和营养品在宠物消费中的占比分别为35.7%、13.5%和3.6%。 中信证券研报认为，2025年宠物板块业绩有望持续增长。宠物经济是稀缺赛道，需求韧性强，国内市场目前仍处于"大行业、小龙头"阶段，龙头集中程度 进一步提升，看好龙头通过产品创新、品牌和渠道建设不断提升市场份额。 02 培育钻石板块领涨 培育钻石板块今天上午拉升，随后涨 ...

Core Insights - The pet industry in China is experiencing significant growth, driven by market dynamics such as population structure changes, emotional needs, and improved living standards [2][4] - Major pet companies like Zhongchong Co. and Guobao Pet have reported substantial revenue increases for 2024 and Q1 2025, indicating a robust market environment [1][2] - The pet food segment is the largest market within the pet industry, accounting for 52.8% of the total pet consumption market in 2024 [3][4] Company Performance - Zhongchong Co. achieved a revenue of 4.465 billion yuan in 2024, a year-on-year increase of 19.15%, with a net profit of 394 million yuan, up 68.89% [1] - Guobao Pet reported a revenue of 5.245 billion yuan in 2024, a 21.22% increase, and a net profit of 625 million yuan, growing by 45.68% [1] - Petty Co. saw a revenue of 1.659 billion yuan in 2024, a 17.56% increase, but experienced a decline in Q1 2025 with revenues of 329 million yuan, down 14.40% [2] Market Trends - The pet economy in China reached a scale of 592.8 billion yuan in 2023, with projections to grow to 1.15 trillion yuan by 2028 [2] - The demand for pet food is evolving, with consumers increasingly prioritizing quality, safety, and brand reputation [4][6] - The market is witnessing a shift towards premium products, with companies focusing on innovation and differentiation to capture consumer interest [6][7] Industry Dynamics - Domestic pet brands are gaining market share at the expense of foreign companies, with brands like Guobao Pet and Zhongchong Co. increasing their market presence [5] - The competitive landscape is intensifying, with new entrants like Pet&Fresh and established brands like Three Squirrels expanding into the pet food sector [7][8] - Companies are investing in digital transformation and supply chain enhancements to improve operational efficiency and brand competitiveness [5][6]

Summary of Key Points from Conference Call Records Industry Overview - The pet industry is experiencing significant growth, driven by domestic brands innovating and moving from low-end to high-end products, particularly in emerging categories like baked pet food. This shift has been aided by rising prices of foreign brands due to import tariffs, leading to increased market share for domestic brands [1][4]. Company Performance Highlights Guai Bao Pet - Guai Bao Pet reported a Q1 revenue of 1.48 billion, a year-on-year increase of 34.8%, with net profit rising 38% to 200 million. The revenue from its own brand grew over 40%, achieving an operating profit margin of 13.8%. Both domestic and international sales increased, with domestic sales up 45% and international sales up 18%. The gross margin was 41.6%, slightly down by 0.5 percentage points, but profitability of the own brand improved significantly. The company expects a growth rate of 30%-40% for its own brand throughout the year [5]. Zhongchong Co. - Zhongchong Co. saw a domestic revenue growth of over 40% for its own brand in Q1, with overseas business growing approximately 20%. The second factory in the U.S. will increase North American capacity to 3 billion, effectively mitigating geopolitical risks. The "Wang Pi" brand has shown a growth rate of over 40% for two consecutive quarters, marking the best development phase since its listing [6]. Repu Bio - Repu Bio's Q1 revenue grew by 54%, with profits increasing by 33%. The livestock vaccine segment maintained steady growth, with a 21% increase in revenue from the livestock sector. The company plans to increase the share of its Chinese supply chain from 24% to 70%-80% over the next two years [7]. Natural Pet Food Company - The Natural Pet Food Company announced the acquisition of East China Technology, aiming to establish a comprehensive online and offline channel. The company anticipates achieving total revenue of 500-1,000 million, corresponding to a market value increase of 3-4 billion. The main segment is expected to generate around 100 million in profit, with a valuation of about 20 times, indicating it is at a relatively low point in its growth phase [8]. Investment Recommendations - The pet industry is characterized by high demand and scarcity, suggesting a sector-wide allocation is advisable. Key recommendations include Guai Bao Pet, Zhongchong Co., and Repu Bio, with projected profits for Guai Bao Pet at 840 million in 2025 and 1.12 billion in 2026, and similar growth expectations for the other two companies [2]. Market Trends and Future Outlook - The pet health product sector is identified as a new blue ocean market, transitioning from initial stages to a long-term high-growth window. The consumption of pet health products in China is significantly lower than in the U.S. and Japan, indicating substantial growth potential [3][9]. - The long-term development logic of the pet industry is based on the increasing perception of pets as family members, particularly in urban areas. This trend is expected to drive the premium pet market, with the European pet premium market projected to reach 1.7 billion euros by 2024, growing at an annual rate of about 14% [10]. Challenges and Opportunities - The pet food industry faces opportunities from the growing trend of pet health product consumption. However, challenges include the relatively small domestic market and the need for companies to adapt to changing consumer preferences and behaviors [14][18]. - The entry of human health product companies into the pet health product sector is seen as advantageous due to their established production techniques and supply chain management capabilities, which can enhance the overall industry landscape [15][16][17]. Conclusion - The pet industry in China is poised for significant growth, driven by innovation, changing consumer behaviors, and the increasing humanization of pets. Companies that adapt to these trends and leverage their strengths in supply chain and product development are likely to succeed in this evolving market [12][13].

作者 | 守望者 来源 | 守望核心 导语： 拆解宠物板块持续新高背后的三大预期与核心标的逻辑。 宠物板块持续新高的背后市场在交易什么预期，借助公开资料，理一下宠物板块的β及选股思路， 以及个股的核心看点 。 一、大背景 宠物经济蓬勃发展的内核是宠物的 "人格化、家人化" ， 年轻一代将宠物视为"家人"的情感价值重 构。 1、宠物经济正是基于这一情感纽带蓬勃发展，从提供高品质的宠物食品、个性化的宠物用品，满 足宠物的物质需求； 2、到宠物医疗、保险，为宠物的健康保驾护航； 3、再到宠物美容、摄影、社交活动等，满足主人与宠物之间情感互动的精神需求。 每一个细分领域，让宠物真正融入家庭生活，也让宠物经济的内涵和外延得以不断拓展和深化 。 二、宠物是一个大赛道 1、横向对比化妆品、白酒、食品等来看， 宠物赛道是消费里面少有量价齐升的板块 ，并且随着单 身经济及消费方式的转变， 从实物消费到情绪消费的转变 ，相信大家多少在家里面都多少有一些 宠物（常见的是猫、狗，稀罕的是鸟、仓鼠、乌龟、蛇等），宠物恰逢其时，目前A股从宠物食品 到医疗已经形成一个完整的贝塔。 C、主业稳健，每年贡献净利润大几千万，收购的淘通科技可以贡 ...

对于消费赛道的投资者来说，在白酒板块上躺赢的时代正悄然远去。面对新兴消费领域的蓬勃发展，公 募积极拓宽投资边界，重构消费投资方法论。在业内人士看来，在消费投资中，要积极关注消费群体习 惯的变化、渠道的变化等情况，这样才能分享到时代发展的红利。 消费投资扩圈进行时 5月13日，富国消费升级混合基金公告称，为更好地满足投资者的投资需求，提高基金市场竞争力，在 不改变投资目标且遵循被动调整的前提下，拟参照2021年申银万国证券公司对申万一级行业分类的调整 情况，对消费升级主题相关行业的界定进行相应调整。 具体来看，富国消费升级混合基金将美容护理纳入基金界定的消费升级主题。除了补充美容护理行业， 股票投资策略也新增内容——消费升级主题证券池由基金管理人依据合同约定进行编制和审核。 部分资深消费投资基金经理也果断调仓新兴消费股。截至一季度末，泡泡玛特、毛戈平成为银华品质消 费股票基金新进前十大重仓股。 谈及投资策略，银华品质消费股票基金经理张萍表示，在投资上，一方面紧跟时代的变化，另一方面继 续追求构建更有性价比的组合。很多国产品牌逐步走向中高端市场，与外资大牌同场竞技，在美护、日 化、黄金珠宝等领域，出现了一批中高端 ...

Summary of Zhongchong Co., Ltd. Conference Call Company Overview - Zhongchong Co., Ltd. focuses on the domestic market strategy and significant expansion of staple food business, which has notably improved profitability. The expected profit for 2025 is approximately 440 million yuan, and it is projected to exceed 550 million yuan in 2026. The compound annual growth rate (CAGR) for the next three years is expected to reach around 30% driven by high growth of domestic self-owned brands [2][3][18]. Industry Dynamics - The acceleration of domestic substitution and increased import tariffs have raised the entry barriers for American pet food into the Chinese market, providing opportunities for domestic brands like Zhongchong to capture high-end market shares, especially in the price range of 70-100 yuan per kilogram [2][8]. - The pet food industry is experiencing rapid growth, with the staple food market holding significant importance due to its larger scale and typically higher profit margins compared to snack products. The trend shows that domestic brands are gradually rising, occupying top positions in sales rankings, while foreign brands are losing ground [7][9]. Key Financial Insights - The target stock price for Zhongchong is set at 75 yuan, with a valuation level of 50 times earnings based on the expected profit of 440 million yuan for 2025. The profit is anticipated to exceed 550 million yuan in 2026, indicating substantial room for stock price appreciation compared to industry leader Guaibao Pet Food [4][5]. Market Performance - Zhongchong has made significant strides in online sales, with its leading brand's ranking on Douyin and Taobao rising from outside the top 40 to around 19. The brand's growth rate on Douyin is approaching triple digits, showcasing the success of its online marketing strategies and strong production capabilities [2][10][11]. Research and Development - In 2024, Zhongchong's R&D expenditure is expected to grow at a rate leading the industry. The focus will be on researching animal nutrition components, pathology, and products related to the living habits of local dog and cat breeds. The company is also collecting intestinal flora data from cats and dogs to develop products better suited for the Chinese market [2][13][14]. Competitive Landscape - Domestic brands are currently increasing their rankings through substantial marketing expenditures, but there are concerns regarding their profitability and long-term sustainability. In contrast, Zhongchong not only achieves positive profitability but also invests heavily in R&D, ensuring long-term growth potential [15]. International Expansion - Zhongchong has established a deep presence in the U.S. market, having set up a pet snack factory in 2015 and currently constructing a second factory expected to be operational in the first half of 2026. This expansion is anticipated to significantly boost overseas revenue and profits [5][17][18]. Future Outlook - The company is optimistic about revenue and profit growth in the coming years, with expectations of increased overseas income following the launch of the second U.S. factory. The domestic market, primarily focused on staple foods, is characterized by large potential, strong customer loyalty, and high profit margins, making revenue growth more certain [18]. Market Sentiment - There are mixed views in the market regarding Zhongchong's future prospects, with some investors skeptical about the stock's high valuation and growth rates in the upcoming quarters. However, the company remains confident in its solid domestic and international strategies, maintaining a recommendation for investment [19].

Investment Rating - The report maintains a "Buy" rating for the industry, particularly recommending stocks like Muyuan, Wens, and New Hope due to their competitive cost structures and potential for excess returns in the pig farming sector [1]. Core Insights - The report highlights a 2% week-on-week decline in live pig prices, with a significant year-on-year increase of 37.9% in the output of 20 listed pig companies in April [2]. - The report indicates that the breeding stock of sows has increased, suggesting a potential for normal profitability in pig farming in 2025, despite entering a downward price cycle [2]. - The report emphasizes the historical low valuations of leading pig farming companies, suggesting that they are well-positioned for recovery [2]. Summary by Sections 1. Market Overview - The agricultural sector index increased by 0.05% in the week of May 12-16, 2025, underperforming compared to the Shanghai Composite Index [14]. - The agricultural sector ranks 7th among 31 sub-industries in terms of performance since the beginning of 2025, with a year-to-date increase of 3.54% [14]. 2. Industry Data 2.1 Primary Agricultural Products - Corn prices are reported at 2374.90 CNY/ton, showing a week-on-week increase of 0.48% but a year-on-year decrease of 1.63% [35]. - Soybean prices remain stable at 3927.89 CNY/ton, with a year-on-year decline of 10.48% [35]. 2.2 Livestock - The average weight of pigs at slaughter remains stable at 129.71 kg, which is higher than the same period in 2023 and 2024 [2]. - The report notes that the output of listed pig companies reached 69.18 million heads in the first four months of 2025, marking a 30.1% year-on-year increase [2]. 3. Company Performance - The report lists the output of major listed pig companies, with Muyuan leading at 30.77 million heads, followed by Wens and New Hope [2]. - The report suggests that the introduction of new products in the pet food sector is driving rapid growth for domestic companies like Zhongchong and Guobao [5]. 4. Global Agricultural Trends - The global corn stock-to-use ratio for 2025/26 is projected to be the lowest since the 2015/16 season, indicating tightening supply conditions [3]. - The report forecasts a decrease in the global soybean stock-to-use ratio, reflecting similar trends in the corn market [3].

Core Viewpoint - The significant rise in the stock price of Zhongchong Co., Ltd. is attributed to its strong financial performance and growth strategies, particularly in overseas markets and product innovation [1][4]. Group 1: Growth Drivers - The primary growth driver for Zhongchong Co., Ltd. is the structural optimization of its overseas business, with overseas revenue accounting for 68.45% in 2024, significantly contributed by factories in the U.S. and Canada [1]. - The European market has emerged as a major highlight, with explosive order growth in Q3 2024, indicating a "North America steady, Europe incremental" strategy [1]. - The construction of a second factory in the U.S. (planned capacity of 12,000 tons) and a second factory in Cambodia helps mitigate trade friction risks and reduces logistics costs through localized production [1]. Group 2: Domestic Market Strategy - The breakthrough in the domestic market is driven by a "high-end + all-channel" strategy, launching new products like "Playful Little Golden Shield 100% Fresh Meat Grain" to capture the high-end market [2]. - The company enhances collaboration between direct sales and distribution channels, employing a "hit products driving traffic + channel deepening" model, which has led to revenue growth and improved gross margins in domestic operations [2]. Group 3: Emerging Concerns - Despite strong performance in proprietary brands, OEM/ODM business still accounts for 58.59% of revenue in 2024, with high customer concentration posing risks [3]. - The gross margin for OEM/ODM (25.2%) is significantly lower than that of proprietary brands (31.3%), making the company vulnerable to fluctuations in overseas demand [3]. - The reliance on OEM models may weaken the innovation drive for proprietary brands, with proprietary brand revenue accounting for less than 40% in 2024, compared to over 80% for competitors like Guai Bao Pet [3]. - Fluctuations in raw material prices remain a concern, as the increase in gross margin to 28.16% in 2024 is primarily due to a decline in chicken prices rather than improved cost control [3]. - The domestic market faces strong competition from brands like Guai Bao Pet and Royal Canin, with Zhongchong Co., Ltd. having lower brand recognition and pricing power in the high-end segment [3]. Group 4: Future Outlook - The rise in Zhongchong Co., Ltd.'s stock price reflects the golden era of the pet economy and recognition of the company's global layout and product innovation [4]. - However, issues such as reliance on OEM, insufficient brand premium, and the need to balance short-term profits with long-term investments pose risks to sustainable growth [4]. - The company must find a balance between OEM and proprietary brands, short-term profits and long-term investments, as well as scale expansion and refined operations to transition from an "OEM giant" to a "brand leader" in the trillion-dollar pet market [4].