Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The supply of pigs is expected to increase due to the normalization of breeding practices, which may exert downward pressure on prices in the short term. However, as supply stabilizes, prices are anticipated to stabilize or slightly rebound [4][14] - The pet food sector is experiencing a rise in domestic brands, supported by consumption upgrades and tariff barriers, with significant growth expected in the pet food market [6][26][28] Summary by Sections Weekly Observation - The average national pig selling price on May 30 was 14.44 yuan/kg, up by 0.17 yuan/kg from the previous week, with a daily average slaughter volume of 156,400 pigs, an increase of 13,200 pigs [4][14] - The demand side shows slight recovery, and the focus remains on policies affecting the pig industry [4][14] Weekly Market Performance (May 26-30) - The agricultural index outperformed the market by 1.82 percentage points, with the agricultural index rising by 1.79% while the Shanghai Composite Index fell by 0.03% [29][30] - The livestock breeding sector led the gains, with notable increases in stocks such as Juxing Agriculture (+13.15%) and Xiwang Food (+12.42%) [29][32] Price Tracking (May 26-30) - The national average price for pigs was 14.47 yuan/kg, up by 1.12% from the previous week. The average price for piglets was 35.24 yuan/kg, down by 0.90% [36] - The average price for corn was 2,339.00 yuan/ton, up by 0.52%, while soybean meal was priced at 2,966.00 yuan/ton, up by 0.54% [51] Key News (May 26-30) - An announcement was made to prevent the entry of highly pathogenic avian influenza from Brazil, highlighting the importance of biosecurity in the livestock sector [33] Weekly Insights - The pig sector shows low valuation and potential for recovery, with recommendations for companies like Muyuan Foods and Wens Foodstuffs [26] - The feed sector benefits from the recovery of livestock and strong overseas demand, with recommendations for companies like Haida Group and New Hope Liuhe [26]

Core Viewpoint - The recent surge in the pet economy sector in A-shares, particularly since April 8, has seen significant stock price increases, with some companies experiencing over 200% growth since last September, indicating a strong market interest in this segment [1][4][10]. Group 1: Market Performance - The pet economy sector index has risen nearly 40% since April 8, and has doubled since last September [1]. - Major companies like Zhongchong Co. and Lusi Co. have seen stock prices soar over 200%, while Guibao Biological has increased by over 110% [1]. - Following this surge, the sector experienced a correction starting May 21, with companies like Tianyuan Pet and Lusi Co. dropping over 20% [3]. Group 2: Growth Drivers - The pet industry has shown strong fundamentals, with Guibao Pet and Zhongchong Co. projected to have compound annual revenue growth rates of 27% and 18.9% respectively from 2020 to 2024 [4]. - In Q1 2025, Guibao Biological reported a revenue increase of over 34% and a profit increase of 62%, while Zhongchong Co. saw a 25% revenue increase and a 62% profit increase [4]. - The overall high profitability of the pet industry has been a key factor in the recent market rally [5]. Group 3: Profitability Analysis - As of Q1 2025, Guibao Pet's gross margin stands at 41.6%, significantly higher than Zhongchong Co. and Petty Co. at 32% and 28.6% respectively [6]. - Guibao Pet has successfully reduced its reliance on OEM business, with its own brand sales increasing, allowing it to capture a higher market share in the mid-to-high-end segment [6]. - In contrast, Tianyuan Pet and Yiyi Co. have lower gross margins below 20%, indicating weaker competitive positioning [7]. Group 4: Market Trends - The pet consumption market in urban China is expected to reach 300.2 billion yuan in 2024, reflecting a 7.5% growth from 2023, with a compound annual growth rate of 20% from 2012 to 2024 [11]. - The number of pets in China is projected to grow, with pet cats and dogs reaching 71.53 million and 52.58 million respectively in 2024 [13]. - The market is witnessing a shift towards domestic brands, with Guibao's market share increasing from around 2% to 6% between 2014 and 2023, while foreign brands like Mars and Nestle have seen their market shares decline [14][15]. Group 5: Pricing Dynamics - The average annual consumption per pet is projected to grow at a compound rate of 6.74% from 2017 to 2024, with pet dogs expected to see a 3% increase in spending per pet in 2024 [16]. - Guibao Pet's product pricing has increased, with a compound annual growth rate of 6.5% in pet food prices from 2020 to 2023 [16]. - The trend indicates a potential for simultaneous growth in both volume and price within the pet industry, which is relatively rare in the current economic climate [17]. Group 6: Future Outlook - Despite recent price surges leading to high valuations, the underlying growth logic for the pet sector remains intact, with expectations for a potential market rebound post-July as tariff issues clarify [19]. - The market is likely to favor companies with strong performance and profitability, distinguishing them from those that have recently experienced inflated valuations without solid fundamentals [19].

Core Insights - The article highlights the emergence of domestic pet food brands in China, showcasing their growth and market acceptance among young pet owners, indicating a shift from being mere manufacturers to becoming recognized brands [1][3]. Industry Overview - The "Global Brand China Online 500 Strong List" (CBI500) reveals that 10 out of 12 pet brands listed are domestic, with Myfoodie ranking 80th overall and second in the pet industry [1][2]. - The report indicates that the market share of China's pet food industry is only 24%, significantly lower than that of the US and Japan, suggesting substantial growth potential [3]. Brand Performance - Myfoodie and other domestic brands like Fresh and Fregate have shown remarkable performance, with Myfoodie surpassing traditional foreign giants in brand search volume and transaction numbers [3][5]. - During the Tmall 618 sales event, five domestic brands dominated the pet product sales leaderboard, all of which are included in the CBI500 list [3]. Consumer Demographics - The CBI500 list aligns closely with the profile of Tmall's 88VIP members, with 66.9% of pet owners identified as middle to high-income consumers, supporting the premiumization of domestic brands [5]. Innovation and Growth - Domestic brands are excelling in "newness" metrics, including sales growth, young user acquisition, and product innovation, with companies like Myfoodie and Fregate leading in R&D spending [5]. - The article notes that half of the listed domestic pet brands were established after 2015, indicating a rapid evolution in the industry from technology followers to standard setters [5]. Export Potential - China's pet food exports are projected to grow by 22.06% year-on-year in 2024, reflecting the increasing global recognition of "Chinese grain" [5].

证券代码：002891 证券简称：中宠股份 公告编号：2025-039 债券代码：127076 债券简称：中宠转 2 烟台中宠食品股份有限公司 关于"中宠转 2"转股价格调整的公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假记载、 误导性陈述或重大遗漏。 特别提示： 1、债券代码：127076 债券简称：中宠转 2 2、本次调整前转股价格为：27.81 元/股 3、本次调整后转股价格为：27.66 元/股 4、本次转股价格调整实施日期：2025 年 6 月 3 日 一、可转换公司债券基本情况 经中国证券监督管理委员会"证监许可[2022]2063 号"文核准，烟台中宠食 品股份有限公司（以下简称"公司"）于 2022 年 10 月 25 日公开发行了 7,690,459.00 张可转换公司债券，每张面值 100.00 元，发行总额为 76,904.59 万元。经深交所 "深证上〔2022〕1090 号"文同意，公司 76,904.59 万元可转换公司债券于 2022 年 11 月 21 日起在深交所挂牌交易，债券简称"中宠转 2"，债券代码"127076"。 1 债券代码：127076 ...

1、烟台中宠食品股份有限公司（以下简称"公司"）2024 年年度权益分派 方案为：以公司 2024 年度利润分配预案实施时股权登记日的总股本为基数，按 照分配比例不变的原则，向全体股东每 10 股派发人民币现金 1.50 元（含税）， 不送红股，不以公积金转增股本。剩余未分配利润结转以后年度分配。 证券代码：002891 证券简称：中宠股份 公告编号：2025-038 债券代码：127076 债券简称：中宠转 2 烟台中宠食品股份有限公司 2024 年年度权益分派实施公告 2、按总股本折算的每 10 股现金分红比例为 1.500000 元（按总股本折算的 每 10 股现金分红比例时保留小数点后六位，最后一位直接截取，不四舍五入）， 即按总股本折算的每 10 股现金分红比例=（本次实际现金分红总额（含税）/公 司总股本）*10=1.500000 元。 本次权益分派实施后的除权除息参考价=本次权益分派股权登记日收盘价－ 按总股本折算每股现金分红比例=本次权益分派股权登记日收盘价－0.1500000 元/股。 一、股东大会审议权益分派的情况 1、2025 年 5 月 22 日，公司 2024 年年度股东大会审议通过 ...

Investment Rating - The industry investment rating is "Overweight" [2] Core Views - The report highlights that the price of live pigs has decreased by 2.1% week-on-week, with the national average price at 14.18 CNY/kg. The number of breeding sows remained stable in April 2025, indicating potential for normal profitability in pig farming in 2025 [3][4] - The report emphasizes the ongoing domestic substitution logic in the pet food sector, with companies like Zhongchong and Guobao expected to see both volume and price increases [7] - The report predicts a decline in global corn and wheat stock-to-use ratios for the 2025/26 season, indicating tighter supply conditions [6][50] Summary by Sections 1. Weekly Market Review - The agricultural sector index fell by 0.36% in the week from May 19 to May 23, 2025, underperforming compared to the Shanghai Composite Index [19] - The agricultural sector has ranked 9th among 31 sub-industries since the beginning of 2025, with a year-to-date increase of 3.18% [19][23] 2. Industry Weekly Data 2.1 Primary Agricultural Products - Corn spot price is 2376.08 CNY/ton, showing a week-on-week increase of 0.05% but a year-on-year decrease of 2.23%. Soybean spot price remains stable at 3927.89 CNY/ton, down 10.46% year-on-year [42] - The report notes that the global corn stock-to-use ratio for 2025/26 is projected to be 18.9%, the lowest since the 2015/16 season [6][51] 2.2 Livestock and Poultry - The average price of live pigs is reported at 14.18 CNY/kg, with a week-on-week decline of 2.1%. The average weight of pigs at slaughter has decreased slightly [3][4] - The report indicates that the price of white feather chicken products remained stable, while yellow feather chicken prices experienced slight fluctuations [4] 2.3 Animal Vaccines - The report shows a significant increase in the issuance of pig vaccines, with diarrhea vaccines up by 177.8% year-on-year [8] 3. Industry Dynamics - The report discusses the ongoing trends in the pet food industry, highlighting the growth potential for domestic brands [7] - It also notes the expected supply constraints in the poultry sector due to limited imports and potential disruptions in breeding stock availability [4]

Investment Rating - The report maintains an "Overweight" rating for the agriculture sector [3] Core Insights - The agriculture sector is experiencing a blend of traditional and innovative trends, with a focus on both stable consumption and growth opportunities [1] - The report highlights the resilience of meat protein prices and the potential for long-term investment opportunities amidst market pessimism [1][2] Summary by Sections Traditional Consumption - Meat protein prices remain strong, with pork prices averaging 15.1 CNY/kg from January to April 2025, up 1.4% and 2.7% compared to 2024 and 2023 respectively [9] - The average profit per pig has reached 87 CNY, marking the first profitable quarter since 2021 [9] - Poultry supply is increasing, with a recovery in breeding stock leading to improved profitability in the poultry sector [24][29] New Consumption - The new consumption trends are focusing on health and wellness, with significant growth in the pet-related industry, including pet food and healthcare [2] - The rise of sugar alternatives and health food concepts such as konjac and blueberries are highlighted as key growth areas [2] Investment Recommendations - The report suggests focusing on specific companies within various segments, including: - Swine farming: Muyuan Foods, Wens Foodstuff Group, and Shennong Group - Poultry: Sanquan Foods, Hewei Group, and Yisheng Livestock - Aquaculture feed: Haida Group - Pet industry: Guibao Pet and Zhongchong Co. - New consumption: Baolingbao Biology, Huakang Co., and Zhongxing Junye [2] Crop Production - The report notes that corn and soybean production is expected to be stable, with a slight increase in corn production to 290 million tons in 2025, up 0.4% from the previous year [64][69] - The impact of weather on crop yields is emphasized, particularly regarding the ENSO phenomenon and its potential effects on production [78] Market Trends - The report indicates a potential increase in beef prices as domestic and international supply decreases, with beef wholesale prices rising to 63.12 CNY/kg in May 2025 [39] - The overall outlook for the agriculture sector remains positive, with expectations of continued demand and price stability in key protein markets [63]

Core Viewpoint - The article discusses the rise of "new consumption" in China, highlighting a shift from functional needs to emotional value among consumers, leading to the emergence of various new consumption sectors such as the pet economy and traditional crafts [1][4]. Group 1: New Consumption Trends - New consumption encompasses service consumption, spiritual consumption, and technology-related consumption, with a particular focus on spiritual consumption in the current context of material abundance [1][2]. - Companies like Pop Mart have successfully capitalized on the new consumption trend, achieving explosive growth despite a generally sluggish overall consumption environment [2][3]. Group 2: Brand Influence and Consumer Behavior - The willingness of consumers to pay a premium for products is driven by brand recognition rather than significant changes in distribution or supply chains, as seen with brands like Mixue Ice City [2][3]. - The emotional connection established through branding, such as the viral marketing of Mixue's IP "Snow King," differentiates it from competitors and enhances brand recognition [3]. Group 3: Pet Economy Insights - The pet economy is projected to reach a market size of 592.8 billion yuan in 2023, with expectations to exceed 1.15 trillion yuan by 2028, indicating strong growth potential [3][4]. - The pet economy is characterized by high consumer stickiness and emotional attachment, particularly among younger demographics, with 41.2% of pet owners being born in the 1990s [4][5]. Group 4: Market Dynamics and Valuation - Despite the promising outlook for the pet economy, the average price-to-earnings ratio for pet stocks exceeds 50, significantly higher than traditional consumer goods, which typically range from 10 to 25 [5]. - The concentration of leading companies in the pet market is expected to increase, driven by product innovation and brand development, although there are concerns about potential valuation corrections if market consolidation does not meet expectations [5][6]. Group 5: Long-term Sustainability - The pursuit of new consumption reflects a search for certainty in an uncertain society, but the sustainability of this trend will ultimately depend on returning to fundamental business values [6].

Core Viewpoint - The company reports stable order conditions and orderly production, indicating a positive outlook for both domestic and international markets [1] Domestic Market - The influence of domestic brands is increasing, leading to a higher proportion of high-margin products and staple food products, which drives positive development in the domestic market [1] - The company aims to continuously optimize its product structure to increase the proportion of high-margin staple food products [1] International Market - The company has a global supply chain layout and quality product services, with stable production operations in overseas subsidiaries such as factories in the United States and Canada, which support overall order volume [1] Product Strategy - The company plans to launch or upgrade staple food products under its three major domestic brands: WANPY, Toptrees, and ZEAL, to enhance overall gross margin in domestic operations [1] - Continuous product upgrades and optimizations are expected to improve the overall gross margin of domestic business [1]

Financial Performance - In 2024, the company achieved a revenue of CNY 4.465 billion, a year-on-year increase of 19.15%, with a net profit of CNY 394 million, up 68.89% [4] - In Q1 2025, the revenue reached CNY 1.101 billion, growing by 25.41%, and the net profit was CNY 91 million, an increase of 62.13% [4] Brand Development - WANPY brand focuses on product innovation, content marketing, and brand promotion to enhance its influence [4] - The brand has successfully engaged a new generation of quality idols as ambassadors, shifting communication strategy from product functionality to emotional value [5] - WANPY's products have achieved significant online sales success, topping various sales charts on platforms like Douyin [5] Research and Innovation - The company has established a complete innovation chain with over 300 national patents and a research team of more than 280 personnel [5] - Strategic partnerships with research institutes aim to innovate in core technologies like functional peptides and collagen in pet food [6] - The establishment of an ethical review committee for experimental animals sets a new industry standard [7] Expansion Plans - The company invested USD 28 million to build the largest pet snack factory in the U.S., which became profitable in its first year [7] - Plans for a second factory in the U.S. are underway, expected to be completed by 2026, enhancing local supply capabilities [7] - In Canada, a factory expansion is planned for the second production line by the second half of 2025 [7] Order and Profitability Outlook - Current order status is stable, with a focus on high-margin products and expanding sales channels [8] - The company aims to optimize product structure to increase the proportion of high-margin staple products, enhancing overall profitability [9]