Summary of Petty Co. Conference Call Company Overview - Petty Co. has transitioned from an ODM manufacturer to a company with proprietary patents in dog chew products and has participated in setting national standards for pet food [2][3] - The company has established a global production footprint with factories in Vietnam, Cambodia, and New Zealand to enhance supply chain stability and optimize overseas profit structures, particularly in the U.S. market [2][12] Financial Performance - In Q1 2024, Petty Co.'s revenue and profit have largely recovered to levels seen in Q1 2022, with expectations for full-year revenue to match 2022 figures [2][6] - The gross margin for 2024 is projected to increase to 28.01%, benefiting from the completion of inventory destocking in Europe and the U.S. and a rise in capacity utilization at the Cambodia factory to 90% [2][6] Market Trends - The U.S. pet food market shows strong consumer vitality, especially for high-end functional foods like chews, with over 80% of U.S. pet owners recognizing the importance of pet food for health [2][9][10] - The demand for oral health management products is increasing, driven by a significant awareness of dental issues among aging pets [9][10] Product Innovation - Petty Co. has developed the fifth generation of plant and animal fiber mixed chews, which not only meet chewing and dental cleaning needs but also include additional nutritional components, maintaining a technological edge and enhancing bargaining power with customers [2][10][13] Competitive Landscape - The domestic high-end pet food market is primarily dominated by foreign brands, but local brands are finding ways to differentiate themselves. Petty Co. is entering the high-end dog food market with its brand "Jueyan" through a multi-channel strategy [2][11][15] - Domestic brands are increasingly innovating and adopting unique strategies to compete, such as the acquisition of high-end brands and the introduction of specialized products [11] Strategic Initiatives - Petty Co. is focusing on a multi-brand strategy, with "Jueyan" leading the charge in the high-end dog food segment, and plans to expand into wet food and seasonal snacks [5][16] - The company is also enhancing its online and offline channel strategies, leveraging e-commerce platforms and establishing a presence in large retail chains to improve brand visibility and sales [18] Future Outlook - The company anticipates a positive growth trajectory for 2025, with expectations for significant contributions from its brands "Jueyan" and "Haoshijia" as they capitalize on market trends and consumer preferences [19] - The New Zealand factory is expected to resume normal operations in the second half of 2025, which will alleviate profit pressures and support growth [19]

Investment Rating - The report maintains a "Positive" investment rating for the agriculture industry [5] Core Viewpoints - The pig farming sector is expected to see a long-term performance improvement due to ongoing capacity reduction driven by both policy and market forces, with key companies continuing to show profitability and increasing dividend rates [3][46] - The current prices for fat pigs and piglets have dropped significantly, leading to widespread losses in the industry, which may trigger a market-driven capacity reduction [3][12] - The planting sector is showing positive fundamentals with an established upward trend in grain prices, highlighting significant investment opportunities [3][46] Summary by Relevant Sections Industry Fundamentals - Pig prices continue to decline, with the average price for fat pigs at 12.45 yuan/kg, down 1.81% week-on-week, and piglet prices at 21.29 yuan/kg, down 4.81% week-on-week [12][54] - The average weight of pigs at slaughter is stabilizing, but the pressure from capacity release continues, leading to a sustained decline in prices [12] Investment Recommendations - The report recommends focusing on the pig farming sector, highlighting companies such as Muyuan Foods (002714) and Wens Foodstuff Group (300498) as key investment targets [3][46] - For the post-cycle sector, rising pig inventory is expected to boost demand for feed and animal health products, with companies like Haida Group (002311) and Reap Bio (300119) identified as potential beneficiaries [3][46] - In the planting chain, companies like Suqian Agricultural Development (601952) and Beidahuang (600598) are noted for their favorable investment outlook due to rising grain prices [3][46] - The pet food sector is also highlighted for its growth potential, with companies like Guibao Pet (301498) and Zhongchong Co. (002891) recommended for investment [3][46] Market Performance - The agriculture sector underperformed the market, with the agricultural index down 1.97% during the week, compared to a 0.21% increase in the Shanghai Composite Index [48][49] - Key sub-sectors such as feed, animal health, and livestock farming all experienced declines, with livestock farming down 2.14% [48]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The logic of breeding sow reduction is strengthening, and beef and milk are expected to achieve upward linkage in 2026. As of September 26, 2025, the average price of live pigs in China is 12.50 yuan/kg, with a week-on-week decrease of 0.20 yuan/kg and a year-on-year decrease of 5.51% [11][16] - The investment logic for live pigs is marginally improving, driven by both fundamental and policy factors. The price of live pigs is expected to rise in the second half of 2025 due to strong support from previous breeding sow reductions and winter piglet losses [29][32] Summary by Sections Weekly Observation - The logic of breeding sow reduction is strengthening, and beef and milk are expected to achieve upward linkage in 2026. The average price of live pigs is 12.50 yuan/kg, with a week-on-week decrease of 0.20 yuan/kg and a year-on-year decrease of 5.51% [11][16] - The average price of beef is 66.27 yuan/kg, with a month-on-month increase of 2.10% and a year-on-year increase of 7.74% [23] Weekly Market Performance (September 22-26) - The agricultural index underperformed the market by 2.18 percentage points, with the Shanghai Composite Index rising by 0.21% and the agricultural index falling by 1.97% [34][36] - Leading stocks include ST Jinggu (+15.68%), Huaying Agriculture (+5.76%), and Biological Shares (+3.78%) [34][40] Price Tracking (September 22-26) - The average price of live pigs is 12.45 yuan/kg, down 1.81% from the previous week. The average price of piglets is 21.29 yuan/kg, down 4.87% [46] - The average price of beef is 65.90 yuan/kg, with a week-on-week increase of 0.30 yuan/kg [54] Recommendations - Recommended stocks in the pig sector include Muyuan Foods, Wens Foodstuff Group, and Juxing Agriculture [20][29] - In the feed sector, recommended stocks include Haida Group and New Hope [29] - In the pet food sector, recommended stocks include Guibao Pet, Zhongchong Shares, and Petty Shares [32]

Investment Rating - The report maintains an investment rating of "Outperform" for the agricultural, forestry, animal husbandry, and fishery industry [1]. Core Insights - The agricultural, forestry, animal husbandry, and fishery industry outperformed the benchmark index in August 2025, with a rise of 11.6% compared to a 10.3% increase in the CSI 300 index, resulting in a 1.3 percentage point outperformance [8][11]. - The report highlights a mixed performance in livestock prices, with pig prices declining while chicken prices showed signs of recovery [8][27]. - The report suggests that the industry is currently undervalued, with both price-to-earnings (PE) and price-to-book (PB) ratios below historical averages, indicating potential for valuation recovery [8]. Summary by Sections Market Review - In August 2025, the agricultural, forestry, animal husbandry, and fishery index rose by 11.6%, ranking 9th among 30 sectors [8][11]. - The planting sector saw the highest gains, while the aquaculture processing sector experienced the largest declines [8]. Livestock Industry Data Tracking - **Pig Farming**: The average price of pigs in August 2025 was 13.77 yuan/kg, down 5.36% month-on-month and 32.27% year-on-year. The market faced oversupply, leading to price declines [17][24]. - **Chicken Farming**: The average price of white feathered chickens was 3.56 yuan/jin, reflecting a month-on-month increase of 10.56% but a year-on-year decrease of 4.30% [27][29]. Pet Food - Pet food exports in August 2025 reached 29,500 tons, a year-on-year increase of 3.53%. However, the export value in USD decreased by 15.86% [32][34]. Major Agricultural Product Price Tracking - The report includes tracking of corn, wheat, soybean meal, and rapeseed meal prices, indicating fluctuations in the market [36][37]. Industry Dynamics and Company News - The report tracks significant events in the industry, including changes in grain import volumes and agricultural production forecasts [43]. - It also highlights key announcements from listed companies in the sector, including profit distribution plans and stock buybacks [45][48].

Group 1 - The core viewpoint of the news is that Petty Co., Ltd. has experienced fluctuations in its stock price and financial performance, with a recent increase in stock price but a decline in revenue and net profit for the first half of 2025 [1][2]. Group 2 - As of September 26, Petty's stock price increased by 2.02% to 17.68 CNY per share, with a total market capitalization of 4.399 billion CNY [1]. - The company has seen a year-to-date stock price increase of 1.67%, but it has declined by 1.89% over the last five trading days and 3.18% over the last 20 days [2]. - Petty Co. specializes in the research, production, and sales of pet food, with 98.05% of its revenue coming from pet food and 1.95% from other sources [2]. - The company reported a revenue of 728 million CNY for the first half of 2025, a year-on-year decrease of 13.94%, and a net profit of 79.1026 million CNY, down 19.23% year-on-year [2]. - Petty Co. has distributed a total of 210 million CNY in dividends since its A-share listing, with 84.7318 million CNY distributed over the past three years [3].

证券日报网讯佩蒂股份9月25日在互动平台回答投资者提问时表示，截至2025年9月10日、9月19日收 市，持有本公司股票的股东总户数分别为18，330户、17，545户。 （文章来源：证券日报） ...

Core Insights - The report indicates a narrowing profitability in pig farming while the pet food sector continues to grow [1][5] - The investment rating is maintained as "positive" for the sector [1] Pig Farming - Supply pressure has led to a decline in pig prices, with the average price in July-August 2025 at 14.63 CNY/kg, down from 14.96 CNY/kg in Q2 2025 [5] - The average profitability for self-breeding and purchased piglets in the industry has shifted to losses, with figures of 53.0 CNY/head for self-breeding and -106.7 CNY/head for purchased piglets as of September 19 [5] - The outflow of pigs from listed companies has shown a growth rate of 26.2% in Q2 2025 and 20.0% in July-August 2025 [5] - The report suggests that the ongoing policy guidance for capacity adjustment and weight reduction will likely elevate the price center of pigs in the future [5] - Recommended companies for investment include Muyuan Foods, Wens Foodstuff, Dekang Agriculture, Juxing Agriculture, Shennong Group, Tiankang Biological, and Tangrenshen [5] Animal Health - Demand for animal health products is on the rise, with significant year-on-year growth in various vaccines, such as a 30% increase for swine fever vaccines in July-August 2025 [5] - Companies like Keqian Biological and Ruipu Biological are highlighted for their strong internal growth potential due to new product launches [5] Poultry Farming - The price of white feather chickens has rebounded due to seasonal demand and tighter supply, with an average price of 6.92 CNY/kg as of September 19, 2025 [5] - The report notes a 17.66% year-on-year decrease in the number of breeding chickens updated in the first eight months of 2025, indicating potential long-term benefits for the white feather chicken industry [5] - Recommended companies include Shennong Development and Yisheng Livestock [5] Pet Food Sector - Domestic sales of pet food are driven by consumption upgrades and domestic substitution, with a reported growth rate of 11% across major e-commerce platforms from January to August 2025 [5] - The report highlights the introduction of new products and the strengthening of brand power among leading companies [5] - Recommended companies in the pet food sector include Guibao Pet, Zhongchong Co., Petty Co., and Lusi Co. [5]

Investment Rating - The report maintains a "Recommended" rating for the agricultural, forestry, animal husbandry, and fishery industry [1] Core Viewpoints - The report emphasizes the ongoing adjustment in the pig industry, highlighting the potential for value reassessment due to production capacity control and low-cost performance realization [3][16] - The poultry sector is expected to see improvements in fundamentals, with a focus on the white feather chicken breeding segment and price trends [4][29] - The animal health sector is witnessing a competitive landscape improvement and technological innovation, with several new products receiving clinical approval [5][37] - The pet economy is thriving, with domestic brands rapidly emerging, indicating sustained profitability improvements in the sector [9][59] Summary by Sections Pig Industry - Continuous deepening of pig price control measures is noted, with a focus on maintaining prices within a reasonable range [3][16] - Current average pig price is 13.15 yuan/kg, with a slight weekly decline [15] - Recommended companies include Muyuan Foods and Wens Foodstuffs, with ongoing recommendations for Juxing Agriculture and Shennong Group [3][16] Poultry Industry - The white feather chicken breeding segment shows potential for improvement, with significant updates in breeding stock [4][29] - Current prices for white feather chicken and related products are stable, with slight fluctuations noted [27][28] Animal Health Industry - The competitive landscape is improving, with notable profit differentiation among leading companies [5][36] - Several new vaccines have received clinical approval, marking significant advancements in the sector [5][37] Planting Industry - Prices for corn and soybean meal have shown a week-on-week decline, with ongoing commercialization of genetically modified seeds benefiting early adopters [7][42] Feed Industry - Feed prices are experiencing fluctuations, with a noted increase in production volume [8][48] - Recommended companies include Haida Group, with a focus on rising industry concentration [8][49] Pet Industry - The pet market is projected to reach 300.2 billion yuan in 2024, with a notable increase in consumer spending on pets [9][58] - Recommended companies in the pet food sector include Guobao Pet and Zhongchong Co., with a focus on the growing pet medical segment [9][59]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Insights - The investment logic for the pig industry continues to strengthen due to dual catalysts from policies and diseases, with a recommendation for long-term positioning despite current price lows [3][5] - The pet food export volume continues to grow year-on-year, indicating a sustained positive trend in the pet food market [4][28] Summary by Sections Weekly Observation - The pig price is running at a low level, with the national average price at 12.71 yuan/kg as of September 21, 2025, down 0.50 yuan/kg week-on-week and down 5.73 yuan/kg year-on-year [3][13] - The average weight of pigs sold is 128.45 kg, showing a slight increase week-on-week and year-on-year [3][13] - The pig industry is expected to see a strong execution of policies aimed at capacity reduction, which will enhance the expectations for substantial capacity reduction [3][13] Weekly Viewpoint - The investment logic for the pig industry is marginally improving, with a recommendation for companies such as Muyuan Foods, Wens Foodstuff Group, and others [5][24] - The domestic feed market is benefiting from the post-cycle of poultry and livestock, with strong overseas demand supporting prices [5][25] - The pet food sector is experiencing a rise in domestic brands due to consumption upgrades and tariff barriers [5][28] Market Performance (September 15-19) - The agricultural index underperformed the market by 1.40 percentage points, with the agricultural index down 2.70% [6][29] - Leading stocks included Shennong Biotechnology (+9.36%), Xuelong Biotechnology (+7.64%), and Tianma Technology (+3.90%) [6][29] Price Tracking (September 15-19) - The average price of pigs was 12.68 yuan/kg, down 0.66 yuan/kg from the previous week [7][37] - The average price of piglets was 22.38 yuan/kg, down 1.57 yuan/kg week-on-week [7][37] - The average price of beef was 65.60 yuan/kg, showing a slight increase [44][37] Key News (September 15-19) - Notification regarding the central reserve frozen pork storage auction scheduled for September 23, 2025, with 15,000 tons available for auction [35]

Market Overview - The feed sector increased by 0.29% on September 19, with Tianma Technology leading the gains [1] - The Shanghai Composite Index closed at 3820.09, down 0.3%, while the Shenzhen Component Index closed at 13070.86, down 0.04% [1] Key Performers in the Feed Sector - Tianma Technology (603668) closed at 15.20, up 4.83% with a trading volume of 321,600 shares and a turnover of 486 million yuan [1] - Jin Xin Nong (002548) closed at 5.22, up 4.19% with a trading volume of 1,024,900 shares and a turnover of 521 million yuan [1] - Tian Kang Biological (002100) closed at 7.68, up 1.86% with a trading volume of 563,400 shares and a turnover of 427 million yuan [1] Capital Flow Analysis - The feed sector experienced a net outflow of 80.65 million yuan from institutional investors, while retail investors saw a net inflow of 5.61 million yuan [2] - The main capital inflow was observed in Jin Xin Nong, with a net inflow of 55.77 million yuan from institutional investors [3] - Hai Da Group (002311) had a net inflow of 18.08 million yuan from institutional investors, indicating positive sentiment [3]