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].

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]

Core Viewpoint - Ping An Securities report indicates that Guibao Pet Products has transitioned from overseas OEM/ODM origins to establishing its own brands, with significant growth in the domestic market and a focus on high-end pet food products [1] Company Overview - Guibao Pet Products was founded in 2013 and launched its own brand "Mafudi" to enter the domestic market [1] - In 2018, the company introduced the brand "Fuleijiate," targeting the high-end cat food segment [1] - The acquisition of the American brand "WagginTrain" in 2021 enhanced the company's overseas presence [1] Financial Performance - By 2024, the company's main food revenue is expected to account for 51% of total revenue, surpassing snacks to become the largest category [1] - Self-owned brand revenue is projected to represent 58% of total revenue, with a compound annual growth rate (CAGR) of 37% from 2020 to 2024 [1] - The overseas OEM/ODM business is expected to maintain stable growth, while domestic self-owned brands are anticipated to grow rapidly [1] Investment Outlook - Given the high proportion of self-owned brands and the ample long-term growth potential, along with rapid profit growth, a price-to-earnings ratio (PE) of 51X for 2025 is considered reasonable [1] - The report initiates coverage with a "recommended" rating for the company [1]

Investment Rating - The report gives an "Overweight" rating for the agricultural sector, indicating a positive outlook for the industry compared to the overall market performance [3][4]. Core Insights - The report highlights the ongoing "anti-involution" process in pig farming, suggesting that the industry is likely to accelerate capacity reduction due to both fundamental and policy-driven factors. This presents an opportunity for value reassessment of quality pig farming companies [3][4]. - The report notes that after over 16 months of profitability, the pig farming industry has entered a phase of losses again, with a significant drop in pig prices. The average selling price of pigs was reported at 12.71 yuan/kg, down 4.2% week-on-week [3][4]. - The report emphasizes the recovery of profits in the breeding industry and the continued demand for pet food, with a notable increase in net profits for tracked companies in the agricultural sector, which reached 20.78 billion yuan, a year-on-year increase of 208% [3][4]. Summary by Sections Agricultural Stock Market Performance - The Shenwan Agricultural Index fell by 2.7%, while the CSI 300 Index decreased by 0.4%. The top five gainers included Andeli and Biological Shares, both up by 9.4%, while the biggest losers included *ST Zhongji, down by 18.3% [4][11]. Pig Farming - The report indicates that the pig farming sector is facing accelerated losses, with self-breeding operations losing 24.44 yuan per head. The average price for weaned piglets dropped to 259 yuan per head, a decrease of 32 yuan week-on-week [3][4]. - The Ministry of Agriculture and Rural Affairs is implementing capacity control measures, aiming to reduce the breeding sow population by 1 million heads over the next six months [3][4]. Poultry Farming - The white feather broiler market continues to experience weak pricing, with the average selling price for broiler chicks at 3.10 yuan per chick, down 4.91% week-on-week. The report suggests focusing on leading companies for long-term value [3][4]. - The yellow feather broiler market is seeing a seasonal rebound, with prices for Qingjiao chicken rising significantly since June, indicating potential profitability improvements in the upcoming quarter [3][4]. Pet Food Industry - The report tracks pet food export data, noting a decline in export value to 834 million yuan in August, down 10.4% month-on-month and 15.5% year-on-year. However, the export volume increased by 3.5% year-on-year [3][4].

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]

Core Viewpoint - The company, Guibao Pet, has rapidly developed its own brands in the pet food industry, with significant growth in market share and sales performance, particularly in the high-end segment [1][2]. Group 1: Company Overview - Guibao Pet was established in 2006, initially focusing on pet snacks for export and OEM processing. The company launched its own brand "Maifudi" in 2013 to enter the domestic market [1]. - The company has expanded its brand portfolio, introducing high-end pet food brands such as "Fuleijiate" in 2019 and the high-end sub-brand "BARF" in 2021 [1]. - According to Euromonitor data, Guibao Pet is projected to hold the largest market share among domestic brands in the pet food industry by 2024 [1]. Group 2: Sales Performance - The two main brands, Maifudi and Fuleijiate, have shown rapid growth, with GMV on major e-commerce platforms (Tmall, JD, Pinduoduo) increasing by 23.5% and 146.8% year-on-year respectively in the first half of 2025 [1]. - The pet food sales across the three major e-commerce platforms grew by 13% year-on-year in the first half of 2025, indicating a sustained growth trend in the industry [2]. Group 3: Market Outlook - The pet food sector is expected to experience significant growth, with projections indicating a high single-digit growth in 2024 and a potential growth of 60% to 90% by 2030 [2]. - The competitive landscape in China's pet food industry remains fragmented, with opportunities for domestic brands to increase their market share, potentially reaching 10% to 18% when compared to markets in Japan, South Korea, and Thailand [2]. Group 4: Brand Development and Innovation - The company has effectively identified trends and leveraged strong R&D capabilities to launch high-quality new products, resulting in an increasing share of mid-to-high-end brands [3]. - The product matrix is well-rounded, with strong performance across various categories, and the company maintains a stable ranking in sales during major promotional events [3]. Group 5: Export Business - The export business has experienced fluctuations due to external factors such as tariffs and global economic conditions, but is expected to recover to double-digit growth in 2024 [4]. - The company has expanded its production capacity in Thailand, which is anticipated to positively impact export performance in the long term, despite short-term challenges [4]. Group 6: Profitability - The company's gross margin is projected to increase from 28.8% in 2021 to 42.3% in 2024, driven by favorable raw material costs and improved product and channel structures [5]. - The net profit margin is expected to rise from 5.4% in 2021 to 11.9% in 2024, indicating significant potential for profitability compared to global leaders like Nestlé and Colgate [5]. Group 7: Financial Forecast - Revenue projections for the company are set at 6.43 billion, 7.94 billion, and 9.63 billion yuan for 2025 to 2027, reflecting year-on-year growth rates of 22.6%, 23.4%, and 21.4% respectively [6]. - The expected net profit for the same period is forecasted to be 760 million, 970 million, and 1.22 billion yuan, with growth rates of 21.4%, 28.0%, and 25.7% respectively [6].

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]

Market Overview - The feed sector experienced a decline of 1.48% on September 17, with Bangji Technology leading the drop [1] - The Shanghai Composite Index closed at 3876.34, up 0.37%, while the Shenzhen Component Index closed at 13215.46, up 1.16% [1] Individual Stock Performance - Aonong Biological (603363) saw a closing price of 6.02, with an increase of 4.15% and a trading volume of 1.568 million shares, totaling a transaction value of 927 million yuan [1] - Guibao Pet (301498) closed at 96.05, up 2.60%, with a trading volume of 36,400 shares and a transaction value of 351 million yuan [1] - Zhongchong Co. (002891) closed at 56.39, up 1.46%, with a trading volume of 98,500 shares and a transaction value of 559 million yuan [1] - Bangji Technology (603151) closed at 28.21, down 8.32%, with a trading volume of 63,000 shares and a transaction value of 182 million yuan [2] - Haida Group (002311) closed at 64.40, down 3.01%, with a trading volume of 111,600 shares and a transaction value of 720 million yuan [2] Capital Flow Analysis - The feed sector saw a net outflow of 65.0615 million yuan from institutional investors, while retail investors experienced a net inflow of 24.4814 million yuan [2] - Aonong Biological had a net inflow of 29.917 million yuan from institutional investors, but a net outflow of 25.9353 million yuan from retail investors [3] - Zhongchong Co. had a net inflow of 27.7889 million yuan from institutional investors, with a net outflow of 27.0733 million yuan from retail investors [3]

Group 1 - The core viewpoint of the news is the performance and market position of Guibao Pet Food, which saw a stock price increase of 5.22% to 98.51 CNY per share, with a total market capitalization of 39.408 billion CNY [1] - Guibao Pet Food was established on June 26, 2006, and went public on August 16, 2023. The company focuses on the research, production, and sales of pet food, with its main revenue sources being staple food (58.46%), snacks (40.17%), health products and supplies (0.97%), and others (0.40%) [1] - The trading volume for Guibao Pet Food reached 251 million CNY, with a turnover rate of 1.46% [1] Group 2 - Morgan Fund has a significant position in Guibao Pet Food, with its Morgan Safety Strategic Stock A fund holding 56,700 shares, accounting for 3.07% of the fund's net value, making it the eighth largest holding [2] - The Morgan Safety Strategic Stock A fund has seen a year-to-date return of 46.02% and a one-year return of 52.65%, ranking 596 out of 4222 and 1979 out of 3804 respectively in its category [2] - The fund manager, Chen Siyu, has been in charge for over 10 years, with the fund's total asset size at 1.657 billion CNY and a best return of 95.1% during his tenure [3]

Core Insights - The pet economy is thriving, driven by young people who view pets as companions and emotional support, with the urban pet market in China expected to exceed 300 billion yuan in 2024 and reach 400 billion yuan by 2027 [3][4] Group 1: Company Performance - Companies like Guobao Pet and Zhongchong Co. have reported significant revenue and net profit growth, with Guobao Pet achieving a revenue of 3.221 billion yuan, up 32.72%, and a net profit of 378 million yuan, up 22.55% [4] - In contrast, Petty Co. experienced declines in both revenue and net profit, with a revenue of 728 million yuan, down 13.94%, and a net profit of 79 million yuan, down 19.23% [4][6] - The performance disparity among pet companies is attributed to their differing business focuses, with some shifting towards self-owned brands while others remain reliant on overseas OEM models [4][6] Group 2: Shift to Self-Owned Brands - The rise of self-owned brands is evident, with Guobao Pet's self-owned brand business reaching 3.5 billion yuan, accounting for 67% of its total revenue in 2024 [5][6] - Tianyuan Pet has also been building its brand matrix, with domestic revenue increasing from 5.32 billion yuan in 2021 to 14.31 billion yuan in 2024, indicating a shift towards self-owned brands [6] - Petty Co. continues to rely heavily on overseas OEM, with 82.63% of its revenue coming from international markets, which may hinder its brand development and competitiveness [6][7] Group 3: Brand Power as a Competitive Edge - The domestic pet food market is increasingly dominated by local brands, surpassing foreign brands in online sales, with local brands occupying six spots in the Tmall "Double 11" pet food rankings [7] - Companies are focusing on brand building and high-end strategies to capture market share, with Petty Co. reporting a nearly 50% increase in revenue from its mid-to-high-end "Jueyan" brand [7][8] - Future strategies for companies include enhancing R&D, improving product quality, and strengthening channel capabilities to adapt to the evolving pet economy [8][9]