SIRIO(SZ:300791) Xin Lang Cai Jing·2025-08-21 08:43Core Viewpoint - The company, Xianle Health, has officially entered the pet health market with the launch of its pet brand, Xianle Dechong, showcasing innovative products like the NUTRIFUSE ultra-soluble krill oil at the Asia Pet Expo, indicating a strategic move into a rapidly growing sector [1][2]. Group 1: Company Developments - Xianle Dechong launched its differentiated pet health products at the Asia Pet Expo in August 2025, marking the company's entry into the pet sector [1]. - The company established Dechong (Guangdong) Health Technology Co., Ltd. at the end of 2024, further solidifying its commitment to the pet health market [1]. - The NUTRIFUSE ultra-soluble krill oil was developed using E-Cube bionic enhancement technology, focusing on efficacy enhancement, taste optimization, and feeding experience [1]. Group 2: Industry Insights - The pet nutrition and health sector is projected to grow significantly, with the urban pet consumption market expected to reach 300.2 billion yuan in 2024 and potentially exceed 400 billion yuan by 2027 [2]. - The pet health segment, particularly in pet food, nutrition, and health care, is identified as a major growth driver, with pet health products on platforms like Douyin seeing a 225% year-on-year increase in GMV in 2024 [2]. - There is a notable shift in pet ownership philosophy in China from basic feeding to a more scientific and refined approach, emphasizing disease prevention and aging management [2]. Group 3: Competitive Advantages - Xianle Dechong aims to build a competitive edge through a "technology research + product innovation + ecological collaboration" model [3]. - The company is leveraging its established human nutrition formulations and enhancement technologies to create differentiated pet products with scientific efficacy and high palatability [3]. - Xianle Dechong has established deep partnerships with leading global companies, facilitating collaboration in both human and pet nutrition sectors, enhancing its market position [3]. Group 4: Financial Projections - The company is projected to achieve net profits of 391 million yuan, 501 million yuan, and 580 million yuan for the years 2025, 2026, and 2027, representing year-on-year growth rates of 20%, 28%, and 16% respectively [4]. - The current stock price corresponds to a PE ratio of 20X, 15X, and 13X for the years 2025 to 2027, maintaining a "recommended" rating [4].