Yin He Zheng Quan·2025-06-19 09:25Core Insights - The report emphasizes the potential for investment in the pig farming sector, driven by changes in production capacity and price expectations, recommending major players like Muyuan Foods and Wen's Foodstuffs, as well as smaller companies like Shennong Group and Tiankang Biological [5][27][79] - The pet food industry in China is experiencing rapid growth, with a focus on increasing market share and improving profit margins through enhanced product offerings and online sales channels, highlighting key companies such as Zhongchong Co., Guai Bao Pet, and Petty [5][14][93] - The pet medical sector is benefiting from a shift towards more scientific pet care practices, leading to increased medical consumption and a trend towards chain operations in pet hospitals, with a focus on companies like Reap Bio and other leading animal health firms [6][14] Livestock Sector - Pig Farming - The pig farming index has shown an increase of 8.43% from the beginning of the year until June 13, 2025, indicating a recovery phase for the sector [27] - The report predicts that the average price of pigs in 2025 will range between 15.3 to 17 yuan/kg, influenced by production capacity and efficiency improvements [61] - The report highlights that the market share of listed pig farming companies reached 24.1% in Q1 2025, a year-on-year increase of 5.2 percentage points, indicating a strengthening competitive position [37][27] Pet Food Sector - The pet food market in China is projected to grow significantly, with a CAGR of 11% from 2017 to 2024, driven by increasing pet ownership and higher spending per pet [93][95] - The main pet food segment, which includes staple foods, is expected to reach a market size of 1,072 billion yuan by 2024, reflecting a growing preference for high-quality nutrition [93][102] - Leading pet food companies are optimizing their revenue structures by increasing the proportion of staple food sales, which typically have higher profit margins compared to snacks [102][106] Pet Medical Sector - The pet medical market is expected to grow at a CAGR of 17% over the past seven years, with a significant portion of revenue coming from diagnostics and pharmaceuticals [6][14] - The trend towards chain operations in pet hospitals is expected to enhance market concentration and operational efficiency [6][14] - Domestic vaccine production for pets is accelerating, leveraging local strains and distribution advantages to replace imported products [6][14]