Dongguan Securities·2025-07-23 08:09Investment Rating - The report maintains an "Overweight" rating for the pet industry, indicating that the industry index is expected to outperform the market index by over 10% in the next six months [4]. Core Insights - The pet industry in China is projected to continue its rapid growth, with the urban pet consumption market expected to increase from 170.8 billion yuan in 2018 to 300.2 billion yuan by 2024, reflecting a CAGR of approximately 9.9% [3]. - The pet food market is anticipated to grow from 89.1 billion yuan to 158.5 billion yuan during the same period, with a CAGR of about 10.1% [3]. - The pet healthcare market, including vaccines and medications, is expected to see significant growth, with a projected increase from 8.54 billion yuan to 37.22 billion yuan, representing a CAGR of 27.8% [3]. - The report highlights that the pet ownership penetration rate in China is still relatively low compared to mature markets, indicating substantial room for growth [3]. Market Dynamics - The pet ownership demographic is shifting towards younger generations, with post-90s pet owners constituting 41.2% and post-00s pet owners rising to 25.6% [3]. - The report notes that the pet industry in China is characterized by a low concentration of market players, with the top three companies holding only 3.6% of the market share [3]. - The competitive landscape is fragmented, with numerous small and medium-sized enterprises alongside established brands like Guai Bao Pet and Zhong Chong Co [3]. Investment Recommendations - The report suggests focusing on key players in the pet industry, including Guai Bao Pet (301498), Zhong Chong Co (002891), Yi Yi Co (001206), Yuan Fei Pet (001222), Tian Yuan Pet (301335), and Pu Lai Ke (603566) [3].