Investment Rating - The report initiates coverage with a "Buy" rating for the company [5]. Core Views - The company is positioned as a leading player in the domestic pet supplies and food market, leveraging quality overseas customer resources and global production capacity advantages. It is actively developing its own brands to create a second growth curve. The company experienced a revenue turning point in Q2 2023 due to inventory replenishment and is expected to see revenue and profit resonance in 2024 as it focuses on its own brands [1]. Summary by Sections Company Overview - The company, Yuanfei Pet, was established in 2004 and initially focused on OEM/ODM business, primarily in pet leashes and snacks. It has formed deep partnerships with major international retailers like Walmart and PetSmart, with significant revenue from the US and Europe [14]. - The company has a diversified production capacity across multiple locations, including bases in Wenzhou and Cambodia, and is expanding its production capabilities [14]. Pet Industry - The domestic pet food market is growing at a CAGR of 10.1%, outpacing the global growth rate of 4.6%. In contrast, the pet supplies market in China is growing at a slower rate of 2.9% due to price wars among domestic brands and a slowdown in dog consumption growth [2]. 2B Business - The company's 2B business benefits from a strong production layout in Southeast Asia, deep partnerships with leading international channels, and technological advantages, including the development of over 8,000 new products annually [3]. Brand Business - The company is building its own sales channels and has launched three proprietary brands: Pikapoo, Haloway, and Legend Elf, which are expected to drive significant revenue growth. The brands focus on high-quality ingredients and unique selling propositions tailored to domestic pet needs [4]. - Recent sales data shows substantial growth for these brands on platforms like Douyin, with Pikapoo achieving significant sales rankings in its category [4]. Financial Forecast and Valuation - The company is projected to achieve revenues of 1.633 billion, 2.107 billion, and 2.540 billion yuan for 2025, 2026, and 2027, respectively, with corresponding net profits of 187 million, 225 million, and 259 million yuan. The EPS for 2025-2027 is estimated at 0.98, 1.18, and 1.36 yuan [1][9]. - The report indicates a PE ratio of 20, 16, and 14 for the years 2025-2027 based on the closing price of 19.15 yuan on July 28, 2025 [1].
源飞宠物（001222）：宠物用品及食品双轮驱动，发力自主品牌