Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage with a current price of 57.8 CNY [5]. Core Insights - The company, founded in 1998, has evolved from producing high-end pet snacks to becoming a pioneer in the Chinese pet food industry, with a focus on international expansion and brand development [5][11]. - The pet food market in China is projected to grow from 173.2 billion CNY in 2022 to 267 billion CNY by 2025, with a compound annual growth rate (CAGR) of 15.5% [5][33]. - The company aims to enhance its product structure by increasing the proportion of high-margin staple foods, which have seen a rise in revenue share from 6.36% in 2020 to 24.78% in 2024 [5][40]. Financial Forecast - Total revenue is expected to grow from 37.47 billion CNY in 2023 to 55.33 billion CNY in 2025, reflecting a growth rate of 23.93% [4][5]. - Net profit attributable to shareholders is forecasted to increase from 2.33 billion CNY in 2023 to 4.68 billion CNY in 2025, with a growth rate of 18.81% [4][5]. - The company's return on equity (ROE) is projected to rise from 12.07% in 2023 to 17.08% in 2025 [4]. Market Position and Strategy - The company operates 23 modern pet food production bases globally and has established a strong brand matrix, including "WANPY," "TOPTREES," and "ZEAL," to capture both domestic and international markets [5][46]. - The penetration rate of pet ownership in China has increased from 13% in 2019 to 22% in 2023, indicating significant growth potential compared to the 70% rate in the US [5][35]. - The company is committed to maintaining a focus on domestic market growth while accelerating overseas market expansion [5][40].