Investment Rating - The report maintains a "Positive" investment rating for the agriculture industry [5] Core Viewpoints - The pig farming sector is expected to see a long-term performance improvement due to ongoing capacity reduction driven by both policy and market forces, with key companies continuing to show profitability and increasing dividend rates [3][46] - The current prices for fat pigs and piglets have dropped significantly, leading to widespread losses in the industry, which may trigger a market-driven capacity reduction [3][12] - The planting sector is showing positive fundamentals with an established upward trend in grain prices, highlighting significant investment opportunities [3][46] Summary by Relevant Sections Industry Fundamentals - Pig prices continue to decline, with the average price for fat pigs at 12.45 yuan/kg, down 1.81% week-on-week, and piglet prices at 21.29 yuan/kg, down 4.81% week-on-week [12][54] - The average weight of pigs at slaughter is stabilizing, but the pressure from capacity release continues, leading to a sustained decline in prices [12] Investment Recommendations - The report recommends focusing on the pig farming sector, highlighting companies such as Muyuan Foods (002714) and Wens Foodstuff Group (300498) as key investment targets [3][46] - For the post-cycle sector, rising pig inventory is expected to boost demand for feed and animal health products, with companies like Haida Group (002311) and Reap Bio (300119) identified as potential beneficiaries [3][46] - In the planting chain, companies like Suqian Agricultural Development (601952) and Beidahuang (600598) are noted for their favorable investment outlook due to rising grain prices [3][46] - The pet food sector is also highlighted for its growth potential, with companies like Guibao Pet (301498) and Zhongchong Co. (002891) recommended for investment [3][46] Market Performance - The agriculture sector underperformed the market, with the agricultural index down 1.97% during the week, compared to a 0.21% increase in the Shanghai Composite Index [48][49] - Key sub-sectors such as feed, animal health, and livestock farming all experienced declines, with livestock farming down 2.14% [48]

Investment Rating - The industry rating is "Outperform the Market" [8] Core Viewpoints - The report highlights that the outdoor apparel brands Arc'teryx and Salomon saw a doubling of online sales on Tmall in August compared to the previous year [2][12] - The report indicates a divergence in performance among major e-commerce platforms for sports apparel, with Tmall showing a significant improvement in August, while JD.com and Douyin experienced declines [3][12] - The report suggests that the domestic demand is expected to recover due to policy support, with specific investment recommendations across various sectors including home appliances and sportswear [5][19][20] Summary by Sections Sales Performance - In August, Tmall, JD.com, and Douyin reported year-on-year growth rates of +13%, -11%, and +1% respectively for sports apparel, with Tmall showing a notable improvement compared to Q2 [3][12] - Outdoor apparel on Tmall and Douyin continued to show high growth trends, with Tmall reporting a +50% increase, while JD.com saw a -20% decline [3][12] Brand Performance - Among sports brands, Lululemon and Adidas showed improved growth rates on Tmall in August, while brands like Fila, Xtep, and Li Ning maintained a growth trend [14] - High-end outdoor brands such as Kailas, Salomon, and Arc'teryx experienced significant sales growth on Tmall, with increases of 247%, 141%, and 115% respectively [14] Investment Recommendations - The report recommends focusing on several sectors for potential investment, including: 1. Home appliances benefiting from trade-in programs, with specific companies like Midea Group and Haier Smart Home highlighted [5][19] 2. The pet industry, which is expected to remain resilient against economic cycles, with companies like Guibao Pet and Zhongchong Co. suggested [5][19] 3. Small appliances and branded apparel, which may see demand recovery from a low base, with recommendations for leading companies in these sectors [5][19] 4. Electric two-wheelers, which are expected to improve in domestic sales, with companies like Ninebot and Yadea highlighted [5][20] Market Trends - The report notes that the home appliance sector experienced a decline of -0.8% this week, with specific segments like white goods and small appliances also showing negative trends [4][21] - The textile and apparel sector saw a decline of -2.59% this week, with cotton prices and other raw material prices also reflecting downward trends [4][24]

Core Insights - The "proprietary and specialized" pet services and "emotion-driven" consumption models have emerged as new highlights for business growth, prompting the release of the "Action Plan for Promoting High-Quality Development of the Pet Economy" in Suzhou's Gusu District [1] Group 1: Pet Economy Development - The action plan aims to extend the pet economy from a single consumption scenario to a full-chain industry through policy guidance and market-driven initiatives [1] - The integration of culture, commerce, sports, and tourism is emphasized as a foundation for this development [1] Group 2: Unique Consumer Experiences - The "It Economy" ecosystem created by Yangguanghui includes a three-tier structure: basic facilities for pet interaction, merchant conversion through pet sales and services, and high-level activities focused on social interaction and adoption [3] - Monthly pet sports events attract over 50 families, with more than 30% of them generating additional spending on food, toys, and clothing, leading to an 8% increase in daily sales for the shopping district [3] Group 3: One-Stop Shopping and Tourism - The Dog Road Pet Store in Suzhou offers over 2,000 SKUs, catering to the one-stop shopping needs of pet owners [4] - The introduction of pet-friendly services at the Kimpton Hotel has led to a continuous increase in pet-inclusive bookings, with some holidays experiencing a "one room hard to find" situation for pet rooms [4] Group 4: Enhanced Pet Care Services - The Renheng Warehouse Street features a dedicated area for pets, including facilities for immediate cleaning and grooming, as well as pet-friendly shopping experiences [6] - 90% of the shops in the warehouse street are pet-friendly, enhancing the shopping experience for pet owners and increasing consumer spending [6][7]

Investment Rating - The report maintains an "Overweight" rating for the agricultural, forestry, animal husbandry, and fishery industry [42] Core Viewpoints - Recent declines in pig prices and continuous profit decreases for breeding companies will force upstream breeding sows to reduce stock. The current stock of breeding sows remains relatively high, indicating significant potential for future reduction. The valuation of pig breeding companies is still at a historically low level, presenting an opportunity for investment based on capacity reduction expectations. In the chicken breeding sector, overall capacity is relatively high, and profitability remains under pressure. There is a potential for capacity reduction in the future, with attention to marginal profit improvement opportunities. In the feed sector, opportunities arise from increased market concentration and overseas expansion. The domestic pet market still has expansion potential, with leading domestic companies expected to maintain rapid growth [42][43] Summary by Sections 1. Market Review - The SW agricultural, forestry, animal husbandry, and fishery industry slightly underperformed the CSI 300 index, declining by 5.07% from September 12 to September 25, 2025, lagging behind the index by approximately 6.07 percentage points [10] - All sub-sectors recorded negative returns during this period, with declines of 2.89% in planting, 3.59% in animal health, 4.36% in feed, 5.32% in agricultural product processing, 5.95% in breeding, and 6.73% in fisheries [13][14] 2. Industry Key Data - **Pig Farming**: The average price of external three-way cross pigs fell from 13.31 CNY/kg to 12.51 CNY/kg during the reporting period. The cost of corn was 2365.1 CNY/ton, and soybean meal was 3002 CNY/ton, both showing slight declines. As of September 26, 2025, the profit for self-bred pigs was -74.11 CNY/head, and for purchased piglets, it was -236.57 CNY/head, indicating a decrease in profitability [22][24][27] - **Poultry Farming**: The average price of broiler chicks was 3.29 CNY/chick, showing a slight increase, while the average price of white feather broilers was 6.9 CNY/kg, reflecting a slight decline. The profit for white feather broilers was -2.22 CNY/chick, also indicating a decrease [29][33] - **Aquaculture**: The average wholesale prices for crucian carp and carp were 21.09 CNY/kg and 14.2 CNY/kg, respectively, both showing slight declines [35] 3. Industry News - Argentina announced a temporary zero-export tax on agricultural products, effective from September 23, 2025, until October 31, or until exports reach 7 billion USD. This measure aims to address domestic foreign exchange pressures and currency devaluation, significantly lowering export costs and enhancing competitiveness in the global market [37]

Core Insights - The report "2025 Tmall Pet Economy Cross-Industry Observation" highlights the strong appeal of the pet economy across various sectors, with 72 cross-industry brands identified in 11 categories including apparel, home appliances, and daily chemicals [1][2]. Industry Overview - Nearly 40% of cross-industry brands focus on essential pet cleaning and other supplies, while over 30% target personalized pet apparel [1]. - Chinese brands dominate the pet market, accounting for 48% of the cross-industry brands, with Guangdong, Zhejiang, and Shanghai being the top three provinces for brand concentration [2]. Brand Performance - The median establishment year for domestic brands is 2003, while international brands date back to 1949. However, both groups entered the pet market around 2022, with younger domestic brands outperforming older international ones in sales [3]. - 22% of cross-industry brands have established independent pet sub-brands or opened dedicated Tmall stores, leading to significant commercial returns. Brands that deeply invest in the pet sector see monthly sales amounts 738% higher than those with a "testing the waters" approach [5]. Market Dynamics - The top 20 cross-industry pet brands on Tmall saw a 90% turnover rate from the first half of 2024 to the first half of 2025, indicating a dynamic market with new entrants like "Golden Dad" from Three Squirrels making rapid gains [8]. - 77.8% of cross-industry brands have chosen pet segments closely related to their main business, which correlates with better performance. Brands leveraging existing strengths in related fields have seen success, exemplified by Dettol's entry into the pet cleaning market [12]. Future Opportunities - The pet market remains open for potential entrants, with significant opportunities in pet smart products and cleaning supplies, which are experiencing growth and lack dominant brands, providing a competitive edge for companies with relevant technology and R&D capabilities [12].

Core Insights - The report "2025 Tmall Pet Economy Cross-Border Observation" highlights the strong appeal of the pet economy across various industries, with 72 cross-border brands identified on Tmall, spanning 11 sectors including apparel, home appliances, and daily chemicals [1][2] Group 1: Market Trends - Nearly 40% of cross-border brands focus on essential pet cleaning and other supplies, while over 30% target personalized pet apparel [1] - Domestic brands dominate the pet cross-border market, accounting for 48% of the total, with Guangdong, Zhejiang, and Shanghai being the most concentrated provinces [1] Group 2: Brand Performance - The median establishment year for domestic brands is 2003, compared to 1949 for international brands, yet both entered the pet market around 2022. Domestic brands have shown significantly better performance in 2025 compared to their international counterparts [2] - 22% of cross-border brands have established independent pet sub-brands or opened dedicated Tmall stores, indicating a strong commitment to the pet sector [2] Group 3: Sales Dynamics - In the top 10 cross-border pet brands on Tmall for the first half of 2025, 60% adopted a deep investment model, with brands that established pet sub-brands or dedicated stores achieving 738% higher average monthly sales compared to those with a "testing the waters" approach [2] - Miniso, a private label retailer, launched its pet product flagship store on Tmall in March 2024, achieving daily sales exceeding 100,000 yuan within five months, showcasing the effectiveness of independent operations in the pet market [3] Group 4: Market Opportunities - The opportunity window in the pet market remains open, with a 90% turnover rate in the top 20 cross-border pet brands from the first half of 2024 to 2025, indicating a dynamic market landscape [4] - 77.8% of cross-border brands chose pet sectors closely related to their main business, leading to better performance, as nearly 60% of top-performing brands adhered to this principle [4] - Pet smart products and pet cleaning supplies are identified as having significant blue ocean potential, with growing demand and no dominant brands, providing space for differentiated competition for brands with relevant technology and R&D advantages [4]

今年以来，我国"宠物经济"发展进入快速增长通道，多地围绕"宠物经济"推出政策、组织活动，上市公 司也在加速布局相关赛道。资本市场中，相关概念股受到追捧。Wind数据显示，截至9月24日收盘， Wind宠物经济指数年内累计上涨逾37%。业内人士普遍认为，宠物行业正处于高质量发展的黄金十 年，市场规模持续增长，需求仍未被充分挖掘。和君咨询报告显示，中国宠物产业市场规模仍有翻倍增 长空间。（中证报） ...

Core Insights - The "pet economy" in China is experiencing rapid growth, with policies and activities being launched to support this sector, leading to increased interest in related stocks [1] - The market size of China's pet industry has grown significantly, from 97.8 billion yuan in 2015 to 592.8 billion yuan in 2023, with a compound annual growth rate (CAGR) of 25.4% [2] - By 2025, the market is expected to reach 811.4 billion yuan, and projections suggest it could reach 1.15 trillion yuan by 2028 [2] Industry Growth Dynamics - The pet market is driven by strong demand, with a variety of companies emerging to focus on pet-related products and services [2] - Key segments such as pet food, healthcare, and cleaning products are currently the largest and fastest-growing areas within the market [3] - There is still significant room for growth in the pet industry, with potential for market size to double in the coming years [3] Policy Support - Local governments are increasingly providing policy support to boost the pet economy, with initiatives aimed at encouraging traditional industries to engage in pet product development [3][4] - Specific regions, such as Wuxi and Anhui, are implementing measures to enhance the pet economy, including promoting technological innovation and e-commerce in the sector [3] Corporate Activities - Several listed companies are actively investing in the pet sector, with notable acquisitions and the establishment of subsidiaries focused on pet food and products [5][6] - Companies like Huang Shang Huang and Three Squirrels are making strategic investments to expand their presence in the pet food market [5] - Jinhe Biological has launched a pet-focused app, indicating a trend towards integrating technology with pet care services [6]

Core Insights - The "pet economy" in China is experiencing rapid growth, with a market size projected to reach 5.928 trillion yuan in 2023, up from 97.8 billion yuan in 2015, reflecting a compound annual growth rate (CAGR) of 25.4% [1][2] - The pet economy index has increased by over 37% year-to-date as of September 24 [1] - The market is expected to reach 8.114 trillion yuan by 2025 and 11.5 trillion yuan by 2028, indicating significant growth potential [1][2] Industry Growth Dynamics - The pet industry is in a "golden decade" of high-quality development, with substantial room for growth as the current pet ownership penetration rate in China lags behind developed markets [2] - Key segments driving growth include pet staple food, medical care, and cleaning products, while emerging areas like pet insurance and elder pet care are seen as future growth opportunities [2] Policy Support - Local governments are increasingly supporting the pet economy through various policies, such as encouraging traditional industries to engage in pet product development and promoting technological innovation in the sector [3] - Specific initiatives include Wuxi's goal to exceed 3 billion yuan in pet-related industry scale by 2027 and Zhejiang's push for smart pet product manufacturing [3] Corporate Strategies - Several listed companies are actively investing in the pet sector, such as Huangshanghuang's acquisition of a 51% stake in a freeze-dried food manufacturer for 494.7 million yuan [4] - Three Squirrels has established two wholly-owned subsidiaries focused on pet food, with a registered capital of 5 million yuan for one of them [4] - Jinhe Biological has launched a pet emotional multi-modal model app, while Delisi has entered strategic partnerships for product development in the pet food sector [5]

Industry Overview - The "pet economy" in China has entered a rapid growth phase, with various policies and activities being launched to support this sector, leading to a surge in related stocks. The Wind Pet Economy Index has increased by over 37% year-to-date as of September 24 [1] - The pet market size in China has grown from 97.8 billion yuan in 2015 to 592.8 billion yuan in 2023, with a compound annual growth rate (CAGR) of 25.4%. It is expected to reach 811.4 billion yuan by 2025, and potentially 1.15 trillion yuan by 2028 [2][3] Market Demand and Growth Potential - The current pet penetration rate in Chinese households is still lower compared to developed markets, indicating strong future growth potential for the pet economy. Key segments such as pet food, medical care, and cleaning products are currently the largest and fastest-growing areas [3] - There is significant room for growth in the pet industry, with reports suggesting that the market size could double in the coming years [2] Policy Support and Local Government Initiatives - Local governments are increasingly providing policy support for the pet economy. For instance, Wuxi, Jiangsu, aims to exceed 3 billion yuan in pet-related industry scale by 2027, while Suzhou, Anhui, is focusing on technological innovation and e-commerce development in the pet sector [3] - Zhejiang province has proposed to develop smart pet products and encourage the use of advanced technologies in product innovation [3] Corporate Activities and Investments - Several listed companies are actively investing in the pet economy. For example, Huangshanghuang announced a 494.7 million yuan acquisition of a 51% stake in a freeze-dried food manufacturer, which will supply products for pet food brands [4] - Three squirrels have established two wholly-owned subsidiaries focused on pet food, with a registered capital of 5 million yuan for one of them [4] - Jinhai Biological has launched a pet care app utilizing a self-developed emotional multimodal model, indicating a trend towards technology integration in pet care [4] - Delisi has signed a strategic cooperation agreement with food companies to collaborate on product supply, market expansion, and freeze-dried pet food development [5]