Investment Rating - The report maintains a "Buy" rating for the company [6] Core Insights - The company reported strong growth in domestic business and an increase in both volume and profit in overseas operations. The half-year results for 2025 showed a revenue of 2.432 billion yuan, a year-on-year increase of 24.3%, and a net profit attributable to the parent company of 203 million yuan, up 42.6% year-on-year [6] - The company's proprietary brand revenue is accelerating, with a notable increase in profitability. Domestic business revenue reached 860 million yuan in the first half of 2025, a 39% increase year-on-year, with a gross margin of 37.7% [6] - The overseas business also saw a revenue increase of 1.57 billion yuan, up 17.6% year-on-year, with a gross margin of 28.0% [6] Financial Data and Profit Forecast - Total revenue projections for 2025 are estimated at 5.435 billion yuan, with a year-on-year growth rate of 21.7%. The net profit attributable to the parent company is expected to be 451 million yuan, reflecting a 14.5% increase [5] - The company anticipates continued revenue growth, with projections of 6.610 billion yuan in 2026 and 8.095 billion yuan in 2027, representing year-on-year growth rates of 21.6% and 22.5%, respectively [5] - The gross margin is expected to improve gradually, reaching 32.1% by 2027, while the return on equity (ROE) is projected to increase to 20.7% [5]

[Table_Title] 研究报告 Research Report 6 Aug 2025 中宠股份 Yantai China Pet Foods (002891 CH) 1H25 归母净利润符合市场预期，自有品牌和海外工厂高增 1H25 net profit attributable to the parent company was in line with market expectations, driven by strong growth in proprietary brands and overseas factories 寇媛媛 Yuanyuan Kou yy.kou@htisec.com [Table_summary] (Please see APPENDIX 1 for English summary) 事件：2025 年 8 月 06 日，烟台中宠食品股份有限公司（简称"公司"）发布 2025 年半年度报告。 2Q25 中宠收入超市场预期，归母净利润符合市场预期。1H25 公司实现总营业收入 24.3 亿，同比+24.3%；实现归 母净利润 2.03 亿，同比+42.6%；扣非归母净利 ...

Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Insights - The company has shown significant revenue growth in its pet food segment, with a 24.3% year-on-year increase in revenue for the first half of 2025, reaching 2.43 billion yuan, and a 42.6% increase in net profit to 200 million yuan [5] - The company is expanding its overseas operations, with a notable increase in both domestic and international revenue, indicating a strong confidence in future growth [6][8] - The gross margin and net profit margin have improved, reflecting better product mix and cost management [7] Revenue Performance - In H1 2025, pet snacks generated 1.529 billion yuan (up 6.37%), pet staple food reached 783 million yuan (up 85.79%), and pet supplies and others brought in 119 million yuan (up 23.12%) [6] - Domestic revenue was 857 million yuan (up 38.89%) while international revenue was 1.575 billion yuan (up 17.61%) [6] Profitability Metrics - The gross margin for H1 2025 was 31.38%, an increase of 3.4 percentage points year-on-year [7] - The net profit margin for H1 2025 was 9.16%, reflecting a year-on-year increase of 1.25 percentage points [7] Global Expansion Strategy - The company is the only Chinese enterprise with pet snack factories in the US and Canada, which helps mitigate trade policy impacts [8] - The second production line in the Canadian factory is expected to be operational in the second half of 2025, with a second factory in the US projected for 2026 [8] Financial Forecasts - The company forecasts net profits of 461 million yuan, 569 million yuan, and 696 million yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 1.51 yuan, 1.87 yuan, and 2.29 yuan [8][10] - The projected P/E ratios for 2025, 2026, and 2027 are 38x, 31x, and 25x respectively [8][10]

Core Viewpoint - The global pet food industry is thriving, with a market size exceeding one trillion RMB and a projected growth rate that outpaces other sectors, indicating a golden era for domestic pet food brands in China [1][4]. Industry Overview - The global pet food market is expected to reach USD 147.3 billion by 2024, with a CAGR of 5.7% from 2024 to 2029 [1]. - The competitive landscape shows strong profitability, with the CR3 for global pet food, infant formula, and beauty sectors at 46.7%, 39.5%, and 25.4% respectively [2]. - The U.S. and Japan pet markets have shown significant growth, with CAGRs of 8.2% and 3.2% from 2000 to 2024, respectively, outpacing GDP growth [2]. Key Players and Strategies - Mars is projected to generate USD 32.8 billion in pet revenue in 2024, holding a market share of 21.4% [3]. - Nestlé is expected to achieve USD 23.3 billion in pet revenue in 2024, with a market share of 20% [3]. - Hill's, a pioneer in prescription pet food, holds a 5.1% market share in the pet food sector, with a prescription food market share of 53% [3]. - Freshpet leads the North American fresh pet food market with a 96% market share in Q1 2025 [3]. Insights for China - The Chinese pet food industry is poised for significant growth, with potential for improved scale, structure, and profitability [4]. - Product innovation is crucial, with a focus on functional and prescription pet foods that command higher prices and margins [4]. - A multi-brand strategy is becoming essential, as evidenced by the global CR5 for pet food companies and brands at 52% and 17%, respectively [4]. - Local distribution channels are key for brand emergence, shifting from efficiency-driven to a balance of efficiency and customer experience [4].

曾经一年内涨3倍。 净利润和扣非净利润，同比都增长了40%以上，同期营收也增长超过24%，但上半年业绩披露后，宠物经济龙头之一的中宠股份（002891.SZ），股价却不 涨反跌。 8月6日盘中，中宠股份一度重挫7%以上，收盘时仍跌2.18%，报收57.44元。今年6月5日，该股曾达到74元的年内高点，过去一年内更是飙涨3倍。但最近两 个月，该股大幅跑输大盘，最大调整幅度已超25%。 中宠股份在半年报中称，该公司面临市场风险主要有两方面，一方面，境外市场作为主要收入来源正面临挑战，随着全球经济一体化推进，泰国、越南等新 兴经济体凭借人工成本优势逐步参与国际竞争，当前宠物食品企业虽然数量有限，但未来可能对中国出口产品形成冲击。为此，该公司将通过多元化市场布 局、优化成本结构和提升产品竞争力应对海外市场竞争风险。 另一方面，国内宠物食品市场虽随居民收入增长快速扩容，但行业门槛较低导致新进入者激增，而国际品牌加速布局中国市场。伴随本土企业规模扩张及外 资技术引进，市场竞争日趋激烈，可能推高品牌推广等销售费用并挤压行业毛利率，将加强渠道建设，推进品牌与服务升级，实施精准定位与差异化策略以 应对国内市场竞争风险。 市场人 ...

Investment Rating - The report assigns a "BUY" rating for the company, indicating a potential upside in the stock price [6][10]. Core Insights - The company has shown strong growth in its self-owned brands, with a 24.3% year-on-year increase in revenue for H1 2025, reaching RMB 2.43 billion, and a 42.6% increase in net profit, amounting to RMB 200 million [6][7]. - The revenue breakdown shows that pet snacks contributed RMB 1.53 billion (up 34.7%), pet food RMB 780 million (up 85.8%), and pet supplies RMB 120 million (up 23.1%) [7]. - The gross margin improved by 3.4 percentage points to 31.38%, driven by higher margins in domestic sales and increased efficiency in overseas operations [7]. - The company is expected to continue benefiting from its brand influence and operational scale, with projections for net profits of RMB 480 million, RMB 600 million, and RMB 720 million for 2024, 2025, and 2026 respectively, reflecting year-on-year growth rates of 21.7%, 24.4%, and 21.3% [7][9]. Summary by Sections Company Overview - The company operates in the food industry, specifically focusing on pet products, with a current market capitalization of RMB 17.48 billion and a share price of RMB 57.44 as of August 6, 2025 [2]. Recent Performance - The company reported a significant increase in revenue and net profit for H1 2025, with Q2 revenue at RMB 1.33 billion (up 23.4%) and net profit at RMB 110 million (up 29.8%) [6][7]. Financial Projections - Future projections indicate a steady increase in revenue from RMB 5.62 billion in 2025 to RMB 8.17 billion by 2027, with corresponding net profits expected to rise from RMB 479 million to RMB 723 million [9][12]. Shareholder Information - Major shareholders include Yantai Zhongxing Biological Technology Co., Ltd., holding 24.03% of shares, and institutional investors account for 6.1% of the circulating A-shares [2][4].

Core Viewpoint - Dongwu Securities report indicates that Zhongchong Co., Ltd. achieved a 42.6% year-on-year increase in net profit attributable to shareholders in H1 2025, driven by rapid growth in its proprietary brands [1] Group 1: Company Performance - The company is accelerating its overseas expansion, with a factory in Mexico expected to be operational by 2025, which will benefit from the release of production capacity in North America and Mexico [1] - Zhongchong Co., Ltd. is a leader in the global pet food industry, with its domestic proprietary brands, Wanpi and ZEAL, recovering growth after adjustments [1] - The company maintains long-term partnerships with multiple clients in its overseas business, ensuring a stable customer base [1] Group 2: Financial Projections - The company has a comprehensive global production capacity layout, with ongoing capacity expansion to ensure long-term stable growth [1] - The net profit forecasts for 2025-2027 are 450 million, 550 million, and 650 million yuan, representing year-on-year growth of 14%, 23%, and 18% respectively [1] - Corresponding price-to-earnings ratios (PE) are projected to be 40, 32, and 27 times for the years 2025, 2026, and 2027 [1]

Financial Performance - In the first half of 2025, the company achieved a revenue of 2.432 billion CNY, representing a year-on-year growth of 24.32% [11] - The net profit attributable to shareholders was 203 million CNY, with a year-on-year increase of 42.56% [11] - Domestic business revenue reached 857 million CNY, growing by 38.89% [11] - Revenue from pet staple food was 783 million CNY, showing an impressive growth of 85.79% [11] Global Expansion - The company has established over 22 modern production bases globally, with more than 10 new projects underway [11] - The newly built factory in Mexico represents an investment of nearly 100 million CNY and covers an area of 10,000 square meters [13] - The Canadian factory's second production line has been completed, enhancing production capacity in North America [12] Market Position and Strategy - The company aims to become a leader in the global pet food industry, with a focus on its own brands such as "WANPY" and "TOPTREES" [14] - The domestic pet food market is experiencing a shift towards quality and personalized consumption, with increasing brand concentration [16] - The company is leveraging its global production capacity and strong brand matrix to enhance market share and brand influence [16] Marketing Initiatives - The "WANPY" brand has engaged in significant marketing efforts, including collaborations with media and celebrities to enhance brand recognition [17] - The brand has launched a new product series targeting various life stages of pets, achieving notable market performance [17] Future Outlook - The company plans to focus on building its own brands, expanding into overseas markets, and enhancing its global supply chain [18] - The year 2025 is seen as a pivotal year for deepening the company's five-year strategic plan, aiming for healthy and high-quality industry development [18]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company reported a revenue increase of 24.32% and a net profit increase of 42.56% for the first half of 2025, achieving a revenue of 2.432 billion yuan and a net profit of 203 million yuan [7] - The company's profitability is gradually improving due to optimized product layout, differentiated channel strategies, and the realization of scale effects, with a gross margin of 31.4% in the first half of 2025 [7] - The company is expected to achieve net profits of 461 million yuan, 579 million yuan, and 749 million yuan for 2025, 2026, and 2027 respectively, with corresponding PE ratios of 39, 31, and 24 times based on the closing price on August 5 [7] Financial Performance - The company's revenue for 2023 is projected at 3.747 billion yuan, with a growth rate of 15.4%, and is expected to reach 5.260 billion yuan by 2025, with a growth rate of 17.8% [6][8] - The net profit for 2023 is estimated at 233 million yuan, with a growth rate of 120.1%, and is expected to increase to 461 million yuan by 2025, with a growth rate of 17.1% [6][8] - The company's gross margin is expected to improve from 26.3% in 2023 to 30.1% in 2025, while the net profit margin is projected to rise from 7.8% to 9.3% over the same period [8] Market Performance - The company's stock has shown a performance of -5% compared to the market index over the last 12 months, while the market index (CSI 300) has increased by 52% [4]

Group 1: Steel Industry - The steel industry is expected to benefit from self-initiated production cuts, with industry prosperity bottoming out in Q3 2024. If the anti-involution policy promotes crude steel production cuts, it could further enhance profit recovery [2][3] - The current phase of the steel sector is characterized by policy expectation trading and fundamental improvement, similar to the previous demand downturn cycle [2][3] - The adjustment in the Chinese steel industry may resemble a prolonged battle, drawing parallels with Japan's steel development history [2] Group 2: Saint Bella (2508 HK) - Saint Bella is the largest postpartum care and recovery brand group in Asia and China, with 96 maternity centers in 30 cities globally as of June 2025. The company is rated "Buy" with a target price of HKD 9.76, corresponding to a 27X PE for 2026 [3][14] - The company is expected to achieve a revenue and adjusted net profit CAGR of 28% and 94% respectively from 2025 to 2027, driven by stable same-store growth and rapid store expansion [3] - Saint Bella aims to expand its family care and women's health product lines globally, leveraging its multi-brand and platform capabilities [3] Group 3: Yum China (9987 HK) - Yum China reported Q2 2025 revenue of USD 2.787 billion, a year-on-year increase of 4%, and an operating profit of USD 304 million, exceeding expectations [5] - The company maintains a target of opening 1,600 to 1,800 new stores in 2025, with a focus on sustaining same-store sales growth in the second half of the year [5] - The operating profit margin improved to 10.9%, reflecting the resilience of the leading brand [5] Group 4: Techtronic Industries (669 HK) - Techtronic Industries achieved a revenue of USD 7.833 billion in H1 2025, a year-on-year increase of 7.1%, with a net profit of USD 628 million, up 14.2% [6] - The growth is attributed to strong sales of flagship brands Milwaukee and RYOBI, alongside a strategic reduction in non-core business investments [6] - The company is positioned as a leading global brand in power tools and outdoor products, with a favorable long-term growth outlook [6] Group 5: Dongmu Co., Ltd. (600114 CH) - Dongmu Co., Ltd. reported H1 2025 revenue of CNY 2.930 billion, a year-on-year increase of 24.51%, and a net profit of CNY 261 million, up 37.61% [7] - The strong performance is driven by robust demand in the automotive and home appliance sectors [7] - The company is recognized as a leader in the powder metallurgy industry, maintaining an "Overweight" rating [7] Group 6: Zhongchong Co., Ltd. (002891 CH) - Zhongchong Co., Ltd. achieved H1 2025 revenue of CNY 2.432 billion, a year-on-year increase of 24.32%, with a net profit of CNY 203 million, up 42.56% [10] - The company benefits from strong domestic sales growth of 39% and an 18% increase in overseas sales due to capacity expansion [10] - The target price for 2025 is set at CNY 79.52, maintaining a "Buy" rating [10]