Investment Rating - The investment rating for the company is upgraded to "Outperform" [2][4]. Core Insights - The company reported a revenue of 619 million yuan for Q1-Q3 2025, representing a year-on-year growth of 7.61%, while the net profit attributable to the parent company was 46.78 million yuan, down 21.09% year-on-year [4]. - Due to intensified competition in the domestic pet food market and pressure on the gross margin of pet snacks, the profit forecast for 2025-2027 has been revised downwards [4]. - The company has launched a dual-brand strategy with "Miaoguan" focusing on high cost-performance products and "Lusi" continuing to innovate and upgrade to high-value-added product lines [5]. - The company is actively participating in major domestic and international pet industry exhibitions to enhance brand recognition and market influence [5]. Financial Performance - For 2025, the expected revenue is 863 million yuan, with a year-on-year growth of 11.0% [8]. - The projected net profit for 2025 is 69 million yuan, reflecting a decline of 12.4% compared to the previous year [8]. - The gross margin is expected to be 20.5% in 2025, with a net margin of 8.0% [8][11]. - The company’s total market capitalization is 19.11 billion yuan, with a current stock price of 18.50 yuan [2]. Market Potential - The U.S. pet industry is projected to reach a market size of approximately 157 billion USD in 2025, with pet food accounting for about 43.29% of this market [6]. - The Southeast Asian pet market is expected to grow significantly, with a projected market size exceeding 20 billion USD and an annual growth rate of 15% [6]. - The urban pet market in China is anticipated to reach a consumption scale of 300.2 billion yuan in 2024, with pet food making up 52.80% of the total pet consumption market [6].