Financial Performance - In H1 2025, the company achieved revenue of 3.221 billion yuan, a year-on-year increase of 32.72% [1] - The net profit attributable to shareholders was 378 million yuan, up 22.55% year-on-year [1] - In Q2 2025, revenue reached 1.741 billion yuan, growing by 30.99% year-on-year, while net profit was 174 million yuan, an increase of 8.54% [1] Incentive Plan - In August, the company announced a second phase of the restricted stock incentive plan, proposing to grant up to 556,000 shares to 9 incentive targets, accounting for approximately 0.14% of the total share capital [1] - The grant price is set at 47.55 yuan per share, targeting directors, senior management, and other key personnel [1] - The incentive goals include revenue growth rates of no less than 25%, 53%, and 84% for 2025-2027, and net profit growth rates of no less than 16%, 32%, and 45% for the same period [1] Product Performance - The main grain revenue significantly increased to 1.883 billion yuan, a year-on-year growth of 57.09%, with a corresponding gross margin of 46.23%, up 1.53 percentage points [2] - Snack revenue was 1.294 billion yuan, growing by 8.34%, but with a gross margin of 37.48%, down 1.71 percentage points [2] Brand Development - The company’s flagship brand, Maifudi, continues to lead the industry, receiving AAA-level national trademark certification in 2024 and being recognized as "China's No. 1 Pet Food Brand" by Euromonitor in August 2025 [2] - The high-end sub-brand, Wanzhenchun, has shown remarkable performance, with a 150% year-on-year increase in sales during the 2024 Double 11 shopping festival [3] Market Positioning - The company has completed a brand 2.0 upgrade and launched a new series of high-end cat food, achieving significant sales during the 2024 Double 11 event [3] - The company is strategically positioning itself in the high-end dog food market with the brand Wanzhenchun, aiming to capture further market share [3] Investment Outlook - The company maintains a strong competitive advantage and leadership position in the domestic market, supported by the new stock incentive plan to enhance core staff motivation [3] - EPS forecasts for 2025-2027 have been adjusted to 1.87, 2.59, and 3.13 yuan per share, with a target price of 113 yuan per share, corresponding to a 44 times PE for 2026 [3]

Investment Rating - The investment rating for the company is not explicitly stated in the provided documents, but the report indicates a positive outlook on the company's growth potential and performance [1]. Core Viewpoints - The company has launched a second phase of a restricted stock incentive plan aimed at motivating its core team, which is expected to enhance growth momentum [1][2]. - The company has set ambitious performance targets for the incentive plan, requiring revenue growth rates of at least 25% in 2025, 53% in 2026, and 84% in 2027, along with net profit growth rates of at least 16%, 32%, and 45% respectively [2]. - The company's main brand, Maifudi, continues to lead the industry, maintaining the top position on Tmall for five consecutive years, with significant growth in sales [3]. - The company has developed a robust data empowerment system and research capabilities that enhance product advantages, including proprietary technologies that improve nutrient absorption [4]. - The company is expanding its overseas production capacity, with minimal short-term impact expected on its OEM business despite potential challenges from U.S. tariff policies [4]. Financial Summary - The company’s projected total revenue for 2025 is estimated at 6.386 billion yuan, with a year-on-year growth rate of 21.8% [8]. - The net profit attributable to the parent company is projected to be 740 million yuan in 2025, reflecting an 18.4% year-on-year growth [8]. - The gross profit margin is expected to improve from 36.8% in 2023 to 46.6% in 2025 [8]. - The company’s earnings per share (EPS) is projected to increase from 1.07 yuan in 2023 to 1.85 yuan in 2025 [8][6]. - The price-to-earnings (P/E) ratio is expected to decrease from 89.90 in 2023 to 52.13 in 2025, indicating a potentially more attractive valuation over time [6].

Core Viewpoint - The company has launched its second restricted stock incentive plan to enhance its long-term incentive mechanism and motivate its core team, granting up to 556,000 restricted shares at a price of 47.55 yuan per share, which accounts for 0.139% of the total share capital [1] Group 1 - The first grant includes 522,500 shares, with 33,500 shares reserved, and the total expense for stock incentive amortization is 25.8356 million yuan, to be amortized from 2025 to 2028 [1] - The first grant recipients are mid-to-senior management, with the president receiving 175,100 shares, representing 31.5% of the total incentive shares [2] - The second phase of the incentive plan aims for revenue growth of 25%, 53%, and 84% from 2024 to 2027, and net profit growth of 16%, 32%, and 45% during the same period [2] Group 2 - The revenue growth targets for the second phase are higher than those of the first phase, while the net profit growth targets are lower [2] - The company is expected to increase market investment to enhance brand awareness and accelerate revenue growth, which may lead to higher expenses [2] - During the 618 shopping festival, the company's brands ranked highly in various e-commerce platforms, indicating strong market performance [3] Group 3 - The company anticipates net profits of 780 million, 930 million, and 1.16 billion yuan for 2025 to 2027, with respective year-on-year growth rates of 24.3%, 20%, and 24.2% [3] - The earnings per share (EPS) are projected to be 1.94 yuan, 2.33 yuan, and 2.90 yuan for the same period, with corresponding price-to-earnings (PE) ratios of 48x, 40x, and 32x [3] - The investment recommendation remains "buy" due to the expected domestic substitution in the pet food industry and the company's overall competitive enhancement [3]

Core Viewpoint - The implementation of the second phase of the equity incentive plan by Guibao Pet is expected to enhance the cohesion and motivation of the core management team, thereby strengthening the company's leading position in the pet food industry [1] Group 1: Equity Incentive Plan - The first grant of the equity incentive plan includes 175,100 shares awarded to the company's president, Du Shifang, which accounts for 31.5% of the total shares granted in this round [1] - The recipients of the first grant are consistent with those from the first phase of the equity incentive plan, indicating a focus on the company's middle and senior management [1] Group 2: Market Position and Performance - During the 618 shopping festival, Guibao Pet's brand, Freigat, ranked in the top 3 for pet food on Tmall and top 4 in the Douyin category, while Maifudi ranked first in Douyin and Kuaishou categories, and top 5 on Tmall and second on JD [1] - The company is expected to continue its high-end strategy, with Freigat positioned as a premium brand, leading to an increase in the proportion of high-end products [1] Group 3: Product Development - The product and brand matrix is being further enhanced with the introduction of dog food brand Wangzhenchun and the emphasis on natural formulas with Bafo [1] - The company maintains a positive outlook on the domestic replacement in the pet food sector and the overall enhancement of its competitive capabilities, sustaining a "buy" investment recommendation [1]

Investment Rating - The investment rating for the company is "Buy" with a target price of 113 CNY per share [1][9]. Core Insights - The company has implemented a second phase of its restricted stock incentive plan to enhance its long-term incentive mechanism and motivate its core team, granting up to 556,000 shares at a price of 47.55 CNY per share [8][11]. - The revenue growth targets for the second phase of the incentive plan are set at 25%, 53%, and 84% for the years 2025 to 2027 compared to 2024, while net profit growth targets are 16%, 32%, and 45% respectively [11]. - The company is expected to increase market investment to enhance brand awareness and accelerate revenue growth, which may lead to higher expenses [11]. - The company has shown strong performance during promotional events, ranking high in various e-commerce platforms, indicating a solid market position [11]. Financial Summary - The company’s projected net profits for 2025, 2026, and 2027 are 776 million, 932 million, and 1.158 billion CNY respectively, reflecting year-on-year growth rates of 24.3%, 20%, and 24.2% [11][13]. - Earnings per share (EPS) are expected to be 1.94 CNY, 2.33 CNY, and 2.90 CNY for the same years, with corresponding price-to-earnings (P/E) ratios of 48, 40, and 32 [11][13]. - The company’s revenue is projected to grow from 6.591 billion CNY in 2025 to 9.713 billion CNY by 2027, with a significant increase in operating profit as well [16].