China Pet Holdings (002891) Small and Medium Cap Coverage Report for the First Time-The New Blue Ocean Industry Leader for Pet Food Meets

This report reads: The pet food industry is ushering in a golden window period, and pet raising and consumption levels have helped the industry’s leaders rise.

The first coverage is given an “overweight” rating with a target price of 43.

12 yuan.

Investment Highlights: Give “Overweight” rating for the first time, with a target price of 43.

12 yuan.
The company has been deeply involved in the pet food industry for more than 20 years, and has gradually developed into a domestic pet food leader by leveraging its rich product matrix, leading channel advantages, and superior product quality.

Considering that the pet food industry continues to maintain rapid growth, the company’s own brand and domestic market development exceeded expectations, and it is estimated that the operating income for 合肥夜网 2019-2021 will be 18 respectively.

67, 24.

31, 31.

30,000 yuan, net profit is 0.

98, 1.

38, 1.

9.8 billion yuan, corresponding to EPS0.

98, 1.

38, 1.

98 yuan.

The first coverage is given an “overweight” rating, with reference to the assessment of comparable companies in the same industry, and a target price of 43.

12 yuan, corresponding to 44 times PE in 2019.

The increase in per capita GDP, the increase in the proportion of pets raised, and the expected increase in pet consumption have pushed the pet food industry to flourish.

The pet market is a long-term bonus industry. With reference to foreign market development experience, even when it encounters economic growth paths, the pet industry will not be greatly impacted, and it has an alternative anti-cyclical attribute.

At present, the proportion of 成都桑拿网 domestic pet-raising households is only 6%, which is far lower than 68% in the United States and 57% in Australia. The number of pet-raising households and pet expenditures are very, very large.Good morning.

The company has long-term comprehensive competitiveness, with independent brands and domestic sales becoming the most important point.

We believe that through years of technology accumulation and market development, the company has alternative competitive advantages in product development and design capabilities, product quality, brand influence, and customer resources.

In the end, the company further enriched its pet food product matrix and upgraded its brand image. At the same time, it launched online and online e-commerce channels, and deployed pet hospitals and pet stores offline. While maintaining the leading position in the snack field, it continued to extend to the staple food field, constantly improvingThe product quality has won the favor of customers, the company’s performance has maintained steady growth, and the domestic sales business is expected to increase the overall gross profit level.

Catalysts: Potential out-of-pocket expected risks required for rapid volume expansion of independent brands to consolidate channel advantages. Tips: intensified competition in overseas markets, trade barriers, risks of raw material price fluctuations, etc.