Industry Observation | Pet industry listing tide domestic market competition plus profit facing multiple challenges

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Industry Observation | Pet industry listing tide domestic market competition plus profit facing multiple challenges

2022-01-14 06:06:26 16 ℃

Financial Association (Hangzhou, Reporter Luo Yuchen) News, epidemic eruptions, pumping, talent pets, bubble pets, etc. have successively launched. However, unfavorable factors such as raw material fluctuations, exchange profit and loss, epidemic impact, also allow the industry to continue to carry up. Fin Federation, reporters noted that as industry companies have attacked the domestic market, competition will become increasingly fierce. At the same time, export guides are difficult to reverse, and profit facilitate multiple challenges.

For 2022 pet food, especially the cost of main grain raw materials, experts from the Chinese Academy of Agricultural Sciences, said that the reporters of the Fin Federation, generally, the main raw animal protein has an action, international situation uncertainty, global inflation expectation, domestic demand And the factors such as industry competition can cause price increases. "The current price is expected to be maintained until April. Since then, the demand for animal proteins will increase, and the power is enhanced. However, if the breeding industry white feather chicken is increased It is also possible to trigger price stages and fall. "

In terms of listed companies, the mid-pet shares (002891.sz) and Patty Shares (300673.sz) were mainly engaged in non-main food foods with chicken as raw materials. The market generally uses the price of white-chicken as its cost, and it is considered that the raw material pressure is smaller this year. Fin Federation, reporters, in investors, to make up the pet shares, the company judged that the price of chicken is difficult to grow, in order to deal with adverse conditions, has also been strategic. However, it should be noted that as two companies have successively played the main food business, the raw materials are more diverse, and their cost changes or reassessment.

Domestic white rice chicken price trend, Source: Zhuo Chuang Information

The layout of domestic main grain market has become trend

At present, A shares pet food company mainly has a mid-pet shares, Patty Shares. In addition, three squirrels (300783.sz), Haida Group (002311.SZ), New Hope Group, Tongwei Group also layout.

Due to the difference in the development stage of the global market, a group of head companies in the early domestic market mainly rely on the European and American markets and the products are mostly snacks, health products, toys, and the industry core products main grain have been occupied by international manufacturers. According to Euromonitor, the international main grain market CR5 More than 53%.

With the increasing power of domestic pet market, export transfer, non-main grain transfer, become universal selection of industry manufacturers.

Wang Jinquan introduced that there is a certain historical factor in export transfer. The quality of domestic animal protein products has been questioned overseas customers. In this case, a group of manufacturers firmly determined the determination of the transfer. As for turning to main grain products, mainly due to the highest proportion of main food in industry consumption. "2020 China Pet Industry White Paper" data shows that in 2020, China Town Pet (Dog Cat) consumption market has reached 206.5 billion yuan, and the pet food consumption accounting is 54.70%, which is the core, corresponding to market scale. 81361 billion yuan, snack, nutrients, etc.

In order to achieve market and product switches, the medium pets and Petty choose the layout overseas production base, and the high-end main food products will counterattack the domestic market. In 2021, the Sino-Pet Share received a 70% equity of PFNZ, New Zealand, and domestic pet food vendors, leading 50% stake in Hangzhou. Peti Shares will build an annual output of 80,000 tons of pet food items in New Zealand in New Zealand. It is reported that the layout New Zealand is mainly due to the cost of raw materials. New Zealand lamb, venison and dairy resources are rich.

At this stage, the domestic business in the two companies is still in development. In the first half of 2019-2021, the domestic revenue ratio of the mid-pet shares was 19.25%, 23.76% and 24.87%, respectively. In the first half of 2020, Pediti's domestic recovery is 16.01%.

Industry earnings face multiple challenges

Review 2021 Pet food cost changes, Wang Jinquan said that the cost of pet ownership industry has climbed in the first half of the year, of which the animal protein raw materials represented by chicken powder have risen for 2 consecutive times. But subject to competitive pressure, manufacturers generally choose internal digestion, and they will start prices in the third quarter. Overall, the cost pressure is relieved, but it is not optimistic. In this context, he believes that the main raw material animal protein in 2022 still has an uplink.

In the company's performance, Peti Shares 2021 performance preview reflects potential risks and cannot be ignored, and its annual net profit is 60 million yuan to 50 million yuan, down up to 21.62% year-on-year. In fact, Patty Shares showed a typical high-rise and low-time, in the first half of the year, in the third quarter, due to the affected factories of Vietnamese factories, remarkable low. In addition, the company stated that the capacity of Cambodian projects and exchange profit and loss have adversely affect the annual profits. The medium pet shares are relatively stable, but after high growth in the first half of 2021, Q3 is affected by consumption costs, raw material costs, and net profit will also decline.

Peditan said in the announcement, the company continues to face raw material cost pressures 2019-2020. In the near future, the recent investment and discipline will show that the chicken is consumed to be used in the exported pet snack products. The company believes that with the proportion of sales of domestic pet main grains gradually increase, the impact of chicken price fluctuations on performance will decrease.

It should be noted that with Petty and Medium pets, the combination of single chicken is expected to weaken, but the overall cost pressure is still not optimistic, the cost advantage brought by New Zealand and the brand premium brought by high-end positioning remains to be observed.In addition, overseas layout faces certain epidemic risks.Petty Shares Vietnamese factory discontinued production is proven.The domestic pet industry starts late, and how the layout overseas prospects still lack case reference.It is generally believed that the pet food is typically separated from the buyer and the user, closer to the baby powder in the dairy.The Dairy Industry Expert Song Liang said to the Fin Federation agency reporter that domestic dairy companies have received higher success rates in the past overseas brand attacks, and can reach more than 80%.