The Financial Intelligence APP has learned that Tianfeng Securities has released a research report stating that this year's Asian Pet Expo has reached a new high in scale, covering the entire pet industry chain. The 26th Asia Pet Expo will open on August 21, 2024. As the flagship exhibition of the global pet industry, this year's Asia Pet Expo has a large exhibition scale of 0.3 million square meters, making a leap in terms of scale, lineup, and theme, covering the upstream and downstream of the pet industry. Head domestic brands have strong ability to bring forth new products, bullish on the rise of domestic brands: Guai Bao Pet (301498.SZ) core brand continues to exert force, Wang Zhenchun makes his debut at the Asian Pet Expo; Petti (300673.SZ) continues to enrich its product portfolio, and the value of dry food as the main food is worth looking forward to.

This year's Asian Pet Expo has reached a new high in scale, covering the entire pet industry chain!

The 26th Asia Pet Expo will open on August 21, 2024. As the flagship exhibition of the global pet industry, this year's Asia Pet Expo has a large exhibition scale of 0.3 million square meters, covering 17 major international pavilions, 7 supply chain specialized pavilions, and outdoor areas, bringing together 2,500+ exhibitors from home and abroad. The 2024 Asia Pet Expo has made a leap in terms of scale, lineup, and theme, covering the upstream and downstream of the pet industry. The expo's entire industry chain is newly built with four main thematic areas: "Pet and Human Living Pavilion", "Elderly Care & Health", "YA! Pet Super Hosts & Influencer Lifestyle Collection", and "PetTA Asia".

Head domestic brands have strong ability to bring forth new products, bullish on the rise of domestic brands!

1) Guai Bao Pet: The core brand continues to exert force, and Wang Zhenchun makes his debut at the Asian Pet Expo.

Guai Bao Pet covers all categories including pet food, snacks, and health care products, and has brands such as Mafudi, Furejiate, and Wang Zhenchun. The company's main brand, Mafudi, ranked first in pet brand sales on platforms such as Tmall, Douyin, and Pinduoduo during the 618 period, having a strong brand foundation. At this year's Asian Pet Expo, the "Mafudi BARF Natural Raw Meat Grain" is the main promoted variety at the booth, highlighting the concept of "natural recipes that awaken the nature of dogs and cats". In terms of high-end brand lines, the company focuses on the high-end meat cat food brand "Furejiate" and highlights the high-end dog food brand "Wang Zhenchun". Wang Zhenchun products emphasize traceable "limited" ingredient formulas and use Antarctic krill oil, highlighting the function of "soothing puppy emotions and enhancing pet resistance", and are expected to become a new growth point for the company's performance.

Petpal Pet Nutrition Technology: The lineup of the Feast products continues to enrich, and the main food of dried food is worth looking forward to.

Feast's dried food was a key product showcased at this year's Asia Pet Expo. In terms of ingredients, the dried food continues to adhere to the standard of "dried duck meat," with the addition of "duck heart and duck liver" as key components, highlighting the functions of "supplementing the necessary vitamins and minerals, and protecting eye and heart health." In terms of production process, it emphasizes preserving the nutritional taste of ingredients through the original drying process, rather than puffing and baking. In terms of snacks, Feast has entered the market with dog canned food, highlighting the "no additives to original ingredients," with flavors such as chicken and pumpkin, and duck and Chinese yam. The popularity of the Feast brand is gradually increasing. During this year's June 18th Shopping Festival, Feast's original dried food ranked first on the TikTok's popular dog food list and JD's popular dry dog food list. Tianfeng Securities believes that Feast's dried food has the potential to rise and can help the company expand in the main food market.

Yantai China Pet Foods: The high repurchase rate of the Naughty core product leads the innovative marketing strategy of collaborating with the popular TV series 'Empresses in the Palace'.

According to the company's promotional information, the company's core product Naughty Freeze-Dried Grain-Free Cat Food has sold a cumulative 3.6 million bags and has a high repurchase rate of 67.6%. The product highlights the concept of "grain-free care for the gastrointestinal system, awakening the cat's natural carnivorous behavior," and uses 80.8% animal-based ingredients. The company's other brand, 'Leading', collaborated with the popular TV series 'Empresses in the Palace', opening up new marketing ideas. The low-temperature baked food emphasizes freshness ('Zhen'), promotes growth ('Zhen'), and stimulates appetite ('Zhen'). In terms of ingredients, it highlights 65% fresh chicken and 5 strains of probiotics. The main canned food uses innovative ingredients such as crab meat, and emphasizes the brand concept of '99%+ animal protein, 96%+ dehydrated animal-based ingredients, 0% grains/legumes/fillers' to emphasize nutrition and trust. In addition to packaging innovation, the company has included 6 character cards inside the baked cat food packaging, which can be scratched to win prizes such as pure gold, enhancing interaction with pet owners.

Luscious Pet Foods: 'Shake and Feed' main food enhances interaction with pet owners.

Luscious Pet Foods continues to showcase its flagship product, the 'Shake and Feed' main food series, at the Asia Pet Expo. Its core concept is to 'increase fun in the feeding process for pet owners.' The biggest highlight of the product is the separate packaging of nutrition and flavor. It is matched with 8 different flavors of nutritional fun bags and 4 different functional fun bags, which have various functions such as hairball control, lactoferrin immunity, probiotic gastrointestinal motility, and fish oil for coat health. This allows pet owners to have multiple ways to mix and match, and the product innovates in terms of interaction.

Tianfeng Securities believes that China's pet economy is booming, and domestic brands are rising rapidly. Key recommendations include GuaiBao Pet (301498.SZ), Yantai China Pet Foods (002891.SZ), Petpal Pet Nutrition Technology (300673.SZ), and Luscious Pet Foods (832419.BJ).