Layout of the global market, one-stop supply of all-category products Tianyuan pet was established in 2003, is the forerunner of the domestic pet industry. Through continuous development, the company has realized the effective coverage of many series and full categories, such as pet nest mat, cat climbing rack, pet food, pet toys, pet clothing, electronic supplies and so on. With reliable supply chain and fast response product development and design system, the company deeply cooperates with global customers, who are widely distributed in Europe, North America, Oceania and other major developed regions. In the domestic market, the company has actively covered the fast-growing domestic pet industry and established a domestic sales channel with both online and offline emphasis on food collaborative products, so as to provide guarantee for the company's long-term sustainable development. In the first three quarters of 2022, the company achieved revenue of 1.509 billion yuan, an increase of 13.2% over the same period last year, and a net profit of 95 million yuan, an increase of 17.2% over the same period last year.
The pet industry continues to expand and the supplies market is expected in the future.
From 2008 to 2022, the size of China's pet products market increased from 7.8 billion yuan to 36.23 billion yuan, with an annual compound growth rate of 11.6 percent. In 2021, the CR10 of Chinese pet products enterprises is only 11.4% (Euromonitor includes pet medical products), and the market share of each enterprise is less than 3%, there is still much room for market concentration. The increase in per capita disposable income, pet penetration and companionship demand will continue to promote the expansion of the pet products industry.
Pet products have a large number of categories and a low degree of standardization. because of their characteristics of taking into account the rigid demand attribute and the separation of users and purchasing decision-makers, part of the product demand is created by supply to a certain extent. the expansion of best-selling products and subdivisions with innovative and trendy characteristics is conducive to the increase of related demand. We believe that enterprises that can grasp fashion hotspots and achieve rapid iteration of functional products are more likely to seize the market segment of pet products. With the continuous improvement of domestic pet owners' recognition of domestic products, some pet products enterprises with high-quality product power, innovation ability and marketing ability are expected to break through the tight encirclement.
Enrich SKU superimposed R & D and innovation advantages, efficient outsourcing system to improve comprehensive competitiveness the company has a wide range of product development team and rapid response product development system, on the one hand, the product style is updated regularly, on the basis of having more than 5000 basic products, more than 2000 new products are continuously updated every year. On the other hand, the company can quickly transform the customer's product demand into product design, and put forward targeted product improvement and adjustment suggestions according to the market characteristics of the customer location. to lay the foundation for the company to establish a long-term and stable cooperative relationship with many international well-known customers.
On the basis of independent production, the company has established a relatively complete and efficient outsourcing production management system, while establishing its own production line for the two key "large products" of cushion and crawling shelves. the company uses outsourcing production to meet customers' multi-category and small batch "one-stop" product procurement needs. With the development and promotion of pet intelligent products and innovative toy products, the company will further increase the proportion of its own production line coverage for key categories, promote the global supply chain layout, and meet the increasingly diversified product needs of domestic and foreign customers for pet products.
Investment suggestion
Tianyuan Pet is a large-scale comprehensive pet product provider in China. In terms of pet products, with the continuous development of overseas customers and the gradual digestion of customer inventory, the company's supplies business is expected to resume steady growth; in terms of pet food, the company's development strategy of food-driven supplies and expanding domestic channels is well advanced, benefiting from the achievements of channel construction and the high-end trend of domestic pet food, the company's pet food business is expected to continue to increase. From 2022 to 2024, we expect the company to achieve operating income of 2.145 billion yuan, 2.64 billion yuan and 3.363 billion yuan, an increase of 15.7%, 23.1% and 27.4% over the same period last year, and the corresponding net profit of 125 million yuan, 156 million yuan and 200 million yuan, representing an increase of 16.3%, 25.1% and 27.6% respectively over the same period last year, corresponding to 1.39,1.74,2.22 yuan of EPS respectively.
Risk hint
The risk of the change of overseas market environment, the risk of new product development and promotion, the risk of authorized operation of pet food, the risk of exchange rate fluctuation, the risk of change of export tax rebate policy, the risk of fermentation of overseas pollution events, etc.