Stocks in the pet industry have been doing well recently. Superimposed on the listing of Yuanfei Pets, attention to the sector has increased.
The pet industry belongs to the new economy . It seems that there are quite a lot of cats and dogs in the homes of my friends, and every year on Double 11, the import list is basically cat food dog food , which has exceeded the imported milk powder . ....The industry is also growing rapidly and the market is huge. Relevant data are available in research reports from brokerages. Here is a press release from CCTV Finance: There are more than 1.1 billion pet cats and dogs combined.
Let’s mainly talk about the pain points of this industry:
There is a problem in the pet industry: Foreign brands have a serious monopoly .
From cat and dog food to anthelmintics, and vaccines, almost all of the best-selling products are dominated by foreign brands. Including myself, the cat food I buy is all imported... As mentioned above, the Double 11 import list is cat food and dog food. Another example is the cat triple vaccine that is just needed for domestic cats. There are only foreign brands Miao Sanduo ,only.
Petty Shares’ mid-term report, in addition to the net profit gap, ’s self-operated brand is also a highlight.
Therefore, the 00119 Rip Biotech discussed below is also based on the above perspectives.
Rip Biotech stock was studied when I first took my cat to Ruipai for medical treatment 2 years ago. Liang The points are as follows:
. There is a reversal expectation in the main business, and the valuation is relatively reasonable: The company is a veterinary drug company, which is related to pig vaccines and veterinary drugs. However, because pig prices have been rising recently, the pig cycle is expected to heat up, so is its main business. The operating business has a reversal expected . The company gave equity incentives to and in April, and the net profit guidance for 23 years given in it was around 550 million, which is less than 120 times the PE of html, so there is a certain margin of safety.
. Core highlights: Domestic substitution of for pet medication is expected, strong channel advantages of and
①Pet medication business:
anthelmintics: anthelmintics for pets are high-frequency consumables , basically -2 I will use once a month.
The company's pet anthelmintic Mopusin (imidacloprid moxidectin drops) was launched in July, and sales have exceeded 10 million in two months. In the performance report disclosed by the company in the first half of the year, the performance income of the pet sector was only 9.65 million. See the underlined part of the survey in the figure below:
Since Mopusin is a blockbuster single product , the best-selling of the drug will help significantly increase the company's pet business revenue, achieve a breakthrough in this business from 0 to 1.
For relevant information, please see social media posts: [CITIC Agriculture·Wang Mingqi | Attention! Rip Bio: pet anthelmintic drug 00 million yuan large-scale single product is expected to be born, 10 billion pet animal health blue ocean
and pet hospital verification content is as follows:
Cat triple vaccine: Cat triple vaccine is basically a must for domestic cats. It is used to prevent three infectious diseases: feline plague , calicivirus , and feline nasal congestion . Usually, the cat comes in for 3 injections, and then one injection per year. At present, the only domestically approved cat triple vaccine is imported Miao Sanduo, which has an exclusive monopoly.
Domestic vaccines are basically in the clinical research stage, as shown in the picture below:
can also be seen, and Rip Biotech is one of them.
The urgently needed cat triple vaccine, which is exclusively monopolized by foreign companies, has huge room for domestic substitution.
② Super channel advantage: The company holds 10% equity of Ruipai Hongtai, the second largest pet hospital chain in China, and the actual controller of the company, Mr. Li Shoujun, is also the legal representative of Ruipai.
As we all know, the most important thing about medicine is the channel. Therefore, Rip Biotechnology, which is bound to the core pet hospital channel, will most likely be the biggest beneficiary of domestic substitution of pet medicine.
Not only on the hospital side, but also on the to C channel side, Ruipu Biotechnology has invested in 13% of the shares of Yichong Technology.
Yichong Technology is a leading company focusing on pet e-commerce. In other words, to C channel cooperation has also been implemented.
③Advantages of the new GMP regulations: A new GMP regulation was implemented in June this year. Without going into more details, I will show the content of a research report from a securities firm: 9 production bases have passed GMP acceptance.
In terms of sectors, the market has always liked new consumption, from medical beauty tax-free to diamond camping, so the pet economy will certainly not be absent , just because there are too few stocks in the sector and the capacity is too high Small. I believe that with the continuous listing of related companies, it is only a matter of time before breaks out.
In summary,
Ruipu Biotech, which has a perfect channel layout and leads the pet drug industry,
will most likely benefit from the rapid growth of the domestic pet market and domestic substitution, and the large Shine.
Final friendly reminder: When I was writing this post, the relevant stocks mentioned had not increased that much...but at the close, the increase was relatively large, so be careful about the risks of chasing prices in the short term.
