Yuanta Securities: Guai Bao Pet 618 Promotion Maintains its Advantage, Maintains a "Buy" Recommendation

Yuanta Securities research report pointed out that, according to Xingtu data, during the 618 promotion period, Guibao Pet's Fulega ranked in the top 3 of Tmall's pet food category and top 4 in Douyin's sub-category. Maifudi ranked first in Douyin and Kuaishou sub-categories, top 5 on Tmall, and top 2 on JD. The company's existing factory in Thailand is operating at full capacity, with a new factory set to start production soon, doubling Thailand's production capacity and expanding the range of products produced. Currently, overseas contract manufacturing business has gradually shifted to the Thailand factory, helping the company avoid tariff impacts. In addition, Thailand is preparing to build a research and development center, which is expected to further enhance the company's overseas competitiveness. The stock price has recently experienced a correction, but we still believe in the localization of pet food production in China and the overall improvement of the company's competitiveness. We recommend buying on dips and maintain a "buy" investment recommendation.