Today, two new shares of Tony Electronics and Petty Holdings were subscribed. These are also the last two new shares issued in the first half of the year. Among them, Petty Co., Ltd. is mainly engaged in the research and development, production and...
Today, two new shares of Tony Electronics and Petty Holdings were subscribed. These are also the last two new shares issued in the first half of the year. Among them, Petty Co., Ltd. is mainly engaged in the research and development, production and sales of pet snacks and will become the first A-share dog food stock. In fact, the market size of the pet industry has exceeded 100 billion yuan, and Petty's net profit has also increased year by year in recent years, exceeding 80 million yuan last year.
Pet snacks can sell for 500 million
Petty shares were listed on the New Third Board on April 23, 2015, and began to receive listing coaching on December 3, 2015. After the meeting on May 10 this year, it was the sixth company to successfully transfer to the board of directors this year.
This Wenzhou company mainly produces a series of products such as livestock hide chews, plant chews, nutritious meat snacks, bird food and edible small animal toys, baked biscuits, etc. It currently ranks first in the production and sales of pet snack chews in China. Last year, its pet chew products sold 518 million yuan, far ahead among similar manufacturers nationwide, with chew products accounting for 94.24% of its sales revenue. From 2014 to 2016, the company achieved operating income of 397 million yuan, 497 million yuan, and 551 million yuan, and net profits of 27.7523 million yuan, 57.9326 million yuan, and 80.4728 million yuan. The net profit in the first half of the year is expected to be 31 million yuan to 36 million yuan, a year-on-year increase of 0.89% to 17.43%. Regardless of industry, profitability or growth, Petty shares are quite interesting.
The company's products are mainly exported. Last year, 96.34% were sold overseas. From 2014 to 2016, the asset-liability ratio was only 27.50%, 28.59%, and 29.59%. It can be said that it is not short of money. In the past three years, its earnings per share reached 0.49 yuan, 1.00 yuan, and 1.34 yuan, ranking first among domestic pet companies.
The domestic pet industry is on the fast track
Petty shares plans to be listed on the GEM of the Shenzhen Stock Exchange. It will issue 20 million shares, all of which will be issued online. The subscription limit for a single account is 20,000 shares. The issuance price is 22.34 yuan/share, and the issuance price-to-earnings ratio is 22.99 times. After this issuance, the company's total share capital will be 80 million shares, and it plans to raise 398 million yuan in funds, which will be used for the technical renovation of the livestock hide chewing production line, the meat snack production line and other projects. The company is a professional supplier of pet food and has strong comprehensive competitiveness in the pet food industry. Chairman and General Manager Chen Zhenbiao said that as consumers’ brand awareness gradually increases, the pet industry is about to usher in a “blowout era.” After the company is listed, it will consider upstream and downstream business expansion, including pet hospitals.
Currently, China’s pet industry has entered a period of rapid development. The "2016 China Pet Industry White Paper" shows that from 2004 to the end of 2015, China's pet industry market size increased nearly 50 times, exceeding 100 billion for the first time in 2016. It is predicted that it will maintain an average annual high-speed development of 32.8% in the next five years, and is expected to exceed the 200 billion yuan mark by 2020, becoming the world's third largest pet food market.
It is reported that the current structure of my country's pet industry is fragmented. Catalyzed by the influx of capital, the concentration is expected to increase. Pet medical care and pet food are the two largest sub-sectors. Pet medical care is mainly based on small private stores, and chain operations are a development trend. In the future, it will rely on the expansion of the number of stores to grow rapidly.
