Pet - China: Key tidbits from 618 pre-sales: rise of functional products

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Pet - China: Key tidbits from 618 pre-sales: rise of functional products

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Pet - China

Key tidbits from 618 pre-sales: rise of

functional products

Industry Overview

Near-term headwinds vs. structural opportunities 12 June 2026

China’s pet sector has seen a 43% correction in 2026 YTD (vs. MXCN -10%). We believe Equity

this reflects both a valuation de-rating amid the broad-based consumer fund outflow and China

lingering short-term concerns, incl. intensifying competition and ongoing product cycles Pet

of leading players, as evidenced by 618 presales data. Also, evolving demand trends (e.g., Alice Ma >>

shift toward functional products) could introduce transitional headwinds but also long- Research Analyst

term upgrade opportunities. In our view, listed domestic leaders appear well positioned Merrill+852 3508Lynch8752(Hong Kong)

to upgrade their portfolio and catch up with new trends, given their solid manufacturing alice.ma@bofa.com

and R&D capabilities. In longer term, structural demand is backed by an aging society, Chen Luo, CFA >>

Research Analyst

supporting the domestic leaders’ future growth outlook. We maintain Buy on CPF and Merrill Lynch (Hong Kong)

Underperform on Gambol. +852 3508 2009

chen.luo@bofa.com

What’s new in 618 presales: rise of functional products

The 618 pre-sales data reinforce the new momentum toward functional and premium

YTD: year to date

segments, with international and function-focused brands outperforming. During the

pre-sale (5/6-5/30) of Tmall 618 shopping festival, Rosy Fresh/Legend Sandy/Royal MXCN: MSCI China

Canin ranked Top 3, while Gambol Pet’s Myfoodie/Fregate took No. 4/No. 6. Toptrees

(under CPF) ranked No. 14. We believe the pre-sale data highlight several emerging CPF: China pet food