Own brands shine; buyback signals confidence

Research evidence excerpt

Own brands shine; buyback signals confidence

Nomura | Gambol Pet 15 June 2026

Company profile

Gambol Pet is engaged in the R&D, production and sales of pet food. Its main products cover multiple categories for dogs and

cats, including scientifically formulated staple food, treats made mainly from livestock, poultry and fish, and health supplements

for dogs and cats. Guided by the principles of “global vision and continuous innovation” and “everything for customers and

innovation; empowering talent and partners”, the company is committed to producing nutritious and healthy pet food that meets

consumer needs.

Valuation Methodology

Our target price of CNY55.32 is based on a target P/E of 32x and 2026F EPS of CNY1.73. Our target multiple is above the

peer valuation average, reflecting the company’s valuation premium as an industry leader and its improved earnings mix. The

benchmark index for the stock is the CSI 300 Index.

Risks that may impede the achievement of the target price

Intensifying domestic competition; trade frictions; raw material price increases.

ESG

According to Gambol Pet Group’s 2025 Sustainability Report, in 2025, Gambol Pet continued advancing energy-saving

upgrades across its production bases, optimized production processes and increased the use of renewable energy.

Photovoltaic power consumption exceeded 9.43mn kWh, corresponding to a reduction of c.5,004 tonnes of CO2e emissions.

The company also continued enhancing its environmental management system, increased investment in environmental

facilities and operations, and promoted water recycling, saving c. 82,660 tonnes of water during the year. Together, these

initiatives underscore Gambol Pet’s commitment to reducing value-chain emissions, improving resource efficiency, and building