YIWU CCC(SH:600415) KAIYUAN SECURITIES·2025-07-27 14:48Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The retail industry is experiencing a recovery, with significant growth in specific segments such as beauty and jewelry, driven by consumer sentiment and innovative business models [8][30] - The launch of the AI model by Yiwu Small Commodity City is expected to enhance operational efficiency and empower merchants, indicating a shift towards technology-driven business practices [25][26] Summary by Sections Retail Market Review - The retail industry index rose by 3.28% during the week of July 21-25, outperforming the Shanghai Composite Index by 1.61 percentage points [7][14] - The brand cosmetics sector saw the highest weekly increase of 5.94%, while the jewelry sector led the year-to-date performance with a 28.93% increase [17][20] Industry Dynamics - Yiwu Small Commodity City partnered with Alibaba to initiate the AI model testing, which is expected to transform traditional trade practices and enhance global trade linkages [25][26] - Over 30,000 merchants in Yiwu are utilizing AI tools, with deep users experiencing over 30% growth in orders, showcasing the impact of AI on operational efficiency and brand enhancement [26] Investment Recommendations - Focus on high-quality companies in sectors benefiting from emotional consumption themes, including: - Gold and jewelry brands with differentiated product offerings, such as Laopuhuang and Chaohongji [8][30] - Retail enterprises adapting to trends, like Yonghui Supermarket and Aiyingshi [8][30] - Domestic beauty brands with strong growth potential, including Maogeping and Pola [8][30] - Medical beauty product manufacturers with unique pipelines, such as Aimeike and Kedi-B [8][30] Company-Specific Insights - Laopuhuang reported a revenue increase of 167.5% and a net profit increase of 253.9% in FY2024, indicating strong brand expansion [32] - Chaohongji achieved a revenue growth of 25.4% in Q1 2025, driven by its focus on fashionable jewelry targeting younger consumers [40] - Maogeping's revenue grew by 34.6% in FY2024, reflecting its position as a leading domestic high-end beauty brand [32] - Pola's revenue increased by 21.0% in FY2024, supported by a robust product lineup [32]