Investment Rating - The investment rating for the company is not explicitly stated in the provided documents, but the report indicates a positive outlook for the second half of the year, suggesting potential for improvement in performance [1][2]. Core Views - The company reported a revenue of 888 million yuan in H1 2025, representing a year-on-year increase of 9.3%, and a net profit attributable to the parent company of 102 million yuan, up 7.4% [1]. - In Q2 2025, the company experienced a revenue decline of 6.1% to 403 million yuan and a net profit decrease of 9.1% to 48 million yuan, attributed to tariff impacts [1][2]. - The company maintains a strong customer base with high entry barriers for suppliers, leading to strong customer retention and stable growth in the U.S. market despite tariff disruptions [2]. - The company’s production capacity has expanded significantly, with domestic pet pad capacity reaching 4.6 billion pieces and overseas capacity in Cambodia expected to improve exports to the U.S. in H2 2025 [2]. Financial Performance Summary - For H1 2025, the company's main product, pet pads, generated revenue of 764 million yuan, a year-on-year increase of 7.3% [2]. - The gross margin for Q2 2025 was 19.1%, with a net profit margin of 11.9%, indicating stable profitability despite slight declines [3]. - The company’s operating cash flow for Q2 2025 was 118 million yuan, showing strong cash flow performance [3]. - Profit forecasts for 2025-2027 estimate net profits of 240 million, 290 million, and 350 million yuan, respectively, with corresponding P/E ratios of 20.2X, 16.3X, and 13.4X [3].
依依股份（001206）：优质客户稳健增长，H2改善可期