Core Viewpoint - The company "Raising a Cow" has launched a new children's brand "Moo Star" focusing on A2 protein to tap into the growing children's milk market in China, which is projected to reach 469.6 billion yuan by 2027 with a compound annual growth rate of 5.6% [1][4]. Product Launch - "Moo Star" introduced three product lines: A2 children's pure milk, A2 organic children's pure milk, and A2 Juanshan children's pure milk, targeting children aged 1-12 years [2]. - The pricing strategy for "Moo Star" is set at 2-3 yuan per 100ml, which is considered reasonable to encourage good milk-drinking habits among consumers [2]. Supply Chain and Quality Control - The company emphasizes its full supply chain advantage by selecting only 7% of pure A2 cows from its own farms, with 1% raised under organic standards and 0.5% being Juanshan A2 cows [2]. - The A2 Juanshan children's pure milk contains 4.0g of protein per 100ml, and the A2 organic children's pure milk is certified by both Chinese and European organic standards [2]. Market Strategy - "Moo Star" employs a dual-channel strategy, selling products through major e-commerce platforms like Tmall, JD, and Douyin, as well as in mainstream supermarkets [2]. - The children's milk market is expected to evolve towards health, functionality, and reasonable pricing, with "Moo Star" positioned to meet these demands [4]. Research and Development - The nutritional value of A2 milk is recognized for its easier digestibility, making it suitable for children [3]. - The company has developed a complete A2 product line, including long-life milk, fresh milk, milk powder, and ice cream, since launching its first A2 product in 2020 [3]. Corporate Social Responsibility - In 2023, the company established the Zhejiang Calf Public Welfare Foundation to promote child-friendly farm research activities, reflecting its commitment to social responsibility [4].

Core Insights - The article discusses China's resilience in the ongoing trade war with the U.S., highlighting its ability to maintain growth in high-end manufacturing despite tariffs and restrictions [1][6] - China's manufacturing sector has transformed from being a "world factory" to a "global intelligent manufacturing center," leveraging its complete industrial chain and digital transformation [1][8] Group 1: Trade War Context - The U.S.-China trade war began in 2018 with tariffs on $34 billion worth of Chinese goods, and by 2025, it has evolved into a technology blockade involving AI chips and renewable energy [1] - Despite the imposition of tariffs, China's manufacturing value-added share of global output increased from 26% in 2017 to 32% in 2024 [1][6] Group 2: Industrial Chain Advantage - China is the only country with all industrial categories recognized by the United Nations, which provides a significant advantage against sanctions [1] - The Yangtze River Delta region contributes 60% of global photovoltaic components and 40% of industrial robot production, showcasing China's comprehensive industrial capabilities [1] Group 3: Digital Transformation - Chinese manufacturers are adopting digital transformation to enhance efficiency, with a reported average production efficiency increase of 45% and a 30% reduction in operational costs [2][6] - Companies like Jiangsu Wanheng Casting have significantly reduced product development cycles and improved delivery rates through smart factory systems [2] Group 4: Collaborative Innovation - The shift from "machine replacement" to "ecosystem reconstruction" in manufacturing emphasizes the importance of collaborative innovation across the entire industrial chain [3] - Cross-border collaboration platforms, such as those developed by KuSi Furniture, have improved responsiveness to overseas orders by 70% [3] Group 5: Cost Management - Traditional manufacturers often struggle with cost transparency, but systems like U9 cloud enable detailed cost accounting, leading to significant savings [5] - A renewable energy company improved equipment utilization from 65% to 89% through smart scheduling systems, effectively creating additional production capacity [5] Group 6: Future Outlook - The article suggests that the trade war's outcome is predetermined, with China's manufacturing sector poised to thrive despite U.S. tariffs, which can reach as high as 245% on certain goods [6][7] - The U9 cloud platform has become integral to nearly 10,000 manufacturing enterprises, facilitating their digital transformation and enhancing global competitiveness [6][7]

Investment Rating - The investment rating for the company is "Outperform the Market" [5][34] Core Views - The company is expected to benefit from its full industry chain advantages, leading to a robust profit growth of 95% in 2024, with revenue reaching 156.2 billion yuan, a 17% increase year-on-year [1][6] - The increase in aluminum prices and a decrease in energy costs are driving significant profit growth in the electrolytic aluminum and alumina businesses [2][7] - The company plans to distribute a total dividend of 161 Hong Kong cents per share for 2024, which represents 63% of the net profit attributable to shareholders [1][6] Financial Performance Summary - In 2024, the company reported operating revenue of 156.2 billion yuan, a 17% increase from 2023, and a net profit of 22.37 billion yuan, reflecting a 95% growth [1][6] - The operating cash flow for the year was 14.26 billion yuan, up 85% year-on-year [1][6] - The company’s earnings per share (EPS) for 2024 is projected at 2.36 yuan, with a price-to-earnings (PE) ratio of 6.1 [4][34] Business Segment Analysis - The average selling price of aluminum alloy products in 2024 is expected to be 17,550 yuan per ton, an increase of 1,100 yuan per ton compared to 2023 [2][7] - The cost of coal procurement is projected to decrease by 110 yuan per ton, resulting in a reduction of 480 yuan per ton of aluminum [2][7] - The selling price of alumina is expected to rise to 3,420 yuan per ton, an increase of 860 yuan per ton from 2023, while the cost is expected to decrease by 60 yuan per ton [2][7] Future Projections - For the years 2025 to 2027, the company is projected to maintain stable revenue at 137.5 billion yuan annually, with net profits of 22.22 billion, 22.92 billion, and 23.51 billion yuan respectively [3][34] - The diluted EPS for these years is expected to be 2.35, 2.42, and 2.48 yuan, with corresponding PE ratios of 6.1, 5.9, and 5.8 [3][34] - The company is expected to achieve a more stable profit capability due to reduced volatility in energy costs, alongside benefiting from the current high aluminum market cycle [3][34]