Core Viewpoint - Chengdu Yunging World Co., Ltd. has submitted its IPO application to the Beijing Stock Exchange, aiming to raise 191 million yuan by issuing up to 40.01 million new shares, with the funds primarily allocated for sales network construction and a digital center project [1][2]. Company Overview - Yunging World operates primarily as a franchise business with only 2 direct-operated stores, boasting over 2,200 franchise stores, which account for approximately 7% of the total mother-baby chain stores in China [2][3]. - The company sources products from well-known brands at competitive prices and supplies them to its franchisees, allowing it to leverage scale pricing advantages and exclusive regional product supply [2]. Financial Performance - Yunging World's revenue from 2022 to 2024 is projected to grow from 603 million yuan to 1 billion yuan, with franchise sales contributing significantly to its income [3][10]. - In 2024, the revenue from franchisees is expected to reach 873 million yuan, making up 87.4% of the total revenue [3]. Market Position and Expansion Plans - Yunging World is primarily focused on the southwestern region of China, with plans to expand into central and eastern markets, aiming for a nationwide presence [4][8]. - The company recognizes the need for market expansion due to increasing industry concentration and competition from larger players like Kidswant and Aiyingshi [8][14]. Competitive Landscape - The competitive landscape is intensifying, with Kidswant and Aiyingshi making significant acquisitions to strengthen their market positions, such as Aiyingshi's acquisition of Beibei Bear and Kidswant's acquisition of Lejoy International [6][7]. - Despite being ranked third in the mother-baby chain market, Yunging World's revenue is significantly lower than that of its competitors, indicating a need for strategic growth [9][11]. Industry Trends - The birth rate in China has entered a low plateau, which poses challenges for the mother-baby industry, as evidenced by declining revenues for major players [12][13]. - The industry is expected to shift towards a model focusing on supply chain efficiency, service value addition, and regional operational efficiency, which is a driving factor for Yunging World's IPO [13][14].

Investment Rating - The report indicates a positive outlook for the maternal and infant industry, driven by supportive policies and expected growth in consumer spending [4][6]. Core Insights - The report emphasizes the transition of China's fertility policy towards comprehensive support for childbirth, which is expected to enhance consumer confidence and spending in the maternal and infant sector [4][17]. - The maternal and infant market has shown resilience, with a compound annual growth rate (CAGR) exceeding 15% from 2018 to 2024, despite a decline in birth rates [6][32]. - The rise of domestic brands in the maternal and infant sector is notable, with significant market share gains in various sub-sectors [6][37]. Summary by Sections 1. Policy Promotion of Fertility - China's fertility policy has evolved from encouraging childbirth to comprehensive support, with various measures being implemented to boost birth rates [4][10]. - The government is focusing on creating a "fertility-friendly" society, with financial incentives and support services being rolled out across different regions [17][18]. 2. Market Growth and Consumer Trends - Despite a decline in newborn numbers, the maternal and infant market is experiencing growth due to consumption upgrades and the diversification of product offerings [6][32]. - The market size is projected to reach approximately 762.99 billion yuan by 2024, reflecting a year-on-year growth of 15% [31]. 3. Beneficiary Industries and Companies - Various sectors are expected to benefit from the growth in the maternal and infant market, including pharmaceuticals, food and beverage, apparel, and household goods [6][41]. - Key companies highlighted include: - Pharmaceuticals: Jinxin Reproductive, LIZHU Group, and BGI Genomics [6][41]. - Dairy: Yili Group and China Feihe [6][42]. - Apparel: Semir and Anta [6][49]. - Household goods: Bear Electric [6][61]. 4. Competitive Landscape - The report notes an improvement in the competitive landscape, with domestic brands gaining market share across various segments, including infant formula and baby care products [6][37]. - The concentration ratio (CR10) for domestic brands has significantly increased, indicating a shift in market dynamics favoring local players [6][37].

Core Viewpoint - Chengdu Pregnant and Infant World Co., Ltd. has completed its listing guidance report and plans to list on the Beijing Stock Exchange, with Guosen Securities as the guidance institution [2] Financial Performance - In 2024, the company achieved operating revenue of 1.038 billion yuan, a year-on-year increase of 39.71% [3] - The net profit attributable to shareholders was 120.22 million yuan, up 26.92% year-on-year [3] - The gross profit margin was 20.09%, down from 22.16% in the previous year [3] - Basic earnings per share increased to 0.33 yuan from 0.26 yuan, reflecting a growth of 26.92% [3] Ownership Structure - The actual controllers of the company are Jiang Dabin and Wang Weijian, with Jiang holding 5.71% of the shares directly [4] - Together, Jiang and Wang indirectly hold 68.27% of the company through their control of Chengdu Junlong, which gives them a combined voting power of 80.40% [4] Company Background - Founded in 2016, Chengdu Pregnant and Infant World is a digital innovation-driven mother and baby chain enterprise, focusing on professional services to support the sustainable development of maternal and infant operators [2]