Company - Jieya Co., Ltd. is a high-quality wet wipes manufacturer established in 1999, with major clients including Woolworths, Kimberly-Clark, Johnson & Johnson, Procter & Gamble, Babycare, and Dongfang Zhenxuan [1] - The company experienced a decline in orders post-pandemic, with projected 2024 revenue and net profit dropping to 547 million and 19 million respectively, resulting in a net profit margin of 3.50% [1] - In the first half of 2025, the company reported a revenue of 310 million, an 8.8% year-on-year increase, and a net profit of 33 million, a 22.6% increase, with a net profit margin recovering to 10.50% [1] - Jieya has launched a restricted stock incentive plan for 2025, aiming to double revenue from 2024 levels over the next three years, indicating strong growth confidence [1] Industry - The global wet wipes market is steadily growing, with a retail market size projected to reach 18.4 billion USD in 2024, a 2.7% year-on-year increase, and the top 10 companies holding a combined market share of 41.3% [2] - In 2024, the retail market sizes for wet wipes in the US and Western Europe are expected to be 6.7 billion and 3.9 billion USD respectively [2] - The Chinese wet wipes market is projected to exceed 12.9 billion RMB in 2024, with a year-on-year growth of 4.3%, and the top 10 brands holding a market share of 48.0% [2] Company Performance - Jieya's core business is wet wipes manufacturing, with significant profit recovery since 2025, showing a net profit margin advantage over competitors like Hangzhou Guoguang [3] - The company’s top five clients accounted for 77.6% of revenue in 2024, with international brand clients driving a 46.2% year-on-year growth in foreign sales in the first half of 2025 [3] - The gross profit margin for foreign business in the first half of 2025 was 35.38%, significantly higher than the domestic margin of 6.22% [3] - Jieya is establishing a production base in the US, with a projected capacity of 15 billion wipes annually, enhancing its global competitive edge [3] Profit Forecast and Valuation - The projected net profits for Jieya from 2025 to 2027 are 77 million, 107 million, and 144 million respectively, representing year-on-year growth rates of 297.2%, 38.1%, and 34.7% [4] - As of September 26, 2025, the company's market capitalization is 3.5 billion, with corresponding price-to-earnings ratios of 45, 33, and 24 for the years 2025 to 2027 [4] - Using a comparable company valuation method, Jieya's PEG for 2026 is estimated at 1.16, suggesting a market value of 4.6 billion, with a "buy" rating initiated [4]

Investment Rating - The report assigns a "Buy" rating for the company, Jeya Co., Ltd. [3][8] Core Viewpoints - Jeya Co., Ltd. is a high-quality wet wipe manufacturer with significant international brand client orders driving a performance turnaround. The company has experienced a recovery in performance since 2025, with a notable increase in overseas orders from major clients [6][7][10]. Financial Data and Profit Forecast - Total revenue is projected to reach 716 million yuan in 2025, with a year-on-year growth rate of 30.8%. By 2027, revenue is expected to grow to 1,137 million yuan, reflecting a 28.0% increase [2]. - The net profit attributable to the parent company is forecasted to be 77 million yuan in 2025, with a staggering year-on-year growth of 297.2%. By 2027, net profit is expected to reach 144 million yuan, with a growth rate of 34.7% [2]. - Earnings per share are projected to increase from 0.40 yuan in 2025 to 1.27 yuan in 2027 [2]. Industry Overview - The global wet wipe market is steadily expanding, with a retail market size of 18.4 billion USD in 2024, reflecting a year-on-year growth of 2.7%. The market is primarily driven by North America and Western Europe [37][38]. - In China, the wet wipe market is expected to exceed 12.9 billion yuan in 2024, with a year-on-year growth of 4.3% [39]. Company Analysis - Jeya Co., Ltd. has a robust client base, including major international brands such as Procter & Gamble and Kimberly-Clark. The company’s revenue from its top five clients accounted for 77.6% in 2024 [6][10]. - The company is expanding its production capacity with a new factory in the United States, which is expected to significantly enhance its global competitiveness [10][11]. Profitability and Valuation - The company’s gross margin is projected to improve from 19.6% in 2024 to 25.1% in 2025, with a net margin recovery to 10.5% in the first half of 2025 [2][27]. - The current market capitalization is approximately 3.5 billion yuan, with corresponding price-to-earnings ratios of 45, 33, and 24 for 2025, 2026, and 2027, respectively [8][10].

Investment Rating - The report maintains an "Accumulate" rating for the company [1][3]. Core Views - The company is a leading manufacturer of wet wipes in China, with over 20 years of experience, focusing on research, production, and sales of various wet wipe products [2][11]. - The company is expected to reach an inflection point in performance, driven by international market expansion and a recent stock incentive plan that reflects growth confidence [2][3]. - The company has a strong international customer base, including well-known brands such as Woolworths, Kimberly-Clark, Johnson & Johnson, and L'Oréal, which provides a stable order flow and high-margin opportunities [2][3][49]. Summary by Sections Company Overview - The company specializes in wet wipes, offering over 60 products across six major categories, including baby wipes, adult functional wipes, antibacterial wipes, household cleaning wipes, medical care wipes, and pet cleaning wipes [2][11]. - The company has adopted an ODM/OEM model to produce wet wipes for global brands, enhancing its market presence [2][11]. Industry Analysis - The global wet wipes market is projected to grow steadily, with a market size of approximately $18.4 billion (about 132.1 billion RMB) in 2024, and a compound annual growth rate (CAGR) of 4.6% from 2024 to 2029 [41]. - The North American and European markets dominate the global wet wipes consumption, accounting for 64.5% of the total market [41]. Company Analysis - The company has a high customer concentration, primarily serving international clients, which contributes to stable cash flow and reduces risks [49][57]. - The company has a competitive edge in securing orders due to long-term relationships with international clients and advanced production technology [58][64]. - The company is expanding its production capacity, with a new facility in the United States expected to be operational by 2026, which will significantly enhance its market share in North America [72]. Financial Forecast - The company anticipates a recovery in revenue, projecting a net profit of 0.8 billion RMB in 2025, increasing to 1.4 billion RMB by 2027, with corresponding price-to-earnings (P/E) ratios of 50, 38, and 29 [3][76]. - The revenue for 2025 is estimated at 727.5 million RMB, reflecting a growth rate of 32.89% compared to 2024 [4][75].

Core Viewpoint - Jeya Co., Ltd. has completed the acquisition of 48% equity in its subsidiary Anhui Jiechuan Medical Equipment Co., Ltd., enhancing its control over the company to 100% [1] Company Overview - Jeya Co., Ltd. specializes in the research, production, and sales of wet wipes, including baby wipes, adult wipes, and medical wipes [1] - As of August 20, 2025, the stock price of Jeya Co., Ltd. is 27.38 yuan, reflecting a 0.51% increase from the previous trading day [1] Financial Performance - The stock opened at 27.24 yuan, reached a high of 27.90 yuan, and a low of 26.91 yuan on the same day [1] - The trading volume was 16,262 hands, with a total transaction amount of 0.44 billion yuan [1] Market Activity - Jeya Co., Ltd. operates in sectors including beauty care, Anhui region, and pet economy [1] - In the past month, the company has been subject to institutional research four times, with participation from 43 institutions [1] Capital Flow - On August 20, the net outflow of main funds was 1.2739 million yuan, with a cumulative net outflow of 7.0870 million yuan over the past five days [1]

人民财讯7月30日电，7月30日，洁雅股份（301108）在接待机构调研中表示，2025年二季度以来，公司 湿巾业务订单充足，存量客户订单稳定，并承接了部分关键客户欧洲和加拿大市场新增业务。同时，公 司正在积极拓展国际品牌客户的其他区域市场业务。 ...

Summary of the Conference Call for Jieja Co., Ltd. Company Overview - Jieja Co., Ltd. focuses on the wet wipes market, with a strategic shift towards international clients and a plan to expand production capacity in the U.S. by 2026 [2][5][7]. Key Points Industry and Market Dynamics - The wet wipes market is experiencing rapid growth in demand, particularly in the international market, despite intense domestic competition leading to lower profit margins [10][11]. - The global wet wipes contract manufacturing market is estimated to be around 100 billion RMB, with the U.S. accounting for nearly 40% of the global market share [26]. Revenue and Profitability - Jieja Co., Ltd. has seen a slight revenue increase in the first half of the year compared to last year, with expectations for accelerated growth in the second half, particularly in net profit [3][34]. - The company anticipates a revenue growth of approximately 20%-30% year-on-year by 2025, driven by an optimized customer and order structure [4][34]. Customer Structure and Orders - The customer base has shifted from primarily international brands during the pandemic to domestic e-commerce clients, with a recent return to international clients like Kimberly-Clark and Procter & Gamble [2][4]. - The current export distribution is approximately 30% to Europe, 30% to Australia and Southeast Asia, 10% to the U.S., and 30% to the domestic market [6]. Production Capacity and Expansion Plans - The company maintains a high capacity utilization rate of 80%-90% and can quickly ramp up production through continuous shifts if urgent orders arise [2][30]. - Plans to establish a factory in the U.S. are underway, expected to be operational by early 2026, despite higher labor costs, which are projected to yield a gross margin of about 15% and a net margin of 7-8% [8][9]. Pricing and Cost Management - Jieja Co., Ltd. employs a cost-plus pricing strategy with clients, allowing for price adjustments in response to fluctuations in raw material costs and exchange rates [14]. - The company has established a mechanism to adjust prices when raw material or exchange rate changes exceed certain thresholds [14]. Competitive Landscape - The company has built strong relationships with major clients through long-term cooperation and trust, which is a significant competitive advantage [22]. - The domestic wet wipes market is characterized by intense competition and low profit margins, prompting Jieja Co., Ltd. to focus on international markets for growth [11][25]. Future Outlook - The company is exploring further expansion into new product categories and markets, particularly in the U.S. and Southeast Asia, to leverage existing client relationships [27][17]. - Jieja Co., Ltd. is considering additional incentive plans to enhance internal momentum and performance [33]. Challenges and Risks - The company faces challenges from fluctuating raw material prices and intense competition in the domestic market, which could impact profitability [11][14]. - The uncertainty in client demand and the speed of order transitions from in-house production to contract manufacturing pose risks to growth projections [28]. Conclusion Jieja Co., Ltd. is strategically positioning itself to capitalize on international market opportunities while managing domestic competition. The company's focus on optimizing its customer base and expanding production capabilities, particularly in the U.S., is expected to drive significant revenue and profit growth in the coming years.