Core Viewpoint - The company, Yiyi Co., Ltd. (依依股份), reported steady revenue and profit growth in its 2025 semi-annual report, driven by its focus on pet hygiene products and strategic market expansion [1] Group 1: Financial Performance - The company achieved operating revenue of 888 million yuan, a year-on-year increase of 9.34% [1] - The net profit attributable to shareholders reached 102 million yuan, up 7.37% year-on-year [1] - The net profit after deducting non-recurring gains and losses was 89.81 million yuan, reflecting a growth of 9.11% [1] - The net cash flow from operating activities surged to 190 million yuan, a remarkable increase of 4763.93% [1] - The profit distribution plan for the first half of 2025 includes a cash dividend of 2.40 yuan per 10 shares, totaling an expected distribution of 44.2 million yuan [1] Group 2: International Market Strategy - The company primarily generates revenue from overseas markets, establishing stable partnerships with international retailers and e-commerce platforms across nearly 40 countries [2] - In response to rising tariffs, the company has set up a wholly-owned subsidiary in Cambodia, which has an annual production capacity of approximately 300 million pet pads [2] - The company views tariff pressures as both risks and opportunities, actively expanding into European and Southeast Asian markets to mitigate market risks [2] Group 3: Domestic Market Development - The domestic market has become a strategic focus, with sales revenue reaching 58.01 million yuan, a year-on-year growth of 8.03% [3] - The company is increasing investment in its own brands, launching various functional pet care products under the "HUSHPET" and "Yiping Huafang" brands [3] - A multi-channel strategy is employed, covering major e-commerce platforms and collaborating with pet service providers for rapid delivery [3] - The company utilizes social media for content marketing to educate consumers and enhance brand recognition [3] Group 4: Strategic Investments - The company is making strategic investments in the pet industry through an industrial fund, exploring sectors such as pharmaceuticals, cat litter, pet food, and smart products [4] - This approach aims to integrate resources and expand into essential pet product areas, demonstrating the company's proactive market positioning [4]

Investment Rating - The report maintains a "Buy" rating for the company with a target price not specified [5] Core Viewpoints - The company is focusing on enhancing its competitive edge by leveraging its domestic and international production capabilities to seize opportunities in the pet hygiene and care products market [1][2] - The Chinese pet products market is experiencing robust growth, with a projected penetration rate of 80.2% for pet supplies by 2024, indicating a strong consumer shift towards pet care [2] - The company has adjusted its profit forecasts, expecting net profits of 267.35 million, 322.58 million, and 382 million yuan for the years 2025 to 2027, respectively, with corresponding P/E ratios of 17, 14, and 12 [4] Summary by Sections Company Strategy - The company is advancing a dual strategy of "overseas + domestic" and "ODM/OEM + proprietary brands" to strengthen its market position [1] - It is investing in various pet-related sectors, including cat litter, pet food, smart pet products, and veterinary vaccines, to prepare for future expansion [1] Market Analysis - The report highlights that the global production capacity for pet hygiene products is primarily concentrated in China, which provides a competitive advantage due to lower costs compared to other regions [3] - The company is actively expanding its market presence in non-US regions such as Europe and Southeast Asia to mitigate risks associated with tariffs [3] Financial Projections - The company anticipates significant revenue growth, with projected revenues of 1.34 billion, 1.80 billion, and 2.18 billion yuan for 2023, 2024, and 2025, respectively, reflecting growth rates of -11.80%, 34.41%, and 21.48% [10] - The EBITDA is expected to increase from 190.94 million yuan in 2023 to 392.38 million yuan in 2025, indicating a positive trend in operational efficiency [10]

Group 1: General Information - The research object is Yiyi Co., Ltd., which belongs to the beauty and care industry. The reception time was July 4, 2025, and the company's reception staff included the board secretary, CFO Zhou Lina, and securities affairs specialist Yang Yimu [16] - The institutions participating in the research are Shenwan Hongyuan Securities, Huaxia Fund, China Life Pension, Great Wall Fund, etc. [2] Group 2: Core Views - The company's current order situation is stable, and production is in an orderly manner. The US business that was postponed due to tariff policies has returned to normal, and the company is expanding non - US markets such as Europe and Southeast Asia [24] - The company's products are daily necessities for pet - keeping, and the downstream demand is relatively stable. The impact of tariff policies is mainly reflected in the customer's order - placing rhythm, sea - freight planning, and inventory management [24] - The Cambodian factory has an annual production capacity of approximately 300 million pet pads and will expand production capacity flexibly according to the situation [25] - The domestic market for pet disposable hygiene and care products has broad development potential, driven by factors such as the younger pet - owner population, pet aging, and the expansion of pet - friendly scenarios [25] - The company is increasing the promotion of its domestic self - owned brands "HUSHPET" and "One Acre Flower House" through an omni - channel layout [27] - The company will continue to implement the "overseas + domestic" dual - cycle and "ODM/OEM + self - owned brand" dual - engine drive strategy, and is also making strategic layouts in the pet track through industrial funds [27] Group 3: Summary by Directory 01. Research Basic Situation - The research object is Yiyi Co., Ltd. in the beauty and care industry, with a reception time of July 4, 2025, and specific reception staff [16] 02. Detailed Research Institutions - The participating institutions include Shenwan Hongyuan Securities (represented by Zhang Haitao), Huaxia Fund (represented by Lin Yao and Fan Linjun), China Life Pension (represented by Gao Yuanyuan), and Great Wall Fund (represented by Chai Chengsen) [17] 03. Research Institution Proportion - No relevant content provided 04. Main Content Data - **Order and Market Situation**: The company's orders are stable, and the US business has recovered. It is expanding non - US markets to reduce risks [24] - **Impact of Tariffs**: Tariffs mainly affect the customer's order - placing rhythm, sea - freight planning, and inventory management. The Cambodian factory has a certain production capacity and may expand it [24][25] - **Domestic Market Potential**: The domestic market for pet disposable hygiene and care products has great potential, driven by young pet - owners, pet aging, and pet - friendly scenarios [25] - **Brand Planning**: The company is promoting its self - owned brands "HUSHPET" and "One Acre Flower House" through an omni - channel layout [27] - **Development Strategy**: The company will continue the dual - cycle and dual - engine drive strategy and make strategic layouts in the pet track through industrial funds [27]