Core Viewpoint - The report from Tianfeng Securities highlights that Yongyi Co., Ltd. has shown a 5% year-on-year increase in net profit attributable to shareholders for the first half of 2025, amounting to 130 million, while the second quarter saw a 10% decrease compared to the previous quarter [1] Group 1 - Yongyi Co., Ltd. established a production base in Vietnam in 2018, becoming a pioneer in the industry, which has led to significant competitive advantages in customer resources, production capacity, localized supply chains, personnel quality, and technical processes [1] - The company has continuously improved its manufacturing capabilities and process levels, and has established a seating testing center recognized by international authorities such as TUV and BV, enhancing its ability to undertake products with higher technical requirements [1] - The Romanian production base, which commenced operations in 2023, is accelerating the introduction of new products and ramping up capacity, while plans for land acquisition and mature facilities in 2024 will support further expansion into the European and American markets [1] Group 2 - The company remains committed to its "top one or two" market strategy, focusing on insights and development efforts towards top customers in key countries, analyzing customer needs and competitive landscapes to formulate targeted marketing strategies and action plans [1] - The company is adjusting its profit forecasts and maintaining an "overweight" rating [1]

Export Data and Tariff Impact - In April, China's export growth showed a marginal slowdown, with a significant decline in exports to the US, indicating the actual impact of tariff increases is becoming evident [1][10] - The export growth structure can be categorized into three scenarios: overall export slowdown with simultaneous declines in both US and non-US exports, export decline to the US but an increase in non-US exports, and a decline in US exports with overall export growth improving due to non-US exports [2][12] - Industries facing significant revenue impact due to export declines include home appliances, non-ferrous metals, light industry, machinery, and textiles [2][14] Monthly Market Review - In May, risk assets generally experienced a recovery, with A-shares showing a preference for value styles, while sectors like environmental protection, pharmaceuticals, and military industries led the gains [3][21] - The market saw a mixed performance with fluctuations in risk appetite, influenced by tariff negotiations and concerns over US debt risks [3][21] June Market Outlook and Allocation Recommendations - The market is expected to continue its oscillation with a downward shift in the central tendency, influenced by tariff expectations and policy anticipation [4][5] - The recommendation is to increase allocation in low-volatility dividend stocks, focusing on sectors like electricity, banking, and consumer goods, while also considering trading opportunities in emerging technologies such as AI and robotics [5][6]