Core Viewpoint - The company reported steady revenue growth in the domestic market and significant growth in international business revenue, indicating a successful strategy in both new consumer sectors and international market expansion [4][5]. Financial Performance - In 1H2025, the company achieved revenue of 1.75 billion yuan, a year-on-year increase of 5.8%, and a net profit attributable to shareholders of 180 million yuan, up 1.7% year-on-year [4]. - Revenue for Q1 and Q2 of 2025 was 850 million yuan and 900 million yuan, respectively, with year-on-year growth of 1.6% and 10.1% [4]. - The company’s gross margin for 1H2025 was 21.2%, a decrease of 1.2 percentage points year-on-year, with Q1 and Q2 margins at 21.3% and 21.1%, respectively [6]. Product and Market Analysis - Revenue by product in 1H2025: color printing packaging (1.22 billion yuan, +2.6%), aluminum-plated packaging (40 million yuan, +22.3%), plastic flexible packaging (370 million yuan, +20.3%), and ink (70 million yuan, +3.8%) [5]. - Revenue by region: domestic market (1.44 billion yuan, +0.6%) and international market (300 million yuan, +39.7%) [5]. Cost and Expense Management - The company’s expense ratio for 1H2025 was 9.5%, down 1.0 percentage points year-on-year, with reductions in sales, management, and R&D expense ratios [7]. - The decrease in management expense ratio was primarily due to reduced employee compensation [7]. Dividend Policy - The company announced a cash dividend plan for 2025, proposing a distribution of 2.8 yuan per 10 shares, totaling 170 million yuan, with a current dynamic dividend yield of 5.3% [8].

Investment Rating - The report maintains a "Buy" rating for Yongxin Co., Ltd. (002014.SZ) with a current price of 11.60 CNY [1] Core Views - The company achieved steady revenue growth in the first half of 2025, with a revenue of 1.75 billion CNY, up 5.8% year-on-year, and a net profit of 180 million CNY, up 1.7% year-on-year [5][6] - The domestic market showed stable growth, while international business revenue grew significantly, with a 39.7% increase year-on-year [6] - The company plans to establish a wholly-owned subsidiary in Shanghai with an investment of 5 million CNY to enhance R&D capabilities and support international business expansion [6] - Increased market competition has led to a decline in gross margin, which was 21.2% in the first half of 2025, down 1.2 percentage points year-on-year [6][7] - The company continues to maintain a high dividend policy, proposing a cash dividend of 2.8 CNY per 10 shares, resulting in a total cash dividend of 170 million CNY, with a dynamic dividend yield of 5.3% [8][9] Summary by Sections Financial Performance - In 1H2025, revenue from various product lines was as follows: color printing packaging (1.22 billion CNY, +2.6%), aluminum-plated packaging (40 million CNY, +22.3%), plastic flexible packaging (370 million CNY, +20.3%), and ink (70 million CNY, +3.8%) [6] - The company’s gross margin by product line was: color printing packaging (21.9%), aluminum-plated packaging (2.6%), plastic flexible packaging (14.7%), and ink (22.2%) [7] - The company’s operating expense ratio was 9.5%, down 1.0 percentage points year-on-year, with a notable decrease in management expenses due to reduced employee compensation [8] Profit Forecast and Valuation - The report slightly lowers the profit forecast for 2025-2027, estimating net profits of 500 million CNY, 550 million CNY, and 600 million CNY respectively, with corresponding EPS of 0.81, 0.89, and 0.99 CNY [9][10] - The current price-to-earnings (P/E) ratios for 2025-2027 are projected to be 14, 13, and 12 times respectively [9] Market Position - Yongxin Co., Ltd. is recognized as a leading enterprise in the soft plastic packaging industry, with stable domestic operations and accelerated international expansion [9]

Investment Rating - The report maintains a "Buy" rating for the company, with expected EPS for 2025-2027 at 0.82, 0.93, and 1.07 RMB respectively, corresponding to PE ratios of 14, 12, and 11 times [5]. Core Insights - The company reported a revenue of 1.746 billion RMB for H1 2025, a year-on-year increase of 5.78%, and a net profit attributable to shareholders of 183 million RMB, up 1.72% year-on-year. The proposed dividend is 0.28 RMB per share, with a payout ratio of 93.58% [1]. - The plastic flexible packaging segment showed significant growth, contributing to the overall revenue increase. The revenue from plastic flexible packaging grew by 20.34% year-on-year, while the main business of color printing composite packaging experienced slower growth due to insufficient recovery in downstream consumer demand [2]. - The company's gross margin for H1 2025 was 21.18%, down 1.20 percentage points year-on-year, while the net margin was 10.55%, down 0.49 percentage points. The decline in margins is attributed to high raw material prices and increased market competition [3]. - As an industry leader, the company is well-positioned to capture market share from smaller competitors and is expected to benefit from new product lines in emerging consumer segments. The ongoing investment in new multi-functional film projects is anticipated to provide additional revenue growth [4]. Summary by Sections Performance Review - In H1 2025, the company achieved a revenue of 1.746 billion RMB, with a net profit of 183 million RMB. The Q2 revenue was 898 million RMB, reflecting a 10.07% year-on-year increase [1]. Operational Analysis - The revenue breakdown for H1 2025 includes 1.219 billion RMB from color printing composite packaging, 369 million RMB from plastic flexible packaging, 74 million RMB from inks, and 35 million RMB from vacuum aluminum packaging, with respective year-on-year growth rates of 2.64%, 20.34%, 3.80%, and 22.33% [2]. Margin and Cost Control - The gross margin for H1 2025 was 21.18%, with a net margin of 10.55%. The company maintained effective cost control, with sales, management, R&D, and financial expense ratios showing improvements [3]. Market Position and Growth Potential - The company is recognized as a leader in the plastic flexible packaging industry, with a focus on expanding into new consumer markets. The high dividend payout ratio and consistent historical dividend yield reflect its stable financial position [4]. Earnings Forecast and Valuation - The projected EPS for 2025-2027 is 0.82, 0.93, and 1.07 RMB, with corresponding PE ratios of 14, 12, and 11 times, supporting the "Buy" rating [5].