Financial Performance - Company reported total revenue of 888 million yuan for the first half of 2025, a year-on-year increase of 9.34% [1] - Net profit attributable to shareholders reached 102 million yuan, up 7.37% year-on-year [1] - In Q2 2025, total revenue was 403 million yuan, a decline of 6.05% compared to the same period last year [1] - Q2 net profit attributable to shareholders was 48.11 million yuan, down 9.09% year-on-year [1] - Gross margin was 18.97%, an increase of 0.46% year-on-year, while net margin was 11.5%, a decrease of 1.81% [1] - Total operating expenses were 34.30 million yuan, accounting for 3.86% of revenue, an increase of 10.51% year-on-year [1] - Earnings per share increased to 0.55 yuan, up 7.84% year-on-year [1] Cash Flow and Assets - Operating cash flow per share surged to 1.03 yuan, a dramatic increase of 4763.93% year-on-year [1] - Cash and cash equivalents increased by 186.42%, attributed to higher cash receipts from sales [4] - Accounts receivable accounted for 148.6% of net profit, indicating a significant amount of outstanding payments [1][4] Market and Industry Insights - The company is focusing on expanding its market presence in non-US regions such as Europe and Southeast Asia to mitigate risks from tariff policies [5] - The domestic market for pet hygiene products is expected to grow due to increasing pet ownership among younger generations and the aging pet population [7][8] - The company plans to enhance its self-owned brands and expand its market share through a combination of online and offline strategies [9] Future Strategy - The company aims to implement a dual-circulation strategy focusing on both domestic and overseas markets, as well as a dual-engine approach combining ODM/OEM and self-owned brands [10] - Future investments will target essential pet products, including cat litter, pet food, and medical vaccines, to capitalize on market opportunities [10]

增持（维持） 上半年业绩实现增长 加大国内自主品牌投入 公 司 点 依依股份（001206）2025 年中报点评 分析师：魏红梅 SAC 执业证书编号： 事件：公司发布了2025年中报。公司2025年上半年实现营业总收入8.88亿元， 同比增长9.34%；实现归母净利润1.02亿元，同比增长7.37%。业绩符合预期。 评 S0340513040002 点评： 2025 年 8 月 22 日 投资要点： | 证 | | | | | | | --- | --- | --- | --- | --- | --- | | 收盘价（元） | 27.01 | 总市值（亿元） | 49.94 | | | | 券 | | | | | | | 总股本（百万股） | 184.89 | 研 | 流通股本（百万股） | 106.32 | | | 究 | | | | | | | ROE(TTM) | 11.92% | 报 | 12 | 月最高价（元） | 27.52 | | 12 | 月最低价（元） | 10.92 | 告 | | | | 股价走势 | | | | | | | 资料来源：iFinD，东莞证券研究所 | | | | | | ...

Group 1 - The company Yiyi Co., Ltd. announced a share buyback of approximately 370,000 shares, representing 0.2% of its total share capital, with a total transaction amount of about 6.78 million yuan [2] - The highest transaction price during the buyback was 22.2 yuan per share, while the lowest was 16.59 yuan per share [2] - For the year 2024, the company's revenue composition is as follows: 94.02% from pet disposable hygiene products, 4.65% from non-woven fabrics, 1.13% from personal disposable hygiene products, and 0.2% from other businesses [2]

Group 1 - The report highlights that the real estate index has shown a zigzag pattern of excess returns over the past year, characterized by short cycles, high volatility, and strong policy correlation. The average excess return during the last six upward waves reached 13%, lasting an average of 18 days [2][28][29] - It is suggested that if the upcoming political bureau meeting or related policies signal more aggressive real estate stimulus, the real estate index may initiate a new round of upward movement. However, the long-term outlook remains dependent on the stabilization of the fundamental market conditions [2][28][29] - Key themes identified include the push for orderly exit of backward production capacity to achieve high-quality development, significant investment in the Yarlung Zangbo River downstream hydropower project, and the high demand in the AIDC sector driven by policy [2][28][29] Group 2 - The report indicates that the domestic fiscal situation showed a slight decline in June, but land transaction recovery has led to an increase in government fund income. The overall fiscal revenue remained flat year-on-year, while tax revenue showed a positive trend [4][32] - Internationally, ongoing ceasefire negotiations in the Russia-Ukraine conflict and the Middle East are being monitored, with significant political figures expressing their views on interest rate policies [4][32] - The report emphasizes the importance of maintaining a cautious approach in the current market environment, as the market may experience overheating and increased volatility following recent highs [4][32] Group 3 - The report on the bond market suggests that the current "triple concerns" may be alleviating, with marginal improvements in the fundamentals and policy expectations boosting market sentiment. The bond market is expected to stabilize as the central bank's supportive stance continues [10][12] - It is noted that the bond market's rapid adjustment phase may be nearing its end, with the long-end interest rates expected to fluctuate between 1.65% and 1.8%, indicating potential value in allocations above 1.75% [10][12] - The report also highlights the need for ongoing observation of policy outcomes from the upcoming political bureau meeting and changes in funding and deposit pricing [10][12] Group 4 - The report on the construction materials sector indicates that signs of stabilization in the real estate chain are emerging, with non-traditional building materials showing higher demand. The focus is on structural optimization and growth opportunities [21][22] - Recommendations include investing in cement companies benefiting from policy-driven capacity recovery, consumer building materials with strong growth potential, and fiberglass companies anticipating significant demand increases [21][22] - The report also mentions the potential for explosive growth in the civil explosives market driven by coal mining activities in Xinjiang [21][22]

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]

Group 1: Company Performance and Market Adaptation - The company's order situation is stable, with production proceeding normally after recovering from previous tariff impacts on U.S. business [2] - The company is actively expanding into non-U.S. markets such as Europe and Southeast Asia to mitigate market risks [2] - The Cambodian factory has an annual production capacity of approximately 300 million pet pads, with plans to flexibly expand capacity based on specific circumstances [3] Group 2: Market Potential for Pet Hygiene Products - The domestic market for disposable pet hygiene products has significant development potential, driven by increasing pet ownership and changing consumer attitudes [3][4] - The percentage of pet owners born in the 1990s is 41.2%, while those born in the 2000s account for 25.6%, indicating a shift towards younger pet owners [4] - The aging pet population in China is creating a stable demand for incontinence care products, such as pet diapers and pads [4] Group 3: Brand Development and Strategic Planning - The company is increasing investment in promoting its own brands, "HUSHPET" and "Yiping Huafang," through a combination of online and offline channels [4] - Future strategies include a dual-circulation model focusing on both domestic and international markets, as well as a dual-driven approach combining ODM/OEM and proprietary brands [5] - The company is strategically investing in the pet industry through an industrial fund, targeting areas such as cat litter, pet food, and smart pet products [5]

Financial Performance - In 2024, the company achieved a revenue of 1.798 billion yuan, a year-on-year increase of 34.41% [5] - The net profit attributable to shareholders reached 215 million yuan, up 108.34% year-on-year; the net profit after deducting non-recurring gains and losses was 191 million yuan, an increase of 75.09% [5] - Cumulative cash dividends and share repurchases will total 517 million yuan, accounting for 88.61% of the cumulative net profit attributable to shareholders [8] Market Strategy - The company plans to enhance its domestic market presence by increasing investment in brand promotion and optimizing sales teams [2][10] - The company aims to expand into emerging markets, particularly in Southeast Asia and South America, while maintaining a focus on the European market [10] Industry Outlook - The pet hygiene care products market is expected to grow significantly, driven by increasing consumer demand and the industry's overall expansion [3][4] - The U.S. pet industry is projected to reach $151.9 billion in 2024, with a year-on-year growth of 3.33% [3] - The Japanese pet market is expected to reach 1.9026 trillion yen in 2024, growing by 2.13% from the previous year [3] Financial Structure and Risk Management - The company maintains a low debt leverage and sufficient cash flow, providing a strong financial foundation for market expansion and risk management [2] - The company employs foreign exchange hedging to mitigate currency fluctuation risks [2] Sales and Marketing Expenses - In 2024, sales expenses amounted to 31.6028 million yuan, reflecting a year-on-year increase of 16.72% [2] - The increase in sales expenses is attributed to participation in major pet exhibitions and enhanced domestic brand promotion efforts [2] Production and Export Strategy - The company has established its first overseas production base in Cambodia, expected to produce nearly 300 million pet pads annually, enhancing global operational efficiency [6] - The company exports primarily under the FOB model, with recent tariff changes impacting costs [6][7] Shareholder Engagement - The company emphasizes long-term value creation and has a three-year shareholder return plan to ensure consistent profit distribution [8]

Core Viewpoint - The rise of the "pet economy" has led to increased investor interest in pet-related stocks, with significant price increases observed in leading companies like Zhongchong Co. and Guobao Pet [1][8]. Group 1: Company Performance - Zhongchong Co. reported a revenue of 4.465 billion yuan in 2024, a year-on-year increase of 19.15%, with a net profit of 394 million yuan, up 68.89% [2]. - Guobao Pet achieved total revenue of 5.245 billion yuan in 2024, reflecting a 21.22% year-on-year growth, and a net profit of 625 million yuan, which is a 45.68% increase [4]. - Yiyi Co., specializing in pet hygiene products, reported a revenue of 1.798 billion yuan, a 34.41% increase, and a net profit of 215 million yuan, up 108.34% [4]. Group 2: Market Trends - The average spending on a single dog is approaching 3,000 yuan, with overall pet consumption on platforms like Taobao and Tmall exceeding 50 billion yuan [4]. - The Chinese pet food market reached approximately 14 billion USD in 2023, with expectations to surpass 20 billion USD by 2025, indicating a compound annual growth rate (CAGR) of 12.5% [9]. - The market for pet food in China is still in its early stages, with significant growth potential as the market concentration remains low [11]. Group 3: Investor Interest - There has been a surge in institutional interest in pet stocks, with over 200 institutions attending Zhongchong Co.'s earnings briefing [5]. - Guobao Pet has also attracted attention from major investment firms, indicating a shift in focus towards the pet sector [6][7]. - The increasing attention from capital markets, combined with strong performance metrics, has led to soaring stock prices for both Zhongchong Co. and Guobao Pet [8].