Core Viewpoint - The company is transitioning from a traditional foreign trade factory to a global enterprise, focusing on "global production, global sales, and global service" to meet increasing international demand, particularly from the U.S. and Thailand [2][3]. Expansion and Production Capacity - The company is accelerating overseas capacity construction, with the Thailand factory being a crucial step, expected to fully meet U.S. customer orders by the second quarter and additional demand by the fourth quarter [3][4]. - The Thailand factory has achieved full production capacity for its biodegradable tableware project, with an annual output of 35,000 tons, completed in just nine months [4]. - An additional investment of $80 million will be made to expand the Thailand facility to produce 65,000 tons of biodegradable tableware [4]. Market Strategy and Product Development - The company currently derives approximately 52% of its revenue from U.S. exports and is focusing on expanding its market share in non-U.S. markets while developing new product lines beyond tableware [3][5]. - The company has a domestic capacity of 150,000 tons and is exploring ways to utilize this capacity effectively as U.S. orders shift to Thailand [5]. - The company is also developing high-end industrial packaging products, which have shown promising growth and are expected to contribute significantly to revenue [5]. Industry Position and Future Outlook - The company is a leader in the pulp molding industry, utilizing natural plant fibers like sugarcane bagasse and bamboo pulp, distinguishing itself from competitors who primarily use waste paper [6]. - The global demand for biodegradable products is projected to be substantial, with the company positioned to capitalize on this trend amid increasing regulations against plastic [6]. - The company anticipates that once the Thailand factory reaches full capacity, profitability will exceed that of domestic operations, with potential for revenue to double in the coming years [6]. Technological and Operational Excellence - The company has developed its production equipment and systems, which enhances its cost efficiency and market competitiveness [8]. - The focus on innovation and maintaining high-quality production processes is seen as a key competitive advantage, allowing the company to achieve higher profit margins than industry averages [8]. Challenges and Strategic Vision - The company acknowledges the challenges posed by the changing external environment but views these as opportunities for growth and transformation [9]. - The leadership emphasizes the need for a shift from a scale-driven approach to a value-driven strategy, aiming to create a robust industrial ecosystem [9].

Investment Rating - The report upgrades the investment rating to "Buy" based on the company's strong market position and expected performance [5][20]. Core Views - The initial ruling of the "double anti-dumping" investigation by the US against China's pulp molding industry has been released, with the company facing a significant anti-dumping tax rate of 470.63% [3]. - The company is strategically shifting its production to Thailand to mitigate the impact of tariffs, with a projected 52% of its revenue coming from exports to the US in 2024 [4]. - The global market for pulp molding is expected to grow at a compound annual growth rate (CAGR) of 7.60% from 2023 to 2030, indicating a broad future market potential [5]. Financial Performance and Forecast - The company is projected to achieve net profits of 357 million, 421 million, and 485 million yuan for the years 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of 10%, 18%, and 15% [5][7]. - Revenue is expected to grow from 1,546 million yuan in 2024 to 3,216 million yuan in 2027, with a CAGR of approximately 24% [7]. - The earnings per share (EPS) is forecasted to increase from 3.17 yuan in 2025 to 4.74 yuan in 2027 [7]. Market Position and Strategy - The company is recognized as a leading player in the domestic pulp molding market, benefiting from scale, research and development capabilities, and a strong customer base [5]. - The establishment of production facilities in Thailand is aimed at enhancing market competitiveness and addressing the challenges posed by the US tariffs [4][5]. - The company is actively exploring market opportunities in Europe, the Middle East, South America, and Australia to diversify its revenue streams [5].

Group 1 - The U.S. Department of Commerce initiated anti-dumping and countervailing investigations against thermoformed molded fiber products from China and Vietnam in October 2024 [2][3] - The preliminary ruling for anti-dumping resulted in a tax rate of 470.63% for the company, while the average tax rate for other non-mandatory responding companies was 345.84% [3] - The preliminary ruling for countervailing duties set the tax rate at 5.99% for the company, with rates for other Chinese producers ranging from 6.38% to 153.25% [4] Group 2 - Cumulative tariffs, including previous tariffs of 25% and 145%, result in a total tariff of 646.62% for the company [6] - Approximately 52% of the company's revenue in 2024 came from exports to the U.S., with 1.16 million tons shipped in Q1 2025, also representing 52% of total sales for that period [6] - The company's Thai factory project for producing biodegradable tableware is expected to mitigate the negative impacts of the investigations [6] Group 3 - The company has engaged a professional legal team to respond to the investigations and has filed an appeal with the U.S. Department of Commerce [7] - The company plans to increase investment by $80 million in the Thai factory to expand production capacity [8] - The company is actively exploring markets outside the U.S. and assessing the feasibility of establishing overseas production bases [8][9] Group 4 - The company announced the use of idle raised funds for cash management, amounting to 20 million RMB, through a structured deposit product [12] - The total amount for cash management is capped at 30 million RMB, with a 12-month validity period for the investment [17] - The cash management strategy aims to enhance the efficiency of fund usage without affecting the company's main business operations [27]