Company Overview - Jieya Co., Ltd. is a high-quality wet wipe manufacturer established in 1999, with major clients including Woolworths, Kimberly-Clark, Johnson & Johnson, Procter & Gamble, Babycare, and Dongfang Zhenxuan [2][13] - The company experienced a decline in performance in 2024 due to a drop in wet wipe orders post-pandemic, with projected revenue and net profit of 54.7 million and 1.9 million respectively, resulting in a net profit margin of 3.5% [2][13] - In the first half of 2025, the company showed signs of recovery with revenue of 310 million, a year-on-year increase of 8.8%, and a net profit of 33 million, up 22.6%, leading to a net profit margin recovery to 10.5% [2][13] Industry Analysis - The global wet wipe market is steadily growing, with a retail market size projected to reach 18.4 billion USD in 2024, reflecting a year-on-year growth of 2.7% [3][13] - In 2024, the top 10 companies in the global wet wipe market hold a combined market share of 41.3%, with Procter & Gamble and Kimberly-Clark being the largest players, holding 13.9% and 11.3% market shares respectively [3][13] - The Chinese wet wipe market is expected to exceed 12.9 billion CNY in 2024, with a year-on-year growth of 4.3%, and the top 10 brands holding a market share of 48.0% [3][13] Company Performance and Strategy - Jieya Co., Ltd. has a significant net profit margin advantage over competitors, with a net profit margin of 10.5% in the first half of 2025 compared to 4.08% for Hangzhou Guoguang, which reported revenue of 458 million and a net profit of 19 million [4][13] - The company has established strong relationships with international brand clients, with the top five clients accounting for 77.6% of revenue, and foreign sales increasing by 46.2% year-on-year in the first half of 2025 [4][13] - Jieya is expanding its production capacity with a new factory in the United States, which is expected to produce 15 billion wet wipes annually, further enhancing its global market presence [4][13] Financial Projections - The company forecasts net profits of 77 million, 107 million, and 144 million for 2025, 2026, and 2027 respectively, representing year-on-year growth rates of 297.2%, 38.1%, and 34.7% [13] - The current market capitalization is estimated at 3.5 billion, with corresponding price-to-earnings ratios of 45, 33, and 24 for the years 2025 to 2027 [13]

Core Points - The company has completed the fundraising investment project "Research and Testing Center and Intelligent Manufacturing Center Project" and is now ready for settlement [2][5] Group 1: Fundraising Overview - The company raised a total of RMB 587.45 million through its initial public offering, with a net amount of RMB 544.68 million after deducting issuance costs [3] - The initial public offering involved the issuance of 33.34 million shares at a price of RMB 17.62 per share [3] Group 2: Project Adjustments - The project "Annual Production of 610 Million Alkaline Zinc-Manganese Batteries Expansion and Technological Transformation Project" was adjusted to "Annual Production of 810 Million Alkaline Zinc-Manganese Batteries Expansion and Technological Transformation Project," increasing the total investment from RMB 253.98 million to RMB 443.13 million [4] - The adjusted project still planned to use RMB 253.98 million from the raised funds, accounting for 46.63% of the net amount raised [4] Group 3: Project Settlement - The project "Research and Testing Center and Intelligent Manufacturing Center Project" has reached the predetermined usable state as of the announcement date, meeting the settlement conditions [5] - The company decided to settle the project after it achieved the required status [5] Group 4: Investor Communication - The company will hold a half-year performance briefing on October 20, 2025, to discuss its operational results and financial status for the first half of 2025 [7][9] - Investors can submit questions for the briefing from October 13 to October 17, 2025, and the company will address common concerns during the session [7][10]

Group 1: Agriculture, Forestry, Animal Husbandry, and Fishery Industry - The pig industry has entered a loss-making phase, with the latest weekly pig price at 13.15 CNY/kg, down 0.37 CNY/kg from the previous week, indicating significant pressure from weak consumption and supply backlog [2][6][7] - The average weight of pigs at slaughter is 128.45 kg, with 15 kg piglets priced at 358 CNY/head, reflecting severe losses in the piglet segment [2][6] - The industry is undergoing profound policy transformation aimed at protecting farmers' rights and stimulating enterprise innovation, with a focus on solution-oriented companies [7][8] - The chicken industry faces a persistent contradiction of high production capacity and weak consumption, leading to a potential increase in market share for leading companies [8] - Recommendations include focusing on cost-efficient leading companies in the pig sector such as Muyuan Foods and Wens Foodstuffs, as well as Hai Da Group in the feed sector [2][9] Group 2: Construction and Building Materials - Infrastructure investment in China has shown moderate growth, with cumulative investment from January to August reaching 11.58 trillion CNY, a year-on-year increase of 2.0% [14][15] - The power, heat, gas, and water supply sectors have seen a cumulative year-on-year growth of 18.80%, continuing to lead various sectors [14][15] - The report suggests a focus on high-dividend, low-valuation stocks in the construction sector, recommending companies like Jianghe Group and Sichuan Road and Bridge [18] Group 3: North Exchange and Smart Driving Industry - The Ministry of Industry and Information Technology has issued a plan to promote the industrial application of smart connected vehicles, emphasizing the importance of smart technology development [20][21] - The market for automotive-grade SoC chips is expected to reach 38.1 billion CNY by 2024, with a year-on-year growth of 42.7% [20][21] - The report identifies 11 companies in the North Exchange that are part of the smart driving industry chain, highlighting their potential for growth [21] Group 4: Longhong Energy - Longhong Energy specializes in alkaline and lithium-ion batteries, with a projected net profit of 197.18 million CNY in 2024 [25][27] - The company is expanding its production capacity with new plants in Thailand and is focusing on high-performance battery technologies [27][28] - The report highlights the growth potential in the smart home and IoT sectors, with the smart home market expected to exceed 800 billion CNY by 2025 [25][26]

Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage in the sector [5][9]. Core Insights - The company specializes in alkaline zinc-manganese batteries and lithium-ion batteries, achieving breakthroughs in semi-solid state technology and completing the development of drone batteries [5][6]. - The rapid development of smart home and IoT industries is expected to benefit the zinc-manganese and lithium-ion battery sectors significantly [5][11]. - The company is positioned to leverage the growing demand in various markets, including smart home appliances, IoT devices, and electric tools, with projected revenue growth in these areas [5][11]. Summary by Sections 1. Industry Growth and Market Potential - The global market for zinc-manganese batteries is primarily dominated by manufacturers in China, the US, and Japan, with significant market shares held by brands like Energizer and Panasonic [5][21]. - The smart home market in China is projected to exceed 800 billion yuan by 2025, while the IoT market is expected to reach 4.55 trillion yuan [5][28][31]. - The lithium-ion battery sector is anticipated to see a production increase to 1,170 GWh in China by 2024, capturing a 76% share of the global market [5][33]. 2. Company Overview and Financial Performance - The company, established in October 2006, is a national high-tech enterprise with a production capacity of 3.5 billion alkaline batteries and 500 million lithium-ion batteries annually [6][43]. - In the first half of 2025, the company reported revenues of 2.018 billion yuan, a year-on-year increase of 24%, and a net profit of 111.16 million yuan, up 29% year-on-year [6][63]. - The company is expanding its manufacturing base with new plants in Thailand, aiming to enhance its production capabilities and supply chain efficiency [6][55]. 3. Product Development and Technological Advancements - The company is actively exploring new materials and technologies in its alkaline battery segment, focusing on performance, leakage resistance, and cost efficiency [6][12]. - Significant progress has been made in the development of high-rate lithium batteries, with new production lines for 21700 and 18650 batteries launched in 2025 [6][12]. - The polymer lithium battery segment is also advancing, with projects aimed at drone applications and other emerging markets [6][12]. 4. Profitability Forecast and Valuation - The projected net profits for the company from 2025 to 2027 are estimated at 238 million, 302 million, and 380 million yuan, respectively, with corresponding P/E ratios of 28.2, 22.3, and 17.7 [7][9]. - The company is expected to benefit from the increasing demand for its products in various sectors, including consumer electronics and electric tools, as well as from its strategic expansion efforts [5][11].

Group 1 - The company held its third board meeting on August 26, 2025, with all nine directors present, and the meeting was deemed legal and effective [7][10] - The board approved the half-year report and its summary for 2025, which will be disclosed on the Shanghai Stock Exchange [8] - The company will not distribute profits or increase capital reserves during the half-year period [4] Group 2 - The company reported a total fundraising amount of RMB 587.45 million from its initial public offering, with a net amount of RMB 544.68 million after deducting issuance costs [50] - As of June 30, 2025, the company had invested RMB 523.97 million in fundraising projects, with RMB 43.62 million remaining unutilized [52] - The company has established a fundraising management system to ensure compliance with relevant laws and regulations [54] Group 3 - The company plans to cancel its supervisory board and amend its articles of association, with the proposal pending shareholder approval [69][70] - The board aims to increase its members from 9 to 11, including 4 independent directors and 7 non-independent directors [70] - The company will optimize its governance structure to enhance decision-making capabilities [70]