Core Viewpoint - Reliable Co. reported a net profit attributable to shareholders of 28 million in H1 2025, representing a 22% year-on-year increase, with Q2 net profit reaching 10 million, up 98% year-on-year [1] Company Performance - The company focuses on the healthcare industry, transitioning from OEM for leading global firms in Japan and the US to developing its own brand business, becoming a leader in the domestic adult incontinence care sector [1] - According to Euromonitor data, the company has maintained the number one market share in the domestic adult incontinence field for several consecutive years, demonstrating significant brand effect [1] Product Development - Continuous investment in R&D has allowed the company to establish a rich product lineup with excellent product structure and promising market prospects in its own brand sector [1] - The company is optimizing its product structure and increasing R&D and marketing efforts for mid-to-high-end products to meet the evolving consumer preferences [1] Market Strategy - The company is focusing on the mid-to-severe incontinence market while also addressing the rising consumer awareness among the mild incontinence demographic [1] - New products specifically designed for Asian women, such as invisible absorbent pads and travel pants for mild incontinence, as well as professional absorbent pads for men, have been launched to further expand the product range and drive the development of its own brand business [1] Investment Outlook - Based on the performance in H1 2025, and considering the company's ongoing expansion of its product matrix and optimization of product structure, profitability is steadily improving, maintaining a "buy" rating [1]

Investment Rating - The investment rating for the company is "Buy" with a 6-month outlook maintained [5]. Core Insights - The company has established itself as a leader in the domestic adult incontinence market, holding the number one market share for several consecutive years, supported by strong brand recognition [2]. - The company is expanding its product categories and optimizing its product structure to meet the evolving consumer demands, particularly focusing on mid-to-high-end products [3]. - The financial performance for the first half of 2025 shows a revenue of 550 million with a year-on-year growth of 5%, and a net profit of 28 million, reflecting a 22% increase [1][4]. Financial Performance Summary - For Q2 2025, the company reported revenue of 270 million, a 13% increase year-on-year, and a net profit of 10 million, which is a 98% increase [1]. - The revenue breakdown for H1 2025 includes adult incontinence products at 290 million (5% growth), baby care products at 210 million (6% growth), and pet hygiene products at 34 million (1% decline) [1]. - The adjusted profit forecast for 2025-2027 estimates net profits of 36 million, 43 million, and 50 million respectively, reflecting a steady growth trajectory [4]. Product Development and Market Strategy - The company is focusing on product innovation to address user pain points, such as odor control and breathability, thereby creating a differentiated competitive advantage [2]. - New product launches include discreet absorbent pads designed for Asian women and specialized men's absorbent products, expanding the product line further [3]. - The company aims to leverage its strong brand effect and cost leadership by enhancing its supply chain and product offerings [2].