Investment Rating - The industry investment rating is "Outperform the Market" [3][44] Core Viewpoints - Supply chain logistics companies are leveraging their substantial transaction volumes to create a second growth curve through monetization of flow, extending their business from "logistics - trade - manufacturing" [5][18] - New business segments are experiencing high growth, with significant increases in profit margins. For instance, from 2018 to 2024, the annualized gross profit growth rate for Manufacturing at Wuchan Zhongda is 22%, while for Milky Way's distribution, it is 21% [6][19] - The potential for a "Davis Double" exists, where high growth in new business profits and rising profit shares could drive overall profit growth for companies, alongside a rebound in commodity prices and improved market sentiment [7][30] Summary by Sections 1.1 Transaction Volume and Growth - Supply chain companies handle substantial transaction volumes, but revenue growth in logistics or manufacturing is slowing, necessitating new growth points [10][12] - The revenue growth rates for various companies from 2018 to 2024 show a mix of positive and negative trends, indicating a need for strategic shifts [11] 1.2 Monetization Logic - The monetization logic follows a "logistics - trade - manufacturing" model, with companies like Wuchan Zhongda and Milky Way focusing on enhancing their manufacturing and distribution capabilities [13][15] 2.1 Flow Monetization and New Business Growth - Flow monetization is driving high growth in new business revenues and gross profits, with expectations for continued growth in the future [16][18] 2.2 Wuchan Zhongda: High Growth in Manufacturing - Wuchan Zhongda's high-end manufacturing business has seen a 26% annualized revenue and gross profit growth from 2016 to 2024, with a 28% year-on-year gross profit increase in the first half of 2025 [21][23] 2.3 Profit Growth Center Rising - The rising share of gross profits from new business segments for companies like Wuchan Zhongda and Milky Way indicates an upward trend in overall profit growth [27][29] 3.1 Supply Chain Profit Recovery - Supply chain profit growth is correlated with commodity prices, which are currently at a historical low, suggesting potential for recovery as commodity prices rise [31][33] 3.2 Valuation Upside - Domestic supply chain companies' PE and PB ratios are approaching those of Japanese trading companies, with expectations for higher valuations due to faster projected profit growth from 2024 to 2027 [34][36]

Core Viewpoint - Viyie Group has experienced a significant decline in revenue in the first half of the year, primarily due to reduced income from construction services, while maintaining a slight increase in net profit through cost control measures [3][4]. Company Overview - Viyie Group, established in 1994 and controlled by Zhuhai State-owned Huafa Group, is a publicly listed company in A-shares, recognized as one of China's top 100 construction decoration enterprises and a top 500 enterprise in Shenzhen [2]. Half-Year Performance and Revenue Decline - The company reported a revenue of 4.008 billion yuan in the first half of the year, a year-on-year decrease of 47.81%, while the net profit attributable to shareholders was 10.4334 million yuan, an increase of 5.38%, with basic earnings per share at 0.05 yuan [3]. Cost Control and Profitability Improvement - Viyie Group has enhanced its cost management through refined project management and efficiency improvements, resulting in a year-on-year increase in gross profit margin. The company plans to continue refining its cost control system to further enhance project management and profitability [4]. Participation in Low-altitude Economy - The company's wholly-owned subsidiary, Jiantai Construction, is involved in the construction of the Zhuhai Airshow Center, although its revenue from low-altitude economy-related construction services is currently minimal [5]. Accounts Receivable Collection Measures - Due to the nature of the construction industry, accounts receivable constitute a significant portion of the company's assets. Viyie Group manages risks through customer credit management and has established a dynamic monitoring and warning system to prevent performance risks, along with a special collection team for overdue accounts [6]. Development in Photovoltaic and New Business Areas - Jiantai Construction has won a bid for a distributed photovoltaic power generation project in Zhuhai, focusing on photovoltaic construction services, which currently contribute a small portion of revenue. The company has also made progress in high-end manufacturing and smart park construction, including a project for Jingwang Electronics and a bid for the land-based control center of the Yangjiang Fan Stone offshore wind farm, supporting energy conservation and emission reduction [7].