Report Industry Investment Rating - The report gives a "sideways" rating for liquefied petroleum gas [1] Core Viewpoints of the Report - The widening of the FEI - MB spread since August is mainly due to trade flow changes and cargo flow bottlenecks driving up transportation costs, and it is expected to weaken marginally after late August as the Panama congestion eases, but the space for reverse shorting is limited. If the Far - East arrival schedule is significantly delayed and the stocking demand in September is not fully met, FEI may remain relatively strong until October [2][4][13] - The CP contract price has been weak since July, and the low relative valuation in the next two months is expected to continue. The ongoing long - term contract negotiations in India, port congestion, and high freight rates suppressing FOB negotiations may continue to affect the price performance of the CP contract [3][4][30] Summary by Relevant Directory 1. FEI's Relative Valuation Strengthens, Trade Flow Changes and Cargo Flow Bottlenecks Drive up Transportation Costs - In July, both domestic and foreign LPG prices were weak, with the weakening absolute price, gas - oil ratio, and near - month spread reflecting weak market sentiment. The weak fundamentals of the LPG commodity and poor spot sentiment were the main negative factors. The supply - demand pattern of LPG in the second half of this year is expected to be looser than in the first half, weaker than previously expected [12] - In August, the near - month spread and relative valuation of FEI strengthened significantly, especially the sharp widening of the FEI - MB spread. The core reason is the increase in transportation costs caused by trade flow changes and cargo flow bottlenecks. The spread is expected to weaken marginally as the Panama congestion eases, but it is difficult to provide a good opportunity for reverse shorting [13] - Since April, affected by Sino - US tariff policies, LPG trade flows have changed significantly. The increase in long - distance trade volume has led to an increase in ton - mile transport demand and a relative tightening of available fleet capacity, causing freight rates to rise continuously since May. In August, the congestion of the Panama Canal was the core reason for the strengthening of the FEI/MB spread, but the spread is not expected to continue rising. The congestion is likely to improve significantly by the end of August at the latest [18][21][22] 2. Indian Long - Term Contract Negotiations and Seasonal Port Congestion May Continue to Suppress the Absolute Price of CP Contracts - Since July, the CP price has been continuously weak and its valuation is low. The CP official price, which had been relatively strong since the beginning of the year, reversed in July and continued to decline in August. In addition to the loosening of supply and demand, the long - term contract negotiations in India have also put additional pressure on the CP price. It is expected that the official price of CP in September may still be low [30][31] - India's demand has maintained a high growth rate this year, but port congestion during the summer may continue to affect the performance of the CP contract price. High freight rates suppressing FOB negotiations may also contribute to this. It is likely that the CP will increase the arrival premium without increasing the absolute price in the short term [32] 3. Summary and Investment Suggestions - The spread between FEI and MB is expected to weaken marginally after late August as the Panama congestion eases, but the space for reverse shorting is limited. If the Far - East arrival schedule is significantly delayed and the stocking demand in September is not fully met, FEI may remain relatively strong until October [37] - The low relative valuation of CP in the next two months is expected to continue. The long - term contract negotiations in India, port congestion, and high freight rates suppressing FOB negotiations may continue to affect the price performance of the CP contract, and it is likely that the CP will increase the arrival premium without increasing the absolute price in the short term [37]

Group 1: Company Overview - Water Sheep Co. aims for globalization, planning to expand in the top ten global cities with three store formats, focusing on the US, China, UK, and France [1] - The RV brand business is primarily in the US, with minimal short-term tariff impact, focusing on team adjustments, business operations, and brand upgrades this year [1] - EDB is expected to achieve around 20% revenue growth this year, with a focus on offline channels and reducing head sales [1] Group 2: Performance and Growth - The PA brand experienced over 300% growth last year and is expected to maintain 100% growth this year, with efforts to strengthen global channel construction and product line expansion [1] - The CP brand is showing a positive development trend, with tariff policies benefiting the company and contributing positively to profits [1] - The company aims for revenue growth and breakeven this year after resolving inventory issues with Yuni [1] Group 3: Marketing and Product Strategy - The company is reducing investment in celebrity endorsements and focusing more on offline experience stores and healthy channel development [1] - The company plans to expand into mainstream categories like creams and sunscreens, as EDB and PA have low user overlap [1] - The high-end brand's profitability is improving, while the mass brand is achieving breakeven [1] Group 4: Research and Development - The company is increasing R&D investment while adopting a steady pace for market expenses, avoiding aggressive spending [1] - The high-end brand prioritizes stable operations in daily sales channels and long-term brand building over special promotions [1]