Core Viewpoint - The report from CICC highlights that Xiaogoods City, backed by the diverse advantages of the Yiwu market, occupies a core position in global small commodity trade [1] Group 1: Market Position and Opportunities - The company is recognized as one of the first pilot enterprises for innovative development in import trade, which is expected to unlock a market space worth hundreds of billions [1] - Xiaogoods, as a B2B cross-border e-commerce platform, leverages resources from 75,000 physical shops and focuses on trade data integration to meet the needs of both supply and demand sides [1] Group 2: Business Growth and Transformation - The company is optimistic about the growth in both volume and price of its market operations, with Chinagoods and YiwuPay driving its transformation into a comprehensive trade service provider, opening up new growth trajectories [1] - The initial coverage gives a "outperform industry" rating with a target price of 22 yuan, corresponding to a P/E ratio of 27x for 2025 and 21x for 2026, indicating a 36% upside potential from the current stock price [1]

Core Insights - Zhejiang China Commodity City Group Co., Ltd. reported strong growth in its third-party payment institution, YiPay, with a profit exceeding 40 million yuan, a year-on-year increase of over 50% [1] - YiPay's cross-border payment volume surpassed 2.5 billion USD in the first half of the year, reflecting a growth of over 47% [1] - YiPay operates in over 170 countries and regions, supporting more than 26 mainstream currencies [1] Group 1: Company Performance - YiPay's business performance is attributed to the global trade hub effect of Yiwu, digital upgrades, and favorable policies [1] - The company has opened cross-border accounts for over 20,000 merchants, leveraging the market procurement trade advantages [1] - YiPay is actively involved in the new round of international trade comprehensive reforms, with five tasks related to its operations efficiently progressing [1] Group 2: Global Expansion and Strategy - YiPay is accelerating its global expansion by applying for financial licenses such as MSO and TCSP in Hong Kong [2] - The company has enhanced its banking partnerships, launching USD direct collection and cross-border RMB allocation upgrades [2] - YiPay has introduced preferential policies for cross-border payments for U.S. export enterprises, indicating a strategic shift from a payment tool to a comprehensive cross-border service provider [2]