Guotai Junan released a research report stating that it maintains the “increase in holdings” rating of Huitongda Network (09878) and predicts that the adjusted net profit for 2023-25 will be 509/6.66/867 million yuan. The company's H1 revenue was 43.38 billion yuan/ +6.6%, and adjusted net profit was 245 million yuan/ +20%, in line with expectations. Various business operations progressed steadily during the period. Considering that the company is deeply involved in supply chain construction and digitalization, and further optimization of the business structure, the overall strength is expected to increase, and we are optimistic that performance will accelerate.
According to the report, Huitongda's supply chain capabilities have been steadily improving, and membership services have continued to be strengthened. 1) Deepening brand cooperation, such as building Apple Preferred Stores and building more than 500 stores, and obtaining Lenovo's online and offline national license, the headquarters supply chain accounts for 55%, providing member stores with higher-quality/stable/high-value commodity trading solutions; 2) Category and business chain expansion have shown results, such as reaching cooperation with Didi Chuxing/Cao Chuxing/FAW Travel to jointly promote new energy replacement vehicles to the countryside; 3) Innovative supply chains are gradually implemented, and Kerry New Energy has launched customized B2F models based on demand for commercial vehicles in the sinking market Model innovation; 4) Continuously promote SaaS+ product upgrades; Furthermore, through joint promotions with brands/manufacturers, member stores are empowered with products and activities. H1 hosts 6 monthly national promotions, more than 30 regional promotions, and 21,000 personalized store events; the SaaS renewal rate has reached 68%, and customer satisfaction exceeds 95%.
The bank mentioned that the company continues to promote digitalization and lay out “AI+ scenarios.” 1) Continuously upgrade the industrial trading platform to develop specialized online trading service platforms for different industries, such as the consumer electronics sector to create an O2O integrated operation model around the Apple project; 2) Based on the sinking market big data and big language model technology/knowledge mapping technology accumulated over many years, create a big model with business characteristics, and launch three products: intelligent shopping guide AI, marketing planning AI, and Qianorange digital person to provide purchasing strategies and marketing strategy suggestions for member stores to reduce operating burden.