Core Viewpoint - First Shanghai initiates coverage on HuTongDa Network (09878) with a target price of HKD 23.38 and a buy rating, highlighting the company's strong growth potential driven by rural revitalization policies, AI empowerment, and external acquisitions [1] Group 1: Company Overview - HuTongDa, established in 2010, has become a leader in the small B e-commerce market in China's lower-tier cities, providing AI + SaaS solutions to meet local shopping needs [1] - The company has a diverse shareholding structure, with Alibaba holding a 16.28% stake since 2018, and management's focus is returning to the company in 2024, enhancing its strategic position [1] Group 2: Growth Drivers - HuTongDa is capitalizing on the trillion-level lower-tier market, benefiting from urbanization and consumption upgrades, along with national subsidies and rural revitalization policies [2] - The company is enhancing its supply chain advantages and optimizing product structures to better match consumer demands in lower-tier markets, with AI + SaaS revenue exceeding 65 million yuan in the first half of the year [2] - A strategic partnership with Alibaba Cloud is in place to continuously optimize the "QianCheng AI" solution, while the company plans to acquire 25% of JinTongLing for approximately 1 billion yuan to enhance its industry layout [2] Group 3: Financial Performance - HuTongDa serves over 251,000 rural couple stores, reaching 300 million rural residents, with a projected revenue CAGR of 12.5% from 2018 to 2024 [3] - The company is shifting its strategy from scale to profit and cash flow, achieving historical highs in gross margin (4.6%), net margin (1.0%), and net profit margin (0.6%) in the first half of 2025 [3] - Positive operating cash flow is expected to create a virtuous cycle of business optimization, with rapid revenue and profit growth anticipated starting in 2025 [3] Group 4: Market Positioning - The company has submitted a request for full circulation of 350 million domestic shares, which is expected to significantly enhance its market capitalization [3] - A plan to repurchase up to 500 million yuan of H-shares and a shareholder dividend plan for 2025 are in place, aiming to reinstate the company into the Hong Kong Stock Connect [3]

Core Viewpoint - The adjustment of the Hong Kong Stock Connect list, including the removal of HuTongDa Network, primarily impacts short-term liquidity rather than the company's fundamental performance [1][2]. Group 1: Company Performance - HuTongDa Network's net profit for the first half of 2025 reached 139 million yuan, a year-on-year increase of 10.8%, with a gross margin improvement from 3.5% to 4.6% [1]. - The company has over 7.8 billion yuan in cash and financial investments as of June 30 [1]. - The removal from the Hong Kong Stock Connect is attributed to liquidity issues rather than a decline in the company's fundamentals [1]. Group 2: Market and Policy Context - The removal from the Hong Kong Stock Connect is linked to HuTongDa's current market capitalization not meeting the required standards, but the company is actively pursuing a "full circulation" process to enhance its market value [2]. - The conversion of 350 million domestic shares to H-shares is expected to increase the H-share circulation ratio from 32.04% to 94.21%, significantly boosting the company's market capitalization [2]. - The full circulation initiative is part of a broader trend initiated by the China Securities Regulatory Commission to enhance market participation and liquidity for eligible companies [2][4]. Group 3: Strategic Initiatives - HuTongDa is focusing on optimizing its capital structure and enhancing liquidity through the full circulation process, which is anticipated to attract more passive index funds and international investors [2][4]. - The company is undergoing a strategic transformation to improve profitability by reducing low-margin businesses and enhancing its product matrix through partnerships and self-branded products [4]. - Self-branded product revenue surged by 490% year-on-year, exceeding 80 million yuan, with a gross margin over 25% [4]. Group 4: AI Integration and Growth - HuTongDa is leveraging AI technology to enhance operational efficiency, with AI-related revenue accounting for over 20% of total service revenue in the first half of 2025 [5]. - The company has implemented over 24 AI applications to improve supply chain and store management efficiency, resulting in a 30% increase in retail store operational efficiency [5]. - The collaboration with Alibaba Cloud for comprehensive AI solutions positions HuTongDa at the forefront of industry innovation [5]. Group 5: Future Outlook - The full circulation process is expected to resolve current liquidity constraints and facilitate HuTongDa's return to the Hong Kong Stock Connect, attracting quality investors [6]. - The synergy between improved capital structure, business growth, and AI advancements is anticipated to lead to a revaluation of the company's market value [6]. - HuTongDa's experience may serve as a reference for other Hong Kong enterprises seeking to leverage reform benefits for high-quality development [6].

Group 1 - The core viewpoint of the news is the strategic partnership between Benlai Life Group and Huitongda Network to establish a joint venture aimed at creating a high-quality agricultural product supply chain service platform [1][2] - The collaboration will focus on integrating resources in capital, operations, technology, and teams, emphasizing four key systems: digital operations, quality control, supply chain management, and brand building [1] - Both companies aim to leverage their strengths in AI, SaaS, smart supply chains, and digital marketing to explore innovative applications of new technologies in agricultural product logistics [1][2] Group 2 - Huitongda Network is a leading industry internet platform that empowers rural convenience stores through supply chain capabilities and digital technology, having been listed on the Hong Kong Stock Exchange in 2022 [2] - The partnership aligns with China's rural revitalization strategy, focusing on supporting 832 poverty-stricken counties through resource integration and model innovation to enhance local industry and economic development [2] - The leaders of both companies expressed confidence in their shared mission to contribute to smart agriculture and the construction of a unified domestic market [2]

Core Insights - The article reports that Benlai Life Group has signed a strategic cooperation agreement with Huitongda Network to establish a joint venture aimed at creating an agricultural product supply chain service platform [1] - The partnership will also explore the innovative application of new technologies such as "AI agriculture" in the agricultural product distribution business [1] Company Overview - Benlai Life Group is involved in the agricultural supply chain and is focusing on enhancing its service capabilities through strategic partnerships [1] - Huitongda Network is an industry internet platform that empowers rural convenience stores using supply chain capabilities and digital technology, and it was listed on the Hong Kong Stock Exchange in 2022 [1]

Core Viewpoint - Multiple institutions, including CITIC Construction Securities and Northeast Securities, have recently issued research reports on Huitongda Network (09878), giving it a "buy" rating, with Northeast Securities setting a target price of HKD 20.08, indicating nearly 40% upside potential from the closing price of HKD 14.55 on the report release date [1]. Group 1 - Northeast Securities highlights that Huitongda has transformed from a "platform service provider" to an "AI + SaaS platform service provider" after over a decade of deepening its presence in lower-tier markets [1]. - The report suggests that through business optimization and AI empowerment, Huitongda has ample cash on hand and is positioned to acquire quality assets, which could lead to a recovery in revenue growth and a rapid improvement in profitability [1]. - Huitongda is actively advancing its H-share full circulation work, which is expected to increase the total number of H-shares to 530 million, significantly enhancing its market capitalization [1]. Group 2 - The market generally believes that the increase in market capitalization may create conditions for Huitongda to be re-included in the Hong Kong Stock Connect [1]. - CITIC Jianzhong Securities emphasizes Huitongda's impressive AI performance, which continues to enhance customer quality [1]. - Huitongda's AI + SaaS products are set to enter the commercialization phase in May 2025, with member stores experiencing an average efficiency improvement of over 30% and inventory turnover reduction of 15% to 20% [1][2]. Group 3 - The research report indicates that as AI products continue to iterate, Huitongda's service business is expected to achieve high growth and become a major growth engine for the company [2]. - The report also recognizes Huitongda's strategic transformation direction in supply chain trading business and the resulting improvement in profitability [2].

Core Viewpoint - Multiple institutions, including CITIC Construction Securities and Northeast Securities, have recently issued research reports on Huitongda Network (09878), giving it a "buy" rating, with Northeast Securities setting a target price of HKD 20.08, indicating nearly 40% upside potential from the closing price of HKD 14.55 on the report release date [1] Group 1: Company Transformation and Growth Potential - Huitongda has transitioned from a "platform service provider" to an "AI + SaaS platform service provider" after over a decade of deepening its presence in lower-tier markets [1] - The company is expected to restore revenue growth and enhance profitability through business optimization and AI empowerment, supported by ample cash reserves for acquiring quality assets [1] - The report highlights Huitongda's active promotion of H-share full circulation, which is anticipated to increase the total number of H-shares to 530 million, significantly boosting market capitalization [1] Group 2: AI and Business Ecosystem - CITIC Securities emphasizes Huitongda's impressive AI performance, which is enhancing customer quality [1] - The AI + SaaS products are set to enter the commercialization phase in May 2025, with member stores experiencing an average efficiency improvement of over 30% and inventory turnover reduction of 15% to 20% [1] - The integration of AI empowerment, supply chain upgrades, and diversified channel expansion is expected to create a sustainable business ecosystem for Huitongda's future [1][2] Group 3: Strategic Direction and Profitability - The research reports indicate that Huitongda's service business is likely to achieve high growth, becoming a primary growth engine for the company as AI products continue to evolve [2] - The strategic transformation of Huitongda's supply chain transaction business is recognized for its positive outcomes and the resulting enhancement in profitability [2]

Investment Rating - The investment rating for the company is "Buy" [7] Core Insights - The company is focusing on high-quality development and improving operational capabilities through business adjustments [1] - Revenue for the service segment in H1 2025 was 312 million, down 18.97% year-on-year, with SaaS and subscription revenue at 250 million, also down 18% [2] - The company has launched three major projects to enhance supply chain efficiency, including a "Brand Direct Access Project" and an "Open Smart Supply Chain Project" [3] - A partnership with Alibaba Cloud aims to develop AI and digital solutions for the lower-tier market, leveraging the company's extensive data assets [4] - The company submitted an application for full circulation of 350 million domestic shares, which is expected to significantly increase market capitalization and facilitate re-inclusion in the Hong Kong Stock Connect [5] Financial Summary - The company is a leading player in the B2B e-commerce sector for lower-tier markets, with projected revenues of 65.8 billion, 72.3 billion, and 79.5 billion for 2025, 2026, and 2027 respectively, reflecting a 10% growth each year [6] - The forecasted net profit for the same years is 350 million, 460 million, and 580 million, representing growth rates of 31%, 30%, and 28% respectively [6] - The company’s P/E ratios are projected to be 25, 19, and 15 for the years 2025, 2026, and 2027 [6]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年9月30日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 匯通達網絡股份有限公司 第 1 頁 共 10 頁 v 1.1.1 FF301 II. 已發行股份及/或庫存股份變動 呈交日期: 2025年10月8日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | H | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 09878 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 180,266,339 | RMB | | 1 | RMB | | 180,266,339 | | 增加 / 減少 (-) | | | 0 | | | | RMB | | 0 | | 本月底結存 | | | 180,266,339 | RM ...

Core Viewpoint - The company reported a revenue decline in the first half of 2025 due to strategic adjustments aimed at optimizing inefficient businesses, while net profit showed a positive growth trend [1][2]. Group 1: Financial Performance - In the first half of 2025, the company achieved a revenue of 24.34 billion, a year-on-year decrease of 25.9%, while the net profit attributable to shareholders was 140 million, reflecting a year-on-year increase of 10.8% [1]. - The overall gross margin for the first half of 2025 was 4.6%, an increase of 1.1 percentage points year-on-year, primarily due to the company's decision to abandon low-efficiency businesses and enhance collaboration with leading brands [2]. Group 2: Business Segments - The trading business segment generated a revenue of 23.96 billion, down 26.0% year-on-year, with declines in consumer electronics and agricultural production materials, while home appliances remained stable due to government subsidies [1]. - The service business segment reported a revenue of 310 million, showing a slight year-on-year decline, but there was significant growth in store SaaS and subscription services compared to the second half of 2024 [1]. Group 3: Strategic Initiatives - The company entered into a comprehensive partnership with Alibaba Cloud in August 2025, focusing on AI and SaaS business growth, which is expected to enhance its platform value through the integration of AI capabilities with industry data [2]. - The development of proprietary AI models, such as the Qiancheng Cloud AI, aims to penetrate various business scenarios, enhancing sales predictions and customer service capabilities [2]. Group 4: Investment Outlook - The company is expected to see net profits of 346 million, 438 million, and 533 million for the years 2025 to 2027, reflecting year-on-year growth rates of 28.3%, 26.6%, and 21.6% respectively [3]. - A target price of 21.36 HKD is set for 2026, based on a 25X PE valuation, maintaining a "recommended" rating for the company [3].

Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of HKD 21.36 [2][8]. Core Insights - The company reported a revenue of HKD 243.4 billion for the first half of 2025, a year-on-year decrease of 25.9%, while the net profit attributable to shareholders was HKD 1.4 billion, reflecting a year-on-year increase of 10.8% [2][4]. - The strategic shift towards enhancing efficiency has shown results, with a gross margin of 4.6% in the first half of 2025, up 1.1 percentage points year-on-year, driven by the abandonment of low-efficiency businesses and deeper collaborations with leading brands [8]. - A partnership with Alibaba Cloud was established in August 2025, aiming to leverage AI and SaaS capabilities, which is expected to drive growth in these areas [8]. Financial Performance Summary - **Revenue Forecasts**: - 2024A: HKD 60,059 million - 2025E: HKD 53,513 million - 2026E: HKD 57,819 million - 2027E: HKD 62,010 million - Year-on-year growth rates are projected at -27.2% for 2024A, -10.9% for 2025E, 8.0% for 2026E, and 7.2% for 2027E [4][9]. - **Net Profit Forecasts**: - 2024A: HKD 270 million - 2025E: HKD 346 million - 2026E: HKD 438 million - 2027E: HKD 533 million - Year-on-year growth rates are projected at -39.8% for 2024A, 28.3% for 2025E, 26.6% for 2026E, and 21.6% for 2027E [4][9]. - **Earnings Per Share (EPS)**: - 2024A: HKD 0.48 - 2025E: HKD 0.62 - 2026E: HKD 0.78 - 2027E: HKD 0.95 [4][9]. - **Valuation Ratios**: - Price-to-Earnings (P/E) ratio is projected to decrease from 32.5 in 2024A to 16.5 in 2027E [4][9]. Strategic Developments - The company is focusing on optimizing its business structure, which has led to a short-term revenue decline but is expected to enhance long-term profitability [8]. - The collaboration with Alibaba Cloud is anticipated to significantly enhance the company's AI and SaaS offerings, potentially revitalizing growth in these segments [8].