Core Viewpoint - Xiamen Jihong Technology Co., Ltd. (Jihong Co.) is set to become the first "AI cross-border social e-commerce A+H stock" in China, attracting significant market attention as it prepares for its IPO on the Hong Kong Stock Exchange [1] Business Layout: Dual-Drive, Multi-Coordination - Jihong Co. employs a dual-drive business model focusing on both ToC (consumer) and ToB (business) sectors, enhancing its risk resilience through diversified operations [2] - The company leverages AI technology to create a "goods find people" model in cross-border e-commerce, significantly improving customer shopping experiences and reducing time costs [2] - Jihong Co. has established a leading position in emerging markets such as Southeast Asia and the Middle East, showcasing strong adaptability and growth potential [2] Technical Strength: AI Empowerment, Driving Growth - The core competitiveness of Jihong Co. lies in its deep application of AI technology, optimizing the entire supply chain and enhancing operational efficiency [5] - The company has successfully launched several proprietary brands, expanding its product matrix and strengthening its market competitiveness [5] Market Position: Advantages and Limitations - Jihong Co. ranks second in China's B2C export e-commerce with a market share of 1.3% and first in the paper packaging sector with a market share of 1.2% [8] - The company has built strong partnerships with leading fast-moving consumer goods brands, ensuring stable revenue streams and reinforcing its market leadership [8] Financial Performance: Stable Yet Fluctuating - Jihong Co.'s revenue for 2022, 2023, and 2024 was 5.376 billion, 6.695 billion, and 5.529 billion respectively, with net profits of 172 million, 332 million, and 184 million [10] - The company faced a revenue decline of 17.41% and a net profit drop of 47.28% in 2024, attributed to market pressures [10][11] Challenges Faced: Localization and Technological Pressure - Jihong Co. encounters challenges in localizing operations across diverse markets, requiring significant resource investment to adapt to varying regulations and consumer preferences [15] - The rapid pace of technological advancement necessitates continuous R&D investment to maintain a competitive edge in AI and data analytics [16] Conclusion - Jihong Co.'s upcoming listing on the Hong Kong capital market represents a significant milestone, providing access to international capital and opportunities for global expansion [20] - Despite its strong competitive position, the company must navigate challenges related to localization, technology, global economic conditions, and intensified market competition [20][21]

Investment Rating - The investment rating for the company is "Buy" [1][6] Core Insights - The company's revenue for 2024 was 5.529 billion yuan, a year-on-year decrease of 17.41%, with a net profit of 182 million yuan, down 47.28%. However, in Q1 2025, revenue increased to 1.477 billion yuan, a year-on-year growth of 11.55%, and net profit rose to 59 million yuan, up 38.21% [2][3] - The cross-border e-commerce business generated 3.366 billion yuan in revenue in 2024, a decline of 20.93%, while the packaging business saw a slight increase of 0.14% to 2.099 billion yuan. The overall gross margin decreased from 46.66% to 43.93% [3] - The company is investing in AI technology to enhance its e-commerce capabilities, developing models such as ChatGiiKin-6B and GiiAI, which improve product selection and market responsiveness [4] - The company is expanding into the Middle East market and has initiated the process for listing on the Hong Kong Stock Exchange, with plans to issue 67.91 million shares [5] - The profit forecast for 2025-2027 has been adjusted, with expected revenues of 6.265 billion yuan, 6.936 billion yuan, and 7.467 billion yuan, and net profits of 275 million yuan, 328 million yuan, and 386 million yuan respectively [6][8] Financial Summary - In 2024, the company reported total revenue of 5.529 billion yuan, with a year-on-year decline of 17.4%. The net profit was 182 million yuan, down 47.3% [8][10] - The gross margin for 2024 was 43.9%, with projections for 2025 at 45.6% and 2026 at 46.1% [8] - The earnings per share (EPS) for 2024 was 0.47 yuan, with forecasts of 0.71 yuan for 2025 and 0.85 yuan for 2026 [8][10]

Core Viewpoint - The company is leveraging AI to enhance the entire cross-border e-commerce chain, improve efficiency, and strengthen brand building, having successfully passed the Hong Kong Stock Exchange hearing, indicating a positive outlook for future growth [1]. Investment Highlights - Maintain "Buy" rating; adjusted 2025-26 EPS forecast to 0.71/0.98 CNY (previously 0.8/1.05 CNY), with growth rates of 51%/38%; 2027 EPS forecast at 1.28 CNY with a growth rate of 30%; target price adjusted to 17.04 CNY based on a 24x PE for 2025 [2]. - 2024 financial summary: Revenue of 5.53 billion CNY (-17.4%), net profit of 182 million CNY (-47.3%), and non-recurring profit of 160 million CNY (-50.8%); significant increase in cross-border e-commerce orders in H2, driving gradual revenue and profit recovery [2]. - Segment breakdown: Cross-border e-commerce revenue of 3.37 billion CNY (-20.9%), accounting for 60.9%; packaging revenue of 2.1 billion CNY (+0.14%), accounting for 38% [2]. - Gross margin at 43.9% (-2.73 percentage points), with cross-border e-commerce at 60.8% (-2.51 percentage points) and packaging at 17.9% (-1.35 percentage points); net margin at 3.34% (-1.63 percentage points) [2]. - Operating cash flow of 387 million CNY (-46.7%) [2]. AI-Driven Optimization and Brand Building - The company integrates mainstream domestic and international models such as ChatGPT and LlamaAI, continuously upgrading its e-commerce text models and intelligent design tools, creating a unique competitive barrier based on "data + intelligent algorithms" [3]. - Continued investment in AI to integrate supply chain, content production, advertising, payment, and logistics systems, aiming for a fully digital and intelligent management model [3]. - Established brands including SENADA BIKES, Veimia, Konciwa, and PETTENA, covering electric bicycles, underwear, sunshades, and pet products [3]. - Strategic cooperation with BMJ Industries in the UAE to invest in a packaging production base and trade platform [3]. Q1 2025 Summary - Revenue of 1.48 billion CNY (+11.6%), net profit of 59 million CNY (+38.2%), and non-recurring profit of 58 million CNY (+51%) [4]. - Gross margin at 45.6% (+5 percentage points), net margin at 4.23% (+1.24 percentage points) [4]. - Operating cash flow of 68 million CNY (+143%) [4]. - Successfully passed the Hong Kong Stock Exchange hearing on May 8, preparing for A+H listing [4].

Core Viewpoint - Jihong Co., Ltd. is set to achieve a dual listing in both A-share and H-share markets, with its H-shares expected to be listed on May 27, 2025, aiming to raise approximately HKD 5.08 billion to HKD 7.25 billion [2][5][6] Group 1: H-Share Listing Details - The company has published its H-share prospectus and plans to issue 67.91 million shares, with a price range set between HKD 7.48 and HKD 10.68 [2][5] - The public offering in Hong Kong started on May 19, 2025, and is expected to conclude on May 22, 2025, with the final pricing to be announced by May 26, 2025 [5][6] - Jihong Co. will become an A+H listed company following the successful issuance and trading of its H-shares [6] Group 2: Business Performance and Strategy - The company has transitioned from a packaging business to a dual-driven model that includes cross-border social e-commerce and paper-based fast-moving consumer goods packaging solutions [2][8] - In Q1 2025, Jihong Co. reported a revenue of CNY 1.477 billion, marking an 11.55% year-on-year increase, with net profit reaching CNY 59.16 million, up 38.21% [9] - The cross-border e-commerce segment accounted for over 60% of the company's revenue, indicating a significant shift in business focus [7][9] Group 3: Financial Overview - For the year 2024, Jihong Co. experienced a revenue decline of 17.41% to CNY 5.529 billion, with net profit decreasing by 47.28% to CNY 182 million [8] - The packaging and e-commerce businesses generated revenues of CNY 1.198 billion and CNY 3.366 billion respectively in 2024, with respective year-on-year declines of 10.98% and 20.93% [8] - The company has increased its dividend frequency, distributing a total of CNY 128 million in cash dividends for the year 2024, which is 112.06% of its net profit [6][8]

Core Viewpoint - Xiamen Jihong Technology Co., Ltd. has officially launched its IPO plan on the Hong Kong Stock Exchange, aiming for listing on May 27, 2025, to further expand its capital market presence [1] Group 1: IPO Details - The IPO price range is set between HKD 7.48 and HKD 10.68, with a global offering of 67.91 million H-shares, potentially raising approximately HKD 725 million at the highest price [1] - Key cornerstone investors, including Timber Kangaroo, Yulong International, and Ms. Shen Zhenyu, have committed to subscribe for a total of HKD 155 million worth of shares [1] Group 2: Financial Performance - Revenue for the years 2022, 2023, and 2024 reached RMB 5.376 billion, RMB 6.695 billion, and RMB 5.529 billion respectively, with a notable decline in 2024 revenue compared to 2023 [2][3] - Despite a 20.93% year-on-year decline in the cross-border social e-commerce business revenue in 2024, it still accounted for a significant portion of the company's total revenue, amounting to RMB 3.366 billion [2] - The company's gross profit and gross margin for 2024 were RMB 2.419 billion and 43.8% respectively, indicating a strong profitability despite revenue fluctuations [2][3] Group 3: Ownership Structure - The company has a family-oriented ownership structure, with founder and general manager Ms. Zhuang Hao holding 18.09% of the shares, alongside her husband Zhang Ping, who co-controls the company [4] - Other significant shareholders include Zhuang Shu and He Jingying, who also hold substantial stakes in the company [4] Group 4: Future Outlook - The upcoming listing on the Hong Kong Stock Exchange is expected to provide Jihong Technology with broader financing channels and a more diversified investor base, supporting its ongoing business development and innovation [7] - The company aims to become a leading global provider of fast-moving consumer goods packaging and cross-border e-commerce services, maintaining a commitment to innovation, pragmatism, and efficiency [7]

Core Viewpoint - Jihong Co., Ltd. is launching a global offering of H shares, marking a significant step in its dual-platform strategy of "A+H" and aiming to inject global momentum into its cross-border e-commerce and green packaging businesses [1] Group 1: Global Offering Details - The global offering consists of 67,910,000 H shares, with 6,791,000 shares allocated for public offering in Hong Kong and 61,119,000 shares for international offering [1] - The price range for the H share issuance is preliminarily set between HKD 7.48 and HKD 10.68 [1] Group 2: Cross-Border E-Commerce Performance - Jihong Co., Ltd. ranks second among Chinese B2C export e-commerce companies with a market share of 1.3%, generating revenue of CNY 336,590.31 million from its cross-border social e-commerce business in 2024 [2] - The company's unique "goods find people" model has contributed to its success, allowing for proactive identification of target customers based on consumer data [2][3] - Revenue from the cross-border social e-commerce business accounted for 57.8%, 63.6%, and 60.9% of total revenue from 2022 to 2024, with corresponding gross profit margins of 59.1%, 63.1%, and 60.5% [3] Group 3: Packaging Business Growth - Jihong Co., Ltd. is a leading provider of paper packaging solutions in mainland China, with a market share of 1.2% in the fast-moving consumer goods (FMCG) packaging sector [4] - The market size for paper FMCG packaging in mainland China is projected to grow from CNY 145.6 billion in 2020 to CNY 170.3 billion in 2024, with expectations to reach CNY 222.7 billion by 2029 [5] - The company has established strong partnerships with major FMCG brands, enhancing its competitive position in the packaging industry [6] Group 4: Environmental Trends and Innovations - The shift towards environmentally friendly packaging solutions is reshaping the industry, with increasing emphasis on sustainability and compliance with ESG policies [5] - Jihong Co., Ltd. has been proactive in developing eco-friendly packaging materials and technologies, positioning itself to benefit from the growing demand for sustainable packaging [6]

Core Viewpoint - The Hong Kong IPO market is experiencing a resurgence, with increased investor confidence and a notable rise in fundraising and returns from new listings, exemplified by the upcoming IPO of Jihong Co., a leading cross-border social e-commerce company [1][2]. Company Overview - Jihong Co. has established itself as a leader in two core business segments: cross-border social e-commerce and paper-based fast-moving consumer goods (FMCG) packaging, ranking second among Chinese B2C export e-commerce companies in 2024 [2]. - The company has been recognized in the "Top 100 Chinese Printing and Packaging Enterprises" and has received the TikTok Global Leadership Award, showcasing its competitive strength [2]. Market Dynamics - The social e-commerce market is expanding, with China's cross-border e-commerce imports and exports reaching 2.63 trillion yuan in 2024, a 10.8% increase from 2020 [3]. - Policies promoting foreign trade and cross-border e-commerce, such as zero tariffs in Hainan Free Trade Port and tax refunds for outbound purchases, are expected to further benefit the industry [3]. Business Model and Performance - Jihong Co. has demonstrated strong growth, with 2024 revenues of 5.529 billion yuan and a 11.55% year-on-year increase in Q1 2025 revenues [4]. - The company operates a dual-driven strategy combining cross-border social e-commerce and paper FMCG packaging, enhancing its business matrix [4]. Financial Metrics - The gross margin for Jihong Co.'s cross-border social e-commerce business has consistently remained between 59.1% and 63.1%, significantly outperforming industry averages [5]. - The company has achieved a high order fulfillment rate of 84.9%, with over 41 million orders delivered to 17 million consumers [5]. Global Expansion - Jihong Co. is actively pursuing a global strategy, with 80.9% of its revenue in 2024 coming from the Asian market, and has established production bases in the UAE and Oman [5]. - The company aims to leverage regional synergies to drive growth and expand its market presence in emerging markets [5]. Technological Innovation - The integration of AI and big data technologies is transforming the social e-commerce landscape, with Jihong Co. developing proprietary systems like Giikin for operational efficiency [6][9]. - The company has implemented AI applications to enhance various operational aspects, resulting in improved efficiency and reduced costs [9]. Future Outlook - The social e-commerce sector is poised for significant transformation driven by AI and big data, with Jihong Co. positioned as a leader with substantial technological barriers [9]. - The potential for growth in overseas markets and the application of AI technologies are expected to catalyze the company's value appreciation post-IPO [9].

Core Viewpoint - Jihong Co., Ltd. is set to launch its IPO, offering 67.91 million shares at a price range of HKD 7.48 to 10.68, with H-shares expected to be listed on May 27, 2023. The company is positioned as the first "AI-driven cross-border social e-commerce A+H stock" and is a leader in both the B2C export e-commerce and paper fast-moving consumer goods packaging industries, showcasing significant multi-dimensional value potential [1]. Industry Overview - Jihong Co., Ltd. operates in the B2C export social media e-commerce sector and the paper fast-moving consumer goods packaging industry, both characterized by large market space and high growth potential. The Chinese B2C export e-commerce market is projected to reach USD 927.6 billion by 2029, accounting for 11.4% of the global market, with a compound annual growth rate (CAGR) of 15.2% from 2024 to 2029 [2]. - The Asian segment of the B2C export e-commerce market is expected to grow to USD 458.4 billion by 2029, with a CAGR of 15.8%, outpacing the overall market growth. Social media is identified as the fastest-growing traffic source in this sector, with the Asian market projected to reach USD 69.5 billion by 2029, growing at a CAGR of 19.0% [2]. Company Strategy and Performance - Jihong Co., Ltd. employs an AI-driven approach to enhance operational efficiency in cross-border e-commerce, effectively reshaping the competitive landscape and reducing costs. This strategy allows for improved product selection, marketing, and user experience, transitioning the competition from resource consumption to algorithm evolution [5]. - The company focuses on the Asian market, particularly along the Belt and Road Initiative, which provides stability against fluctuations in Western markets. Over 80% of its cross-border e-commerce revenue comes from Asia, with minimal exposure to the U.S. market [5]. - Jihong Co., Ltd. has a robust long-term strategy that includes AI-driven e-commerce, proprietary brand development, and international expansion of its packaging business. The company has developed the Giikin system to optimize its operations across the supply chain, achieving a low inventory turnover ratio and high return on investment (ROI) compared to industry averages [8][9]. - The company has established several proprietary brands and is leveraging its marketing data to enhance brand influence and sales efficiency. Its packaging business has also expanded into new markets, collaborating with local firms to strengthen its operational capabilities [9][10]. Financial Performance - In 2024, Jihong Co., Ltd. is projected to generate revenue of CNY 3.366 billion from cross-border social e-commerce, accounting for 60.9% of total revenue, while its paper packaging business is expected to contribute CNY 2.099 billion, or 38% [11]. - The company is anticipated to maintain a gross margin of 60.5% for its cross-border e-commerce segment, supporting an overall gross margin of 43.8%. In Q1 2025, Jihong Co., Ltd. reported a revenue of CNY 1.477 billion, a year-on-year increase of 11.55%, with net profit rising by 38.21% [11]. Conclusion - Jihong Co., Ltd.'s upcoming IPO is expected to enhance its market visibility and provide a platform for international expansion, potentially transforming it from a regional leader to a global player. The company's strategic focus on technology and market positioning is likely to drive its value and attract investor interest [12][13].

Group 1: IPO Information - Jihong Co., Ltd. (02603.HK) is conducting an IPO with a subscription period from May 19 to May 22, offering a total of 67.91 million shares, with 10% for public offering and 90% for international placement [1] - The IPO price range is set between 7.48 and 10.68 HKD, with a market capitalization estimated between 3.386 billion and 4.835 billion HKD and a price-to-earnings ratio of 21 times [1] - The minimum subscription amount is 5,394 HKD, with the listing date scheduled for May 27 [1] Group 2: Company Overview - Jihong Co., Ltd. was established in 2003 and is headquartered in Xiamen, Fujian, initially focusing on fast-moving consumer goods packaging before transitioning to cross-border e-commerce in 2017 [2] - The company ranks second in China's B2C export e-commerce sector with a market share of 1.3% and first in the paper packaging sector with a market share of 1.2% as of 2024 [2] - Jihong's cross-border social e-commerce business utilizes a "goods find people" model, leveraging platforms like Meta and TikTok for targeted advertising [2] Group 3: Financial Performance - Jihong's revenue for 2022, 2023, and 2024 was 5.376 billion, 6.695 billion, and 5.529 billion RMB, respectively, with net profits of 172 million, 332 million, and 184 million RMB [3] - In Q1 2025, the company reported revenue of 1.477 billion RMB, reflecting a year-on-year growth of 11.55%, with a net profit of 59.16 million RMB [3] - By 2024, the cross-border e-commerce segment contributed 60.9% of total revenue, while the packaging business accounted for 38% [4] Group 4: Operational Insights - Jihong's packaging business offers a comprehensive solution from design to logistics, serving well-known clients like Yili and Luckin Coffee, with a low industry concentration (top five players hold only 4.5% market share) [3] - The company has a cash balance of 786 million RMB but faces pressure with accounts receivable reaching 522 million RMB, which is over 286% of its profit [5] - The dual business model helps mitigate risks, while AI technology enhances operational efficiency [5] Group 5: Market Sentiment and Pricing Strategy - The IPO price range of 7.48-10.68 HKD represents a discount of 33%-53% compared to the A-share price of 14.63 RMB, indicating a significant pricing strategy aimed at attracting investors [6] - The expected oversubscription rate is high, with estimates suggesting a potential oversubscription of 15 to 50 times, which could lead to a significant price adjustment [6]

Group 1: Company Developments - Jihong Co., Ltd. (吉宏股份) has launched its IPO in Hong Kong, with subscription ending on May 22. The share price ranges from HKD 7.48 to HKD 10.68, aiming to raise approximately HKD 725 million at the upper price point [1] - Pige Biopharmaceuticals (派格生物医药) has also initiated its IPO, with a share price set at HKD 15.60 and a global offering of 19.2835 million shares. The company focuses on innovative therapies for chronic diseases, particularly in the metabolic disorder sector [4] - Jianbei Miao Miao (健倍苗苗) expects a significant increase in annual profit, projecting a rise of no less than 50% for the year ending March 31, 2025, driven by effective brand management and strong sales performance in its core brands [5] Group 2: Market Trends - The successful IPOs of Jihong Co. and Pige Biopharmaceuticals may stimulate renewed interest in the cross-border e-commerce and biotechnology sectors within the Hong Kong stock market [1][4] - The strong performance of CATL (宁德时代) in the dark market, with an increase of 8.29% to HKD 284.8, reflects high market expectations for its upcoming IPO, indicating robust interest in the renewable energy sector [3] Group 3: Market Performance - The Hang Seng Index closed at 23,332.72, with a slight decline of 0.05% on May 19, indicating a mixed sentiment in the market [6] - The Hang Seng Tech Index and the National Enterprises Index also experienced minor declines of 0.50% and 0.09%, respectively, suggesting a cautious market environment [6]