Group 1: Core Insights - Huitongda Network is focusing on "industrial upgrading" and "AI+" strategies, with significant developments in its supply chain integration and product launches in various sectors [1] - The company signed a comprehensive AI cooperation agreement with Alibaba Cloud, aiming to leverage AI and digitalization to tap into the 20 trillion yuan sinking consumer market [1][8] - Citigroup reaffirmed a "buy" rating for Huitongda, reflecting foreign capital's recognition of the company's strategic transformation and long-term investment value [1][3] Group 2: Strategic Initiatives - Huitongda is converting 350 million domestic shares into H-shares, enhancing liquidity and market pricing efficiency [2] - The company announced a share buyback plan of up to 500 million yuan, indicating confidence in its stock value and future prospects [2] - Huitongda's operating cash flow has been positive for six consecutive years, with a 15% year-on-year increase in overall gross margin for 2024 [2] Group 3: Institutional Support - Foreign institutions like Citigroup and Merrill Lynch have increased their holdings in Huitongda, indicating growing confidence in the company's undervalued growth potential [3] - Citigroup has set a target price of 23.0 HKD for Huitongda, based on its clear path to improving profitability and capitalizing on policy benefits [3][4] Group 4: AI Empowerment - Huitongda has integrated the DeepSeek model to enhance its AI capabilities, addressing the complexities of rural market operations [6] - The "Qiancheng Cloud AI" model has been approved for compliance, focusing on rural market needs and providing tailored services to merchants [7] - The partnership with Alibaba Cloud is expected to optimize Huitongda's AI model performance and expand application scenarios, driving digital transformation [8] Group 5: Long-term Value Proposition - Huitongda has established a unique channel network and digital ecosystem in China's sinking market, supported by its collaboration with Alibaba Cloud [9] - The company's ongoing transformation and growth trajectory highlight its investment value, particularly in the context of China's retail digitalization wave [9]
全流通+回购双管齐下——汇通达网络（9878.HK）基本盘夯实、未来可期