Core Viewpoint - CITIC Securities initiates coverage on Zhenkunhang with an "Accumulate" rating and a target price of $4.3, highlighting its potential for growth as it expands its customer base and accelerates overseas business development [1]. Financial Performance - Zhenkunhang reported revenue of 2.328 billion yuan for Q3 2025, a year-on-year increase of 2.1%. The Non-GAAP adjusted net loss was 14 million yuan, with the loss narrowing by 78.7% year-on-year [1]. - The company's GMV (Gross Merchandise Volume) decline has slowed, with both large and small to medium-sized enterprise customer transaction volumes increasing [1]. Business Strategy - Zhenkunhang is focusing on high-margin proprietary brand products, with proprietary brand GMV increasing by 16.7% year-on-year, accounting for 8.2% of total GMV in Q3 2025 [1][3]. - The number of customers reached 70,800 by Q3 2025, representing a 48.0% year-on-year growth, while over 2.3 million new SKUs were added, bringing the total available SKUs to over 19 million [1][3]. AI Integration - The company is leveraging artificial intelligence across various operational aspects, with its core application "AI Product Recommendation Brain" set to launch in Q4 2024. By Q3 2025, it had recommended over 20 million items, generating over 100 million yuan in incremental revenue [1][3]. International Expansion - Zhenkunhang is expanding its distribution channels in the U.S., having established its own North American platform, Northsky, and entered third-party platforms like Amazon [1][3]. - CITIC Securities is optimistic about the company's proprietary brand and overseas strategy enhancing profit margins, with AI driving quality improvements in its core business [1].
震坤行：获中信“增持”评级，Q3营收23.28亿增长2.1%