Company Rating - The report assigns a Neutral rating to Oriental Selection (1797 HK) [3] Core Viewpoints - Oriental Selection sold its subsidiary Yu Hui Tong Xing to Dong Yuhui, which is expected to impact the company's 2025 fiscal year profit by 20%+ [1] - The sale of Yu Hui Tong Xing is expected to reduce Oriental Selection's 2025 fiscal year GMV, revenue, and profit by 34%, 9%, and 20%+ respectively [1] - The sale is expected to have a short-term financial impact but may reduce public opinion risks, allowing management to focus on self-operated strategies and multi-platform development for long-term stability [1] Financial Impact of Yu Hui Tong Xing Sale - Yu Hui Tong Xing generated a net profit of 140 million RMB in the first half of 2024 (from December 22, 2023, to June 30, 2024) [1] - The GMV of Yu Hui Tong Xing from January to June 2024 was approximately 3.5 billion RMB, with a commission rate of 13%, contributing 410 million RMB in revenue and a profit margin of 33% [1] - The sale price of Yu Hui Tong Xing was 76.59 million RMB, equal to its net asset value, resulting in no gain or loss for Oriental Selection [1] Strategic Adjustments - Oriental Selection plans to reallocate resources to strengthen its own brand, expand self-operated products, and develop its live e-commerce business [1] - The company announced a share buyback plan of up to 500 million RMB within the next year [1] Industry Coverage - The report covers multiple companies in the internet and education sectors, including Baidu (BIDU US), iQiyi (IQ US), Kuaishou (1024 HK), Bilibili (BILI US), NetEase Cloud Music (9899 HK), Tencent Music (TME US), Pinduoduo (PDD US), JD.com (JD US), Alibaba (BABA US), New Oriental Education (9901 HK), Tencent (700 HK), and Meituan (3690 HK) [3] - Most companies in the internet and education sectors are rated as Buy, with potential upside ranging from 15.5% to 88.0% [3]
东方甄选：出售与辉同行，预计对2025财年利润影响20%+