Huakai Yibai(300592) ZHESHANG SECURITIES·2025-02-21 10:23Investment Rating - The report gives an "Accumulate" rating for the company, marking its first coverage [4]. Core Insights - The company has transformed its main business from spatial art design to cross-border e-commerce after acquiring Yibai Network in 2021, establishing a dual-wing strategy with a focus on general products and premium offerings [1][17]. - Revenue is projected to grow from 44 billion yuan in 2022 to 65 billion yuan in 2023, reflecting a 48% year-on-year increase [1][22]. - The cross-border e-commerce market is expected to continue expanding, driven by China's supply chain advantages and increasing demand for cost-effective products in overseas markets [1][34]. Summary by Sections Company Overview - The company has shifted its focus to cross-border e-commerce, with its main business now divided into cross-border e-commerce and the Yimai platform, contributing 87% and 12% to revenue respectively in 2023 [1][19]. - The general products segment focuses on cost-effective items with slower iteration speeds, while the premium segment has seen a significant increase in SKU and average transaction value [2][19]. Industry Analysis - The cross-border e-commerce market has grown from 2.8 trillion yuan in 2018 to 6.6 trillion yuan in 2022, with a CAGR of 25% [34]. - Short-term growth is supported by strong overseas demand and the expansion of e-commerce penetration, while long-term opportunities exist in emerging markets like Southeast Asia and Latin America [34][46]. Financial Projections - The company is expected to achieve revenues of 89 billion yuan in 2024, 108 billion yuan in 2025, and 128 billion yuan in 2026, with corresponding growth rates of 36%, 21%, and 19% [3][4]. - Net profit is projected to increase from 3.3 billion yuan in 2024 to 5.2 billion yuan in 2026, with a net profit margin expected to stabilize around 5% [3][26]. Strategic Developments - The company has implemented a clear strategy combining general products, premium offerings, and the Yimai platform, aiming for a transition towards brand and service provider roles [1][3]. - The management team has undergone changes, with the founder of Yibai Network taking over as chairman, indicating a renewed focus on cross-border e-commerce growth [30][32].