Core Insights - The report highlights a significant market correction in Hong Kong stocks, with the Hang Seng Index dropping by 1.17% and a net outflow of 4.9 billion HKD from southbound trading [2][3] - The defense and aerospace sector is experiencing a surge due to policy-driven investments, while the technology sector is facing a downturn [4][5] Company Analysis - Zhenkunhang (ZKH.US) is identified as a one-stop MRO service platform, primarily serving manufacturing enterprises to reduce procurement costs and enhance supply chain efficiency [6] - The company's GMV is projected to reach 10.5 billion CNY in 2024, with a CAGR of 20.5% from 2020 to 2024 [6][8] - In Q3 2025, Zhenkunhang reported a total revenue of 2.3 billion CNY, reflecting a 2% year-on-year increase, indicating a recovery in revenue [7] - The adjusted net loss for Zhenkunhang narrowed to 14 million CNY in Q3 2025, compared to losses of 66 million CNY in the same period last year [7] - The company aims to achieve profitability in Q4 2025, with a GMV growth target of 15-20% for 2026 [9] Industry Outlook - The industrial supply chain technology and services market in China is expected to grow to approximately 800 billion CNY by 2025, with a year-on-year increase of 6.6% [8] - The competitive landscape is fragmented, with Zhenkunhang holding a market share of 1.5% compared to JD Industrial's 4.1% [8] - The report anticipates a strong demand for improved procurement efficiency and cost reduction, driving online penetration in the industry [8]
国证国际港股晨报-20260109