Focus Tech.(002315) 华通证券国际·2024-02-19 16:00Investment Rating - The report assigns a "Recommended (First Time)" investment rating to the company, with a target price of 39.93 CNY per share over the next six months, indicating a potential upside of 30.79% from the current price of 30.53 CNY per share [9][88]. Core Insights - The company is expected to achieve revenue growth of 12.07%, 11.39%, and 11.42% for the years 2023, 2024, and 2025, respectively, with projected revenues of 1.65 billion, 1.84 billion, and 2.05 billion CNY [5][21]. - The net profit attributable to shareholders is forecasted to be 379 million, 466 million, and 524 million CNY for the same years, corresponding to EPS of 1.21, 1.49, and 1.67 CNY [5][21]. - The company is benefiting from a stable growth in its main business, China Manufacturing Network, and the introduction of AI-powered services is expected to contribute to new growth points [9][88]. Company Overview - The company operates in the cross-border e-commerce sector, primarily through its platform, China Manufacturing Network, which connects Chinese suppliers with international buyers [20][65]. - The company has over 27 years of experience in providing e-commerce services to export-oriented SMEs, accumulating a significant amount of quality B-class customer resources [20][44]. Financial Performance - The company reported a gross margin of 78.48% and a net margin of 26.25% for the first three quarters of 2023, with total revenue of 1.12 billion CNY, reflecting a year-on-year growth of 1.44% [39][69]. - The report highlights a continuous improvement in operational efficiency, with a decrease in various expense ratios, including sales, management, and financial expenses [69][100]. Industry Analysis - The cross-border e-commerce industry in China is projected to grow at a compound annual growth rate (CAGR) of 16.4% from 2023 to 2025, driven by economic recovery and increasing international trade [62][58]. - The report notes that China's export market share is expected to remain stable at around 14%, indicating a solid competitive advantage for the manufacturing sector [8][14].