Xiamen Jihong Technology (SZ:002803) Capital Securities·2024-02-20 16:00Investment Rating - The investment rating for the company is "Buy" [2][4]. Core Views - The company is expected to achieve a net profit attributable to shareholders of 330 to 370 million yuan in 2023, representing a year-on-year growth of 80% to 100% [10]. - The growth in profit is attributed to several factors, including increased trade volume under the Belt and Road Initiative and RCEP, robust growth in cross-border e-commerce, a strong digital strategy, and a recovering consumer market [10]. - The company plans to issue H-shares to enhance its capital strength and governance [10]. Financial Summary - Revenue projections for the company are as follows: 53.8 billion yuan in 2022, 64.8 billion yuan in 2023 (20.5% growth), 76.4 billion yuan in 2024 (18.0% growth), and 88.0 billion yuan in 2025 (15.2% growth) [5]. - Net profit attributable to shareholders is projected to be 1.8 billion yuan in 2022, 3.7 billion yuan in 2023, 5.0 billion yuan in 2024, and 6.1 billion yuan in 2025 [5]. - The company's current P/E ratios are 25.5 for 2022, 12.8 for 2023, 9.4 for 2024, and 7.7 for 2025 [5]. Market Position and Strategy - The company is focusing on the Southeast Asian market, benefiting from the recovery of the consumer market in RCEP regions [10]. - The company has invested over 150 million yuan in developing its cross-border e-commerce management system, which is now in its third iteration [10]. - The company is also promoting its SaaS service platform while strategically reducing losses in its advertising business [10].