Xiamen Jihong Technology (SZ:002803) Tianfeng Securities·2024-03-31 16:00Investment Rating - The investment rating for the company is "Buy" with a 6-month outlook maintained [5]. Core Insights - The company is positioned as the second-largest B2C cross-border e-commerce player in China, with a projected CAGR of 35.47% for cross-border social e-commerce revenue from 2018 to 2023 [1]. - The company achieved a revenue of 6.69 billion yuan in 2023, representing a year-on-year growth of 24.53%, and a net profit of 345.1 million yuan, up 87.57% year-on-year [16]. - The gross margin for 2023 was reported at 46.66%, an increase of 5.98 percentage points compared to the previous year [3]. Revenue Analysis - The cross-border social e-commerce business generated revenue of 4.257 billion yuan in 2023, reflecting a year-on-year increase of 37.02%, while the packaging business achieved revenue of 2.097 billion yuan, growing by 5.75% [6]. - The company has maintained a stable inventory turnover ratio, with inventory sales ratio controlled around 3% over the past three years [1]. Financial Performance - The company reported a cash flow from operating activities of 726 million yuan in 2023, marking an 85.6% increase year-on-year [1]. - The financial forecast indicates expected net profits of 430 million yuan, 520 million yuan, and 620 million yuan for 2024, 2025, and 2026 respectively, with corresponding P/E ratios of 16, 13, and 11 [18]. Strategic Initiatives - The company plans to enhance brand building and continue developing the "Jimiang Cloud" SaaS platform, leveraging its marketing data and technology to incubate proprietary brands [4]. - The company is expanding its cross-border e-commerce services to over 40 countries, utilizing AI-driven operational systems to create a competitive edge [7].