Huakai Yibai(SZ:300592) Guotai Junan Securities·2024-05-09 00:02Investment Rating - The report maintains a rating of "Buy" for Huakai Yibai (300592) with a target price of 27.65 CNY, reflecting a positive outlook on the company's long-term development and expected acquisition progress [1][18]. Core Views - The company is actively advancing new product categories, regions, and channels, with expectations for acquisition matters to progress, indicating a strong long-term growth potential [1][18]. - Q1 revenue reached 16.97 billion CNY, representing a 23% year-on-year growth, while net profit attributable to shareholders was 0.82 billion CNY, up 7.67% [1][18]. - The report highlights a decline in net profit margin due to an increase in the proportion of lower-margin cross-border services and the impact of freight rates on European business [1][18]. Summary by Sections Financial Performance - Q1 revenue was 16.97 billion CNY, up 23.05% year-on-year, with net profit at 0.82 billion CNY, reflecting a 7.67% increase [1][18]. - The company expects revenue growth rates of 37%, 27%, and 21% for the years 2024-2026, maintaining a target price of 27.65 CNY [1][18]. - The gross profit margin for Q1 was 36.46%, down 1.54 percentage points, while the net profit margin showed a decline due to increased operational costs [1][18]. Business Strategy - The company is focusing on expanding its product offerings and market presence, particularly in emerging markets like Latin America and new platforms such as Allegro and Ozon [1][18]. - The report emphasizes the efficiency of the company's operations, with a significant number of SKUs available and strong performance in key product categories on platforms like Amazon [1][18]. Market Position - Huakai Yibai is positioned as a leading seller on Amazon, benefiting from early market entry advantages and a favorable policy environment for top sellers [1][18]. - The company is leveraging AI innovations to enhance operational efficiency and decision-making processes, which is expected to contribute positively to its growth trajectory [1][18].