Huakai Yibai(SZ:300592) Guolian Securities·2024-05-22 04:12Investment Rating - The investment rating for the company is "Buy" with a target price of 17.78 CNY, maintaining the rating [6][5]. Core Views - The company plans to acquire 100% equity of Tongtuo Technology for 700 million CNY, which is expected to enhance category and channel synergies [3][4]. - Post-acquisition, Tongtuo Technology will become a wholly-owned subsidiary, contributing to the company's consolidated financial statements [3]. - The acquisition is anticipated to significantly expand the company's SKU scale, enhancing bargaining power with upstream suppliers and potentially lowering procurement costs [4][5]. Financial Projections - Revenue projections for 2024-2026 are estimated at 85.27 billion CNY, 105.31 billion CNY, and 125.91 billion CNY, with corresponding growth rates of 30.82%, 23.50%, and 19.56% [5][12]. - Net profit forecasts for the same period are 4.50 billion CNY, 5.78 billion CNY, and 6.72 billion CNY, with growth rates of 35.47%, 28.45%, and 16.30% respectively [5][12]. - Earnings per share (EPS) are projected to be 1.11 CNY, 1.43 CNY, and 1.66 CNY for 2024, 2025, and 2026, indicating a 3-year CAGR of 26% [5][12]. Business Model and Strategy - Tongtuo Technology primarily operates in B2C cross-border e-commerce, focusing on home and electronic products, with 78.78% and 17.09% of revenue from these categories in 2023 [4]. - The company utilizes a "pan-channel" and "pan-category" sales model, leveraging third-party platforms and its own website to reach overseas consumers [4]. - The acquisition is expected to create synergies by integrating existing supply chain channels, business resources, and technological advantages, thereby enhancing the overall competitiveness of the cross-border e-commerce business [5].