Huakai Yibai(300592) 财通证券·2024-05-24 04:02Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The acquisition of Tongtuo Technology is expected to exceed expectations in terms of cost-effectiveness and is likely to act as a business accelerator [4] - The company is continuously expanding its product categories and platforms, with the acquisition expected to enhance scale [17] Financial Performance Summary - In 2023, Tongtuo's revenue was 34.13 billion, a year-on-year decrease of 1.0%, with a net profit of -1.07 billion due to inventory impairment losses and credit impairment losses [12] - The company is projected to achieve revenues of 84.48 billion, 102.18 billion, and 114.39 billion from 2024 to 2026, with corresponding net profits of 4.55 billion, 5.85 billion, and 6.95 billion [17] - The projected PE ratios for 2024, 2025, and 2026 are 11, 9, and 7 respectively [17] Business Model and Market Position - The company has a high concentration of categories, with home and electronic categories generating revenues of 2.67 billion and 0.58 billion respectively, accounting for 78.8% and 17.1% of total revenue [5] - The company has diversified its channels, with significant growth in emerging platforms such as Amazon, AliExpress, and Meituan, which generated revenues of 1.66 billion, 0.49 billion, and 0.28 billion respectively [5] - As of 2023, Tongtuo has a total of 10,856 third-party e-commerce platform stores, with 3,274 on Amazon, indicating a strong resource base for rapid expansion [5] Profitability and Efficiency Metrics - Tongtuo's gross margin in 2023 was 28.85%, lower than Yibai's 37%, indicating significant room for improvement [6] - The company's operating cash flow was 0.75 billion, with cash and cash equivalents amounting to 4.36 billion, suggesting a strong financial position for the acquisition [12] - The projected net profit growth rates from 2024 to 2026 are 36.89%, 28.63%, and 18.90% respectively [7]