Company Overview - Huachuang Securities has initiated coverage on Maifushi (02556.HK) with a "strong buy" rating, indicating significant upside potential [1] - Maifushi is recognized as a leader in the marketing and sales SaaS sector, with rapid growth expected due to the accelerated integration of AI applications [1] - The company has established a comprehensive product line and a clear growth trajectory, supported by over 750 software copyrights and patents [1] Financial Performance - The latest financial report indicates that Maifushi is set to turn a profit in 2024, with an adjusted net profit of 79.21 million yuan and revenue of 1.56 billion yuan, continuing its growth trend [1] - This performance suggests that the company has developed a stable business model capable of withstanding economic cycles, entering a new phase of high-quality development [1] Industry Trends - The enterprise SaaS market is expected to thrive amid the digital transformation wave, with the potential market size for marketing and sales SaaS solutions projected to grow from 1.5466 trillion yuan in 2022 to 4.2545 trillion yuan by 2027, with penetration rates increasing from 1.3% to 1.8% [2] - Cloud computing is identified as a key element in responding to national policies and building a modern industrial system [2] Strategic Initiatives - Maifushi is actively collaborating with provincial governments, various industries, and ecosystem partners to expand its network and promote intelligent upgrades across sectors [2] - The company has built a robust intelligent agent ecosystem, integrating AI capabilities with SaaS to enhance customer value across all scenarios [2] Growth Potential - The AI+SaaS business of Maifushi is still in a rapid growth phase, with profit margins yet to be fully realized, indicating potential for new revenue streams through Agent technology [3] - Revenue growth rates are projected at 51.1%, 31.1%, and 24.6% for the years 2025 to 2027, respectively, highlighting the company's strong growth outlook [3] - Maifushi's rise exemplifies the advantages of Chinese AI SaaS enterprises and offers a "Chinese solution" for global digital transformation [3]

Core Viewpoint - The company, 聚水潭集团股份有限公司, has submitted a new listing application to the Hong Kong Stock Exchange, with CICC and JPMorgan as joint sponsors, after previous applications in June 2023, March 2024, and November 2024 [1]. Group 1: Market Position and Product Offering - 聚水潭 is the largest e-commerce SaaS ERP provider in China, holding a market share of 24.4% based on projected 2024 revenues, surpassing the combined market share of the next five competitors [5]. - The total market size for China's e-commerce SaaS ERP is projected to be RMB 3.1 billion in 2024 [5]. - The company has developed a cloud-based e-commerce SaaS product that connects merchants with over 400 e-commerce platforms, significantly more than the industry average of fewer than 200 platforms [5]. Group 2: Customer Base and Retention - In 2024, the company is expected to serve 88,400 SaaS customers, while the industry average is fewer than 20,000 customers [5]. - The net customer revenue retention rate for the company is projected to be 115% in 2024 [5]. Group 3: Financial Performance - The company's revenues for the years 2022, 2023, and 2024 are approximately RMB 523 million, RMB 697 million, and RMB 910 million, respectively [9][10]. - The company reported losses of approximately RMB 5.07 billion, RMB 4.9 billion, and a profit of RMB 0.11 billion for the same years [9][10]. Group 4: Efficiency Metrics - The company's LTV/CAC ratio, which measures customer lifetime value against customer acquisition cost, has shown a market-leading trend, increasing from 6.2x in 2022 to 9.3x in 2024 [7]. - The percentage of customers purchasing two or more products from 聚水潭 has increased from 30.6% in 2022 to 37.7% in 2024 [7].

Core Insights - The overall growth rate of foreign trade is slowing down, with a slight recovery expected in 2024, as export locations shift from Europe and the United States to Southeast Asia and emerging markets [1][6] - Foreign trade B2B companies are prioritizing refined operations to enhance revenue and risk resilience, with 3-5% of net profits allocated to digital transformation, and 15-25% of that for SaaS tool procurement [1][16] - The SaaS market for foreign trade B2B is projected to reach approximately 7.8 billion yuan in 2024, with a growth rate of 29.8% [2][42] Group 1: Market Environment - The export growth rate for various categories has slowed in 2023 compared to 2022, but a slight recovery is anticipated in 2024, particularly in machinery and equipment [6] - B2B e-commerce is becoming increasingly dominant in the overall foreign trade market, accounting for about 70% of cross-border e-commerce transactions [6][8] Group 2: Digital Transformation and SaaS - Digital transformation is seen as a solution to the challenges faced by foreign trade companies, including market anchoring, customer acquisition, and cost reduction [11] - The digitalization level of foreign trade B2B companies is approximately 40%, with a willingness to invest 3-5% of net profits in digital initiatives, particularly in SaaS tools [16][18] Group 3: SaaS Product Categories - Foreign trade B2B SaaS can be categorized into four main areas: business growth, operational management, cross-border payment, and compliance [18] - The integration of product functions is leading to a more unified approach to foreign trade operations, with tools for website building, marketing, and customer management becoming increasingly interconnected [22] Group 4: AI Integration - AI is being utilized in various marketing scenarios, such as content generation and customer data analysis, with a focus on enhancing decision-making capabilities [25][35] - The application of AI in ERP systems is evolving, transitioning from basic efficiency improvements to more complex decision-making support [35][37] Group 5: Competitive Landscape - The foreign trade B2B SaaS market is characterized by a concentration of leading players in business growth and compliance sectors, while website building and ERP markets remain relatively fragmented [51] - The competitive advantages of SaaS providers vary, with platform-based firms focusing on traffic acquisition and resource-based firms emphasizing ecosystem integration [48]

Group 1: Overview of Foreign Trade B2B SaaS Industry - The report provides a comprehensive market insight into the foreign trade B2B SaaS industry, covering the development environment of foreign trade enterprises, SaaS market characteristics, competitive landscape, and development trends [1] - In 2023, the growth rate of foreign trade exports slowed down, with a slight recovery expected in 2024. The export of machinery and equipment remains stable, with B2B business accounting for 58% of the overall foreign trade market exports and approximately 70% in the cross-border e-commerce market [1][22] - The domestic market has formed multiple industrial clusters, enhancing foreign trade competitiveness, while export destinations are gradually shifting from Europe and the United States to Southeast Asia and emerging markets [1][25] Group 2: Characteristics of Foreign Trade SaaS Market - Foreign trade B2B SaaS can be categorized into four types based on business processes: business growth, operational management, cross-border payment, and compliance, with product functions increasingly integrated towards a unified foreign trade operation [3] - The market size of foreign trade B2B SaaS is projected to reach approximately 7.8 billion yuan in 2024, with expected modest growth in the next 2-3 years driven by AI and cross-border payment sectors [3][4] Group 3: Competitive Landscape of Foreign Trade SaaS - Foreign trade SaaS vendors are classified into platform-type, tool-type, and resource-type, with platform-type vendors being concentrated at the top, while resource-type vendors compete based on ecological barriers [4] - In the tools category, business growth and compliance segments are concentrated at the top, while website building and ERP solutions are relatively fragmented. Companies like Xiaoman OKKI lead the first tier due to mature products and support from Alibaba's ecosystem [4] Group 4: Development Trends of Foreign Trade SaaS - The competitive domestic environment is prompting SaaS vendors to expand overseas, with mid-tier and smaller vendors focusing on emerging markets like Southeast Asia, while top vendors target medium to large clients in Europe and the U.S. [5] - AI applications are transitioning from automation to enhanced decision-making across various scenarios, with a focus on customer relationship management, enterprise risk monitoring, and compliance in foreign trade environments [5][42]