Investment Rating - The report assigns a "Buy" rating to the company, with a target price of 42.09 HKD per share based on a reasonable valuation multiple of 12x PS for 2026 [7]. Core Insights - The company is positioned as a leading SaaS ERP platform for e-commerce, addressing critical pain points in order management, inventory management, logistics coordination, and financial settlement for merchants operating across multiple platforms [7][12]. - The e-commerce SaaS ERP market is rapidly growing, with the company expected to benefit significantly from industry trends, achieving a market share of 24.4% in 2024 [7][47]. - The company is actively expanding its overseas presence and enhancing its value-added software business, which is anticipated to open new growth avenues [7][66]. Financial Overview - The company’s revenue is projected to grow from 910 million RMB in 2024 to 1.658 billion RMB by 2027, with a compound annual growth rate (CAGR) of approximately 33% from 2020 to 2024 [2][23]. - The company is expected to turn profitable in 2024, with a net profit of 12 million RMB, and further increase to 521 million RMB by 2027 [2][23]. - The gross margin is expected to improve from 68% in 2024 to 80% by 2027, reflecting a shift towards higher-margin software and services [88]. Market Dynamics - The e-commerce SaaS ERP market in China is projected to reach 31 billion RMB by 2024, with a compound annual growth rate of 21.5% from 2024 to 2029 [43]. - The company’s customer base is currently under 100,000, indicating significant potential for market penetration given the over 27 million active e-commerce merchants in China [48]. - The company has established a strong competitive position, leveraging its deep understanding of the e-commerce sector and cloud-native technology capabilities [47]. Growth Strategy - The company is focusing on expanding its value-added software offerings, which are expected to contribute significantly to revenue growth, achieving 1.1 billion RMB in revenue by 2024 [77]. - The company has set up a subsidiary in Thailand and plans to explore further opportunities in Southeast Asia, as well as in Europe, Latin America, and the Middle East [73][66]. - The company’s LTV/CAC ratio is projected to reach 9.3 in 2024, indicating a strong business model and effective customer acquisition strategy [55].