The rapidly rising B2B e-commerce leader in the field of electronic components
The company's main business is online transactions in the field of IC and electronic components procurement, mainly divided into:
Proprietary business, third-party platform business. Since the company launched its online business in 2012, it has expanded rapidly, with the transaction volume rising from 675 million in 2012 to 21.65 billion in 2016, with an average annual compound growth rate of 138%, making it the absolute leader in the industry.
In the field of electronic components procurement, online trading e-commerce developed at that time. 1) the domestic electronic components procurement market is huge, with a scale of more than 2.5 trillion yuan, and is still growing rapidly. Of these, 3 million small and medium-sized electronics manufacturers account for 40 per cent of the market share.
2) the purchasing pain point of small and medium-sized enterprises drives the demand of B2B e-commerce. 1. The electronic procurement market is relatively concentrated upstream and monopolized by a small number of large brand suppliers. 3 million of small and medium-sized enterprises downstream cannot directly access large brand suppliers or large distributors because of their small quantities. Often, electronic components can only be obtained through small and medium-sized distributors and retail stores, with higher prices, service quality is difficult to guarantee, and there is a demand pain point. 2. B2B e-commerce can provide large supplier products, provide more suitable prices, and provide more selectivity, which is to solve the pain point of purchasing electronic components for small and medium-sized enterprises. 3. At present, the penetration rate of B2B e-commerce in the field of e-procurement is increasing rapidly. The number of manufacturers conducting online procurement in 2012 has soared to about 300000 from 11900, and the penetration rate of IC online procurement has also risen to 10 per cent from 1.97 per cent in 2013.
3) online dealers are the mainstream trend of B2B e-commerce in the future. B2B e-commerce is mainly divided into information service providers and online traders. 1. Information service providers mainly provide information for customers and do not participate in transactions. This kind of e-commerce has developed earlier and the model is mature, represented by Huaqiang Electronic Network, but it has some disadvantages such as the reputation can not be guaranteed and it is difficult for users and brands to precipitate, and they have gradually failed to meet the needs of the market. 2. Online traders are deeply involved in online trading, based on big data to provide value-added services to enhance customer stickiness. 3. Dealers represent Ketong Core City is developing rapidly, while established information service providers represent Huaqiang Electronic Network online trading volume to slow down, and are seeking to cut into the trading field. To sum up, no matter from the advantages and disadvantages of the two models, or the development of their respective enterprises, online traders are undoubtedly the future trend of B2B e-commerce in the field of electronic components procurement.
The company has a competitive advantage, high barriers, and the growth of industry giants is expected.
The main participants in the field of electronic components procurement are: offline traders and online e-commerce.
1) offline transactions are mainly divided into large distributors, small and medium-sized distributors and retailers. Large distributors are mainly aimed at large manufacturers and it is difficult to take care of customers of small and medium-sized enterprises.
In addition, the electronic components procurement market is extremely fragmented, with the top 10 distributors accounting for only 5% of the market, and the direct competition between offline giants and companies is relatively mild. The company can directly face the customers of small and medium-sized enterprises, and small and medium-sized distributors and retailers are the main competitors of the company. The company has obvious competitive advantages: it can provide quality products from suppliers of world first-tier brands, and the price is cheaper than that of small and medium-sized distributors; the platform can provide more other choices; based on transaction big data, it can provide more value-added services; 2) in terms of online transactions, the company is the leader in the field, and it is also the first unit in the industry to involve this model, with high barriers and significant advantages. 1. The industry has accumulated for many years to build deep business barriers. In terms of business model, the company is deeply involved in transactions, providing supplier-customer relationship support, information technology infrastructure, logistics and warehousing services, as well as in-depth industry knowledge. all these build the company's business barriers; 2, a strong supplier network. The company currently has more than 100 global first-tier brand suppliers, and has a certain bargaining power; 3) targeted and accurate marketing, targeted access to enterprise customer groups, and the gradual release of economies of scale. From the beginning of its establishment, the company has put the target market in many small and medium-sized electronic manufacturing enterprises, and carried out targeted and accurate marketing for the main decision-makers through the model of building a community.
Launch the intelligent hardware innovation entrepreneurial platform "hard egg", seize the Internet of things market entrance company launched the hard egg platform in September 2013, committed to providing supply chain services for intelligent hardware innovation entrepreneurs (mainly geeks, entrepreneurs, traditional manufacturing transformation people, etc.), and around the supply chain sales, consulting and other one-stop services Create a complete ecology from the upstream supply chain, crowdfunding to intermediate innovative entrepreneurs and then to the consumer side, in the form of B2B2C closed loop. At present, hard Egg is the world's largest platform for intelligent hardware innovation and entrepreneurship, with a rapid expansion. As of November 2016, there are nearly 20, 000 projects and more than 18 million fans. Scale effect has been formed and the clamping advantage is sufficient. With the broad market prospect of conjugate networking in the future, there is a huge space for the development of hard-egg platform.
Take root in the industry, launch supply chain finance business, and create a long-term new performance growth point. In September 2014, the company launched supply chain finance business. 1) this business mainly provides loans to customers according to the implementation order data of small and medium-sized enterprises, which is specially used to purchase electronic components on the company platform. Business is also growing rapidly, with supply chain finance accounting for 10.8% of the company's total GMV in 2015 and 13.3% in 2016 against the backdrop of rapid GMV growth. At the same time, the business is expected to further expand to the mainland market. 2) this business solves the pain point of the loan difficulties of small and medium-sized enterprises, and does not compete directly with the banking business. According to the data of the investment and financing industry, nearly 90% of the financing needs of small and medium-sized enterprises can not be effectively met, and small enterprises, which account for 90% of the total number of Chinese enterprises, account for only 15% of bank loans. 3) combined with the current trend of rapid development of the company's supply chain financial business, as well as the huge market potential of financing for small and medium-sized enterprises, this business will become a new performance growth point of the company for a long time.
Profit forecast and investment advice
By creating an online B2B e-commerce platform, Ketong Core City has changed the traditional offline procurement mode of electronic components, and realized the innovation of the business model of the market. The company's main business "self-management + third party" mode is the domestic first in the field of electronic components, with high barriers and strong first-mover advantages, and is the target of similar scarcity in China. The company's own business is growing rapidly, relying on large device manufacturers to attract customers of large, small and medium-sized enterprises, and the scale effect is gradually released. At the same time, the company has achieved the docking of brand suppliers and 3 million manufacturers, sitting on a large number of users, relying on data to achieve the accurate marketing of goods. Combined with 2.5 trillion of the procurement market in the field of electronic components, the company may become JD.com in the field of electronic components in the future!
The company's "hard egg" has created the world's largest intelligent hardware entrepreneurial innovation platform, grabbing the entrance on the eve of the outbreak of the Internet of things industry, and establishing a complete B2B ecological closed loop from upstream supply chain, crowdfunding to intermediate innovative entrepreneurs and then to consumers, with obvious card position advantages, and profit realization also put on the agenda, looking forward to performance release.
Supply chain financial services directly hit the financing pain points of small and medium-sized enterprises, do not form direct competition with banks, and will also become a new performance growth point.
The company's three major businesses focus on customer groups, realize the integration of hardware, software and services, enhance customer stickiness and achieve business coordination.
There is no obvious deficiency in the business, the three businesses are showing a trend of rapid expansion, and the industry has broad prospects and competitive advantages in the industry. It is predicted that the net profit in 2017 will be 670 million yuan respectively, corresponding to PE 24X, which will be rated as overweight!
Risk hint
Market competition intensifies; the pace of e-commerce in the industry is not up to expectations.