On February 29, the self-developed AI shopping assistant “Small Value” by Worth Buying Technology was officially launched on the “What's Worth Buying” app. This is a new achievement of Worth Buying Technology in the field of AI. “Small Value” is an Agent product developed by Worth Buying Technology based on the Big Value to Buy model. It can deeply understand user needs through dialogue, make quick summaries based on real-time consumer experience and price information throughout the network, and provide services such as word-of-mouth summary, product comparison, product recommendation, and network-wide price comparison to provide personalized suggestions to consumers with different decision-making difficulties, thereby improving the quality and efficiency of consumer decisions.

According to the actual in-app trial experience, it is worth buying the AI shopping assistant mainly has two functions: shopping and chat:

1. After users express their shopping needs through dialogue, they can provide a text version of product information comparison or suggestions, and can directly give a list of shopping links. After clicking, they can be redirected to the product page of the corresponding app (such as the shopping page of an iPhone within JD).

2. In addition to shopping suggestions, the AI assistant can also talk to users to discuss topics such as weather, news, movies, music, etc., and can also provide lifestyle suggestions such as healthy eating, exercise plans, etc.

The vertical model adapts to the consumer scenario and is expected to achieve B-side monetization and improve C-side stickiness. From a scenario perspective, the general-purpose model is difficult to apply to the consumer industry. Knowledge density in a vertical field such as consumption is insufficient, and it cannot really help consumers make shopping decisions. Product prices in the consumer sector are constantly changing, user evaluations are more subjective, and each individual's needs and feelings are not the same. Therefore, the vertical model has practical value.

From the perspective of monetization, on the one hand, it is worth buying an AI assistant, which is expected to increase the company's user stickiness and increase the purchase conversion rate; on the other hand, as AI assistants continue to be optimized and upgraded, they can also be used by B-side brands and platforms to achieve further monetization.

Profit forecasting and valuation: In 2023, the company is firmly optimistic about the strategic opportunities of AIGC and overseas business. It continues to increase investment in resources such as manpower and computing power around the above two fields, resolutely promote the transformation and upgrading of “what is worth buying” with AIGC as the core, and the next-generation product layout with “dialogue shopping robots” as the core, and implemented a series of AI decision-making tools such as “AI review robots” and “AI purchase suggestions” on the product side. This time, it also launched self-developed AI shopping assistants and began investing resources to launch overseas strategies. On the one hand, in the future, the company is expected to use AI companies to reduce costs and increase efficiency domestically. On the other hand, along with the strong expansion of Chinese cross-border e-commerce platforms, the company is expected to expand overseas as a leading player in the e-commerce service provider ecosystem. The overall estimated net profit for 2023-2024 is 0.74 to 213 million yuan, corresponding to the current 58x/20x PE, giving it a “recommended” rating.

Risk warning: New app launches fall short of expectations, overseas business falls short of expectations, e-commerce consumption falls short of expectations