According to Futu News on May 24,$QUNABOX GROUP (00917.HK)$Today's dark market opened higher, with an increase of 38.20% to HK$34.55, with a turnover of HK$6.7838 million, with a total market value of HK$9.076 billion; 200 shares per lot, without handling fees, earned HK$1,910 per lot.
Market Source: Futu Securities Securities>
Investment highlights
The largest AI interactive terminal network marketing service provider in China: The company has been at the cutting edge of the industry since its establishment in 2013. Using AIoT technology, it has developed its own multi-sensory AI interactive terminals integrating vision, hearing, touch, smell, and motion interaction, and has used this to build a nationwide offline marketing terminal network platform — “Funa”. As of December 31, 2023, the company has operated a total of 7,543 AI interactive terminals, covering 22 cities in China, including all first-tier cities and most new first-tier cities. Its terminals are mainly located in commercial properties with a high user return rate, such as office buildings, long-term rental apartments, and shopping malls, to attract young consumers and the middle class.
Continuously expanding and high-quality customer base: The company uses offline AI interactive terminals to attract consumer visits and transform them into users of online platforms (“Funa” app, WeChat applet) to promote customer brands and products to consumers through an online and offline integration model, and obtain consumer data and feedback. In 2023, the number of registered users of the company's online platform “Funa” exceeded 50 million, an increase of 35% over 2021. The company had approximately 15.9 million annual active users in 2023. According to Insight Consulting, during the track record period, the company provided approximately 1,400 SKUs of FMCG marketing services to 472 brand customers, including products from 74 emerging brands in China's top 100 emerging brands in the beverage, food, and daily necessities industries.
Risk warning
Customer retention risk: The company's revenue mainly comes from providing marketing services. In 2021, 2022 and 2023, the company's marketing service revenue accounted for 75.0%, 73.1% and 80.3% of total revenue, respectively. The core competitiveness of the business is that the company can meet the needs of various groups such as brand customers and their target consumers. If it cannot be satisfied, it will adversely affect the company's performance.
The industry is fiercely competitive: China's FMCG outdoor marketing market has grown over the past few years. There are more and more participants planning to enter this market, and competition will be more intense in the future. Increased competition may reduce the company's market share and profitability, and lead to the need to increase sales and marketing efforts and capital investment in the future, which may adversely affect the company's operating performance.
Edit/Afina