Golden Finance News | CMB International issued a research report stating that EDA Group Holdings (02505) is a one-stop end-to-end supply chain solution provider focusing on e-commerce, providing supply chain solutions covering cross-border logistics, overseas warehousing, and fulfillment services seamlessly integrated with its EDA Cloud platform. The EDA Cloud platform is a platform independently developed by the group, covering a range of comprehensive digital supply management tools that can enhance the operational efficiency of all parties involved. It is the core pillar of the EDA Group ecosystem, helping to improve the connection efficiency between logistics suppliers and end customers. According to Frost Sullivan (F&S) data, based on the revenue in 2022, EDA Group ranks seventh among all major B2C export e-commerce supply chain solution providers in China adopting the overseas warehouse stocking model, with a market share of approximately 0.4%.

The bank is bullish on the long-term business development potential of EDA Group, mainly benefiting from the rapid growth in industry demand and its ability to help customers improve inventory turnover efficiency and fulfillment efficiency. Based on a revenue CAGR of 31.9% for 2023-2026, the bank predicts that the company's adjusted net income CAGR will reach 34.3%. The bank's target price is HK$3.57 per share, based on 11x 2024 forward price-to-earnings ratio, consistent with the average of comparable companies, first coverage, with a 'buy' rating.