How to view the feasibility of Huaqiang Electronic Network Group business from the perspective of industry chain? We believe that the industrial Internet platform needs to adapt to the characteristics of different industries. Compared with the multi-shareholding platform of the League of Nations, the upper reaches of the industrial chain are relatively concentrated and fully competitive, and the downstream is highly dispersed, so that the platform can adopt the order collection mode to form bargaining power upstream and obtain the source of goods; at the same time, the traditional distribution network in the industry is huge, providing development space for many platforms to solve the price-sensitive needs of customers. The industrial Internet platform of Huaqiang Electronics Network Group locates spot procurement services, which is parallel to the existing distribution and direct selling markets, while spot customers have low price sensitivity, which provides considerable profit space for the platform, supports relatively higher inventory, procurement and other expenses, and well adapts to the characteristics of large SKU, diversification and specialization in the electronic components industry, with feasibility and sustainability.
How to understand the future development path of Huaqiang Electronic Network Group? Comparing and analyzing the development experience and strategic layout ideas of Internet platforms in different industries, the ideas of doing large-scale and improving profitability are the same, but the stages and paths of different platforms are different. The ability of the platform to expand the scale through the category extension of the industrial chain and the horizontal replication of the platform model has been preliminarily verified. At present, it is expanding to the production side of the product based on the transaction link and promoting the scientific and technological data strategy of the platform. Improve profitability, diversified profit model. Huaqiang Electronic Network is currently in the stage of SKU category, user accumulation and rapid expansion, and is expected to increase its penetration into the C-end market and into more industrial chain links such as products in the future.
Investment suggestion: we predict that the company's main business income from 2021 to 2023 will be 199.71, 237.45 and 27.299 billion yuan, and the return net profit will be 8.34,10.61 and 1.293 billion yuan. Corresponding to 19x, 15 and 12x PE, we are optimistic about the high growth of the company's industrial Internet innovation business and maintain the company's buy rating.
Risk tips: the demand of the electronic components industry is lower than expected; the Internet business development of the electronic components industry is not as expected and the risk of IPO listing failure.