Huitongda (09878)：Empowering China's lower-tier retail market
Huitongda (09878)：Empowering China's lower-tier retail market
We expect Huitongda to post 11% sales and 33% net profit CAGR over 2022-25F, as its number of member stores continues to rise. Huitongda is a business-to-business (B2B) retail platform, offering direct sales of products and software as a service (SaaS) to retail stores in China’s lower-tier market.
Over the years, it has gradually built its business model and supply chain in the lower tier market – we believe to specifically cater to the local stores’ demand.
Frost & Sullivan forecasts 6.5% 2020-25F CAGR for China’s lower tier market to Rmb20.4tr. We see huge growth potential for Huitongda in this fragmented market.
We expect Huitongda to post 11% sales and 33% net profit CAGR over 2022-25F, as its number of member stores continues to rise.
Initiate coverage with an Add rating and DCF-based TP of HK$37.6.
匯通達是一個企業對企業（B2B）零售平台，爲中國低端市場的零售商店提供產品和軟件即服務（SaaS）的直接銷售。
多年來，它逐漸在低端市場建立了其商業模式和供應鏈——我們認爲這將特別滿足當地商店的需求。
弗若斯特沙利文預測，中國低端市場2020-25億元的複合年增長率爲6.5％，至20.4萬億元人民幣。我們認爲匯通達在這個分散的市場中具有巨大的增長潛力。
我們預計，隨着會員門店數量的持續增加，匯通達將在2022-25財年實現11％的銷售額和33％的淨利潤複合年增長率。
以Add評級和基於DCF的目標爲37.6港元啓動保險。
譯文內容由第三人軟體翻譯。
