Huitongda Network (09878): Unaffected by tariffs, endogenous motivation, external “outlet”, future value is clearly visible

Currently, a new round of domestic technological, industrial, and consumer changes continues to deepen, and the Chinese economy is experiencing qualitative changes from “factor-driven” to “innovation-driven” and “domestic demand-driven.”

In the context of the “trade war” storm and the global capital market reconstructs the valuation system and re-examines the market at the macro level, companies that drive changes internally and take the “cusp” of the times from the outside are becoming the core of global capital allocation.

On April 8, the concept of big consumption continued to rise. According to the news, the “Special Action Plan to Boost Consumption” issued by the Central Office and the State Administration is working together with a more active fiscal policy this year, promoting consumption and expanding domestic demand has become a general trend in the domestic economy.

Since 2024, Huitongda Network (09878) has promoted steady and high-quality development of enterprises in a longer cycle with strategic strength and market insight.

Strategic upgrade implemented, closely following the two core policies of “consumption” and “technology”

In December of last year, the Central Economic Work Conference made “promoting the growth of residents' income in sync with economic growth” as the core macroeconomic goal. The document mentioned various measures, including increasing employment and consumption of innovative services, to promote stimulation of domestic demand and consumption.

The Zhitong Finance App notes that as Huitongda Network, which has been dedicated to the domestic market sinking since 2012 and opening up commercial routes between urban and rural areas, began in the second half of 2023 and completed a round of strategic upgrades aimed at the sinking service market through layout and implementation over a period of more than a year.

The core is reflected in the following aspects:

First, AI and intelligence. By the end of last year, Huitongda Network had served nearly 250,000 township and couple stores, and achieved online and digitization of more than 100,000 small and micro entities, suppliers, and producers through the self-developed “Thousand Orange Cloud SaaS+” platform.

On this basis, Huitongda Network has further implemented AI and intelligent transformation, focusing on strengthening the technical layout on the “AI+SaaS” side and promoting the intelligent upgrading of the entire urban and rural distribution process in terms of product supply and demand, store marketing, and operation management. During the period, the company launched innovative “AI+SaaS” products around scenarios such as intelligent customer acquisition, intelligent procurement, intelligent marketing, and intelligent management of member stores, and expanded global marketing service capabilities.

Second, the supply chain structure was upgraded. Huitongda Network deployed supply chain upgrades around the three directions of “leading brand cooperation,” “private brand building,” and “POP supply chain building.” In 2024, the proportion of top brand procurement exceeded 44%. The basic market was further consolidated, and 10 private brands were launched at the same time, forming differentiated competitiveness.

The Zhitong Finance App learned that the above three upgrade directions of Huitongda Network are based on exploring both supply and demand in the sinking market. While meeting the consumer demand for “branded products,” “cost-effective, price-quality products,” and “differentiated long-tail products,” they can help B-side member stores and supply chain merchants operate in a timely and efficient manner.

Third, deepen the omni-channel layout. The company continued to increase the density and stickiness of member stores during the period. By the end of 2024, the company's business layout had covered 21 provinces and 25,000 townships, an increase of 3% over the previous year; the number of registered member stores reached 248,000, and the network density increased by 5% year on year; the number of active member stores of the company exceeded 95,000, up 5% year on year. At the same time, the company is actively expanding new channels, piloting online channels such as social e-commerce and content e-commerce business, while strengthening private domain operations and community group purchases to create new growth points.

According to the Zhitong Finance App, Huitongda Network has broken through the limitations of traditional industrial Internet platforms focusing only on the integration of upstream and downstream resources in this round. It has successfully created a method combining strategic cooperative brand co-building with independent brand development, and is deeply involved in the whole process of product R&D, design, manufacturing and sales based on B-side customer needs.

Focus on “domestic demand”, the value of platform barriers may be further amplified

It is worth noting that since the development of Huitongda Network 15 years ago, it has built a first-mover advantage and platform barriers in the sinking domestic market. Moreover, in a macroeconomic environment where global trade frictions are intensifying, Huitongda focuses on serving the domestic demand network of domestic demand networks for husband and wife stores in the sinking domestic market, completely avoiding tariff risks. This “internal circulation” business model makes it the preferred target for capital to find certainty in the midst of uncertainty.

In terms of quantity, the “pearl necklace” strung together from nearly 250,000 member stores on Huitongda Internet is in a unique position in the country and is ahead of other “players” in the market in terms of quantity.

In terms of quality, its “platform+member store” model infiltrates the supply chain and services into the daily business habits of entry-level store owners through online SaaS platforms and offline “iron army” teams, and also establishes a unique “customer stickiness”.

During the period, the number of member stores that received “online+offline” dual-end services on Huitongda Network also exceeded 100,000. The 100,000 digital terminal outlets and the transaction data behind it brought great room for imagination to the industry and capital.

“You still have to work hard on your own”. In a “trade war” environment, the potential and dividends of the sinking domestic market will undoubtedly be further unleashed.

Meanwhile, recent public information from Huitongda Network shows that the company will expand cooperation with TOP brands and build a POP platform to open up a sinking market to more upstream brands. Simultaneously, it will also open up a sinking market to more production capacity enterprises and factories through private brands and integrated production and marketing.

In other words, while responding positively to the country's policy guidelines such as developing new productivity and revitalizing idle production capacity, Huitongda Network has not only significantly expanded its value coverage, but also shown broad development prospects, presenting a more innovative platform ecosystem for the market.

The value of Huitongda Network's focus on “domestic demand” for many years has been clearly presented to the market.