GF Securities: Yu Ju Shuitan (06687) “Buy” Rating Reasonable Value HK$42.09

The Zhitong Finance App learned that according to a research report released by GF Securities, Jushuitan (06687) is expected to have operating revenue of 11.4/13.9/1.66 billion yuan in 2025-2027, respectively, and net profit to mother of 0.7/3.5/520 million yuan, respectively. Based on comparable company valuations, we gave the company a reasonable valuation multiplier of 12xPS and a reasonable value of HK$42.09 per share in 2026, giving it a “buy” rating.

The main views of GF Securities are as follows:

Jushuitan is a leading collaborative platform for e-commerce SaaS ERP

Using e-commerce SaaS ERP as an entry point, the company initially provided cloud ERP solutions around the pain points of order management, inventory management, logistics collaboration and financial settlement faced by e-commerce merchants in multi-platform and multi-store operations. As customer needs continue to evolve, Jushuitan gradually upgraded from a single ERP system to an e-commerce SaaS collaboration platform with SaaSerp as the core and integrating services for various merchants.

E-commerce SaaS ERP track is small but beautiful

The ERP system integrates the core operating processes of internal and external management in the e-commerce industry, and can efficiently solve the pain points faced by merchants such as cross-platform store management, mass order or SKU inventory management, and industrial chain collaboration. In the future, e-commerce SaaS ERP will further expand business scenarios and integrate more collaborative functions, and the market space is expected to maintain a high growth rate.

The Jushuitan faucet position is stable, and the quality of operation is impressive

In 2024, Jushuitan's market share in the e-commerce SaaSerp industry reached 24.4%, significantly leading the industry competition. From a financial perspective, based on the company's increasingly improved sales system and product system, the company's LTV/CAC continued to rise, reaching 9.3 in 2024. The company excelled in customer retention and increased expenses, with a net customer revenue retention rate of 115% in 2024. Subsequent companies will continue to make efforts to promote steady progress in retention rates.

Actively going overseas and boosting the value-added software business is expected to open up a new growth curve

The company has set up a subsidiary in Thailand and is developing steadily. In the future, it will continue to expand into Southeast Asian markets and actively explore business opportunities in Europe, America, Latin America and the Middle East. Based on the customer resources accumulated in the e-commerce SaaS ERP field, the company will further strengthen its value-added software business, which is expected to open up a new growth curve.