Xiaomo: Target price of HK$37 for the first “gain” rating for Jusuitan (06687)

The Zhitong Finance App learned that J.P. Morgan Chase released a research report stating that it covered Jushuitang (06687) for the first time and gave it an “increase” rating, with a target price of HK$37. According to the bank, Jushuitan stands out from China's increasingly fragmented e-commerce industry, making it grow faster than most software peers and their vertical fields, while maintaining strong profitability. As one of the few SaaS suppliers with a high customer retention rate in China, the bank believes that the company's revenue growth and profits will be sustainable. The average annual compound annual growth rate of revenue from 2024 to 27 is 23%, and the non-IFRS net profit margin will reach 29% in 2027. At the same time, the bank believes that the company's valuation is attractive and lists it as one of the preferred stocks in the industry.