[Research Coverage] Huitongda Network (9878.HK) Received Recognitions from Multiple Overseas Securities Firms, Highlighting its Successful Strategic Upgrade, Improving Profitability, and AI+ Driven High-quality Growth

Citi, First Shanghai Securities, China Merchants Securities(HK), and SPDB International have recently released their latest research views on Huitongda Network (9878.HK). Based on the company's 2025 interim results performance and its full-stack AI comprehensive partnership with Alibaba Cloud, they generally recognized the progress and benefits of Huitongda's strategic transformation, and have expressed confidence in the company's future growth driver of “AI + Intelligent Supply Chain” development. With covering the company at “Buy”, some target prices reach as high as HK$23.

In the First Shanghai’s report, the firm pointed out that some of Huitongda's profitability indicators have reached record highs, serving as strong proof of the improving operational quality, as well as the effectiveness of its AI+SaaS strategic transformation since the second half of 2024. By cooperating with Alibaba Cloud, the firm also expected Huitongda to receive strong technical and computing support, which would allow it to implement its “Small Business Large Model AI-Agents”. With extensive data assets accumulated in the lower-tier markets, Huitongda may see further business upgrade in the future, moving towards a “SaaS software + AI Agent + Content Operation” servicing model. Together with improving supply chain capability from its direct procurement, self-owned brand, and leading branded partners development, the firm sees strong growth momentum in the company in the long term.

China Merchants Securities(HK) sees Huitongda as “a leader in AI+e-commerce with unique advantages in the lower-tier markets”. It highlighted its dominant market position in the vast lower-tier markets, with core businesses seeing steady growth, and profitability indicators such as gross profit margin seeing significant improvement. This proved the success of the company’s initial transformation, with AI+SaaS becoming its second growth engine, supporting its long-term growth prospects.

This month, overseas securities firms such as Citi and SPDB International also reiterated their "Buy" rating on Huitongda in their latest research reports, with some target prices up to HK$23.

Some firms also recognized the results from the initial business transformation, with record-high profitability indicators and “AI + Intelligent Supply Chain” strategy all yielding high-quality growth. With the expectation of improving profitability and a rapid recovery in revenue performance in the second half of the year, the road to value recovery after Huitongda's strategic transformation may have just begun.