Net profit growth may exceed 300%, and the stock price soared after listing

Huakai Creative was founded in 2009. Its main business is related environmental art design services for large indoor spaces such as exhibition halls and exhibition rooms. It was successfully listed on the Shenzhen Stock Exchange's Growth Enterprise Market on January 20, 2017.

In 2018 and 2019, Huakai Creative's main business declined year after year, while the cross-border e-commerce industry was booming. As the exhibition hall business became increasingly sluggish, Huakai Creative entered the cross-border e-commerce industry through mergers and acquisitions in 2019, hoping to get a share of the industry's bonus period.

On May 18, 2022, Huakai Creative held its 2021 Annual Shareholders Meeting with the theme of "Renewal and Growth". Among them, renewal alludes to the upcoming name change.

At the shareholders' meeting, shareholders reviewed and voted on the tenth proposal, namely, "Proposal on the Proposed Change of Company Name and Securities Abbreviation", and the proposal was ultimately passed with a high vote.

The company name was changed to "Huakai Yibai Technology Co., Ltd." and the stock abbreviation was changed from "Huakai Creative" to "Huakai Yibai".

The name change was passed with a high vote, indicating that Huakai Creative has successfully transformed and cross-border export e-commerce has become its core business.

Recently, the share price of Huakai Yibai has suddenly moved, with an increase of more than 18% in two days. As of press time, the stock has achieved an increase of 4.44%, with a cumulative increase of more than 20%.

Some industry insiders predict that this may be related to its upcoming annual report data. In addition, the rise in stock prices may also benefit from the gradually recovering cross-border import and export industry. Many individual stocks in the industry have achieved impressive gains recently.

According to a research report released by GF Securities on March 20, Huakai Yibai was given a buy rating for the first time, with a target price of 25.77 yuan. As of the reporting date, the company's latest closing price was 20.7 yuan, with an upside of 24.49% compared to the target price.

GF Securities predicts that Huakai Yibai's net profit attributable to shareholders of the parent company in 2022 will be 222 million yuan, a year-on-year increase of 353.99%.

Previously, Hunan Province has issued the first provincial cross-border e-commerce special policy, "Several Measures on Promoting the High-Quality Development of Cross-Border E-Commerce". Among them, 9 measures involve "real money" support, which will give a maximum reward of RMB 5 million to cross-border e-commerce companies that meet the conditions.

As the industry gradually recovers and with strong support from the government, cross-border e-commerce may usher in a new round of growth. Sellers can adjust their operating strategies in a timely manner based on the latest trends.

Listing

share price

Cross-border e-commerce