Orient Securities released a research report stating that as U.S. restocking demand increases, tariff costs decrease, and tax rebate processes advance steadily, the reduction in tariff costs is beneficial for the recovery of profitability in cross-border e-commerce operations. Regarding the expected improvement in the profitability of cross-border e-commerce companies, the report is optimistic about leading firms' product innovation and market share growth. The main views of Orient Securities are as follows:

April export data was strong, with exports to the U.S. recovering. 1) Customs data showed that in April, the year-on-year growth rate of imports and exports in U.S. dollar terms was 18.7%, an increase of 6 percentage points month-on-month. Exports grew by 14.1% (consensus estimate was 8.4%), up 11.6 percentage points month-on-month, while imports grew by 25.3% (consensus estimate was 20%), down 2.5 percentage points month-on-month. The bank attributes this to tariff relief and recovering overseas demand (April PMI continued to rise) driving a recovery in consumer goods export growth, sustained high growth in technology product exports fueled by strong AI sector performance, and accelerated exports of new energy-related products. 2) By region: Exports to the U.S. grew by 11% in April, up 38 percentage points month-on-month; exports to the EU grew by 13%, up 5 percentage points month-on-month; exports to ASEAN, Latin America, and Africa grew by 15%, 14%, and 17% respectively, up 8, 17, and 14 percentage points month-on-month. 3) By category: Exports of automobiles and electronic products accelerated. Exports of home appliances, apparel, furniture, and toys grew by 7%, -2%, -4%, and -12% respectively, with month-on-month increases of 22, 27, 30, and 30 percentage points.

U.S. tariffs are expected to decrease further, and the sustained recovery in Amazon's 3P seller service growth indicates resilience in demand. 1) On the 7th, the U.S. Court of International Trade issued a ruling finding no legal basis for the 10% global import tariff imposed by the former administration. Previously, on February 20, the former administration announced a 10% global tariff on all countries for 150 days under Section 122 of the Trade Act of 1974, replacing tariffs deemed unlawful by the Supreme Court. The bank believes that lower U.S. tariff costs will aid the recovery of profitability in cross-border e-commerce businesses. 2) In Q1, Amazon's third-party seller services revenue (3P revenue) reached $41.578 billion, up 14% year-on-year, marking the best growth rate since Q2 2024. U.S. retail and food services sales grew by 4.98% in March, further improving month-on-month. The bank argues that, considering Amazon's data and U.S. retail figures, U.S. demand remains somewhat resilient, which is favorable for the growth of cross-border e-commerce business with the U.S.

Cross-border e-commerce companies are accelerating new product launches, shifting from channel-driven to product and brand-driven strategies. 1) Anker Innovations: Held a technology communication session on April 22, disclosing three major technological layouts in edge-side intelligence: the first neural network in-memory computing AI audio chip "Thus," edge-side large AI model deployment, and a three-stage roadmap for embodied intelligence. According to reports, it plans to launch a robotic dog product in the second half of this year or next year. In recent years, it has also launched products such as UV printers and balcony energy storage solutions. 2) Ugreen Technology: Its AINAS crowdfunding campaign raised approximately $8.84 million (against an initial goal of about $100,000). It previously showcased its SynCare smart home security ecosystem at CES in the U.S. 3) Jackery: Launched the new-generation Jackery SolarVault 3 series for backyard and balcony solar storage.

Related Stocks: Cross-border e-commerce B2C: Anker Innovations, Ugreen Technology, SZKW, ZKTECH, Huakai Yibai, Jinhong, Jackery. Cross-border e-commerce B2B: Yiwu China Commodities City, Focus Technology. Other related companies: Sumec, Conant Optics, MINISO.

Risk warnings: Intensifying industry competition, slower-than-expected progress on tariff rebates, risks from exchange rate and ocean freight price fluctuations.