GF SEC released a research report forecasting JST GROUP's (06687) revenue for 2025-2027 at RMB1.14 billion, RMB1.39 billion, and RMB1.66 billion, respectively, with net profits attributable to shareholders of RMB70 million, RMB350 million, and RMB520 million. Based on comparable company valuations, the firm assigned a 12x P/S multiple for 2026, deriving a target price of HK$42.09 per share and a "Buy" rating.

Key highlights from GF SEC's report include:

JST GROUP is a leading collaborative platform in e-commerce SaaS ERP. The company initially addressed pain points such as multi-platform order management, inventory control, logistics coordination, and financial settlement for online merchants through its cloud-based ERP solution. Over time, it has evolved from a standalone ERP system into an integrated e-commerce SaaS platform centered around SaaS ERP, offering diversified merchant services.

The e-commerce SaaS ERP sector is niche but promising. ERP systems streamline core operational processes both internally and externally for e-commerce businesses, efficiently resolving challenges like cross-platform store management, high-volume order/SKU inventory management, and supply chain collaboration. The market is expected to maintain robust growth as SaaS ERP expands into broader business scenarios with enhanced collaborative features.

JST GROUP maintains a solid leadership position with strong operational metrics. In 2024, it held a 24.4% market share in the e-commerce SaaS ERP industry, significantly outperforming competitors. Financially, its LTV/CAC ratio improved to 9.3 in 2024, reflecting an optimized sales and product ecosystem. The company also demonstrated exceptional client retention and spending growth, achieving a 115% net revenue retention rate in 2024, with plans to further enhance this metric.

Expanding globally and diversifying into value-added software services could unlock new growth avenues. JST GROUP has established a subsidiary in Thailand and is steadily developing its Southeast Asian presence while exploring opportunities in Europe, the Americas, and the Middle East. Leveraging its e-commerce SaaS ERP client base, the company is actively expanding into value-added software services, potentially creating a new growth trajectory.