This week, two major brokerages released research reports on HUITONGDA NET (09878), both signaling confidence in the company's strategic pivot and future growth prospects.
CITIC Securities reaffirmed its "Overweight" rating on the company following its 2026 interim results review, setting a target price of HK$15. Meanwhile, Cinda Securities Co., Ltd. also published its own assessment of the company's mid-year performance, and both reports highlight that HUITONGDA NET is proactively advancing its transformation, with the new "FMCG Retail Chain + AI Technology" strategy gradually unlocking incremental growth opportunities.
In the first half of 2026, HUITONGDA NET reported revenue of RMB 23.58 billion and net profit attributable to shareholders of RMB 153 million, up 10.5% year-on-year. Gross profit reached RMB 1.206 billion, an increase of 6.8%, while the gross margin improved by 0.5 percentage points to 5.1%. All three core financial metrics—gross margin, net margin, and attributable net margin—hit record highs during the period. Additionally, net cash generated from operating activities stood at RMB 367 million, marking the eighth consecutive year of positive inflows.
The two research reports converge on the same central theme. CITIC Securities notes that the company is accelerating its transition toward the "FMCG Retail Chain + AI Technology" model. Cinda Securities Co., Ltd. believes that through strategic deployment, the company has established a new industrial framework centered on this dual-pillar strategy, adding fresh momentum for sustained future growth.
The FMCG retail chain business represents a "from-zero-to-one" new venture within this transformation. Leveraging its supply chain, digitalization, and channel operation capabilities built on a base of over 250,000 member retail stores, HUITONGDA NET deployed an empowerment system anchored in "AI scenario-based applications + smart supply chain" during the first half of the year. This initially gave rise to a multi-format FMCG retail chain network spanning bulk snack stores, hard-discount supermarkets, and convenience stores. The company forged strategic partnerships with "Snack Preference," "Juzihua Kai," and "Kehao Convenience," adding nearly 5,000 new stores. Cinda Securities Co., Ltd. believes that as the store network expands and supply chain penetration deepens, this segment is poised to become a new growth driver for the company.
In the AI arena, the company has designated 2026 as the "key year for value realization" of its AI strategy. Its self-developed "Qiancheng Cloud AI Large Model" has passed the filing with the Cyberspace Administration of China and has completed a comprehensive AI upgrade of its store management system and app. On the enterprise side, the company launched "LeapoAI," a one-stop AI management platform that integrates over 100 out-of-the-box capabilities and has entered commercial promotion. Additionally, HUITONGDA NET acquired "Cognitive Frontier" (Dabi AI) to create synergies between online and offline operations with its in-house Qiancheng Cloud AI.
On the commercialization front, AI product and service revenue reached RMB 79 million in the first half, up 32.3% year-on-year, while the number of paying users grew 15.5% to 40,700. The payment model has also evolved from traditional subscriptions to a comprehensive "subscription + pay-per-use" structure. CITIC Securities points out that HUITONGDA NET's extensive coverage of down-market retail stores provides a solid commercial foundation for AI product deployment. The firm suggests that AI not only has the potential to enhance monetization of service offerings but also to further improve supply chain and store operation efficiency, positioning it as a key driver of the company's mid-to-long-term business structure upgrade.