Shenwan Hongyuan: Initial "Buy" Rating on Quzhi Group, Deepening KA Customer Cultivation, Accelerating Middle East Expansion

SadMoneyMeow · 2026-03-13T08:20:32+00:00

Shenwan Hongyuan has initiated coverage of Qu Zhi Group (00917) with a "Buy" rating, expecting attributable net profits of RMB 300 million, 360 million, and 450 million for 2025, 2026, and 2027, respectively. The company specializes in KA customer service, utilizes AIoT to transform consumer scenarios, and plans to enter the Middle Eastern market. Risks include underperformance of overseas business development and macroeconomic impacts.

SadMoneyMeow

2026-03-13 08:20:32

Abstract generation in progress

Shenwan Hongyuan releases a research report stating that it is the first coverage and gives Quzhi Group (00917) a “Buy” rating. The company focuses on marketing services for domestic key account (KA) clients, and its overseas business is expected to build a second growth curve. It is estimated that the company’s net profit attributable to shareholders in 2025-2027 will be 300 million, 360 million, and 450 million yuan, respectively, with corresponding P/E ratios of 17x, 14x, and 11x. Using relative valuation, the average P/E for comparable companies in 2026 is 18x, so a target P/E of 18x is assigned to Quzhi Group for 2026.

Shenwan Hongyuan’s main points are as follows:

Quzhi Group is committed to reshaping more consumer scenarios with AIoT

Founded in 2013, the company uses AIoT smart vending machines as offline touchpoints, along with online apps and mini-programs for marketing services. Its subsidiary “QuNai” integrates offline and online channels to create a complete, integrated system, providing consumers with an engaging FMCG experience and offering brand owners multi-channel, one-stop, closed-loop marketing services. QuNai leverages AI, big data, and IoT technologies to achieve highly personalized brand services and consumer experiences, and has developed result-oriented self-optimization algorithms to improve marketing conversion rates. In recent years, the company’s operations have grown steadily, and it announced a net profit range of 270 million to 330 million yuan for 2025, marking a further step up in profitability.

The company is a leading outdoor marketing service provider for fast-moving consumer goods (FMCG) in China, dedicated to increasing value for KA clients

Currently, its clients mainly come from high-turnover industries such as beverages, food, and cosmetics. From 2022 to 2024, the company provided marketing services for 130, 291, and 294 brands, respectively; among them, KA clients numbered 28, 47, and 50. Since 2021, the company has continued to strengthen its services for KA clients, with average revenue from KA clients steadily increasing. In the first half of 2025, the average revenue per KA client was 16.2 million yuan, a 52% year-over-year increase. The company will continue to deepen its services for KA clients and aim to further enhance value.

The company has launched AI interactive terminal + AIoT operation system solutions

Products and features include: 1) AI digital human shopping guides with optimized appearance and intelligence; 2) a new AI holographic marketing cabinet; 3) a new database of marketing selling points for beverages and snacks with pre-scoring services; 4) flexible combination of standardized and value-added marketing service modules.

Expanding into the Middle East market with the launch of the AI entertainment lifestyle platform Holox

The Middle East market is characterized by wealth and leisure, with a strategic emphasis on AI development. Quzhi Group aims to create a globally leading AI indoor entertainment space and has designated the Middle East as the first expansion market. The company has reached a strategic cooperation agreement with a partner in Dubai to jointly promote the HOLOX project, which aims to develop next-generation AI-based entertainment and lifestyle experiences. Looking ahead, Quzhi is expected to empower Chinese brands and accelerate their expansion into the Middle East.

Risk warnings

Overseas business development may underperform expectations; 2) Risks of clients reducing marketing budgets due to global macroeconomic downturn; 3) AI technology development or scene application may fall short of expectations.

(Editor: He Chong)

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