Shenwan Hongyuan Group: QUNABOX GROUP (00917) is given a "buy" rating, focusing on KA customers and accelerating expansion into the Middle East.

Shenwan Hongyuan Group released a research report stating that it is initiating coverage on QUNABOX GROUP (00917) with a "buy" rating. The company focuses on marketing services for domestic KA clients and is expected to build a second growth curve in overseas business. It is estimated that the company's net profit attributable to shareholders in 2025-2027 will be 300/360/450 million yuan respectively, corresponding to PEs of 17/14/11 times. Using a relative valuation method, the average PE for comparable companies in 2026 is 18 times, giving QUNABOX GROUP a target PE of 18x in 2026. Shenwan Hongyuan Group's key points are as follows: QUNABOX GROUP is committed to reshaping more consumer scenes with AIoT The company was founded in 2013 and uses AIoT smart vending machines as offline touchpoints, as well as an online app and mini-program to carry out marketing services. The company's "QUNA" integrates offline and online channels to provide consumers with interesting fast-moving consumer goods experiences and offers brands multi-channel, one-stop, closed-loop marketing services. QUNA uses AI, big data, and IoT technology to achieve highly personalized brand service and consumer experience, and has built results-oriented self-optimization algorithms to improve marketing conversion effects. In recent years, the company's operations have grown steadily, with the company announcing a net profit range of 270-330 million yuan for 2025, taking profitability to a higher level. The company is a leading outdoor marketing company for fast-moving consumer goods in China, focusing on increasing the value of KA clients The company's current clients mainly come from high turnover industries such as beverages, food, and cosmetics. From 2022 to 2024, the company provided marketing services to 130, 291, and 294 brand clients respectively; with the number of KA clients being 28, 47, and 50. The company continues to increase its efforts in serving KA clients, with average revenue per KA client increasing steadily since 2021. In the first half of 2025, the company's average revenue per KA client was 16.2 million yuan, a 52% increase year-on-year. The company will continue to focus on serving KA clients and strive to further increase the value. The company has launched an AI interactive terminal + AIoT operation system solution Products and features: 1) The appearance and intelligent optimization of AIDIGIHUMAN shopping guides; 2) Introduction of the new AI holographic marketing cabinet; 3) Introduction of a new database and pre-scoring service for beverage and snack marketing points; 4) Flexibility in combining standardized marketing services and value-added marketing service modules. Entering the Middle East market, launching the AI entertainment platform Holox The Middle East market is characterized by "wealth and leisure," with a high strategic focus on AI development. QUNABOX GROUP aims to create a globally leading AI indoor entertainment space and will use the Middle East market as the first stop for business expansion. The company has reached a strategic cooperation with its Dubai partner to jointly promote the HOLOX project, aiming to develop a new generation of entertainment and lifestyle experiences based on AI. Looking ahead, QUNABOX is expected to empower Chinese brands and accelerate expansion into the Middle East. Risk warning 1) Overseas business development falls short of expectations; 2) Global macroeconomic downturn affects clients reducing advertising budgets; 3) AI technology development or scenario implementation falls short of expectations.