Puyin International released a research report stating that UJU HOLDING (01948) is a leading full-link digital marketing service provider in China. Its strong relationships with high-quality media partners and solid track record with various advertiser clients have helped the company develop network effects and build a leading edge, which are expected to continue supporting its rapid growth. The firm initiated coverage with a "Buy" rating and a target price of HK$5.8, implying a potential upside of 44%.
UJU HOLDING is a leading full-link digital marketing service provider in China. As of the first half of 2025, the company had cumulatively managed over RMB 50 billion in advertising budgets; total billings for the first nine months of 2025 reached RMB 11.9 billion, a 35% year-on-year increase. Its media matrix covers more than 20 mainstream platforms, including online short video platforms, social media platforms, and search engines. Advertiser clients span industries such as e-commerce, online services, and finance, with a remarkable 95% retention rate for clients spending over RMB 10 million.
The company's self-developed AI application platform connects media and client needs, already covering areas such as media backend account management, workflow, creative production, and campaign management. The application of AI technology has significantly boosted employee productivity and optimized final service outcomes. By the third quarter of 2025, the average monthly video output across all platforms reached 320,000 pieces. AI-driven content production efficiency has markedly improved compared to traditional models, with AI-driven revenue accounting for 18% in the first half of 2025. With advancements in data and AI technology, combined with its accumulated expertise in advertising and marketing, the company is poised to continuously enhance content production efficiency and effectiveness.
Key future growth drivers for the company include: 1) Maintaining coverage of China's major online media while strengthening partnerships to secure better advertising strategies and boost revenue; 2) Continuing to expand the advertiser client base by developing and providing more targeted, industry-specific solutions to deepen penetration across various verticals; 3) Sustaining investment in AI, enhancing the development of various AI application features to improve overall efficiency; 4) Advancing exploration into overseas e-commerce and short video platforms, which are expected to unlock new growth opportunities.
The bank forecasts the company's 2025E/2026E revenue to be RMB 11.0 billion/13.0 billion, representing growth rates of 20%/18% respectively; net profit is projected to be RMB 114 million/136 million. Based on the average valuation of comparable companies, a 2026E P/E ratio of 23x is applied, resulting in a target price of HK$5.8.
Investment risks include: intensifying industry competition; high concentration of suppliers and clients; increasing bargaining power of leading media platforms; and disintermediation risk.
