Investment Rating - The report maintains a "Buy" rating for the company [1][3] Core Insights - The company has experienced a decline in revenue due to macroeconomic factors affecting its payment business, but growth in merchant solutions has offset some of these losses [2][3] - The overseas payment business is expanding, with significant growth in Singapore, while the company is adjusting its in-store business strategy to focus on higher profitability [2][3] - The company is expected to achieve breakeven in its in-store e-commerce segment by the second half of 2024 [2] Financial Performance Summary - For H1 2024, the company reported revenue of 1.578 billion yuan, a year-over-year decrease of 23.5%, with a gross profit of 300 million yuan, down 18.0% [2] - The net profit for H1 2024 was 33 million yuan, showing a year-over-year increase of 7.3% [2] - Non-GAAP EBITDA for H1 2024 was 163 million yuan, down 43.9% year-over-year [2] Business Segment Analysis - The one-stop payment service revenue decreased by 26.6% to 1.35 billion yuan in H1 2024, primarily due to a 17.8% decline in total GPV [2] - Merchant solutions revenue grew by 21.2% to 202 million yuan, with an increase in active merchants by 5.8% [2] - The in-store e-commerce service revenue fell by 51.9% to 29 million yuan, attributed to a strategic shift towards more profitable clients [2] Future Projections - Revenue projections for 2024-2026 are estimated at 3.418 billion yuan, 3.992 billion yuan, and 4.521 billion yuan respectively, with net profits expected to be 118 million yuan, 275 million yuan, and 399 million yuan [3][4] - The diluted EPS is projected to be 0.34 yuan, 0.78 yuan, and 1.14 yuan for the years 2024, 2025, and 2026 respectively [4]

Investment Rating - The report maintains a "Buy" rating for the company with a target price adjusted to HKD 12.0, down from HKD 14.3 [5][3]. Core Insights - The company's total revenue for the first half of 2024 decreased by 23% year-on-year, with payment business GPV and revenue declining by 18% and 27% respectively. However, the increase in the proportion of merchant solutions revenue has led to an improvement in overall gross margin [2][3]. - The report anticipates that payment revenue will stabilize in the second half of 2024, projecting adjusted net profits of RMB 250 million and RMB 320 million for 2024 and 2025 respectively [3][2]. Financial Performance Summary - Total revenue for the first half of 2024 was RMB 1.58 billion, with a year-on-year decline of 23%. The one-stop payment service revenue fell by 27% to RMB 1.35 billion, accounting for 85% of total revenue. Merchant solutions revenue increased by 21% to RMB 200 million, raising its share to 13% [2][3]. - Gross profit decreased by 18% to RMB 300 million, with merchant solutions contributing 61% and one-stop payment contributing 31% to gross profit. The overall gross margin improved to 19% due to the higher margin of merchant solutions [2][3]. - The company reported a net profit of RMB 31.6 million, a decline of 5% year-on-year, with adjusted EBITDA falling by 44% to RMB 160 million, primarily due to the drop in payment revenue and adjustments in non-recurring income [2][3]. Business Segment Analysis - Payment business GPV for the first half of 2024 was RMB 1.2 trillion, down 18% year-on-year. The overall payment fee rate was 12.3 bps, compared to 14.1 bps in the first half of 2023 [2][3]. - The number of active merchants in the merchant solutions segment reached approximately 1.6 million, a year-on-year increase of 6%, indicating improved penetration into payment merchants [2][3]. - The e-commerce service segment reported a revenue decline of 52% to RMB 29 million, but the net loss narrowed to RMB 15.6 million, reflecting an optimization in the business model [2][3]. Future Outlook - The report expects macroeconomic consumption to remain weak in July and August, but anticipates a slowdown in the year-on-year decline of payment business GPV to 8% in the second half of 2024, with payment revenue expected to stabilize [3][2]. - The company has announced a USD 10 million share buyback plan to enhance shareholder returns, which may provide some support for the stock price [3][2].

Investment Rating - The investment rating for the company is Neutral [2][7]. Core Insights - The company reported a revenue of 1.6 billion RMB in the first half of 2024, a year-on-year decrease of 29%, primarily due to a decline in payment transaction scale [1]. - Payment transaction volume remained stable year-on-year, but the transaction scale was impacted by a decrease in average transaction amount [1]. - The company is focusing on enhancing its one-stop merchant services based on payment solutions and leveraging AI technology for service improvement and overseas expansion [1]. Financial Performance Summary - In the first half of 2024, the company's revenue was 1.578 billion RMB, down 23% from the previous half [4]. - The adjusted net profit for the same period was 159 million RMB, reflecting a 29% year-on-year decline [4]. - The gross payment volume (GPV) for the first half of 2024 was 1.166 trillion RMB, a decrease of 18% year-on-year [4]. - The company expects a recovery in payment scale in the second half of 2024, with projected GPV and revenue of 2.4 trillion RMB and 28 billion RMB, respectively [1][5]. Valuation - The target price has been adjusted to 13 HKD from 14 HKD, based on a 14x P/E ratio for comparable payment and SaaS companies in 2025 [1]. - The potential upside from the current share price is estimated at 21.5% [1][7]. Business Segment Performance - Merchant solutions revenue increased by 21% year-on-year, with active merchant numbers rising by 5.8% [1]. - The gross margin for merchant solutions improved by 3 percentage points to 91% [1]. - The company is focusing on profitable merchants in its in-store e-commerce segment, which has led to a reduction in losses [1]. Financial Forecast - Revenue is expected to decline by 15.8% in 2024, followed by a recovery of 14.3% in 2025 [2]. - The net profit forecast for 2024 is 126 million RMB, with significant growth anticipated in subsequent years [2][5]. - The company aims to maintain a high gross margin for merchant solutions, driven by merchant expansion and increased average payments [1].

Investment Rating - The report maintains an "Accumulate" rating for the company [5]. Core Views - The company's payment business has experienced a decline in both volume and pricing, which is the primary reason for the decrease in performance. The acceleration of overseas business expansion is expected to become a new growth point [2][5]. Summary by Sections Financial Performance - For the first half of 2024, the company reported revenue of 1.578 billion RMB, a year-on-year decrease of 23.49%. The net profit was 33 million RMB, an increase of 7.35% year-on-year. The payment business revenue was 1.347 billion RMB, down 27% year-on-year, with a gross payment volume (GPV) decline of 17.8% to 11.7 trillion RMB [5]. - The payment fee rate decreased to 0.123% in the first half of 2024, compared to 0.141% in the first half of 2023 and 0.125% in the second half of 2023 [5]. - The merchant solutions business saw a revenue increase of 21.2% to 202 million RMB, with the number of active merchants growing by 5.8% year-on-year. The gross margin improved from 87.6% in the same period of 2023 to 90.9% [5]. - The in-store e-commerce business generated 29 million RMB, down 52% year-on-year, as the company phased out less profitable merchants, leading to a significant improvement in gross margin, which increased by 4.6% to 81.5% [5]. Growth Catalysts - The company is rapidly expanding its overseas payment business, with GPV in Singapore growing by over 50% year-on-year. The company aims to leverage its extensive merchant cooperation experience and technology to continue expanding in the overseas payment market [5]. - The in-store e-commerce business is expected to turn profitable in the second half of the year as the company optimizes its input-output ratio [5].

Financial Data and Key Metrics Changes - The company's revenue decreased by 23.5% from RMB2.1 billion in H1 2023 to RMB1.6 billion in H1 2024 due to macroeconomic volatility impacting payment GPV [24] - Gross profit decreased to RMB300 million, but the overall gross profit margin increased from 17.7% in H1 2023 to 19% in H1 2024, attributed to a higher proportion of non-payment revenue [25][26] - Net profit in H1 2024 was RMB32.6 million, exceeding three times the annual net profit of RMB10.1 billion in 2023 [27] Business Line Data and Key Metrics Changes - Revenue from merchant solutions grew by 21.2% year on year in H1 2024, with gross profit margin increasing to 90.9% [15][26] - In-store e-commerce services saw gross profit margin rise from 76.9% in H1 2023 to 81.5% in H1 2024 [26] - The contribution ratio of non-payment business revenue to overall revenue increased from 11% in H1 2023 to 14.6% in H1 2024 [25] Market Data and Key Metrics Changes - GPV in Singapore grew over 50% year on year, indicating strong overseas market performance [13][37] - The company maintained peak daily transaction counts at nearly 60 million, demonstrating robust transaction activity [11][33] Company Strategy and Development Direction - The company aims to be a comprehensive commerce enablement services provider, expanding beyond payments into other business lines and international markets [4][5] - Focus on higher quality and more profitable customers, with a strategic shift towards serving large and mid-sized merchants [12][36] - Continued integration of AI for revenue generation and cost optimization, enhancing service offerings and operational efficiency [21][22] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic conditions in China have impacted consumption patterns, leading to a decrease in average transaction value [32] - The company remains confident in its market share and pricing power, with expectations for improved profitability in the second half of 2024 [33][36] - Regulatory changes are viewed positively, providing a healthier environment for capable service providers [51] Other Important Information - The company has been recognized for its ESG efforts, ranking first in its industry in China according to S&P Global's 2024 sustainability yearbook [8] - The company has reduced sales and administrative expenses by over 10% year on year, contributing to improved profitability [22] Q&A Session Summary Question: Impact of the microenvironment on payment business - Management acknowledged that macroeconomic volatility has affected consumption patterns, leading to a decrease in average transaction value, but transaction counts and fee rates remain stable [32][33] Question: Future strategy on loan book services - The company is focusing on higher quality and more profitable customers, phasing out less profitable ones, and increasing upfront fees to enhance project profitability [36] Question: Latest update on overseas business - Significant progress in overseas markets, with GPV in Singapore growing over 50% year on year and expansion of product offerings to meet local demands [37][39] Question: Fee rate trend and competition landscape - Fee rates are expected to remain stable in the low teens, with a competitive landscape favoring service providers offering comprehensive solutions [44][45] Question: Trend of regulation and impact on offline post payment business - Regulations are seen as beneficial for the industry, providing a healthier environment for capable service providers [51] Question: Midterm strategy for overseas payment business - The strategy focuses on leveraging existing products and experience in new regions, providing comprehensive services beyond just payment solutions [54] Question: Revenue and GMV contribution from overseas - The company is deriving revenue from various countries and sees significant growth opportunities in developed markets [60] Question: Employee reduction and operating costs - Employee reductions are largely due to AI implementation, which has improved customer service efficiency and reduced the need for manual labor [61][62]

Financial Performance - Total payment transaction volume (GPV) for the six months ended June 30, 2024, was RMB 116.62 billion, a decrease of 17.8% compared to RMB 141.92 billion for the same period in 2023[2]. - Revenue for the six months ended June 30, 2024, was RMB 1,577.7 million, down 23.5% from RMB 2,062.2 million in the same period of 2023[2]. - Profit for the six months ended June 30, 2024, was RMB 32.6 million, exceeding the full-year profit of RMB 30.4 million for 2023[6]. - Gross profit for the period was RMB 300,219 thousand, down 18.0% from RMB 366,001 thousand year-on-year, with a gross margin of 19.0%[7]. - Operating profit decreased to RMB 56,842 thousand from RMB 94,056 thousand, indicating a decline of 39.5%[65]. - The company reported a net profit of RMB 32,580 thousand, slightly up from RMB 30,350 thousand, showing a year-on-year increase of 4.1%[66]. - Adjusted EBITDA decreased by 43.9% from RMB 290.9 million for the six months ended June 30, 2023, to RMB 163.3 million for the same period in 2024[44]. Revenue Breakdown - Contribution from non-payment services increased from 11.0% of total revenue in the six months ended June 30, 2023, to 14.6% in the same period of 2024[2]. - One-stop payment service revenue decreased by 26.6% to RMB 1,346,561 thousand, while merchant solutions revenue increased by 21.2% to RMB 202,319 thousand[7]. - The gross profit margin for non-payment services increased from 52.6% in the first half of 2023 to 69.1% in the first half of 2024[5]. - The number of active merchants using merchant solutions increased by 5.8% year-on-year, reflecting strong capabilities in digital business and efficiency improvement[10]. - In-store e-commerce service revenue decreased by 51.9% year-on-year, but the gross margin increased by 4.6 percentage points to 81.5%[12]. Cost Management - Sales and administrative expenses decreased by 11.2% for the six months ended June 30, 2024, compared to the same period in 2023[6]. - Operating costs reduced by 24.7% from RMB 1,696.2 million to RMB 1,277.5 million, primarily due to a decrease in commission and fees associated with the decline in GPV[27]. - Sales expenses decreased by 36.9% from RMB 82.9 million to RMB 52.3 million, mainly due to broader applications of artificial intelligence and reduced employee benefits and outsourcing costs[31]. - The company reported a decrease in commission and marketing costs to RMB 1,199,748 thousand for the six months ended June 30, 2024, down from RMB 1,625,299 thousand in the same period of 2023, a reduction of approximately 26.2%[94]. Asset and Liability Management - The asset-to-liability ratio decreased to 41.1% as of June 30, 2024, due to early redemption of convertible bonds using internal cash flow[2]. - Total assets decreased from RMB 8,420.4 million as of December 31, 2023, to RMB 7,575.1 million as of June 30, 2024, while total liabilities decreased from RMB 5,803.0 million to RMB 4,993.8 million during the same period[45]. - The debt-to-asset ratio improved from 68.9% as of December 31, 2023, to 65.9% as of June 30, 2024[45]. - Cash and cash equivalents decreased by 23.0% from RMB 887.9 million as of December 31, 2023, to RMB 683.7 million as of June 30, 2024, mainly due to cash used for the repurchase of convertible bonds[46]. - The total debt as of June 30, 2024, amounted to RMB 1,101.2 million, down from RMB 1,237.0 million as of December 31, 2023[48]. Shareholder Returns and Capital Structure - A total of $10 million has been approved for share buybacks to enhance shareholder returns[16]. - The company repurchased $35 million of convertible bonds at a discount in the first half of 2024, aiming to reduce interest expenses and optimize capital structure[16]. - The company has redeemed all $70 million of 6.25% convertible bonds due in 2027, significantly reducing interest expenses[18]. - The controlling shareholder has purchased 1,448,400 shares, representing 0.33% of the issued shares, reflecting confidence in the company's future prospects[17]. International Expansion - International payment business in Singapore saw GPV growth of over 50% year-on-year, with significant client acquisitions including luxury brands[9]. - The company serves over 20,000 stores across Southeast Asia, including brands like Starbucks and New Balance, enhancing profit quality through high customer payment willingness[14]. - The company aims to maintain its market leadership in one-stop payment services while expanding its international business and leveraging AI tools for commercialization[17]. Technology and Innovation - The company has enhanced its AI-driven products and services, improving operational efficiency and reducing costs[6]. - AI-driven products and services have improved operational efficiency, with customer service automation efficiency exceeding 80%[15]. - The company has established a strong foundation for international expansion supported by technology layout and merchant service insights[17]. Governance and Compliance - The company has adopted the corporate governance code principles to promote effective internal controls and high ethical standards, ensuring compliance with applicable laws and regulations[123]. - The board of directors has confirmed compliance with the standard code for securities trading by directors, with no violations reported since the last report until June 30, 2024[124]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited interim financial information for the six months ending June 30, 2024[125]. Risk Management - The company’s risk management plan focuses on minimizing potential adverse effects on financial performance due to market unpredictability[75]. - There have been no significant changes in risk management policies since December 31, 2023[75].

Summary of Conference Call Company Overview - The company discussed is Kanan, which specializes in the production of uniforms and commercial driving services [1] Key Points and Arguments - The senior director of the company, Mr. Yang, was invited to provide insights into the recent developments of the company [1] Other Important Content - The introduction highlighted the company's focus on its core business areas, indicating a strategic emphasis on uniforms and driving services [1]

Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company has accelerated its marketing strategy and is continuously expanding its overseas presence, having established operations in Singapore, the United States, and Hong Kong [3] - The company achieved significant revenue growth in 2023, with total revenue reaching 3.95 billion yuan, a year-on-year increase of 15.6% [3] - The adjusted EBITDA for 2023 was 560 million yuan, reflecting a substantial year-on-year increase of 160.6%, indicating improved profitability and operational efficiency [3] - The company’s gross profit for 2023 was 740 million yuan, with a gross margin of 18.7%, down 11.5 percentage points year-on-year, primarily due to adjustments in non-recurring income [3] - The company’s one-stop payment service revenue grew by 26.5% year-on-year to 3.48 billion yuan, driven by increases in GPV and fee rates [4] - The company’s GMV exceeded 4.3 billion yuan in 2023, a year-on-year increase of 30.3%, attributed to improved operational strategies and service quality [4] - The company’s merchant solutions revenue increased by 17.2% year-on-year to 360 million yuan, with the number of active merchant solution clients exceeding 1.6 million, a year-on-year increase of 30.8% [4] - The report forecasts the company’s net profit attributable to shareholders for 2024-2026 to be 930 million, 1.79 billion, and 2.36 billion yuan respectively, with corresponding EPS of 0.21, 0.40, and 0.53 yuan [4][6] Financial Summary - The company’s total revenue for 2022 was 3.42 billion yuan, with a projected revenue of 4.54 billion yuan for 2024, reflecting a growth rate of 15% [6] - The company’s net profit for 2022 was 154 million yuan, with a projected net profit of 930 million yuan for 2024, indicating a significant recovery and growth trajectory [6][7] - The report provides a detailed financial forecast, including EBITDA and PE ratios, indicating a positive outlook for the company’s financial performance [6][7]

Financial Performance - Total revenue for Yeahka Limited increased to RMB 3,950.6 million, representing a year-on-year growth of 15.6%[88] - Adjusted EBITDA rose by 160.6% to RMB 556.0 million, reflecting significant improvements in operational efficiency and core business performance[88] - The gross profit decreased by 28.4% to RMB 738.2 million, with a gross margin of 18.7%, down from 30.2%[108] - Net profit for the year plummeted by 89.5% from RMB 96.0 million in 2022 to RMB 10.1 million in 2023[154] - Operating profit decreased from RMB 166.8 million in 2022 to RMB 125.0 million in 2023, with financing costs increasing by 71.4% to RMB 89.9 million[148] - The company achieved a gross profit of RMB 738.2 million in 2023, down from RMB 1,030.9 million in 2022[126] Revenue Growth - The revenue from one-stop payment services grew by 26.5% to RMB 3,485.0 million[88] - Revenue from one-stop payment services grew by 26.5% year-on-year, and after adjusting for non-recurring income, the growth was 39.0%[109] - Revenue from merchant solutions increased by 17.2% year-on-year to RMB 363 million, driven by enhanced commercialization capabilities[116] - The company’s revenue increased by 15.6% from RMB 3,418.0 million in 2022 to RMB 3,950.6 million in 2023, primarily driven by growth in one-stop payment services[127] Transaction Volume and Merchant Activity - The total payment transaction volume (GPV) increased by 29.2%, with 71.2% of transactions being app-based[89] - The number of active merchant solutions exceeded 1.6 million, a year-on-year increase of 30.8%[92] - The number of active payment service merchants grew by 13.3% to 9.2 million[100] - The company’s GPV increased by 29.2% year-on-year to RMB 2.88 trillion, with active payment service merchants exceeding 9.2 million[109] Cost and Expenses - Operating costs increased by 34.6% from RMB 2,387.1 million in 2022 to RMB 3,212.4 million in 2023, mainly due to higher commissions paid to payment distribution channels resulting from increased GPV[135] - The total operating costs for the year ended December 31, 2023, amounted to RMB 3,212.4 million, an increase from RMB 2,387.1 million in 2022, with the one-stop payment service accounting for 98.0% of the total costs[136] - Sales expenses decreased by 67.7% from RMB 386.5 million in 2022 to RMB 125.0 million in 2023, attributed to a streamlined cost structure in the in-store e-commerce service[140] - Administrative expenses increased by 5.0% from RMB 322.8 million in 2022 to RMB 338.8 million in 2023, mainly due to higher employee benefits[142] Asset and Liability Management - Total assets rose from RMB 7,290.0 million in 2022 to RMB 8,420.4 million in 2023, while total liabilities increased from RMB 4,608.7 million to RMB 5,803.0 million[159] - The debt-to-asset ratio increased from 63.2% in 2022 to 68.9% in 2023[159] - Cash and cash equivalents decreased by 44.2% from RMB 1,591.5 million in 2022 to RMB 887.9 million in 2023[163] Technology and Innovation - The application of generative AI technology improved operational efficiency and reduced content production costs by over 90%[94] - The AI Lab developed generative AI technologies that reduced content production costs by 90% and improved content generation efficiency by 70%[118] - The company plans to leverage generative AI technology to enhance operational efficiency and reduce costs, while exploring new business models[98] International Expansion - The company expanded its international presence, serving over 5,000 local merchants in Hong Kong and Singapore[93] - The company has established Yeahpay Singapore and obtained MPI and MSO licenses, expanding its overseas payment services[111] - 80% of the net proceeds from the convertible bonds, amounting to HKD 426.6 million, is allocated for expanding overseas business, including cross-border e-commerce[175] Corporate Governance and Management - The company operates as an investment holding company primarily providing payment and commercial services to merchants and consumers in China[194] - The management team includes experienced executives with backgrounds in technology and finance, contributing to strategic development and innovation[178][180] - The company has a dedicated policy development department to oversee corporate governance and compliance matters[189] - The company’s independent directors provide independent opinions and judgments to the board, ensuring transparency and accountability[186][184] Employee and Talent Management - As of December 31, 2023, the company had 1,103 employees, primarily located in China, with a focus on attracting and retaining qualified talent[172] - The company emphasizes employee benefits including healthcare, retirement, and social insurance, ensuring a comprehensive welfare system[172] - The company has implemented comprehensive training programs for employees, enhancing retention and recruitment efforts[199]

交银国际研究 公司更新 互联网 收盘价 目标价 潜在涨幅 2024年3月27日 港元12.16 港元14.00↓ +15.1% 移卡 (9923 HK) 支付业务支撑收入增长，关注到店业务转型及海外支付拓展  2023年业绩符合预期。2023年收入40亿元人民币（下同），同比增16%， 个股评级 受支付业务强劲增长驱动，部分被到店业务下降抵消。经调整EBITDA同 中性 比增161%至5.6亿元，符合预期，主要受益于支付业务利润扩张及到店亏 损收窄。 1年股价表现  支付业务支撑业绩增长。1）2023年支付规模（GPV）/支付收入为2.9万 9923 HK 亿元/35亿元，同比增29%/27%，受益于线下消费复苏以及代理商渠道扩 10% MSCI中国指数 张，活跃支付商户数同比增13%至920万，但环比2023年上半年持平。剔 0% -10% 除非经常性收入调整影响，支付费率维持上行，同比提升 1 个基点至 -20% 0.133%。2）受竞争影响，到店GMV增30%至43亿元（下半年环比降22% -30% 至19亿元），收入同比降71%，均弱于年初预期，主要受平台政策调整 -40% 及服务商竞争加剧影响。 ...