Core Viewpoint - The report from CICC indicates a significant increase in the Total Payment Volume (TPV) for Lianlian Digital, leading to an upward revision of revenue forecasts for 2025 and 2026 by 2% to 1.65 billion and 2.02 billion HKD respectively, while maintaining adjusted profit estimates unchanged [1] Group 1: Financial Performance - In 1H25, Lianlian Digital's revenue increased by 27% year-on-year to 780 million HKD, with net profit turning positive at 151 million HKD compared to a net loss of 350 million HKD in 1H24, largely due to over 1.6 billion HKD in gains from the sale of part of its stake in LianTong [2] - The TPV for 1H25 rose by 32% year-on-year to 2.1 trillion HKD, outpacing the revenue growth of 27% [3] - Gross profit for 1H25 increased by 25% year-on-year to 410 million HKD, maintaining a high gross margin of 52% [4] Group 2: Business Segments - Global payment TPV surged by 94% year-on-year to 198.5 billion HKD, although the overall fee rate declined to 24 basis points due to higher growth in lower-fee service trade and B2B sectors [3] - Domestic payment TPV grew by 28% year-on-year to 1.9 trillion HKD, with a stable fee rate of 1.1 basis points [3] - Value-added services revenue increased by 34% year-on-year to 90 million HKD, primarily driven by contributions from virtual card services [3] Group 3: Strategic Initiatives - The company plans to allocate 50% of the funds raised from placements to enhance blockchain technology applications in cross-border payments, aiming to improve efficiency and security [7] - The company has received approval for the VATP virtual asset trading platform license, which is expected to expand its service capabilities in cross-border payments [7] - The company anticipates steady growth in TPV and payment revenue, projecting a near 700 million HKD in regular operating profit for 2025 [6]
中金：维持连连数字跑赢行业评级 上调目标价至15.8港元