Core Viewpoint - The report from Industrial Securities initiates coverage of Lianlian Digital (02598.HK) with a "Buy" rating, highlighting its position as a leading digital payment solution provider in China [1] Group 1: Company Overview - Lianlian Digital specializes in cross-border payment services, catering to Chinese cross-border merchants and enterprises, overseas merchants and enterprises, as well as domestic companies [1] - As of June 30, 2025, the company has served a cumulative total of 7.9 million clients [1] - The company has obtained 65 licenses across major markets including China, the US, the EU, the UK, Southeast Asia, and South America, ensuring compliance in the global payment market [1] Group 2: Financial Performance - For the first half of 2025, the company reported a total payment volume (TPV) of 2.1 trillion yuan, reflecting a year-on-year growth of 32.0% [1] - Total revenue for 2025 H1 reached 783 million yuan, an increase of 26.8% year-on-year [1] - Gross profit amounted to 406 million yuan, with a year-on-year growth of 25.0%, resulting in a stable gross margin of 51.9% [1] - Adjusted profit and loss showed a turnaround with a profit of 1.656 billion yuan [1] Group 3: Business Segments - Global Payment Business: The company restructured its payment infrastructure and actively expanded into Southeast Asia, the Middle East, and Latin America, achieving a global payment TPV of 198.5 billion yuan, a year-on-year increase of 94.0%, with revenue of 473 million yuan, up 27.0% [1] - Domestic Payment Business: The company enhanced its SaaS collaboration and strengthened system service capabilities for private domain e-commerce clients, with domestic payment TPV reaching 1.9 trillion yuan, a year-on-year growth of 27.6%, and revenue of 211 million yuan, an increase of 24.6% [1] - Value-Added Services: The company expanded its ecosystem around traffic services and cross-border communication, with revenue from value-added services growing by 34.2% year-on-year in 2025 H1 [1]