Ge Long Hui·2026-01-19 02:37Core Viewpoint - Huatai Securities initiates coverage on Lianlian Digital with a "Buy" rating and a target price of HKD 10.2, corresponding to a 2026 price-to-sales ratio of 5x [1] Group 1: Company Overview - Lianlian primarily provides cross-border payment solutions for Chinese merchants, facilitating foreign currency collection abroad and subsequent remittance back to China [1] - The company boasts a global network of licenses and partnerships, enabling transactions in over 130 currencies [1] Group 2: Financial Performance - In the first half of 2025, Lianlian's total payment volume (TPV) reached CNY 2.1 trillion, representing a year-on-year increase of 32% [1] - Cross-border payment TPV amounted to CNY 198.5 billion, showing a significant year-on-year growth of 94% [1] - Based on a service fee rate of 0.24%, cross-border payment revenue was CNY 473 million, up 27% year-on-year, accounting for 60% of total revenue [1] - Adjusted net profit for the first half of 2025 was approximately CNY 60 million, indicating a near break-even situation [1] Group 3: Growth Prospects - The company is expected to achieve TPV growth in cross-border payments, leveraging its advantages to generate economies of scale and improve profitability [1] - Lianlian's licensing advantages will support the development of next-generation payment solutions [1] - The company aims to enhance its cross-border payment services through iterative upgrades in payment technology, providing clients with more efficient, cost-effective, and compliant payment experiences [1]