拉卡拉：看好公司盈利能力持续向上

Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of 13.07 RMB, indicating a potential upside from the current market price of 11.90 RMB [6]. Core Insights - The company has shown a significant increase in its non-net profit, which grew by 45.86% year-on-year in H1 2024, suggesting a positive trend in profitability [1]. - The digital payment business has experienced revenue growth of 3.67% year-on-year, driven by a 28% increase in QR code transaction volume, which now accounts for 31% of total transactions [2]. - The company is focusing on enhancing its technology services, with a notable increase in partnerships with financial institutions, which is expected to contribute to revenue growth in the future [3]. - The competitive landscape is improving, with a reduction in the number of payment service providers, which is likely to benefit the company's profitability [4]. Financial Performance - In H1 2024, the company reported total revenue of 2.984 billion RMB, a year-on-year increase of 0.40%, while the net profit attributable to shareholders was 419 million RMB, down 17.98% year-on-year [1]. - The company's earnings per share (EPS) for 2024-2026 are projected to be 1.05 RMB, 1.28 RMB, and 1.51 RMB respectively, indicating a positive growth trajectory [1]. - The average price-to-earnings (PE) ratio for comparable companies in 2024 is estimated at 12.4 times, which aligns with the company's valuation [10]. Business Segments - The digital payment segment generated 2.634 billion RMB in revenue in H1 2024, with a gross margin of 30.20%, reflecting a strong performance driven by increased transaction volumes and improved net fee rates [2]. - The technology services segment reported a revenue of 170 million RMB, although it saw a decline of 16.89% year-on-year, indicating challenges in this area [3]. - The company has successfully integrated AI and big data technologies into its services, enhancing its product offerings and operational efficiency [3]. Market Context - As of March 2024, the total consumption amount of bank cards in China reached 33.52 trillion RMB, growing by 1.45% year-on-year, while non-bank payment institutions processed 85.93 trillion RMB in network payments, up 1.50% year-on-year [4]. - The report highlights a trend of consolidation in the payment industry, with 15 payment licenses being revoked in 2023, which may lead to a more favorable competitive environment for the company [4].