NANTIAN(000948) Bank of China Securities·2025-04-18 06:39Investment Rating - The investment rating for the company is "Buy" [4][6]. Core Insights - Under the "reciprocal tariff" policy, cross-border payments are expected to transition towards regionalization, accelerating the development of the Cross-border Interbank Payment System (CIPS) and highlighting the advantages of digital RMB settlements. The company possesses a digital RMB circulation service platform and has geographical advantages, which may lead to significant growth opportunities [4][9]. Financial Projections - Revenue projections for the company from 2024 to 2026 are estimated at RMB 9.87 billion, RMB 11.39 billion, and RMB 12.89 billion respectively, with corresponding net profits of RMB 156 million, RMB 201 million, and RMB 239 million. The earnings per share (EPS) are projected to be RMB 0.40, RMB 0.51, and RMB 0.61 for the same period [6][8]. - The company’s revenue growth rates are expected to be 8.0%, 15.4%, and 13.2% for 2024, 2025, and 2026 respectively [8][12]. Market Position and Competitive Advantage - The company has developed its own digital RMB service platform, which includes various financial services suitable for multiple scenarios such as smart retail and cross-border trade. This positions the company favorably within the context of China's Belt and Road Initiative and the signing of the Regional Comprehensive Economic Partnership (RCEP) [9][10]. - The digital RMB can bypass traditional SWIFT systems, enhancing the independence and security of cross-border payments, while also improving transparency and traceability through blockchain technology [9][10]. Shareholder Information - The major shareholder is Yunnan Provincial Industrial Investment Holding Group Co., Ltd., holding 34.58% of the shares [4]. Valuation Metrics - The price-to-earnings (P/E) ratios for the company are projected to be 46.0, 35.7, and 30.0 for 2024, 2025, and 2026 respectively [6][8]. - The company is expected to maintain a dividend yield of approximately 2.7% from 2024 to 2026 [8]. Industry Context - The report indicates that the CIPS is expanding its coverage significantly, with the amount processed through CIPS expected to reach RMB 175 trillion in 2024, reflecting a 43% year-on-year increase [9]. - The digital RMB's application in CIPS is expected to enhance the overall efficiency and security of cross-border transactions, aligning with the growing trend of regionalization in global trade [9].