SINOLINK SECURITIES·2025-05-25 11:51Investment Rating - The report maintains a "Buy" rating for the company, suggesting a potential upside of over 15% within the next 6-12 months [5][14]. Core Insights - The company is positioned to benefit from the recent passing of the Stablecoin Regulation Bill in Hong Kong, allowing institutions to apply for compliance as stablecoin issuers by the end of the year [2]. - ZA Bank, a subsidiary of the company, aims to provide banking services for Web 3.0 and has already partnered with over 80 Web3 companies, enhancing its market presence [2][3]. - The company has launched cryptocurrency trading services for retail users in Hong Kong, simplifying the investment process through its app [3]. - The company is expected to see significant profit growth in 2025, with a projected net profit of 905 million yuan, reflecting a 50% increase from the previous year [5][11]. Summary by Sections Business Development - ZA Bank is the first digital bank in Hong Kong to offer reserve banking services for stablecoin issuers, collaborating with Circle Innovation Technology as one of the first sandbox participants [2][4]. - The bank has established strong ties with digital asset exchanges and stablecoin issuers, indicating potential for further collaborations [4]. Financial Projections - The company anticipates a substantial increase in net profit for 2025, with a low base in the first half of 2024, where net profit is expected to be only 5.5 million yuan [5]. - The projected insurance service revenue for 2025 is 35.26 billion yuan, with a growth rate of 11.1% [11]. Valuation Metrics - As of now, the company's price-to-book (PB) ratio is 0.74, which is at the 5% percentile of valuations since 2018, indicating a low valuation opportunity [5].