HHTG(SH:600095) SINOLINK SECURITIES·2025-07-29 13:40Investment Rating - The report assigns a "Buy" rating for the company with a target price of 13.62 RMB based on a 73x PE for 2026 [4]. Core Insights - The company, Xiangcai Co., is positioned in the financial technology sector, focusing on wealth management and plans to merge with Dazhihui to enhance profitability [2][3]. - The main revenue source is the securities business, which is expected to contribute 79% of total revenue in 2024, with brokerage and credit businesses being the key pillars [2][20]. - The company aims to leverage financial technology to drive business transformation and enhance competitive advantages through partnerships with industry leaders [3][35]. Company Overview - Xiangcai Co. was listed in 1997 and transitioned to the securities service industry after acquiring Xiangcai Securities in 2020 [2][14]. - The company has retained some industrial segments, including food processing and waterproof materials, but these are shrinking [2][20]. Business Structure - In 2024, the securities segment is projected to generate 16.50 billion RMB in revenue, reflecting an 11% year-over-year increase, while the industrial segment is expected to decline by 24% to 4.36 billion RMB [2][20]. - Brokerage and credit businesses are expected to account for over 60% of the securities segment's revenue in 2024 [31]. Core Competitive Advantages - The company employs a "platform + license" model, focusing on financial technology as a core driver for business development [3][35]. - A planned acquisition of Dazhihui is anticipated to create new profit growth points and enhance overall competitiveness [3][43]. Financial Performance and Forecast - The company forecasts total revenues of 27.29 billion RMB, 30.26 billion RMB, and 33.07 billion RMB for 2025-2027, with corresponding net profits of 3.58 billion RMB, 5.34 billion RMB, and 5.99 billion RMB [4][55]. - The report predicts significant growth in net profit, with a 228% increase expected in 2025 [4][55].