Investment Rating - The report maintains a "Recommended" rating for the company with a target price of HKD 1.77, compared to the current price of HKD 1.44 [2][5]. Core Views - The company remains a leader in the industry, and the optimization of its business structure is expected to help overcome current challenges [2]. - The overall performance in 2023 was under pressure, with total revenue of HKD 867.76 million, a year-on-year decrease of 6.11%, and an adjusted net loss of HKD 286.27 million, compared to a profit of HKD 196 million in 2022 [2][6]. - The company achieved a financing amount of HKD 3,086.4 billion in supply chain financial technology solutions, reflecting a year-on-year increase of 24.9% [2]. - The gross profit margin decreased by 23.1 percentage points to 60.7%, primarily due to the contraction of high-margin real estate business and increased sales channel expenses [2]. - The company has accelerated the development of core enterprise clients, with a total of 1,488 core enterprises cooperating, a year-on-year increase of 34.1% [2]. Summary by Sections Financial Performance - Total revenue for 2023 was HKD 867.76 million, with a year-on-year decline of 6.11% [6]. - Adjusted net profit for 2023 was a loss of HKD 286.27 million, a significant decrease of 246.05% year-on-year [6]. - The company expects revenue growth of 22.83% in 2024, reaching HKD 1,065.88 million [6]. Business Segments - Supply chain financial technology solutions generated revenue of HKD 824 million, down 4.9% year-on-year, while emerging solutions revenue was HKD 44 million, down 23.6% [2]. - The asset securitization business faced challenges, with a financing amount of HKD 914 billion, a decrease of 12.4% year-on-year [2]. Market Position - The company holds a market share of 20.9% in the third-party supply chain financial technology solutions sector, maintaining its leading position for the fourth consecutive year [2]. - The diversification of client industries is expected to enhance the company's resilience, with coverage across 31 industries [2]. Future Outlook - The company is optimistic about long-term growth potential in the supply chain financial technology industry, supported by policy encouragement and macroeconomic recovery [2]. - The report suggests monitoring PMI, social financing, and ABS issuance as leading indicators for the company's performance [2].
2023年报点评：龙头地位不改，业务结构优化下困境有望扭转