Investment Rating - The report maintains a "Recommendation" rating for Nanhua Futures, with a target price of 30.76 CNY [2][7]. Core Views - Nanhua Futures has expanded its cross-border clearing licenses, now holding 12 overseas clearing memberships, enhancing its global clearing capabilities [7][11]. - The company's overseas business is identified as the core driver of profit growth, with overseas interest income increasing from 0.03 million CNY in 2021 to 4.98 million CNY in 2024, reflecting a CAGR of +468% [7][12]. - The anticipated IPO in Hong Kong is expected to bolster the capital of its Hong Kong subsidiary, accelerating international expansion and mitigating the impact of declining overseas interest rates on net profit [7][8]. Financial Performance Summary - Total revenue for 2024 is projected at 5,711.61 million CNY, with a year-on-year growth rate of -8.6%. Revenue is expected to increase to 7,351.48 million CNY in 2025, representing a growth rate of 28.7% [8]. - The net profit attributable to the parent company is forecasted to be 457.97 million CNY in 2024, with a growth of 14.0%, and is expected to reach 536.11 million CNY in 2025, with a growth rate of 17.1% [8]. - Earnings per share (EPS) are projected to be 0.75 CNY for 2024, increasing to 0.88 CNY in 2025, and further to 1.08 CNY by 2027 [8][12]. Business Structure and Strategy - Nanhua Futures operates through its wholly-owned subsidiary, Honghua International, which has multiple specialized subsidiaries covering global markets [7][11]. - The company holds various licenses in Hong Kong, which may allow it to provide virtual asset services, potentially creating a global trading ecosystem that combines commodity futures and digital assets [7][8].

Industry Insights - The People's Bank of China and the Hong Kong Monetary Authority have launched the "Cross-Border Payment Link," which connects the mainland online payment interbank clearing system with Hong Kong's "Faster Payment System," officially going live on June 22 [1] - The system allows residents from both regions to conveniently conduct real-time cross-border remittances in Renminbi and Hong Kong dollars via mobile numbers or bank accounts, covering scenarios such as salary payments and tuition fees [1] - The introduction of the "Cross-Border Payment Link" opens new avenues for the compliant application of stablecoins, potentially serving as a technical template for regulated stablecoin cross-border circulation [1] - The policy direction is expected to support the cross-border payment industry in unlocking new growth opportunities, enhancing the functions and scope of CIPS, and promoting high-level opening-up through free trade zone pilot projects [1] - The global perspective indicates that the compliance process of stablecoins is likely to drive the restructuring of the global payment system, with stablecoin payments offering significant advantages in cost and efficiency compared to traditional cross-border payment methods [1] Company Developments - Zhongyi Technology announced on June 9, 2023, that it is involved in the IT infrastructure construction for clients' digital currency systems and provides operational maintenance services for the related IT infrastructure [2] - Sanwei Xinan is leading the formulation of the "GM/T 0111-2021 Blockchain Cryptography Application Technical Requirements," leveraging its accumulated expertise in blockchain technology, with related products already applied in digital currency operations [2] - The company emphasizes the importance of blockchain technology in ensuring the security and credibility of transactions in digital currency, committing to ongoing research and implementation of blockchain and digital currency technologies to promote financial innovation and safeguard data privacy and security [2]