Summary of Conference Call Notes Companies Involved - New大陆 (Newland) - 新国都 (Newland Payment) Key Points and Arguments Financial Performance - Newland is expected to benefit from consumer policies and industry optimization, with a projected profit growth of over 20% in Q1, leading to an annual net profit of 1.3 to 1.4 billion yuan, with a current valuation of approximately 20 times earnings [2][3] - Newland Payment's Q1 performance may be slightly weaker, but an annual profit of at least 700 million yuan is anticipated, with a current valuation of only 17 times earnings, indicating high cost-effectiveness [2][3] - Newland's Q1 profit is projected to reach around 300 million yuan, while Newland Payment's actual profit last year was close to 700 million yuan, with expectations for a better performance in the second half of the year [3][5] Industry Dynamics - The payment industry is experiencing optimization, benefiting leading companies like Newland and Newland Payment, which are seeing improved bargaining power and significantly higher net fee rates [2][6] - The gross profit margins of leading acquiring institutions have increased, indicating a notable improvement in industry profitability quality [7] Payment Volume Projections - Newland's payment volume for 2024 is expected to be between 2.2 to 2.3 trillion yuan, while Newland Payment's is projected at 1.47 trillion yuan, with expectations for better performance in the second half of the year [2][8] International Expansion - Both companies are actively expanding into overseas payment device markets, focusing on high-end markets in Latin America, the Middle East, and Europe, with Newland's Latin American market growing at approximately 15% [2][10] - Newland Payment's overseas device revenue grew by 64% year-on-year, indicating strong international demand [10] Cross-Border Payment Growth - Cross-border payments and local acquiring services are becoming significant growth areas, with higher fee rates overseas compared to domestic markets, enhancing profitability [12][13] - Newland has established localized teams overseas and plans to significantly increase transaction volumes, while Newland Payment aims to expand its transaction scale tenfold this year [14] AI Applications - Both companies are leveraging AI for internal and merchant empowerment, with Newland focusing on customized marketing solutions and Newland Payment investing in an overseas AIGC subsidiary [15] Regulatory Impact - The 网中网号 policy is expected to create a substantial market for Newland, particularly in the QR code verification space, with potential revenue increases of 20-30% market share translating to 20-30 billion yuan in revenue growth [16] Valuation Insights - Newland's 2025 net profit is projected between 1.3 to 1.4 billion yuan, with a market cap of approximately 30 billion yuan, resulting in a valuation of 21 to 23 times earnings, while Newland Payment's valuation remains at 17 times earnings [5][16] Other Important Insights - The payment industry is seeing a consolidation of resources towards leading companies, enhancing their ability to expand merchant resources and pricing power [6] - The overall improvement in industry profitability quality is evidenced by rising net fee rates and gross profit margins across leading firms [7]