Core Insights - Visa hosted the "Payments in Motion - Growth Launch" leadership forum during the 2026 Spring/Summer Shanghai Fashion Week, focusing on payment innovations for SMEs, cross-border business payments, and funding flow solutions [1][17] - The global B2B payment transaction volume is expected to reach approximately $200 trillion by 2028, indicating significant growth opportunities for Visa's business payment and funding flow services in China [1][4] - Visa has been a long-term partner of Shanghai Fashion Week, sponsoring the event for nine consecutive years and launching the "Visa Creator Program" in 2024 to empower young designers [1][17] Group 1: Payment Innovations and Trends - Visa's Greater China President, Yu Xue Li, emphasized that payments are not just transactional tools but key drivers of business growth and global connectivity [2][17] - Chavi Jafa, Visa's General Manager for Business Payments and Funding Flow in the Asia-Pacific region, discussed the evolution of B2B payment experiences, highlighting the shift from backend tools to front-end growth engines [4][6] - Wang Zhi Yun, General Manager for Business Payments and Funding Flow in Greater China, presented Visa's one-stop cross-border payment solutions that assist Chinese enterprises in globalizing their operations [6][9] Group 2: Collaboration and Ecosystem - A panel discussion featured Visa's China Business Payments Head, Ma Yue, and other industry leaders discussing the challenges and opportunities of cross-border payments for SMEs, emphasizing the importance of a collaborative ecosystem [9][11] - Huang Xue Ling, Head of SME Business Payments in the Asia-Pacific region, highlighted data-driven insights and embedded finance as core drivers for future SME growth [11][17] Group 3: Brand Globalization and Design - A second panel, moderated by Visa's Asia-Pacific Chief Marketing Officer, Jin Yi Dong, focused on how Chinese original design brands can break into global markets, showcasing the potential of Chinese design [13][17] - Visa aims to integrate financial technology with the creator economy to support Chinese designers in achieving commercial success on the global stage [13][17] Conclusion - Visa's China General Manager, Yin Xiao Long, summarized the event's key points, emphasizing the transition from friction to seamless operations through technological innovation and ecosystem collaboration [15][17] - The forum showcased Visa's strategic initiatives in promoting SME globalization and empowering designer brands, reinforcing its commitment to driving growth through payment solutions [17]

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [5][10]. Core Insights - The company is the largest independent digital payment solution provider in China, offering digital payment and value-added services to global traders. It has obtained 65 licenses globally, covering key markets including mainland China, Hong Kong, Singapore, the US, the UK, Thailand, Luxembourg, and Indonesia [6][18]. - The digital payment market is rapidly growing due to globalization and the trend of cross-border e-commerce, with a compound annual growth rate (CAGR) of 13.7% for China's cross-border e-commerce imports and exports from 2020 to 2024 [6][42]. - The company's revenue primarily comes from global payment services, with cross-border payment contributing about 60% of its income. The fee rates for cross-border payments are expected to remain stable, while domestic payment rates are lower due to competition [6][9]. - The company has seen significant growth in its value-added services, which include digital marketing and operational support, with revenue from digital marketing rapidly increasing from 3.76 million in 2021 to 79.08 million in 2023 [6][50]. - The strategic sale of shares in a joint venture has positively impacted the company's performance, with a reported gain of approximately 2 billion RMB in the first half of 2025 [6][34]. Summary by Sections Company Overview - The company was established in 2009 and has focused on digital payment services, obtaining various licenses to expand its global footprint. It has a strong management team with extensive experience in finance and technology [18][24]. Market Performance - As of October 10, 2025, the company's closing price was HKD 8.67, with a market capitalization of approximately HKD 9.69 billion. The asset-liability ratio stands at 86.32% [3]. Financial Projections - Revenue projections for 2025-2027 are estimated at 1.7 billion, 2.2 billion, and 2.7 billion RMB, with corresponding growth rates of 29.3%, 29.6%, and 22.7% [9][12]. - The net profit for 2025 is projected to be 1.456 billion RMB, with a significant increase from previous years [9][12]. Competitive Landscape - The cross-border payment industry is characterized by a few dominant players, with the company being the only Chinese firm holding payment licenses in all US states. The competitive landscape includes companies like Payoneer and Airwallex, each with unique strengths [53][57]. Strategic Developments - The company has received a VATP license in Hong Kong, which is expected to enhance its business capabilities in virtual asset trading and improve cross-border payment efficiency [9][10].

Core Viewpoint - The report from Industrial Securities initiates coverage of Lianlian Digital (02598.HK) with a "Buy" rating, highlighting its position as a leading digital payment solution provider in China [1] Group 1: Company Overview - Lianlian Digital specializes in cross-border payment services, catering to Chinese and overseas merchants and enterprises [1] - As of June 30, 2025, the company has served a total of 7.9 million clients and holds 65 licenses across major markets including China, the US, EU, UK, Southeast Asia, and South America, ensuring compliance in the global payment market [1] Group 2: Financial Performance - For the first half of 2025, the company reported a total payment volume (TPV) of 2.1 trillion yuan, reflecting a year-on-year growth of 32.0% [1] - Total revenue for H1 2025 reached 783 million yuan, up 26.8% year-on-year, with gross profit of 406 million yuan, representing a 25.0% increase and a stable gross margin of 51.9% [1] - The adjusted profit and loss showed a turnaround with a figure of 1.656 billion yuan [1] Group 3: Business Segments - Global payment business achieved a TPV of 198.5 billion yuan, marking a significant year-on-year increase of 94.0%, with revenue of 473 million yuan, up 27.0% [2] - Domestic payment business saw a TPV of 1.9 trillion yuan, growing 27.6% year-on-year, and revenue of 211 million yuan, an increase of 24.6% [2] - Value-added services revenue grew by 34.2% year-on-year, focusing on traffic services and cross-border communication [2]

Core Viewpoint - The report from Industrial Securities initiates coverage of Lianlian Digital (02598.HK) with a "Buy" rating, highlighting its position as a leading digital payment solution provider in China [1] Group 1: Company Overview - Lianlian Digital specializes in cross-border payment services, catering to Chinese cross-border merchants and enterprises, overseas merchants and enterprises, as well as domestic companies [1] - As of June 30, 2025, the company has served a cumulative total of 7.9 million clients [1] - The company has obtained 65 licenses across major markets including China, the US, the EU, the UK, Southeast Asia, and South America, ensuring compliance in the global payment market [1] Group 2: Financial Performance - For the first half of 2025, the company reported a total payment volume (TPV) of 2.1 trillion yuan, reflecting a year-on-year growth of 32.0% [1] - Total revenue for 2025 H1 reached 783 million yuan, an increase of 26.8% year-on-year [1] - Gross profit amounted to 406 million yuan, with a year-on-year growth of 25.0%, resulting in a stable gross margin of 51.9% [1] - Adjusted profit and loss showed a turnaround with a profit of 1.656 billion yuan [1] Group 3: Business Segments - Global Payment Business: The company restructured its payment infrastructure and actively expanded into Southeast Asia, the Middle East, and Latin America, achieving a global payment TPV of 198.5 billion yuan, a year-on-year increase of 94.0%, with revenue of 473 million yuan, up 27.0% [1] - Domestic Payment Business: The company enhanced its SaaS collaboration and strengthened system service capabilities for private domain e-commerce clients, with domestic payment TPV reaching 1.9 trillion yuan, a year-on-year growth of 27.6%, and revenue of 211 million yuan, an increase of 24.6% [1] - Value-Added Services: The company expanded its ecosystem around traffic services and cross-border communication, with revenue from value-added services growing by 34.2% year-on-year in 2025 H1 [1]

Core Insights - MSCI announced the results of its quarterly index review for August 2025, including the addition of LianLian Digital (2598.HK) to the MSCI Global Small Cap Index [1] Company Overview - LianLian Digital is a leader in the digital payment solutions market in China and a facilitator of global trade digitization [1] - The company is one of the first digital technology firms in China to provide comprehensive payment solutions globally [1] - As of December 31, 2024, LianLian Digital has obtained 65 global payment licenses and qualifications, serving over 5.9 million clients across more than 100 countries and regions, supporting transactions in over 130 currencies [1] Impact of MSCI Inclusion - Inclusion in the MSCI Global Small Cap Index is significant for LianLian Digital as it is expected to attract more international investors and enhance the company's global visibility [1] - Index and passive funds typically invest based on index constituents, so this inclusion is likely to bring in more passive capital inflows [1] - Being part of the index is also anticipated to improve the company's market liquidity and create more value for shareholders [1]

Investment Rating - The report initiates coverage on LianLian Digital with a "Buy" rating and a target price of HKD 17.3, representing a potential upside of 40% from the latest closing price of HKD 12.42 [6]. Core Insights - LianLian Digital is positioned as a leading 2B digital payment service provider, focusing on cross-border payment solutions for e-commerce merchants. The company has a strong potential for market share growth due to its established brand and merchant base [2][11]. - The company has obtained a Virtual Asset Trading Platform (VATP) license, which may open up future business opportunities in virtual asset trading and stablecoin issuance [3][12]. - The financial outlook is positive, with projected total revenue of HKD 16.3 billion in 2025, reflecting a year-on-year growth of 24% [3][5]. Company Overview - LianLian Digital primarily offers digital payment solutions, including global and domestic payment services. The company has served over 5.9 million merchants and achieved a total payment volume (TPV) of approximately HKD 3.3 trillion in 2024, with a year-on-year growth of 65% [11][45]. - The company has a diversified revenue stream, with digital payment services contributing 88% of total revenue in 2024 [18]. Financial Performance - In 2024, LianLian Digital reported total revenue of HKD 13.1 billion, a 28% increase from the previous year. The global payment segment contributed 70% of the digital payment revenue [2][18]. - The company achieved an adjusted net profit of HKD 79 million in 2024, marking its first profitable year [24][30]. Market Position and Competitive Landscape - LianLian Digital holds a significant market share in the cross-border payment sector, with its global payment TPV accounting for approximately 13.1% of China's cross-border e-commerce export value in 2024 [2][45]. - The competitive landscape in the cross-border payment industry is fragmented, with key players including Payoneer, PingPong, and others [2][11]. Future Opportunities - The company is well-positioned to capitalize on the growing demand for digital payment solutions in the cross-border e-commerce market, which is projected to reach USD 1.2 trillion by 2024 [46]. - The potential issuance of stablecoins could provide additional revenue streams, particularly in cross-border trade scenarios where traditional payment methods face challenges [3][12].

Investment Rating - The report does not provide a specific investment rating for the company [7] Core Insights - The company is a digital payment service provider that is expected to benefit from the implementation of stablecoin regulations in Hong Kong, which will take effect on August 1, 2023 [1] - The company has achieved profitability, with total revenue of 1.31 billion RMB in 2024, a year-on-year increase of 28%, and a net profit of 79 million RMB [3][11] - The company plans to apply for stablecoin issuance in Q4 2024, targeting cross-border trade payments [4] Summary by Sections Company Overview - The company primarily offers digital payment solutions, including payment collection, remittance, virtual cards, and aggregated payments, mainly serving small and medium-sized enterprises, particularly in the cross-border e-commerce sector [2] - As of December 2024, the company has served 5.9 million merchants and holds 65 payment licenses across various jurisdictions [2] Financial Performance - In 2024, the company's total transaction volume (TPV) is projected to reach 3.3 trillion RMB, representing a year-on-year growth of 65% [2] - The digital payment service revenue is expected to account for 88% of total revenue, with global payments contributing 70% of digital payment revenue [2][11] - The gross profit margin for 2024 is estimated at 52%, with a gross profit of 683 million RMB [3][11] Business Developments - The company has obtained a Virtual Asset Trading Platform (VATP) license, allowing it to conduct regulated activities under Hong Kong's Securities and Futures Ordinance [3][12] - The company is also involved in clearing services through a joint venture established with American Express, holding one of the three available clearing licenses in China [4] Market Position and Valuation - The company's current price-to-sales (P/S) ratio is 6.2x for 2025E and 5.1x for 2026E, compared to the average P/S ratios of 7.5x for overseas digital payment companies [5][13] - The company has a market capitalization of approximately 10.74 billion HKD [7]

Core Viewpoint - The company, Lianlian Digital, reported a 28% revenue growth last year, driven by strong penetration of its digital payment services in both domestic and international markets, alongside an expanding global payment network and customer base [1][3]. Group 1: Financial Performance - In 2024, the company's revenue increased from 1.03 billion yuan to 1.32 billion yuan (approximately 182 million USD), with digital payment business revenue soaring by 31.6% to 1.15 billion yuan, accounting for about 87.5% of total revenue [1]. - The total payment volume (TPV) reached 3.3 trillion yuan, a growth of 64.7% compared to 2023, with global TPV increasing by 63.1% and domestic TPV rising by 64.9% [1]. - The company achieved an adjusted annual profit of 78.7 million yuan, reversing a loss of over 400 million yuan from the previous year, attributed to the scale of operations and integration of artificial intelligence technology [3]. Group 2: Business Expansion and Strategy - Lianlian Digital has established a global payment network, holding 65 payment licenses and serving over 5.9 million merchants across more than 100 countries and regions, supporting over 130 currencies [4]. - The company has expanded its global footprint by obtaining a virtual asset trading platform (VATP) license in Hong Kong and an electronic money institution (EMI) license in Luxembourg, enabling it to provide digital payment services to local businesses in Europe [4]. - The CEO emphasized the company's focus on expanding global licensing, enhancing compliance capabilities, and improving product service capabilities to drive significant growth in performance [3].