Core Viewpoint - China's economy is entering a new stage of high-quality development, with consumption being the core engine supported by both policy and market forces, leading to a continuous warming of the consumption market and accelerated release of consumption potential [1] Group 1: Payment Technology and Consumer Support - Payment is a critical support for commercial services and a key link in promoting consumption upgrades and industrial development in China [2] - The company, Huilibao, is enhancing payment service accessibility and convenience through innovative payment products, such as smart POS systems and digital cash registers, which integrate various functionalities to meet diverse merchant needs [2] - Huilibao is committed to a strategy of innovation-driven development, focusing on payment technology advancements to ensure stable and smooth payment experiences for customers [2] Group 2: Service Optimization and Market Expansion - Huilibao has upgraded its UnionPay QuickPass interface to enhance payment services for foreign app wallets, aiming to provide comprehensive and convenient payment solutions for foreign visitors in China [3] - The company integrates payment, marketing, accounting, and financial value-added services to support merchants in transitioning from traditional to digital and intelligent business models [4] - Huilibao's product "Xiaoli Zhanggui" offers a digital management system for restaurants, facilitating efficient payment and order processes, thus contributing to the overall activation of economic growth [4] Group 3: Future Directions and Industry Impact - Huilibao aims to continue optimizing payment products and service experiences, providing precise and comprehensive payment + SaaS solutions for various industries, thereby injecting vitality into the domestic consumption market [4]

Investment Rating - The report assigns a "Buy" rating for the company, indicating that the stock price is expected to outperform the benchmark by more than 15% [8]. Core Views - The company reported a revenue of 7.745 billion RMB in 2025, a year-on-year decrease of 6.11%, while the net profit attributable to shareholders was 1.010 billion RMB, a slight increase of 0.59% [1]. - The first quarter of 2025 showed significant improvement, with a revenue of 1.896 billion RMB, representing a year-on-year growth of 8.92%, and a net profit of 311 million RMB, up 25.16% year-on-year [1]. - The company is strategically positioned to benefit from the internationalization of the RMB and the complexities of global trade, with a focus on comprehensive payment solutions [1]. - The overseas performance in 2024 was strong, with international revenue reaching 2.674 billion RMB, a year-on-year increase of 18.7%, accounting for 34.52% of total revenue [1]. - The company is actively integrating AI technologies into its products, enhancing capabilities in payment solutions and machine vision [1]. Financial Summary - The company’s total revenue is projected to grow from 8.250 billion RMB in 2023 to 10.431 billion RMB by 2027, with a compound annual growth rate (CAGR) of approximately 10.8% [2]. - The net profit attributable to shareholders is expected to increase from 1.004 billion RMB in 2023 to 1.671 billion RMB in 2027, reflecting a CAGR of 15.7% [2]. - The earnings per share (EPS) are forecasted to rise from 0.97 RMB in 2023 to 1.62 RMB in 2027, with corresponding price-to-earnings (P/E) ratios decreasing from 27.47 to 16.50 [2][3].

Investment Rating - The report assigns a "Buy" rating for the company, indicating that the stock price is expected to outperform the benchmark by more than 15% [8]. Core Views - The company reported a revenue of 7.745 billion RMB in 2025, a year-on-year decrease of 6.11%, while the net profit attributable to shareholders was 1.010 billion RMB, a slight increase of 0.59% [1]. - The first quarter of 2025 showed significant improvement, with a revenue of 1.896 billion RMB, representing a year-on-year growth of 8.92%, and a net profit of 311 million RMB, up 25.16% year-on-year [1]. - The company is strategically positioned to benefit from the internationalization of the RMB and the complexities of global trade, with a focus on comprehensive payment solutions [1]. - The overseas performance in 2024 was strong, with international revenue reaching 2.674 billion RMB, a year-on-year increase of 18.7%, accounting for 34.52% of total revenue [1]. - The company is leveraging AI technology in its payment solutions, enhancing its product offerings and operational efficiency [1]. Financial Summary - The total revenue for 2023 was 8.250 billion RMB, with a projected increase to 8.500 billion RMB in 2025, reflecting a growth rate of 9.7% [2]. - The net profit attributable to shareholders is expected to grow from 1.010 billion RMB in 2024 to 1.227 billion RMB in 2025, marking a year-on-year increase of 21.5% [2]. - The gross margin is projected to improve from 36.5% in 2024 to 37.2% in 2025 [2]. - The earnings per share (EPS) are forecasted to rise from 0.98 RMB in 2024 to 1.19 RMB in 2025, with corresponding price-to-earnings (P/E) ratios of 27.31 and 22.47 respectively [2].

Core Viewpoint - The company reported a total revenue of 77.45 billion yuan and a net profit of 10.10 billion yuan for the year 2024, reflecting a 10% year-on-year growth in net profit, while maintaining a cash dividend distribution of 5.50 yuan per 10 shares [7][8][9]. Company Overview - The company is a digital service provider integrating smart terminals, big data processing, and data scenario operation capabilities, focusing on empowering the digital economy through technological innovation [6][8]. - The company operates in over 120 countries and regions, contributing to the digital transformation of countries along the Belt and Road Initiative [6][8]. Business Segments Smart Terminal Cluster - The smart terminal cluster generated a total revenue of 35.95 billion yuan, with a year-on-year growth of 12.36% and a gross margin of 38.53% [10]. - The digital payment terminal business saw significant growth, with over 700 million units sold, and overseas sales volume exceeding 4 million units, accounting for nearly 84% of total revenue [12][14]. - The intelligent recognition terminal business strengthened its technology integration with AI, achieving a 37% year-on-year revenue growth in the medical sector [16]. Industry Digitalization Cluster - The industry digitalization cluster reported a revenue of 41.33 billion yuan, a decline of 17.96% year-on-year, primarily due to accelerated industry regulation [17]. - The company maintained its leading position in payment services, achieving a transaction scale exceeding 2 trillion yuan [18]. - The company provided digital financial services to over 100,000 small and micro enterprises, with a total loan issuance of 420,000 [19]. Financial Performance - The company achieved a total revenue of 18.96 billion yuan in the first quarter of 2025, marking an 8.92% year-on-year increase, with a net profit of 3.11 billion yuan, a 25.16% increase [24]. - The operating cash flow reached 370 million yuan, reflecting a significant increase of 422.55% year-on-year [24]. Strategic Initiatives - The company is actively pursuing a globalization strategy, enhancing local operations in Europe and North America, and focusing on compliance and sustainable development in the third-party payment industry [8][9]. - The company is leveraging AI technology to enhance operational efficiency and reduce costs, with significant advancements in product intelligence and value enhancement [9][21].