Core Insights - OSL Group has completed the strategic acquisition of Banxa Holdings Inc., enhancing its position in the stablecoin trading and payment platform sector, with a focus on compliance and global expansion [1] Group 1: Company Overview - Banxa is an Australian-based payment service provider and regulatory technology company, focusing on bridging traditional financial institutions with the digital asset space since its inception in March 2014 [2] - The company has established a strong presence in the Australian market and has shifted its strategic focus towards international expansion since acquiring EU Internet Ventures B.V. in June 2020 [2] Group 2: Strategic Benefits of Acquisition - The acquisition will provide OSL Group with over 40 trading and payment licenses across the US, Canada, EU, UK, and Australia, enhancing its global payment capabilities and supporting customer needs for fiat and cryptocurrency exchanges [3] - Banxa's B2B payment solutions will complement OSL's digital asset trading and stablecoin business, creating a one-stop service for trading, payment, and fund transfers, thereby increasing customer retention [4] Group 3: Financial Impact - Banxa's revenue for the first half of 2025 was HKD 53.93 million, which is expected to significantly boost OSL's payment business revenue, which was HKD 195 million in the same period [5] - Revenue projections for OSL Group post-acquisition are estimated at HKD 514 million, HKD 873 million, and HKD 1.172 billion for 2025-2027, with year-on-year growth rates of 37.12%, 69.91%, and 34.29% respectively [5]

Investment Rating - The investment rating for OSL Group is "Buy" (maintained) [1][7] Core Insights - The strategic acquisition of Banxa Holdings Inc. enhances OSL Group's compliance capabilities and global payment infrastructure, positioning the company for significant growth in the B2B sector [4][6] - OSL Group's revenue is projected to grow significantly, with estimates of HKD 514 million in 2025, HKD 873 million in 2026, and HKD 1.172 billion in 2027, reflecting growth rates of 37.12%, 69.91%, and 34.29% respectively [5][6] - The acquisition is expected to improve OSL's payment business revenue substantially, with Banxa's revenue for the first half of 2025 estimated at HKD 53.93 million [6] Financial Projections - Revenue projections for OSL Group are as follows: HKD 375 million for 2024, HKD 514 million for 2025, HKD 873 million for 2026, and HKD 1.172 billion for 2027 [5][7] - The forecasted net profit for OSL Group shows a loss of HKD 75.74 million in 2025, a slight loss of HKD 2.56 million in 2026, and a profit of HKD 194 million in 2027 [5][6] - The Price-to-Sales (P/S) ratio is expected to decrease from 29.90 in 2024 to 9.56 in 2027, indicating improved valuation as revenue grows [5][7]

Core Insights - OSL Group celebrates its five-year milestone as a compliant digital asset platform, having established a standard for the industry through compliance [2] - The company has evolved from a traditional digital asset exchange to a leading stablecoin trading and payment platform in Asia, reflecting a strategic upgrade and industry trends [2] Group 1: Compliance and Strategic Positioning - OSL Group aims to become a compliant and efficient "bridge" between fiat and digital currencies, addressing the barriers that hinder the free flow of funds in e-commerce and cross-border trade [4] - The company has obtained or is in the process of applying for over 50 licenses and registrations across more than 10 regions globally, including Hong Kong, Japan, Southeast Asia, Europe, Australia, North America, and Latin America [4] Group 2: Stablecoin Payment Demand - A report indicates that from January 2023 to August 2025, the cumulative settlement amount for identifiable stablecoin payments is projected to reach $136 billion [6] - Business-to-business (B2B) payment demand is the largest growth driver, accounting for nearly two-thirds of total stablecoin payments, with an annual growth rate ten times that of traditional payments [7] Group 3: Future Outlook and Commitment - OSL Group's focus on stablecoin payments is a natural progression, with stablecoin trading volume accounting for nearly 70% of total trading volume on its platforms this year [9] - The company aims to build infrastructure connecting fiat and digital currencies, committing to a long-term investment strategy while adhering to its core principles of openness, security, and compliance [9]