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Research Reports Gold Digging丨CICC: Lianlian Digital Payment's transaction volume has increased significantly, and profitability has improved notably, maintaining the rating of "outperforming the Industry."
China International Capital Corporation's Research Reports indicate that Lianlian Digital (2598.HK) expects revenue in 2024 to increase by 28% year-on-year to 1.315 billion yuan, while losses for the year are expected to narrow to 0.167 billion yuan (compared to a loss of 0.65 billion yuan in 2023). The adjusted EBITDA loss is expected to narrow to 0.28 billion yuan (compared to a loss of 0.36 billion yuan in 2023), and the adjusted profit is expected to turn positive to 78.69 million yuan (compared to a loss of 0.4 billion yuan in 2023). The performance exceeded our expectations, primarily due to higher than anticipated growth in payment transaction volume (TPV). Domestic and international payment transaction volume (TPV) is experiencing significant growth, while fee rates are influenced by business structure.
CITIC: Maintains the outperform rating for Lianlian Technology (02598) and raises the Target Price to HKD 14.5.
The bank believes that the company's dependence on single markets like the USA is relatively low, and the company expects that the payment business will maintain a growth rate of over 20% in 2025.
After holding 65 overseas licenses, Lianlian Digital claimed it would "fight back" into the domestic market, and executives responded regarding the company's equity change matters.
① Lianlian Digital's CEO, Xin Jie, informed the Financial Associated Press that the decision to significantly expand the domestic corporate clientele was made because there is great potential for value-added services development for this type of clientele. ② The new Trade will allow American Express to better enter China and also brings a large amount of Cash to Lianlian Digital. ③ In the current market environment, the safest development strategy is to secure as much funding as possible and have more flexibility.
Cross-border payment Earnings Reports observation | Lianlian Digital (2598.HK) performance exceeded expectations, soaring, with the turning point of profitability driving value reshaping.
This year's "Government Work Report" proposes to "expand high-level opening up to the outside world and actively stabilize foreign trade and foreign investment," and makes plans and deployments from several aspects, including stabilizing the development of foreign trade, vigorously encouraging foreign investment, promoting high-quality joint construction of the Belt and Road Initiative Concept in depth, and deepening bilateral and regional economic cooperation. Behind this is the policy supporting the cultivation of new growth points such as cross-border e-commerce, continuously injecting momentum into the development of foreign trade in our country. Looking back at 2024, the "Government Work Report" proposes to "expand high-level opening up to the outside world and actively stabilize foreign trade and foreign investment."
Investors Appear Satisfied With Lianlian DigiTech Co., Ltd.'s (HKG:2598) Prospects
Lianlian DigiTech Achieves RMB3.3 Trillion in Total Payment Volume for 2024, Marking a 64.7% Year-on-Year Increase