Introduction to this report:

The acquisition of Huiyuantong's core customer Uber's business in China came to fruition, and the impact on performance was relatively limited. With its channel license and other resources, Huiyuantong's customer diversification is expected to advance steadily and become an important growth point for the company's performance.

Investment highlights:

The target price was maintained at 24.84 yuan, and the increase in holdings rating was maintained. The acquisition of Huiyuantong's core customer Uber's business in China came to fruition, and the impact on performance was relatively limited. With its channel license and other resources, Huiyuantong's customer diversification is expected to advance steadily and become an important growth point for the company's performance. At the same time, companies are continuously expanding in the field of cross-border commerce, and an Internet-based cross-border business ecosystem is being formed. Maintain the company's 2016/2017 profit forecast at $0.20/0.29, respectively, and maintain the target price of 24.84 yuan.

The psychological impact of the merger of Uber and Didi was greater than the real impact. The psychological impact of the merger of Uber and Didi was greater than the real impact. Didi Chuxing announced that it has reached an agreement with Uber Global to acquire all of Uber's Chinese brand, business, data and other assets to operate in mainland China. The market already has certain expectations about this. As Uber's only platform and channel for disbursing funds to drivers in China, Huiyuantong's business, where the company has a stake, will be affected to a certain extent, but we think the impact is relatively limited and the psychological impact is greater than the real impact. It is expected that Huiyuantong's main business will continue to grow rapidly.

The diversification of customers is worth looking forward to, and the cross-border ecosystem is progressing steadily. Unlike the high concentration of domestic e-commerce markets, overseas e-commerce markets are relatively scattered, making it difficult for cross-border payment companies to form an absolute monopoly, and the ability to acquire customers will be the key to competition. At the same time, the service model of the industry is also changing, and providing comprehensive payment solutions that closely match the scenario will become the focus of B2B small payment companies. With its product design and ability to acquire channel platforms, Huiyuantong is expected to gradually promote the rapid growth of performance driven by diversification of customers. At the same time, companies are continuously expanding in the field of cross-border commerce. Cross-border payments are one part of this, and an Internet-based cross-border business ecosystem is being formed.

Risk warning: Huiyuantong accounts for a relatively high share of single customers, and the cross-border payment industry is greatly affected by policies