Event description
On November 3, 2022, the company announced that the company intends to acquire 90.01% stake in CICC payment Co., Ltd. Through public delisting. Recently, Beijing property Exchange issued an announcement. CICC Financial Certification Center Co., Ltd. transferred its 90.01% stake in CICC payment Co., Ltd. (hereinafter referred to as "CICC pay") through the Beijing property Exchange, with an upset price of 265.5 million yuan. The company intends to participate in this auction through public delisting.
CICC is a good quality Internet financial service provider.
Founded in 2010, CICC is a third-party payment institution specializing in Internet payment. It was granted a "payment Business license" in 2011 and successfully renewed in 2016. at present, the payment business license is valid until December 21, 2026. The transaction volume of CICC payment in 2017 has reached 1.45 trillion yuan. Its business is mainly divided into four parts: 1) payment products: including basic payment services such as express payment, capital payment, QR code payment, and authorized payment; 2) Integrated payment solutions for industrial chain: providing services such as payment management system construction, commission payment and online transactions for core enterprises, e-commerce platforms, chain groups, industry SAAS service providers and financial institutions. 3) Cross-border payment: provide convenient and efficient cross-border payment and settlement solutions for cross-border enterprises; 4) supply chain finance: provide a variety of financial technology services, including electronic guarantee platform and supply chain asset service platform.
Multi-faceted cooperation with traditional business development, or will open up the company's new development space to acquire CICC payment shares will enable the company to provide customers with capital payment solutions, which will further enrich the business scenario and expand its service boundaries. In terms of digital RMB: the company closely follows the pace of the central bank's digital RMB pilot project, and is currently one of the few domestic enterprises with the ability to build a full chain of digital RMB scenarios. This acquisition will help the company to combine digital RMB business, speed up the construction of digital RMB payment and scene, and further expand the company's card position advantage in the field of digital RMB. In the field of financial technology: at present, the company has been shortlisted in 6 major cash equipment banks, especially in the postal group (including Postal Savings Bank of China) to achieve exclusive bid supply for the first time. The cornerstone of payment license city service, digital RMB, supply chain finance, cross-border payment and so on. Based on the four areas in which CICC already has business capabilities mentioned above, the company is expected to cooperate with CICC's advantages in the B-end payment field to further strengthen its layout in the banking and government financial technology field and enrich products and solutions.
Investment suggestion
It is estimated that the operating income from 2022 to 2024 will be 7.67 billion yuan, 8.71 billion yuan and 9.94 billion yuan, an increase of 13.1%, 13.5% and 14.1% over the same period last year. It is estimated that the net profit of returning to the mother is 950 million yuan, 1.11 billion yuan and 1.29 billion yuan, up 15.1%, 16.8% and 16.4% over the same period last year. The current market capitalization is 24 times, 21 times and 18 times PE for 2022-2024, maintaining a "buy" rating.
Risk hint
1) the promotion of digital RMB is not as expected; 2) the promotion of Financial Innovation Bank is not as expected; 3) the landing of digital government business is not as expected.