Payment service profit repair, overseas equipment explosive growth. 1) New Capital was founded in 2001 and listed on the gem of Shenzhen Stock Exchange in 2010. it is mainly engaged in the production, research and development, sales and leasing of software and hardware of terminal equipment based on financial POS machines, and is in the first echelon in the financial POS industry. At the same time, based on electronic payment, the company constantly distributes the upstream and downstream of the industrial chain and artificial intelligence and other cutting-edge technologies to promote AI products overseas. 2) 2023H1 achieved a total operating income of 1.96 billion yuan, a decrease of 7.69% over the same period last year; the net profit attributed to shareholders of listed companies was 333 million yuan, an increase of 71.04% over the same period last year, of which the net profit returned to the mother in the second quarter increased by 50.84% compared with the first quarter. In terms of business, sales of electronic payment equipment in overseas markets reached 466 million yuan, and shipments of yoy+77.39%, in overseas markets reached 3.4281 million units, an increase of 422.51% over the same period last year. In terms of payment services, 2023H1's revenue was 1.34 billion yuan, net profit 201 million yuan, and yoy+47.31%, accumulated processing transaction streams of about 1.08 trillion yuan.
Significant progress has been made in the renewal of licences, laying the foundation for a rate increase in the second half of the year. 1) according to the announcement, Jialian received the notice of resumption of examination of the Application for Administrative license issued by the people's Bank of China (No. 1 of 2023), and the relevant circumstances relating to the suspension of the examination of administrative license have disappeared. in accordance with Article 24, paragraph 2, of the measures for the implementation of Administrative Licensing of the people's Bank of China, the people's Bank of China resumed the examination on March 6, 2023. 2) We believe that significant progress has been made in the renewal of the company's payment license, and the negative impact of administrative penalties on payment business development in the past three quarters is about to be eliminated.
AI multimodal technology has been deeply cultivated for many years, and a breakthrough has been made in the overseas product line. According to the announcement, relying on AI in-depth content generation and video processing technology, Xinguodu Intelligence, a subsidiary of the company, has successfully launched a variety of tool products in overseas markets and launched in many key countries and regions, with great breakthroughs in commercial effectiveness and user scale. Based on the cutting-edge AI technologies such as image deep learning and computer vision, New Capital Intelligence constantly updates the iterative frequency of the algorithm model, which provides rich calculation examples for the model.
Cover for the first time, giving a "buy" rating. According to the key assumptions, the operating income from 2023 to 2025 is expected to be 5.168 billion yuan, 6.347 billion yuan and 7.928 billion yuan respectively, and the return net profit is 753 million yuan, 980 million yuan and 1.276 billion yuan respectively, corresponding to 17.3x, 13.3x and 10.2x of PE from 2023 to 2025. The valuation is in the low percentile in history and the performance-to-price ratio is outstanding. Cover for the first time, giving a "buy" rating.
Risk tips: core product revenue is not up to expectations; financial supervision is strengthened; new product promotion is not as expected; core assumptions are not as expected.