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指南针(300803):深刻洞察客户需求 证券业务有望高增

Compass (300803): Deep insight into customer needs, securities business is expected to increase

國泰君安 ·  Nov 6, 2023 00:00

Introduction to this report:

The company is deeply involved in the financial information service industry. After obtaining a scarce securities license, the company is expected to rely on marketing advantages based on deep demand insight to achieve an increase in the conversion rate of securities customers and promote high growth in brokerage business.

Key points of investment:

First coverage, “increased holdings” rating. The target price is 70.96 yuan, corresponding to 61xP/E in 2025.

As an established financial information service provider in China, Compass can expect the future of securities business if software customers are introduced. In 2022, the company achieved revenue of 1,255 million yuan and net profit of 338 million yuan. We expect revenue for 2023-2025 to be 10.73/16.04/2.189 billion yuan, and net profit for 2023-2025 to be 132/2.71/473 billion yuan. The company was valued using PE relative valuation and FCFE absolute valuation, and the company was given a target price of 70.96 yuan, corresponding to 61xP/E in 2025, covering the “increased holdings” rating for the first time.

It is difficult for financial information service providers to obtain securities licenses, and companies face high barriers in obtaining securities licenses. Under the trend of stricter regulations, it is more difficult for Internet companies to obtain securities licenses. Prior to that, with the exception of Oriental Wealth, no financial information service company had obtained a securities license. The company seized the opportunity of the Netcom Group's bankruptcy and restructuring to obtain a securities license.

The company's deep insight into customer needs is expected to increase the conversion rate of the company's software customers to securities customers, thereby increasing the profitability level of the securities business. The company's long-term experience in the industry has enabled it to better understand customer needs. The company's understanding of customer needs is its core competency. Based on a deep understanding of clients' anticipated needs to improve profitability, the company has built strong marketing capabilities to better enhance customer trust through unique experiential marketing and rhythmic marketing, thus exceeding expectations in the securities business conversion rate.

Catalyst: The company's securities business customer conversion rate exceeded expectations.

Risk warning: The capital market fluctuates greatly, and the company's securities business falls short of expectations.

The translation is provided by third-party software.


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