■Incident: The company disclosed its 2023 annual report, achieving total revenue and revenue of 960 million yuan (YoY +20%), net profit of 270 million yuan (YoY +22%), profit per share of 0.27 yuan (YoY +23%), and plans to pay a final dividend of HK$0.269 per share (YoY +259%) for the full year of 2023.

■The share of technology revenue increased, and continued breakthroughs on the financial side and customer side. In 2023, the company achieved +65% to 170 million yuan in technology revenue (platform service revenue+supply chain technology service revenue), accounting for +4.8pct to 17.7% of the main business revenue and total revenue. By the end of 2023, the number of financial partners linked to the company's platform was +22.4% to 131 at the end of the previous year, and the cumulative number of customers on the platform was +20.5% to 153,000 at the end of the previous year (of which the number of small, medium and micro customers accounted for more than 97%). I am optimistic that the company will further diversify its cooperative funders and reach continuous breakthroughs in the number of customers reached.

■Digital finance is expanding steadily, and the scale of supply chain assets has increased dramatically. In 2023, the company achieved revenue from digital finance solutions +16% to 720 million yuan, mainly due to an increase in the average daily balance of loans during the year, which led to an average daily supply chain asset balance of +58% at the end of 2023 compared to the end of the previous year to 13.9 billion yuan.

■Dividends increased year over year, actively giving back to shareholders. The company plans to pay a final dividend of HK$0.269 for the year 2023, an increase of 259% over HK$0.075 in the same period last year, and a dividend payout ratio of 90%, demonstrating that the company actively gives back to shareholders and shares development results. If the proposed dividend amount is included in the calculation, the company's cumulative dividend payment amount is 461 million yuan.

■Investment advice: Maintain a buy-A investment rating. The company's platform-based development strategy continues to advance, the business layout continues to expand, and the ecological layout has achieved remarkable results. In the future, the accelerated integration of investors and important participants in the supply chain ecosystem is expected to further promote the company's platform-based development and win-win industrial collaboration. We expect the company's 2024-2026 EPS to be $0.30, $0.36, and $0.43, respectively, and will be given 1.1x2024 P/B, corresponding to a 6-month target price of HK$4.97 (converted exchange rate).