Zhītōng Finance learned from the App that Kaiyuan Securities issued a research report stating that the concentration ratio of the 2C financial information service industry is high, with industry profit flowing to leading companies, and the Matthew effect is prominent. Under the influence of tightened supervision and scale effect, non-compliant small and medium-sized institutions in the industry are gradually being eliminated. With the upgrading of supply and demand on both ends, the industry penetration rate has improved. The trend of institutionalization and specialization of individual investors is highlighted, and the value of single active investors in the entire market has increased, and it is expected that the improvement of the conversion rate of paid services will be the main driving force to focus on beta elasticity in the future. We recommend the compass, which is an outstanding provider of 2C financial information services with prominent profit elasticity and market value elasticity and a securities license. Beneficiaries: Tonghuashun (300033.SZ), Jiufang Wealth (09636).
The major viewpoints of Open source Securities are as follows:
The industry Matthew effect is obvious, with high beta elasticity features highlighted.
(1) The concentration ratio of the 2C financial information service industry is high, with industry profit flowing to leading companies, and the Matthew effect is prominent. Under the influence of tightened supervision and scale effect, non-compliant small and medium-sized institutions in the industry are gradually being eliminated.
(2) The profit elasticity of the 2C financial information service industry is better than that of brokerage brokerage business and market trading volume. The main reason is that the industry competition pattern is better, the business demand elasticity is greater, and the mode of prepayment has an impact.
(3) With the upgrading of supply and demand on both ends, the industry penetration rate has improved. The trend of institutionalization and specialization of individual investors is highlighted, and the value of single active investors in the entire market has increased, and it is expected that the improvement of the conversion rate of paid services will be the main driving force to focus on beta elasticity in the future.
(4) Leading companies have well-designed and efficient business models, with greater advantages in brand effect, capital strength, talent development, and compliance management. External attention focuses on obtaining new growth points brought by obtaining securities or fund sales licenses; internal growth focuses on business empowerment brought by new technologies such as AI.
Recommended outstanding providers of 2C financial information services with prominent profit elasticity and market value elasticity and a securities license, the compass; beneficiaries: Tonghuashun (300033.SZ), Jiufang Wealth (09636).
Tightened supervision, high concentration, industry profits flow to leading companies, and the Matthew effect is prominent.
2C financial information service providers that hold securities investment consulting licenses and other financial information service providers. The industry mainly provides financial information, professional analysis tools, trading strategies, research reports, databases, and other services to individual investors. As regulatory requirements for individual businesses continue to increase, the industry trend is for only a few high-quality and standardized institutions to be able to conduct such business. In 2023, the operating income and net income CR10 of securities investment consulting firms were 54% and 155%, respectively. The concentration ratio of the industry is high, and the profitability differentiation is obvious. Leading companies obtain the main industry profits. From the perspective of the competition pattern of 2C financial information service providers, Tonghuashun, the compass, and Yimeng Shares maintain the leading position in the industry, and Jiufang Wealth seizes the high-speed growth of traffic entry points and has jumped to the industry's leading position in the past five years.
Supply and demand upgrades promote the improvement of industry penetration rate, and business elasticity is strong.
(1) Benefiting from the upgrading of supply and demand on both ends, the penetration rate of 2C financial information services has improved. On the demand side, individual investors are showing a trend of specialization and maturity, and the demand for financial information services and investment consulting services is increasing, and the quality requirements for services are further increasing. On the supply side, on the one hand, the technology of financial information service providers has been improved, and the types of products provided have been continuously enriched to meet the diversified and differentiated needs of different investors. On the other hand, the emergence of new media such as live broadcasting and short videos has increased the stickiness and methods of interaction with investors, and also promoted the improvement of business penetration rate.
(2) The bull market elasticity of 2C financial information services is better than that of brokerage brokerage business and trading volume, mainly due to the better industry competition pattern, greater business demand elasticity, and the impact of the prepayment model. In the long run, the revenue growth rate of 2C financial information services is higher than that of brokerage brokerage and brokerage investment consulting businesses.
(3) The trend of institutionalization and specialization of individual investors is highlighted, and the value of single active investors in the entire market has increased, and it is expected that the improvement of the conversion rate of paid services will be the main driving force to focus on beta elasticity in the future.
Leading companies have well-designed and efficient business models, with greater advantages in brand effect, capital strength, talent development, and compliance management. External attention focuses on obtaining new growth points brought by obtaining securities or fund sales licenses; internal growth focuses on business empowerment brought by new technologies such as AI.
(1) The core elements of 2C financial information service providers' business income include the number of users, conversion rate, and ARPU value, with corresponding operation links in three parts: flow pool construction, operation, and monetization. Head companies have formed different business models based on their resource endowments: Hithink Royalflush and East Money Information focus on building their own flow pools, with low customer acquisition costs. They use the "supermarket shelf" model to sell products based on their flow pools, with low sales expenses and high net margins. Beijing Compass Technology Development, Jiufang Wealth, and Yimeng Stock mainly rely on sales-driven models, with external buying of traffic and self-operated traffic as their main approaches. (2) The core advantage of the head companies lies in their complete business models for serving individual customers, which can achieve efficient operation, form brand advantages, and bring about scale effects. In terms of extension, the head companies can achieve good synergy through the acquisition of securities and fund sales licenses based on their excellent ability to serve individual investors. They focus on AI technology to empower their businesses, promote internal development, and improve conversion rates and ARPU values. Risk Warning: Continuous market downturn; regulatory policy risks; industry reputation risks.
(2) The core advantage of the head companies lies in their complete business models for serving individual customers, which can achieve efficient operation, form brand advantages, and bring about scale effects. In terms of extension, the head companies can achieve good synergy through the acquisition of securities and fund sales licenses based on their excellent ability to serve individual investors. They focus on AI technology to empower their businesses, promote internal development, and improve conversion rates and ARPU values.
Risk Warning: Continuous market downturn; regulatory policy risks; industry reputation risks.