On June 27th, Futu News reported that.$DIDA INC (02559.HK)$Today's pre-market opened low, down 8.33%, at HK$5.5, with a turnover of HK$8.7117 million and a total market capitalization of HK$5.467 billion. Each lot contains 500 shares, without considering transaction costs, each lot loses HK$250.
Market source: Futu Securities >
Investment highlights
China's second-largest ride-hailing platform: According to the Frost Sullivan report, based on the number of taxi rides, the company will rank second in China's travel platform in 2022. Based on the total transaction volume and ride-share rides, the company will operate China's second largest ride-hailing platform in 2023, with a total transaction volume of RMB 8.6 billion and 130 million ride-shares. The market share calculated by the total transaction volume is 31.8%, and that calculated by the ride-sharing ride is 31.0%.
Resilient low-asset operation model: With the low-asset operation model, the company is the only profitable travel platform in the travel market for the fifth consecutive year. Without owning or leasing vehicles, it matches vehicle owners and passengers through intelligent technology to achieve resource sharing. This model reduces the company's large capital expenditures in vehicle purchase and maintenance and lowers operating costs. At the same time, it will empower the company with rapid expansion capabilities, and is more conducive to quickly entering new markets and attracting more users. In 2022, it is the most severe year for the travel industry, and the company still has a cash flow of RMB 110 million from operations, withstanding extreme pressure tests in multiple cities.
Risk warning
Slow growth in the ride-hailing market: China's ride-hailing market is still relatively new, with slow past growth and low penetration, and there is uncertainty in the market's acceptance of ride-sharing and the extent of its demand growth. The market size of ride-hailing may not be comparable to other subdivisions of the car passenger market. If growth is slower than expected, it may have an adverse impact on the company's business, operating performance, and financial condition.
Intense competition in China's travel market: China's travel market is fiercely competitive, with rapidly changing technology, constantly changing user preferences, and new services and products constantly emerging. If it cannot predict or respond to these competitive challenges, the company's competitiveness may weaken or fail to improve, leading to stagnation or even a decline in revenue growth, which may have an adverse impact on the company's business, operating performance, and financial condition.
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Editor/Afina