This report is read as follows:
According to the latest announcement of the company, it is expected that the group's operating profit will increase significantly in 2017, and the turnover of payment transaction processing solutions business in the first 11 months will grow rapidly compared with the same period last year. The operation of the company continues to improve, and it is optimistic that the company's performance will continue to grow next year.
Summary:
Maintain the "overweight" rating and maintain the target price of HK $2.10. We estimate that the company's net profit for 2017 and 2018 will be HK $387 million and HK $463 million, respectively, and that of EPS will be HK $0.14 and HK $0.17, respectively. Give 15 times PE, corresponding to the 2017 target price of HK $2.10.
The performance forecast is positive and the operating profit for the whole year is expected to increase significantly. According to the latest announcement, the group expects operating profit to increase significantly in 2017 compared with the same period last year, usually by more than 30%. The company's operating profit has grown significantly over the past two years, to HK $6.49 million in 2015 and HK $132 million in 2016. There are two reasons for the continued surge in operating results this year: first, the company sold the company's rights and interests related to the early settlement of credit card transactions in Japan to UnionPay in June this year, and the proceeds of HK $66.5 million will be used for the company's operation; second, in the first 11 months of this year, the turnover of the payment transaction processing solutions business increased significantly compared with the same period last year.
With the excellent business of paying and receiving orders, it has recently won a number of awards in the field of financial technology. With the advantages of license plate, platform and service capacity, the company quickly grabbed the offline order market, and the transaction flow increased rapidly, with more than 2.4 million active merchants. We expect the company's cumulative transaction volume to exceed 1 trillion yuan in 2017. Recently, he has paid a lot of good news along with him, and won the Financial Technology Brand leadership Award of the year, and the "Smart payment platform system" won the "Financial Technology Outstanding solution Innovation Award", highlighting its brand influence in the field of financial technology and payment.
Seize the new opportunities for merchants to upgrade their value and be optimistic about the continued release of their performance next year. The company closely arranges the whole industry chain business of third-party payment, such as offline receipt, POS terminal / chip, payment platform, financial solution / online banking, and launches solutions for different types of merchants and enterprise operations. The company has a good foundation to carry out value-added services for merchants. The business model of "payment + value-added services" can effectively enhance the value of a single merchant and, more importantly, improve the stickiness of merchants. The company is working hard to build a financial ecological chain and expand group synergy. By linking merchants, banks and consumers to build a new financial model of the scene. "online and offline comprehensive linkage" will further enhance the company's core competitiveness in the field of financial technology. With the consolidation of the company's leading position in receiving orders and the re-launch of financial technology, we are optimistic about the company's operating performance in 2018.
Risk tips: the risk of policy change; the intensification of industry competition.
