Core investment highlights
The company is a leader in the domestic equity investment service industry. It has the SaaS product Private Equity Connect MAX with the most comprehensive financial data in the primary market, and has formed four perfect service systems of “data service+marketing service+investment banking securities service+training service”, and has opened up a service link from the primary market to IPO through accumulation after going public in Hong Kong to improve the license layout. The pandemic's restrictions on offline activities have been lifted, and the company's offline service business has been rapidly repaired. Combined with the upgrade of the financial data SaaS platform+AIGC, the company is expected to start long-term stable growth. Judging from valuation, the company is significantly below the average of comparable A-share companies. Considering the company's unique service value and good fundamentals, the company is currently significantly underestimated.
1. The SaaS product upgrade introduced AIGC to empower the venture capital industry with data. In 2021, the company upgraded Private Equity Connect, launched the SaaS version of Private Equity Connect MAX, integrated multi-dimensional data from the Chinese equity investment industry, and developed various versions such as urban and institutional editions for different customer groups. At the same time, the company is introducing AIGC into products to create a new type of database with artificial intelligence technology. Data is the “infrastructure” of the industry, and data services are the company's “cornerstone” business. In the first half of the year, revenue was 288.49 million yuan, accounting for 33.63%, and maintained a high level of gross profit and continuous growth, with huge potential for the future.
2. Marketing and training services resumed as scheduled to seize major trends in urban investment activities. In the first half of the year, the company seized the opportunity to increase the organization of offline activities, and organized a number of offline clearance brand summits, customized forums and salons, with the participation of more than 5,000 industry insiders. At the same time, it organized more offline course programs to promote the resumption of training services. The marketing and training business increased by 108.09% and 192.81% respectively in the first half of the year. Marketing and training services have now been branded and normalized, fully demonstrating the company's appeal and influence in the industry. In addition, the company has taken root in G-side demand mining in recent years, taking the lead in benefiting from the explosion of government investment promotion demand, and has ushered in an increase in demand for various marketing activities and training services.
3. The layout of investment banks and securities has been completed, and the unique position is designed to meet cross-border needs. In 2022, the company completed the Hong Kong regional license layout, obtained Class 1, 2, 4, 6, and 9 licenses, and at the end of 2022, the company helped launch TechStar, the fifth SPAC company in Hong Kong. The company has formed a unique market position with first-level and second-level market links, is rooted in China, based in Hong Kong, and faces the world. Along with customer exploration and accumulation of service cases, the company is expected to become a characteristic brand for IPO services for domestic enterprises to enter the market, and grow into a new growth pole for the company.
4. Excellent fundamentals+growth expectations, significantly undervalued. A-share companies are selected to start businesses in the dark, join forces with science and innovation, and have the same flush; Hong Kong stock company Wave Digital Enterprise, Jinshan Software, and Huitongda Network; and US stock company 36 Krypton as comparable companies for the company. From 2023 to 2025, the median valuations of comparable companies were 42.50, 24.07, and 19.09, respectively, which are far higher than the company's current valuation multiples. The company's growth attributes and unique market value are not fully understood. The stock price is still significantly underestimated, and there is plenty of room for valuation repair and performance growth. Taking into account the differences in liquidity in the Hong Kong stock market, the company was given 16 times PE in 2024, corresponding to the target price of HK$1.80 per share.