HONG KONG, Mar 10, 2021 - (ACN Newswire) - CICC initiates coverage on YEAHKA LIMITED (9923), a leading payment-based technology platform in China, with an "outperform" rating and a target price of HK$98.20. CICC is upbeat on YEAHKA's dual-growth-driver (payment + value-added services) business model and the growth potential of the Company's QR code payment and marketing services.
Key takeaways from the report include:
Core payment services: YEAHKA concentrates on offering integrated QR code payment services for small and micro merchants: 1) QR code payment: CICC expects YEAHKA to achieve rapid growth in the next 5 years; 2) QR code payment services feature high-frequency and wide consumer base; 3) YEAHKA's high revenue-sharing ratio for sales agents and its strategy that targets small and micro merchants will drive rapid growth in merchant volume.
Value-added businesses: Huge room for commercialization based on its "data + scenario + traffic" business model: 1) Marketing services: CICC expects high-frequency transactions (QR code payment) and dual expansion drivers (proprietary R&D + M&A) to be the key drivers for YEAHKA's revenue and profit growth; 2) Merchant SaaS products empower small and micro merchants to improve customer stickiness. CICC sees monetization potential in the long run; 3) YEAHKA's fintech services business is expected to achieve mild growth in the short-to-mid run.
Strong internet background enables YEAHKA to provide targeted services; increasing R&D investment is expected to accelerate product upgrades: 1) YEAHKA's management team possesses extensive experience in the internet sector 2) YEAHKA has a solid shareholder base, which includes internet giant Tencent; 3) Its strong R&D team is expected to boost product upgrades.
Topic: Press release summary
Source: YEAHKA LIMITED
Sectors: Cards & Payments, Daily Finance, Cloud & Enterprise, Daily News
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