English | 简体中文 | 繁體中文 | 한국어 | 日本語
Thursday, 11 March 2021, 20:09 HKT/SGT
Share:
    

Source: YEAHKA LIMITED
China Securities initiates YEAHKA (9923.HK) with BUY

HONG KONG, Mar 11, 2021 - (ACN Newswire) - Chinese investment bank China Securities initiates coverage on YEAHKA LIMITED (9923) with a BUY rating.

In the initiation research report headlined "A Technology-enabled, Industry-leading Mobile Payment Company", China Securities equity research analyst Ran Zhao is bullish on Yeahka's addressable market, recognizing the Company's core competitiveness as "product + channel + ecosystem".

Key takeaways from the research report include:

Competitive landscape: Market concentration likely to increase
- UnionPay, Lakala and Yeahka are the leading players among third-party non-financial payment service providers. While Yeahka is slightly behind the two peers in terms of transaction volume, it has a larger number of transaction counts. China Securities' research estimates the market share of these three leading players in China is no more than 30%.

Entry barriers: Limited number of payment licenses
- There are only 31 non-financial payment service providers with national payment licenses in China up to date, of which 16 own a mobile payment license. It is expected that the PBOC will not issue additional payment licenses with ongoing heightened regulatory scrutiny.

Industry outlook: RMB 10 billion+ market ahead
- Increasing penetration of integrated QR code payments could boost one-stop mobile payment services. According to statistics from iResearch and other third-party sources, integrated QR code payment transactions currently accounted for approximately 30% of offline QR code payment transactions, with an average annual transaction volume of more than RMB 200 trillion. Assuming an average payment take rate is 1.5%o, and the market penetration increases 10%, the incremental market size will be RMB 30 billion.
- Yeahka's technology-enabled business will benefit from the increasing penetration of SaaS. According to China Securities' conservative estimates, assuming 50% of the 60 million Chinese merchants nationwide purchased SaaS products or services at an annual subscription rate of RMB 1,000, the market size will be RMB 30 billion.

Core competitiveness: product + channel + ecosystem
- Product: as an independent third-party service provider, Yeahka offers SaaS products to help merchants connect with diversified payment, marketing and financial platforms, giving alternative option rather than having to pick between two internet giants.
- Disctribuiton channel: Yeahka's distribution network spans 8000 partners and more than 300 cities in China. Its payment services served around 4.7 million merchant customers and 491.9 million consumers as of June 30, 2020.
- Ecosystem: Yeahka's SaaS products developed for merchants include a suite of one-stop payment services, shop operation services and marketing services. The number of technology-enabled service customers reached 585,000 in the first half of 2020.


Topic: Press release summary
Source: YEAHKA LIMITED

Sectors: Cards & Payments, Daily Finance, Cloud & Enterprise, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network


Copyright © 2021 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

 

YEAHKA LIMITED Releated News
Sept 2, 2021 09:09 HKT/SGT
多家機構維持「買入」評級 移卡(09923.HK)中期業績受廣泛認可
Sept 2, 2021 09:08 HKT/SGT
Institutions maintain 'buy' rating as Yeahka (09923.HK) records fast growth
Aug 26, 2021 22:04 HKT/SGT
Yeahka Announces 2021 Interim Results
Aug 26, 2021 21:13 HKT/SGT
移卡公佈2021年中期業績 科技賦能業務收入佔比持續提升
June 2, 2021 17:15 HKT/SGT
Unearth value of Chinese technology companies: In-depth comparison between Yeahka and Square
More news >>
Copyright © 2021 ACN Newswire - Asia Corporate News Network
Home | About us | Services | Partners | Events | Login | Contact us | Cookies Policy | Privacy Policy | Disclaimer | Terms of Use | RSS
US: +1 214 890 4418 | Beijing: +86 400 879 3881 | Hong Kong: +852 8192 4922 | Singapore: +65 6549 7068 | Tokyo: +81 3 6859 8575