Jinwu Financial News | According to BOC International Development Research Report, the 2023 results of Transfer Card (09923) are in line with expectations. Revenue in 2023 was RMB 4 billion (same below), up 16% year on year. Adjusted EBITDA increased 161% year-on-year to $560 million, mainly benefiting from the expansion of payment business profits and the narrowing of in-store losses.
Looking ahead, the short-term payment business will continue to be the main driver of growth. The bank expects payment GPV/revenue to increase 9%/23% to 3.1 trillion yuan/4.3 billion yuan in 2024, excluding the impact of non-recurring revenue adjustments, and the payment rate will increase by 0.6 basis points. Arrive at the store or achieve breakeven in 2024.
Considering expenses related to business development, which may be higher than the bank's previous expectations, the bank lowered its net profit forecast for 2024 to the mother. The target price was lowered from HK$16 to HK$14 based on comparable payment companies' price-earnings ratio of 14 times in 2024. There is still potential for growth in the payment business in the local Chinese market, but the growth rate will gradually slow down under a high base. The transformation of the in-store business and the expansion of the overseas payment business have yet to be verified and remain neutral.