BOC International expects the revenue of card transfers (09923) to increase 23% to 4.3 billion yuan in 2024.
The Zhitong Finance App learned that BOC International released a research report stating that it maintains the “neutral” rating of Shifting Card (09923) and believes that although there is potential for business growth in the Chinese market, the growth rate will slow down under a high base, and the target price will be lowered by 12.5% to HK$14 from HK$16. The company's payment business performed well. Revenue in 2023 increased 16% year over year to 4 billion yuan (same below), and adjusted EBITDA increased 161% year over year to 560 million yuan, in line with the bank's expectations.
According to the report, the rapid growth of the credit card payment business has benefited from the recovery of offline consumption and the expansion of agent channels, with payment revenue of 3.5 billion yuan. The bank believes that the growth in its payment business can offset the decline due to in-store business. BOC International expects revenue from card transfers to increase 23% to 4.3 billion yuan in 2024. The short-term increase in in-store revenue is limited, but UE is expected to continue to optimize or achieve break-even in 2024.