China Securities initiates coverage on YEAHKA LIMITED (9923.HK) with BUY

HONG KONG, Mar 11, 2021 – (ACN Newswire via SEAPRWire.com) – 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.

Copyright 2021 ACN Newswire. All rights reserved. (via SEAPRWire)

Next Post

PDI Perjuangan gelar lomba "tabulampot" untuk gali kekayaan hayati

Kam Mar 11 , 2021
Kami juga ingin membangkitkan kembali buah langka Semarang – Partai Demokrasi Indonesia Perjuangan (PDIP) menggelar lomba tanam buah dalam pot (tabulampot) secara virtual pada rangkaian Peringatan Hari Ulang Tahun Ke-48 PDIP sebagai salah satu upaya menggali kekayaan hayati di Indonesia, khususnya di Provinsi Jawa Tengah. "Selain itu, kami juga ingin […]