9923 HK

Yeahka Limited

TMT, Finance/Real Estate


Presented:12/01/2020
Price:HK$40.75
Cap:$2.24B
Current Price:HK$10.86
Cap:$0.62B

Presented

Date12/01/2020
PriceHK$40.75
Market Cap$2.24B
Ent Value$1.23B
P/E Ratio44.74x
Book ValueHK$7.14
Div Yield0%
Shares O/S426.21M
Ave Daily Vol1,581,920
Short IntN/A

Current

PriceHK$10.86
Market Cap$0.62B
Yeahka Ltd. engages in providing payment and business services to merchants and consumers in China. It acquires customers through payment services and offer technology-enabled business services to them. The company was founded on September 8, 2011 and is headquartered in Shenzhen, China.

Publicly traded companies mentioned herein: Alibaba Group Holding Ltd (BABA), Pagseguro Digital Ltd (PAGS), Square Inc (SQ), Tencent Holdings Ltd (700 HK), Yeahka Ltd (9923 HK).

Highlights

The presenter is long shares of Yeahka Ltd (9923 HK), the largest QR code/POS company in China. He thinks of it as the SQ or PAGS of China, and believes the company could exit this year with the #1 market share in the country. Yeahka’s QR-code payments are conducted through QR-code scanning at a merchant. Those transactions are processed through aggregate QR code channeling, or a non-aggregated one. An aggregated channel allows merchants to avoid picking between Alipay or Wechat, the two primary apps for payment within China. The company’s market share today is 15% - 16% and he thinks they can achieve 20% or even 30% market share in a short period of time. Yeakha is reasonably priced at 2x sales and he sees the potential for a 5x - 10x return in the stock, which currently trades at HKD $41.55. 

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Idea Discussion

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