Lakala Payment (300773.SZ): Model Update; Adjusting TP to RMB23.6

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Lakala Payment (300773.SZ): Model Update; Adjusting TP to RMB23.6

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16 Jun 2026 01:35:04 ET │ 13 pages

Lakala Payment (300773.SZ)

Model Update; Adjusting TP to RMB23.6

CITI'S TAKE

We update our Lakala model based on 2025 & 1Q26 results. While its 2025

results was impacted by soft macros with core net profit -46% yoy, 1Q26

domestic GPV recorded growth of 14% while attributable net profit Sell

excluding one-offs grew by 1% yoy. It is positive to see growth of GPV Price (15 Jun 26 15:00) Rmb24.110

especially bankcard GPV (the core of Lakala business), but we need more

time to assess the growth trajectory and sustainability in 2026E as macros Target price Rmb23.600↑

remain challenging. We adjust 2026-2027E estimates and adjust our TP to from Rmb22.000

RMB23.6 (from RMB22), based on unchanged 22x P/E on 2027E EPS. Expected share price return -2.1%Maintain Sell, as we do not see material signs for a fundamental turnaround

yet. Expected dividend yield 1.7%

Expected total return -0.5%

Earnings revisions — Following its latest 1Q26 result and 2026 result, we slightly Market Cap Rmb18,725M

adjust FY26E/FY27E revenue by +4%/+6% to RMB6.2/6.5bn and revise up NP by

US$2,756M12%/16% to RMB737mn/832mn incorporating 1Q26’s net profit surge mainly due to

disposable gains from financial assets. For adjusted net profit excluding one-offs,

we model FY26E/FY27E at RMB399/466mn respectively, down from prior

RMB594mn/655mn.

Price Performance

2025 result missed — FY25 revenue declined 3.7% yoy to RMB5.5bn, missing Citi (RIC: 300773.SZ, BB: 300773 CH)

by 0.5%, while attributable net profit surged 233% yoy to RMB1.17bn, beating Citi’s

RMB536mn, mainly driven by non-operating gains from listed-equity investments;

ex-one-offs, adjusted NP -45.6% yoy to RMB300.9mn, missed Citi’s RMB472mn.