A HK listed hidden gem that has a high dividend payout & robust outlook within the AI & industrial digitalisation space

This is probably the only listed company on the Hong Kong Exchange that offers high dividends and a robust growth outlook.

HONG KONG, HONG KONG, HONG KONG, October 14, 2024 /EINPresswire.com/ -- SY (6069.HK) has become the first supply chain finance technology platform to list on the Hong Kong Stock Exchange, boasting a net profit margin exceeding 30% and a dividend yield of 6.5%.

SY Cloud Platform, the company’s flagship product connects with the procurement systems of some of the largest Fortune 500 blue-chip companies with over 130 banking institutions, managing nearly RMB 100 billion in supply chain assets annually. With more than 60 patents and a robust R&D team under its belt, SY is the front runner in innovation within the sector.

Backed by major institutional investors like Temasek Holdings and China Taiping, SY is well-positioned to capitalize on the digitalization trend of global supply chains, promising sustainable growth and delivering value for shareholders.


A LICENSED B2B MODEL RIVALLING ANT AND JD WITH HIGH BARRIERS TO ENTRY.

SY’s business model, similar to Ant Group and JD Technology, operates as a technology platform. Rather than simply selling SaaS software or hardware, it offers platform-based services to SMEs and collects technology fees through leveraging industry data.

Unlike LexinFintech’s business which uses a micro-credit license, SY focuses primarily on SME lending services and holds a commercial factoring license.

Compared to tightening P2P lending regulations, supply chain finance is on the other hand receiving more favorable policy support, limiting nationwide factoring licenses to fewer than 10 by setting out strict requirements on market players, ensuring that the market retains only the most credible firms with a strong operating track record. This shift is championed by China’s National Financial Regulatory Administration (NFRA) and is expected to drive up the value of lending licenses held by SY, Ant Digital, Xiaomi Finance and Linklogis.

With an increasing number of state-run enterprises exiting the market, only a few competitors would be left in the trillion-dollar domestic supply chain finance playing field.

Should Ant Group, whose profits are heavily driven by factoring and digital lending goes public, SY’s stock price could rise significantly, riding on the recent fintech momentum.


SY HAS BEEN ACTIVELY PURSUING SHARE BUYBACKS AND STRATEGICALLY ACQUIRING PLATFORMS IN OTHER VERTICALS.

Last year, SY repurchased HKD 100 million worth of shares and spent HKD 900 million to acquire an overseas digital finance platform. It seems that the market is anticipating more share buybacks this year.

With an international management team and a highly institutional shareholder backing, SY’s overseas expansion is expected to mirror the rapid success of MooMoo and Pinduoduo (PDD) in foreign markets especially in Southeast Asia.

While the region’s digitalization of industries and supply chain finance remains under-penetrated, the market in China is already seeing trillions in liquidity annually.

This largely untapped overseas markets offer vast growth potential, putting SY in a unique position to tap new opportunities and extend its market leadership.


A RISING STAR LISTED ON MAJOR INDICES AND TRADED ON THE HONG KONG STOCK CONNECT.

SY is not only listed on the SEHK but also traded on the Hong Kong Stock Connect, and a constituent of the Hang Seng and MSCI Indexes. Hong Kong Stock Connect alone contributes to over 10% of its trading volume, underscoring active market participation. The company has also seen an increase in investments from BlackRock and Middle Eastern sovereign funds.

SY seems to be an un-discovered gem in the B2B space, offering a high dividend payout, strong entry barriers, robust growth outlook, and strategically positioned in industrial digitalization, supply chain finance, and cross-border expansion.

The Editor
T News
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