FAST NEWS: Changjiu’s profit jumps on demand for its vehicle monitoring services
The latest: Vehicle monitoring services provider Changjiu Holdings Ltd. (6959.HK) said on Sunday it expects to report a non-GAAP adjusted net profit of 147 million yuan ($20.4 million) to 157 million yuan for last year, up 50% to 60% from 2022.
Looking up: The improving profit owed primarily to higher revenue from the company’s pledged vehicle monitoring and automobile dealership operation management services, as well as positive effects of changes in its tax rate.
Take Note: After adding listing and share-based compensation expenses, the company expects to report an annual net profit of 101 million yuan to 106 million yuan, up only 5% to 10% from 2022.
Digging Deeper: Many Chinese consumers buy their cars on credit, with lenders treating the cars as collateral. Accordingly, such lenders look to companies like Changjiu, which monitor such vehicles against theft and damage. Changjiu has become China’s largest provider of such pledged vehicle monitoring services since its founding in 2019. The company passed its hearing to list in Hong Kong last December, and went public in January this year.
Market Reaction: Changjiu’s shares rose on Monday and closed up 5.3% at HK$29.60 by the midday break. The stock now trades at nearly five times its IPO price of HK$5.95.
Translation by A. AuTo subscribe to Bamboo Works weekly free newsletter, click here
