CICC: Maintains OUTPERFORM rating on LINKLOGIS-W (09959) and raises target price to 3.6 Hong Kong dollars.

China Gold releases a research report stating that it maintains unchanged LINKLOGIS-W (09959) 25e/26e profit forecast, with current trading at 0.9x/0.8x 25e/25e P/B. Considering the company's strategic breakthrough and business structure optimization, the bank has raised the target price by 77% to 3.6 Hong Kong dollars (corresponding to 1.1x/1.0x 25e/26e P/B and 12.2% potential upside), maintaining an outperform industry rating. Key points of China Gold's view: Company recent situation LINKLOGIS-W recently announced 3Q25 operating data: 1) As of 3Q25, the number of core enterprise/financial institution partners increased by +30%/+7% to 2,798/405 from the beginning of the year, with revenue-generating customer numbers of core enterprises/financial institutions increasing by +40%/+4% to 1,346/152 from the beginning of the year. The customer retention rate increased by 3 percentage points to 99% compared to the beginning of the year, with both the number and quality of customers increasing; 2) Total assets under management in 1-3Q25 increased by 28% year-on-year to 336.2 billion yuan, with trading volume in 3Q25 increasing by 30% year-on-year and 28% month-on-month to 132.6 billion yuan, reaching a new high in asset management volume in the first three quarters. Multi-level circulation cloud growth strong, asset securitization business marginally rebounding, structural adjustment steadily solidifying a stable growth foundation Direct financing business: Trading volume in 1-3Q25 increased by 44% year-on-year to 252.3 billion yuan, with trading volume in 3Q25 increasing by 54% year-on-year and 17% month-on-month (including multi-level circulation cloud with a year-on-year increase of 71% and a month-on-month increase of 21%), benefiting from the company's efficient customer acquisition and continuous expansion of innovative financial solutions in focused industries, with core business multi-level circulation cloud showing impressive growth. Asset securitization business: Trading volume in 1-3Q25 was 77 billion yuan, with a 77% increase month-on-month to 37.5 billion yuan in 3Q25. Under deepening penetration in the large infrastructure industry, ABS cloud continues to grow rapidly, with AMS cloud showing improvement month-on-month. Cross-border cloud: Trading volume in 1-3Q25 was 6.8 billion yuan. The company rebranded its international business in early October. Looking ahead, the bank believes that the deepened layout of international strategy is expected to provide long-term growth momentum for the company. Continued deepening of new strategic layout, active share repurchases to enhance shareholder returns In 3Q25, the company successfully won a bid for a large state-owned enterprise's supply chain finance platform project based on Web 3.0. Looking ahead, the bank believes that the company's aggressive "stablecoin +" positioning strategy is expected to achieve breakthroughs in the Web 3.0 trade finance field and create new growth points. In addition, the company disclosed steady progress in its share buyback plan in the third quarter, demonstrating its continuous focus on shareholder returns and management's confidence in development. Risk factors: New business expansion falling short of expectations; financial asset impairment risk; market competition exceeding expectations.