Huachuang Securities: JF SMARTINVEST (09636) rises with the trend, building a diverse product matrix and expanding cross-border business to create new opportunities and expand long-term growth space.

HuaChuang Securities released a research report stating that the investment value of JF SMARTINVEST (09636) originates from three main levels: first, as a licensed investment consultant leader, it fully benefits from the high prosperity of the online investment education market; second, relying on the "Nine Chapters" large model empowerment, forming a ladder-like matrix consisting of high-end VIP services as the cornerstone, with "star-level service" and "AI stock machine" collectively; third, forward-looking layout of overseas business and digital asset track, opening up long-term growth potential. The three resonate and drive the company into a new round of growth. Key points from HuaChuang Securities as follows: Company Overview: Hong Kong's "first stock of securities investment education", a rapid rise in online investment solutions leader since its transformation in 2018 JF SMARTINVEST, formerly established in 1996 and obtaining the first batch of securities investment advisor qualification in 1998, holds a scarce regulatory license. In 2017, the company's core team successfully integrated this rare licensed entity into the group through a series of strategic reorganizations and business acquisitions, fully opening up the licensed securities investment consulting business online. In 2023, the company successfully listed on the main board of the Hong Kong Stock Exchange, and in 2024, it was officially renamed as "JF SMARTINVEST" from "Nine Chapters Wealth," demonstrating the strategic determination of comprehensive digitization transformation. The company's equity structure is stable, with the founder as the core controlling shareholder, ensuring the continuity of strategic execution. The management team, with years of experience in the financial and securities consulting industry, also provides a solid management moat for the company to navigate through bull and bear cycles. Operating Analysis: Deep cultivation of "public-private domain" traffic loop, building a "full spectrum" digitalized ladder matrix 1) Traffic End: Seizing the short video dividend, building a "trinity" traffic moat. The company has established a complete commercial loop of "public domain drainage-private domain precipitation-tiered monetization, and has accurately acquired customers through financial content MCN matrix on platforms such as Douyin and Video Number. By the end of 2025, the number of MCN accounts across all platforms had increased to 1153 (up 119.2% YoY), with a follower base of 66.62 million people (up 33.1% YoY). Relying on AI technologies such as the "Nine Chapters" model and live broadcast matrix to improve conversion efficiency, effectively realizing the deep mining of user value. In 2025, despite the intensifying competition in the public domain, the ROI of traffic acquisition expenditure still reached 3.88x, proving the resilience and competitive business barriers of its "accurate customer acquisition + efficient conversion" model during scale expansion. 2) Product End: Focusing on the full spectrum demand, building a ladder-like digital matrix of "large + medium + small." Mature Business: Large VIP products solidify the "profit cornerstone." In 2024, the company integrated and upgraded the original large VIP products for mass affluent investors into the "Stock Market Navigator" and "Super Investor" series, priced at 29,800 yuan/6 months and 69,800 yuan/3 months respectively. This business, as the company's foundation, drove year-end contract liabilities to a historical high of 1.53 billion yuan in 2025, leveraging deep investment advisory services and high customer stickiness. Growth Business: Small and medium-sized products and smart hardware fill market gaps. The company is accelerating the restructuring of its revenue structure through new business lines, aiming for growth and overseas business revenue to exceed 50% in the next three years. In 2024, the company launched the "Nine Yao Stocks" small entry-level products priced from tens to thousands of yuan to capture flow through the funnel, efficiently attracting public domain traffic from the MCN matrix; the same year, the company launched the industry's first full-featured AI stock learning machine product centered on stock investment, "Easy to Know Stock Market - Nine Square Smart Investment Stock Learning Machine" (now renamed "AI Stock Machine"), with a post-subsidy price of about 3,000-5,000 yuan/unit. In 2025, the company focused on launching the "Decision Master" series of products, priced at 12,988 yuan/year, filling the gap in the company's previous product offerings in the mid-range price range, successfully establishing a full gradient customer conversion path from small, mid-range to VIP large products; the same year, the company launched "star-level services," cooperating deeply with securities firms to jointly create an ecological loop from investment research information to trade execution, aiming to enhance customer trading experience and retention rate. Core Logic: Resonance of internal dynamics and external environment, initiating a dual-drive of "cyclical + internationalization" 1) Cyclical Beta explosion, strong performance turnaround certainty. Benefiting from the impact of the comprehensive policy measures in the capital markets since September 2024, market trading activity has significantly recovered. By 2026 Q1, the daily average turnover of A-shares reached 2.58 trillion yuan, and the year-on-year increase in new account openings surged by 61%, indicating a trend of rising trading activity and expanding investor base, constituting a strong cyclical Beta for core business growth. As a high-elasticity "emotion amplifier" in the large wealth management track, the company's business growth demonstrates strong explosive power. 2) Outbound mergers and acquisitions to fill overseas business map, forward-looking layout of digital asset track, opening up overseas business growth. The company successfully established an international business platform through the acquisitions of Fangde Securities and Fangde Capital. In May 2026, its Fangde entity completed a license upgrade, simultaneously adding qualifications for virtual asset business on top of traditional licensed operations, becoming one of the very few financial technology securities firms with a full chain of qualifications for "trading execution + investment advisory + asset management" of virtual assets, achieving unified account management between traditional Hong Kong and US stocks and virtual assets. At the same time, through strategic investments in HashKey and EX.IO, the company further deepened its layout of the digital asset ecosystem. By deploying an overseas full-licensed ecology of "traditional finance + digital technology," the company broke through the boundary of a single domestic business and officially initiated its second growth pole, accelerating its strategic transition towards an international comprehensive financial technology group.