In the first week after the Spring Festival, A-shares welcomed the fifth consecutive sun and regained 3,000 points, and the surge in micro-cap stocks was even more imposing. Although the index of the Beijing Stock Exchange has also risen, the performance of most of the ** has been far less than investors' expectations, and the shrinking volume has also further reduced investors' long-term sentiment, and the performance of *** as a primary and a half market this week has also declined.
The good news is that the Beijing Stock Exchange finally ushered in a long-lost collective surge in volume today!
Although it is not understood by many individual investors, it has its own specific group of solid investors, both institutional and individual investors.
Individual investors invest in first-class enterprises not to see a few points, more than a dozen points of income, more important is from a growth enterprise to the initial intervention, accompany the company to become bigger and stronger, if the company can be listed better.
Specifically, there are three types of operations: one is to choose the enterprises that value it to intervene and hold them for a long time, and wait for small and medium-sized enterprises to become large enterprises before considering when to exit; the second is to choose the most important enterprises to intervene and exit after the company is listed; The third is to choose the opportunity to withdraw or partially withdraw before the enterprise applies for listing and suspension.
Zhulujun believes that since this part of the investors have chosen to take greater investment risks, what they want is not a small profit, but a few times, or even more than ten times, dozens of times the income, which depends on the individual's cognitive judgment ability and luck.
Corporate Travel Technology (430578.)NQ) has recently issued a number of announcements, mainly to remove the equity pledge and change the brokerage to conduct the Beijing Stock Exchange listing counseling, which is understood by Zhulujun as the company's preparation to accelerate the listing process of the Beijing Stock Exchange.
On February 3 this year, the travel technology changed the sponsor brokerage to Huaying**, and many investors may not have heard of Huaying**, and only think that Huaying Brokerage is a small brokerage.
According to Zhulujun's understanding, Huaying** is indeed a small brokerage, but the origin of this small brokerage is not small. In recent years, the upper-level leaders have repeatedly mentioned the need to build an aircraft carrier-level brokerage, encourage the merger of brokerages, and build an international investment bank.
Huaying** is 100% controlled by Guolian**, and the people in the rivers and lakes call it "Little CITIC".
Why is it called "Little CITIC"?
It turned out that the League of Nations began market-oriented reform in 2019, and introduced the core team of the original CITIC ** based on the "state-owned background + market-oriented mechanism". Guolian** is the 13th A+H listed brokerage in the country, and its major shareholder has completed the equity acquisition of Minsheng** in early 2023.
As of the fourth quarter of 2023, the ranking of Guolian** investment banking equity business indicators has steadily improved. According to wind statistics, the company's equity business underwriting and sponsorship income has risen from more than 70 before the market-oriented reform to 22nd. Among them, in the case of the decline in the overall IPO market size, the company's IPO sponsorship, underwriting scale and underwriting income have all entered the top 25 in the industry, ranking first and 21st in the industry.
In the subdivided sectors, Guolian** ranked among the top 15 in the industry in terms of the number of underwriters, underwriting amount and underwriting income on the Beijing Stock Exchange, ranking first and 13th in the industry.
With the completion of the equity transfer of Minsheng**, Guolian** will promote the integration with Minsheng in a steady and orderly manner in accordance with regulatory requirements. Minsheng** In 2023, the number of IPOs passed was 18, ranking 3rd in the industry. After the completion of the integration, the scale of Guolian's investment banking business will achieve rapid growth, and the competitiveness of the investment banking business will be further greatly improved.
As a 100% controlled subsidiary of Guolian**, Huaying** is the "small CITIC" that Guolian** focuses on.
It is based on this that Travel Technology changed the sponsor brokerage to Huaying**, hoping that "Little CITIC" can escort the company's listing on the Beijing Stock Exchange.
Travel Technology is a China model travel management control project implementation company (CTMC, China cost tr**el management control) that focuses on designing overall travel solutions for enterprise-level customers through online software information technology platforms and offline management consulting teams.
In 2005, Travel Technology was the first local enterprise in China to enter the TMC field, and obtained independent intellectual property rights and the "Smart Travel Management and Control Platform" approved by the Ministry of Science and Technology.
Through more than 20 years of independent research and development, technology iteration and active exploration, the travel technology has established a "CTMC" (Chinese-style travel control) expense control management ecosystem with its own characteristics, using the latest big data model and ChatGPT technology.
By dispatching a travel management consulting team, technical team, implementation team, and operation team to enterprise group customers, travel technology designs travel management plans at the top level according to the individual needs of customers, and connects the self-developed "smart travel expense control management platform" to the customer's OA system, management system and financial system, so as to realize customized resources, intelligent procurement, data analysis, and intelligent reporting, optimize the travel management and control plan to the greatest extent, reduce control nodes, optimize management processes, and save manpower and administrative expenses. Automate control of enterprise-level consumer procurement costs.
The above paragraphs are an introduction to the business model of travel technology, which may seem a little complicated.
Since 2010, after the rapid development of the Internet in China, the business model of To C has many innovations in China and has gained a large number of users, and the Internet has been popularized in thousands of households in China, but it is still a traditional manual operation on the enterprise side, which is not only inefficient but also has many problems and hidden dangers.
Take business travel as an example, you can't guess who the world's largest business travel company is?
That's right, it's American Express, one of the two items not for sale mentioned in Buffett's just-released 2024 open letter to shareholders.
Today, American Express is the world's largest financial services company and the credit card company with the highest per capita spend, but what is not well known is that American Express also provides TMC services for businesses, and it is the world's largest TMC company.
When traveling around the world electronically with a hand-held Express card, we are still printing invoices to check the documents for reimbursement, and the entire business travel process is completely pushed by people, not only the business travel expenses are uncontrollable, but also the business travel costs of enterprises are very high.
What's more, the cash flow, bill flow and invoice flow of employees in this area make the business travel process uncontrollable for enterprises, and also bury many hidden dangers for the compliance operation of enterprises.
Based on this, at the beginning of its establishment, travel technology hopes to help domestic enterprises clarify the control of business travel expenses, and gradually iterate from the first to provide all-round travel management and control according to the needs of enterprises, so as to help enterprises achieve automatic control and digital upgrading.
Travel technology has also evolved from the initial iteration of some money-making business to a software and information technology service provider that provides a travel expense control and management platform for the implementation of the whole plan.
In August 2022, Travel Technology was certified as a "Specialized, Specialized and New" Small and Medium-sized Enterprise in Jilin Province by the Department of Industry and Information Technology of Jilin Province. In October 2022, Beijing Travel World, a travel technology subsidiary, was certified as a "Specialized, Specialized and New" SME in Beijing by the Beijing Municipal Bureau of Economy and Information Technology.
So, is the business travel market big enough?
According to the latest 2023 Travel Index Outlook report released by the GBTA and related data, the recovery of the global travel industry has exceeded last year's expectations, and travel spending has maintained a strong growth trend.
The year-on-year growth rate is expected to reach 321% and is expected to surpass 2019 levels in 2024 to reach 1$4 trillion. In 2024, China's travel spending is expected to exceed $400 billion!
Large scale and high growth rate: Before the epidemic in 2020, China's annual business travel consumption exceeded 320 billion US dollars, with a growth rate of 114%, ranking first in the world in terms of volume and speed! In 2020, China's total business travel will still be the first in the world, and the decline rate will be significantly lower than that of the United States, -38% PK -61%.
Low penetration rate: The vast majority of China's business travel consumption is divided by various business travel service providers, and TMC accounts for less than 10%, and the penetration rate is extremely low. Compared with the European and American markets, TMC accounts for more than 50% of the total consumption of business travel, and China's TMC market has huge room for growth. After the epidemic, the domestic corporate travel market has recovered, and more than one-third of corporate travel expenses accounted for more than 10% of total expenditure in 2022, an increase compared with 2021. By type of enterprise, the proportion of travel expenditure of state-owned enterprises and large enterprises in total expenditure has increased significantly.
Low concentration: The concentration of the domestic TMC industry is low, there are many non-professional participants, and there are no industry leaders. The global TMC industry is highly concentrated, with 73% of CR5 in Germany and 76% in France; In 2017, the CR5 of China's TMC industry was less than 20%, far lower than the average level of mature markets.
Professional business travel service providers rely on technology and industrial integration capabilities, while enterprise-level service providers rely on focus and time grinding, not easy to replace by new entrants.
Since 2010, Travel Technology has been engaged in domestic business travel expense control management for more than 20 years, and not only has its self-developed "smart travel expense control management platform", but also has established long-term and stable cooperation with many domestic medium and large and group enterprise customers, meeting the actual needs of enterprise-level customers with large travel volume, strong demand for cost reduction and efficiency increase.
So, how does travel tech make money?
Before the pandemic, travel technology was positioned as an expense control management platform for enterprise-level consumption, mainly focusing on business travel service customization and outsourcing. However, the outbreak of the epidemic has seriously affected business travel around the world. This has made travel technology aware of some uncontrollable surprises that can have a big impact on business travel.
In order to avoid this risk and realize the long-term development of the enterprise, the travel technology has transformed into a financial expense control management and reimbursement platform software, creating a closed system of system customization, budget management, and process approval.
We can see that from 2023, the industry attributes of travel technology will change from a modern service industry to a software and information service industry.
Travel technology mainly earns several parts of the money: technical service fees paid by customers, fees and incentives paid by merchants, platform operation fees, software customization sales and operation and maintenance fees, etc.
Since the business model of travel technology is very different from that of traditional software companies or manufacturing companies, and there are no companies to benchmark in the domestic capital market, it may be difficult for investors to understand the company's business model and some financial indicators, which should have been explained clearly in this article.
But Zhulujun saw that this article is already very long, and it is difficult for investors to have the patience to read long articles, so I will write an article when I have time later.
To sum up: Zhulujun believes that travel technology is a specialized and "new" domestic travel management and control service provider in the market, with a unique business model, and there is no benchmarkable company in the domestic capital market, which is in the process of rapidly promoting the listing of the Beijing Stock Exchange.
As for how to value the travel technology, I will leave it to the later article.
Disclaimer: This article (report) is based on the published information or the information provided by the interviewee, but the author of the article does not guarantee the completeness and accuracy of such information. Under no circumstances does the information or opinions expressed in this document constitute investment advice to any person.