Earnings Forecast Surge Drives 10% Stock Rally
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In recent financial news, the stock of Jiufang Zhitu Holdings (09636.HK) experienced a remarkable surge on February 17, climbing over 10% at one point during trading. By the time this article was prepared, the shares had settled at a 7.97% increase, reaching 27.1 HKD each, resulting in a commendable market capitalization of 12.15 billion HKD. The company’s impressive performance can be attributed to a recent announcement of an earnings forecast indicating a substantial increase in net profit for shareholders. Jiufang Zhitu projected a net profit of approximately 260 to 280 million RMB for the previous year—a staggering increase of between 36.1% to 46.6% compared to the prior year.
In addition to net profit, Jiufang Zhitu expects to see a total order value of around 3.509 billion RMB, reflecting an increase of approximately 1.161 billion RMB from the previous year. Additionally, anticipated revenue figures paint a similarly positive picture, with expectations set at about 2.306 billion RMB—an increase of around 341 million RMB year-over-year. The company also highlighted an anticipated rise in operating cash flow, projecting an increase of 1.184 billion RMB, representing a notable approximate 267% growth. The impressive financials have undoubtedly contributed to a bullish investor sentiment, propelling the company's stock prices to open significantly higher and maintain an upward trajectory.
Jiufang Zhitu is recognized as a leading educator in investor education services within China. Their business operations encompass a variety of services, including high-end financial education platforms delivered online, software for financial information, and various financial literacy initiatives aimed at enhancing the understanding of financial markets. The flux of new investors entering the market following various policy implementations since late September has indeed generated an increased demand for educational services in finance, likely accounting for the remarkable financial performance of Jiufang Zhitu.
The remarkable return of investor enthusiasm and stock market activity, fueled by a series of proactive policies and regulatory changes, has indeed created a fertile environment for companies like Jiufang Zhitu. As new brokerage accounts surge, both the Hong Kong and mainland markets are witnessing expanded transaction volumes, elevating demand for educational services surrounding investment.

The company's board further confirmed this growth in their latest announcement, noting that the significant improvement in financial performance was a direct result of the upsurge in trading activity within the domestic securities market by the end of September 2023, which was bolstered by a range of government policies aimed at stabilizing and invigorating the market. The company has strategically adapted its product offerings to attract a wider clientele and has been committed to continual innovation in expanding its product matrix to satisfy growing and diversified user needs.
Amidst a broader trend of digital transformation, Jiufang Zhitu has positioned itself at the forefront of technological integration in the investment education industry. Utilizing cutting-edge technologies such as data analytics and artificial intelligence (AI), the company is continuously refining its product and service experiences. For instance, through comprehensive data analysis techniques, Jiufang Zhitu has been able to delve deep into user transaction data and investment behavior patterns, effectively aligning its offerings with consumer needs and evolving market trends, thereby enhancing its research and promotional capabilities.
On the forefront of technological applications, Jiufang Zhitu has developed intelligent customer service capabilities using natural language processing, allowing for quick and accurate responses to user inquiries, and has employed machine learning algorithms to inform users of personalized investment portfolio recommendations based on individual investment goals and risk tolerances.
A particularly noteworthy development for Jiufang Zhitu was the recent completion of the privatization deployment of the DeepSeek series of open-source models. This strategic move is anticipated to have significant implications across various core business areas, including investment research, consultancy, risk compliance, and intelligent marketing, as well as customer service within the securities sector.
The advanced data analysis and prediction capabilities of the DeepSeek model will empower Jiufang Zhitu's investment and research teams to swiftly and accurately extract pertinent market information, thereby providing investors with forward-thinking investment advice. Furthermore, in the realm of risk compliance, the model offers robust support for real-time monitoring and assessment of vast quantities of financial data to identify potential risk indicators.
In the area of intelligent marketing, the precision analytics derived from the DeepSeek model will facilitate targeted marketing efforts, enhancing overall marketing efficiency and results. Similarly, the upgrade in intelligent customer service functionalities will undoubtedly lead to improved service quality and response times, enhancing the overall experience for investors seeking assistance. Jiufang Zhitu's proactive embrace of AI-driven digital transformation aims to pioneer innovative business models that meet the demand for precise and efficient personalized investment advisory services.
Furthermore, it is worth noting that Jiufang Zhitu's recent stock surge could be partially attributed to its association with DeepSeek. Various technology firms within the Hong Kong stock market have also begun leveraging DeepSeek capabilities, which has translated into favorable stock performance for those involved. For instance, in a significant move over the weekend, industry giant Tencent Holdings (00700.HK) announced that its widely utilized application "WeChat" had begun gradient testing with the DeepSeek model. Selected users now have access to an AI search feature, allowing them to harness the full capabilities of the DeepSeek-R1 model to enhance their search experiences.
As of February 17, Tencent Holdings' shares increased by 3.20%, pushing its market value to over 4.5 trillion HKD. Moreover, other companies connected to DeepSeek, such as China Unicom (00762.HK) and China Telecom (00728.HK), witnessed a similar uptick in stock performance, demonstrating a growing trend across affected sectors.