CICC has reiterated its earnings forecasts for LINKLOGIS-W (09959) for 2025E/2026E, with the stock currently trading at 0.9x/0.8x 2025E P/B. Considering the company's strategic breakthroughs and business structure optimization, the bank has raised its target price by 77% to HK$3.6 (implying 1.1x/1.0x 2025E/2026E P/B and 12.2% upside potential), maintaining an Outperform rating. Key highlights from CICC's report include:

**Recent Developments** LINKLOGIS recently released its Q3 2025 operational data: 1) As of Q3 2025, the number of partnered core enterprises/financial institutions increased by 30%/7% YoY to 2,798/405, while revenue-generating clients rose by 40%/4% YoY to 1,346/152. Customer retention improved by 3 percentage points to 99%, reflecting growth in both client quantity and quality. 2) Total asset processing volume in Q1-Q3 2025 grew 28% YoY to RMB336.2 billion, with Q3 transaction volume up 30% YoY and 28% QoQ to RMB132.6 billion, setting a new record for the first three quarters.

**Strong Growth in Multi-tier Financing Cloud, Recovery in ABS Business** - **Direct Financing Business**: Q1-Q3 2025 transaction volume surged 44% YoY to RMB252.3 billion, with Q3 volume up 54% YoY and 17% QoQ (Multi-tier Financing Cloud rose 71% YoY and 21% QoQ), driven by efficient customer acquisition in key industries and innovative financial solutions. - **Asset Securitization (ABS) Business**: Q1-Q3 2025 volume reached RMB77 billion, with Q3 volume jumping 77% QoQ to RMB37.5 billion, supported by deeper penetration in infrastructure and sequential improvement in AMS Cloud. - **Cross-border Cloud**: Q1-Q3 2025 volume stood at RMB6.8 billion. The company rebranded its international business in early October, with strategic expansion expected to provide long-term growth momentum.

**New Strategic Initiatives and Share Buybacks** In Q3 2025, LINKLOGIS secured a major Web3.0-based supply chain finance platform project with a central state-owned enterprise. CICC believes the company’s proactive "stablecoin+" strategy could drive breakthroughs in Web3.0 trade finance, creating new growth opportunities. Additionally, the company continued its share repurchase program in Q3, underscoring its commitment to shareholder returns and management confidence.

**Risks**: Slower-than-expected new business expansion; financial asset impairment risks; intensified competition.