Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth S ...

Group 1 - Qifu (NASDAQ: QFIN) is strengthening its position in the online lending space as observed since 2023 [1] - The focus of the analysis is on long-term stock positions rather than short-term analysis [1] Group 2 - The author has a background in finance and has worked with two financial companies, focusing on Energy, Banking, and Tech stocks [1]

Global Research ab 29 May 2025 The sizable funding cost decline by 30bps in Q1 (to 3.2%) was driven by a record high quarterly ABS issuance of Rmb6.6bn. Looking ahead, further funding mix shift towards ABS could bring some upside, though management noted ABS issuance is usually seasonally stronger in 1H. The company targets a full-year ABS issuance size of Rmb18bn+, implying at least 20% growth from last year's Rmb15bn or 12% of 2024's capital heavy loan volume. Overall, management sees the company well on ...

Core Insights - Qifu Technology, Inc. (QFIN) and Byrna Technologies Inc. (BYRN) are lesser-known tech companies with significant growth potential in their respective sectors [1] - QFIN focuses on AI-driven consumer finance, while BYRN specializes in non-lethal self-defense technology [1] Qifu Technology (QFIN) - QFIN's AI + Finance strategy is transforming credit services, leading to a 15.8% year-over-year growth in loan origination and an 11.1% increase in registered users in Q1 2025 [2] - The company employs AI models to assess large datasets for identifying creditworthy individuals and SMEs, enhancing risk management and reducing defaults [3] - QFIN's AI-led marketing strategy has improved user profiling accuracy, resulting in a 33% increase in the conversion rate of new credit line users to new borrowers [4] - The company's sales estimate for fiscal 2025 is $2.6 billion, indicating a 7.6% year-over-year growth, with earnings estimated at $6.94 per share, reflecting a 22.6% increase [9] Byrna Technologies (BYRN) - BYRN's patented "first-shot, pull-pierce" technology enhances product reliability, making it appealing for personal safety and law enforcement [5] - The company’s blunt impact projectile design is less lethal yet effective, broadening its market appeal [6] - Byrna is increasing production, with a 33% rise in launcher production in Q1 2025, reaching 24,000 units per month to meet market demand [7] - The sales estimate for BYRN in fiscal 2025 is $111.7 million, suggesting a 30.2% year-over-year growth, with earnings projected at 35 cents per share, indicating a 12.9% rise [8] Comparative Analysis - QFIN's forward earnings multiple is 61.74X, lower than its 12-month median of 92.59X, while BYRN's multiple is 5.83X, slightly below its median of 5.84X [10] - Both companies are rated with a Zacks Rank 2 (Buy), but BYRN is considered a more compelling investment due to its growth potential in the personal security market compared to the competitive fintech sector [13][14]

Core Viewpoint - Qifu Technology (NASDAQ: QFIN) is rated as a 'Strong Buy' due to its cheap valuation, strong growth, good business economics, and potential for a turnaround in the Chinese economy [1] Group 1: Company Analysis - The company has a strong growth trajectory and favorable business economics, making it an attractive investment opportunity [1] - The valuation of Qifu Technology is considered cheap, indicating potential for price appreciation [1] Group 2: Market Context - There is an expectation of a turnaround in the Chinese economy, which could serve as a catalyst for Qifu Technology's performance [1]

Core Insights - Qifu Technology has been recognized as the "Most Honored Company" in the 2025 Extel Asia Best Managed Teams rankings, highlighting its leadership in corporate governance and investor relations within the fintech sector [1][2] - The company excelled in several sub-categories, including "Best CEO," "Best CFO," and "Best Investor Relations Professional," reinforcing its status as a benchmark in Asia's fintech industry [1][2] Company Performance - In Q1 2025, Qifu reported significant growth, connecting with 163 financial institution partners and reaching 268 million registered users, with 58.4 million credit-approved users [3] - The company facilitated loan origination amounting to RMB 88,883 million, reflecting a 15.8% year-over-year increase, driven by its "AI + Finance" strategy [3] - Qifu is developing the industry's first intelligent agent for its core credit business, which includes multiple smart modules aimed at enhancing operational efficiency [3]

Qifu Technology, Inc. (QFIN) closed the last trading session at $42.52, gaining 3.9% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $54.80 indicates a 28.9% upside potential.The average comprises four short-term price targets ranging from a low of $50 to a high of $58.50, with a standard deviation of $4.14. While the lowest estimate indicates an increase of 17.6% from the current ...

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Summary: Qifu Technology, Inc. (QFIN) - QFIN currently holds a Momentum Style Score of B, indicating a positive momentum outlook [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [3] - Over the past week, QFIN shares increased by 4.02%, outperforming the Zacks Technology Services industry, which rose by 2.63% [5] - In a longer timeframe, QFIN's monthly price change is 14.66%, compared to the industry's 10.22% [5] - Over the last quarter, QFIN shares rose by 8.35%, and over the past year, they have surged by 112.04%, while the S&P 500 saw movements of -2.63% and 13.25%, respectively [6] - The average 20-day trading volume for QFIN is 1,527,784 shares, indicating a bullish sign with rising stock prices [7] Earnings Outlook - Recent earnings estimate revisions for QFIN show positive trends, with 2 estimates moving higher and none lower over the past two months [9] - The consensus earnings estimate for QFIN increased from $6.58 to $6.93 in the last 60 days, reflecting a positive outlook [9] - For the next fiscal year, 2 estimates have also moved upwards, with no downward revisions [9] Conclusion - Given the strong performance metrics and positive earnings outlook, QFIN is positioned as a promising momentum pick for investors [11]

Investment Rating - The investment rating for the company is "Buy" for both US and Hong Kong stocks [7]. Core Views - The company's 1Q25 performance met expectations with revenue of 46.9 billion RMB, reflecting a quarter-over-quarter increase of 4.7% and a year-over-year increase of 12.9%. The net profit attributable to shareholders was 18.0 billion RMB, which was slightly below the previous quarter but showed a significant year-over-year increase of 54.6% [1][4]. - The company is expected to maintain a cautious lending strategy amid industry changes, with a projected moderate growth in loan volume for 2025 [2][3]. - The risk indicators have shown slight fluctuations but remain at healthy levels, with a C-M2 ratio of 0.60% and a provisioning coverage ratio of 666% [3]. Summary by Sections Financial Performance - 1Q25 revenue was 46.9 billion RMB, with a net profit of 18.0 billion RMB, aligning with the company's guidance [1]. - Loan volume for 1Q25 was 889 billion RMB, showing a slight quarter-over-quarter decline of 1.1% but a year-over-year increase of 15.8% [2]. Risk Indicators - The C-M2 ratio increased to 0.60%, while the first-day overdue rate rose to 5.0%. However, these levels are still considered healthy compared to historical averages [3]. - The provisioning coverage ratio improved to 666%, indicating strong profit quality [3]. Profit Forecast - The company has adjusted its net profit forecasts for 2025, 2026, and 2027 to 71 billion RMB, 77 billion RMB, and 82 billion RMB respectively, with target prices set at 55.6 USD and 220.9 HKD [4][11]. Valuation Methods - The target prices are derived from both PE and DCF valuation methods, with a PE of 6.5x for 2025E [11][12].

Financial Data and Key Metrics Changes - In Q1 2025, non-GAAP net income increased by 59.9% year over year to RMB 1.93 billion, while non-GAAP EPS on a fully diluted basis rose by 78.5% to RMB 13.5 [7][28] - Total revenue for Q1 was RMB 4.69 billion, compared to RMB 4.48 billion in Q4 and RMB 4.15 billion a year ago [22] - The take rate for the quarter reached 5.7%, up 2.2 percentage points year over year [7] Business Line Data and Key Metrics Changes - Revenue from credit-driven services was RMB 3.11 billion in Q1, up from RMB 2.89 billion in Q4 and RMB 3.02 billion a year ago [22] - Revenue from platform services was RMB 1.58 billion in Q1, slightly down from RMB 1.59 billion in Q4 but up from RMB 1.14 billion a year ago [23] - Loan facilitation and origination volume increased by 15.8% year over year [7] Market Data and Key Metrics Changes - The company added 1,540,000 new credit line users in Q1, up 6% year over year, with new borrowers increasing approximately 41% year over year to 1,130,000 [12] - The delinquency rate after thirty-day collections (C:M2) remained stable at 0.6% [11][26] - The average internal rate of return (IRR) of loans originated was 21.4%, compared to 21.3% in the prior quarter [23] Company Strategy and Development Direction - The company is focusing on an AI plus credit strategy, aiming to build the industry's first AI agent platform to enhance core credit processes [8] - Plans to recruit an additional 100 algorithm engineers by the end of the year to accelerate transformation into an AI-native organization [8] - The company expects to maintain high-quality growth in its core loan facilitation business while empowering financial institutions through technology solutions [19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macroeconomic environment, noting early signs of recovery in China's economy [6][18] - The company plans to enhance operational efficiency and optimize capital allocation while maintaining a prudent approach to risk management [18][66] - The outlook for Q2 2025 includes expected non-GAAP net income between RMB 1.75 billion and RMB 1.85 billion, representing year-on-year growth of 24-31% [32] Other Important Information - The company issued RMB 6.6 billion in asset-backed securities (ABS) in Q1, a year-over-year increase of approximately 25% [12] - The effective tax rate for Q1 was 18%, higher than the typical rate of approximately 15% due to withholding tax provisions [28] - The company has initiated a share repurchase program, expecting total repurchases this year to be no less than USD 680 million [20] Q&A Session Summary Question: Impact of new loan facilitation rules and credit quality trends - Management indicated that new regulations are a positive signal for the industry, promoting orderly development and recognizing the value of leading loan facilitation platforms [36] - Asset quality remains stable, with the C2M2 ratio at 0.6%, significantly better than previous periods [39] Question: Asset quality indicators and credit demand trends - The increase in day one delinquency was attributed to changes in loan mix, with a higher percentage from embedded finance channels [44] - Credit demand has shown early signs of recovery, but macro uncertainties persist [47] Question: Impact of US-China trade tensions and potential delisting risk - The direct impact of tariffs on the business is limited, with only a small percentage of loan volume related to exports [50] - The company has a clear plan to address potential ADR delisting risks, including a secondary listing in Hong Kong [54] Question: Customer acquisition costs and strategies - The increase in customer acquisition costs was driven by a change in business mix, with a focus on efficiency rather than just cost [60] - The company plans to adjust acquisition strategies based on macro conditions and customer demand [62] Question: Loan demand trends and funding liquidity - Recent policy measures to boost consumption have positively impacted credit demand, and funding costs are expected to decrease slightly [66] - The company will maintain a prudent lending strategy while pursuing sustainable growth [67]