Core Insights - The rise of black and gray market activities such as "debt collection avoidance," "credit repair," and "agent rights protection" is increasingly troubling financial institutions and harming consumer rights [1][2][3] - In Q1 2023, the National Financial Regulatory Administration reported a 50.8% year-on-year increase in consumer complaints, totaling 104,909 cases [1] - The internet has facilitated the rapid growth of financial black and gray market activities, with the number of practitioners reaching 5.871 million in 2023, a 141% increase from 2022 [2] Regulatory Actions - The National Internet Information Office and financial management departments have recently taken action against numerous accounts and websites spreading illegal financial advice, including shutting down accounts like "Xiao Bei You" on Xiaohongshu [1] - A six-month crackdown on black and gray market activities in the financial sector was launched by the Ministry of Public Security and the National Financial Regulatory Administration, focusing on loan intermediaries and malicious debt evasion [3] Industry Response - The industry is evolving to combat black and gray market activities through enhanced cooperation between police and enterprises, with the establishment of the "Anti-Financial Black Market Alliance" (AIF) involving 146 members [5] - Companies are implementing technology-driven solutions, such as voiceprint recognition and machine learning algorithms, to identify fraudulent activities and improve consumer protection [6][7] Consumer Impact - The proliferation of black and gray market activities not only infringes on consumer privacy and financial security but also disrupts the financial ecosystem and market order [2][3] - A significant portion of complaints received by financial institutions, approximately 30%, are identified as malicious, further complicating the regulatory landscape [2] Technological Developments - The AIF alliance is utilizing multi-source data integration and automated complaint handling to create a comprehensive governance framework against black and gray market activities [6] - Companies are developing advanced identification technologies to detect fraudulent behaviors in consumer protection, enhancing the overall integrity of the financial system [7]

Core Viewpoint - QFIN, a leading credit technology platform in China, aims to enhance credit services for consumers and small businesses through innovative technology solutions, resulting in significant financial growth and partnerships with financial institutions [1][2][3]. Financial Performance - As of March 31, 2025, QFIN reported total revenue of 4.691 billion RMB, representing a year-on-year growth of 12.94% - The net profit attributable to shareholders reached 1.8 billion RMB, showing a substantial increase of 54.62% [1]. Company Overview - QFIN focuses on providing technology-driven credit services to financial institutions, enabling easier access to credit for consumers and small businesses [1]. - The company has established partnerships with 133 financial institutions, including state-owned and regional banks, as well as consumer finance companies, enhancing its service offerings [1]. Target Market - The company targets consumers who are underserved by traditional financial institutions, particularly those with short credit histories and high growth potential [2]. - QFIN also caters to small and micro enterprises that lack sufficient credit history or collateral, offering tailored loan products [3]. Service Offerings - QFIN provides two main types of services: credit-driven services and platform services, each designed to meet the diverse needs of financial institution partners and users [3][4]. - Credit-driven services involve matching potential borrowers with financial institutions, where QFIN assumes credit risk for certain loan products [3]. - Platform services include customized technology solutions throughout the loan lifecycle, such as borrower acquisition, credit assessment, and post-loan services, without assuming credit risk [4][5]. Technology Utilization - The company employs advanced data analysis and credit assessment capabilities to identify low-risk borrowers, thereby expanding the borrower base for financial institutions [2][3]. - QFIN's "Intelligent Credit Engine" (ICE) provides smart marketing services to financial institutions, enhancing borrower matching and initial credit screening [5].

Market Capitalization Overview - New Oriental has a market capitalization of 14.065 billion [2] - TAL Education (好未来) has a market capitalization of 8.413 billion [2] - Miniso (名创优品) has a market capitalization of 5.728 billion [2] - JD.com (京东) has a market capitalization of 66.01 billion [2] - iQIYI (爱奇艺) has a market capitalization of 2.439 billion [3] Stock Performance - New Oriental's stock decreased by 0.15 (-0.77%) [2] - TAL Education's stock decreased by 0.21 (-1.20%) [2] - Miniso's stock increased by 1.24 (+2.61%) [2] - iQIYI's stock decreased by 0.05 (-0.48%) [3] - JD.com's stock increased by 0.39 (+3.92%) [3] Company Comparisons - New Oriental's market cap is significantly higher than that of TAL Education, which is about 60% of New Oriental's value [2] - Miniso's market cap is approximately 67% of TAL Education's market cap [2] - iQIYI's market cap is lower than that of Miniso, indicating a weaker market position [3] Industry Insights - The overall market performance shows a mixed trend with some companies experiencing gains while others face declines [2][3] - The education sector, represented by New Oriental and TAL Education, shows volatility with both companies experiencing stock price fluctuations [2] - E-commerce and entertainment sectors, represented by Miniso and iQIYI, also reflect varying market sentiments [2][3]

Investment Rating - The report maintains a positive outlook on the Hong Kong stock market, indicating a strong risk appetite and suggesting investment opportunities in various sectors, particularly in virtual assets and Web 3.0 [3][10]. Core Insights - The Hong Kong stock market is experiencing a significant increase in risk appetite, with improved asset quality and trading volume, highlighting the value of asset trading platforms [3][10]. - There is a notable uptrend in multiple sectors such as AI, new consumption, and innovative pharmaceuticals, with a particular focus on small and mid-cap stocks in media and consumer sectors [3][10]. - The report emphasizes the ongoing development of virtual assets and the Web 3.0 market, driven by stablecoin policies and recent IPOs, suggesting that more regulatory frameworks will emerge [3][10]. - The trend of Chinese companies returning to Hong Kong for IPOs is gaining momentum, with increased trading of companies like NetEase and Ctrip in the Hong Kong market [3][10]. - The valuation of overseas Chinese assets remains influenced by US-China trade relations and the broader economic environment, necessitating close monitoring of trade policies and domestic economic changes [3][10]. Summary by Sections Education - The K12 education sector maintains high growth, with leading institutions reporting over 20% revenue growth during the winter training period, and an increase in non-academic course retention rates [5][11]. Luxury Goods - The luxury goods market shows slight pressure due to macroeconomic factors, but brands that align with demand trends are performing well, with cautious price increases observed [5][20]. Coffee and Tea Drinks & OTA - Coffee and tea remain key categories for delivery platforms, with strong performance from major brands like Luckin Coffee, which continues to expand its store presence [5][25]. E-commerce - The e-commerce sector faces slight pressure, but major platforms like Alibaba and JD.com are expected to benefit from ongoing promotional activities [5][26]. Streaming Platforms - Music streaming platforms are viewed as high-quality internet assets, with sustained profitability driven by scale effects [5][34]. Virtual Assets & Internet Brokers - The stablecoin leader Circle's IPO saw a 168% increase on its first day, marking a significant event in the virtual asset space [5][38]. Real Estate Transactions - Recent data shows a slight decline in second-hand housing transactions in major cities, suggesting a need for caution in the real estate market [5][50]. Automotive Services - The automotive aftermarket is under pressure, with traditional fuel vehicle service visits declining, while new energy vehicle service visits are increasing [5][45].

Market Capitalization Summary - New Oriental has a market capitalization of 13.696 billion [2] - TAL Education has a market capitalization of 8.011 billion [2] - Vipshop has a market capitalization of 8.175 billion [2] - 51Talk has a market capitalization of 7.533 billion [2] - Xunlei has a market capitalization of 6.438 billion [2] - 76.67 billion market capitalization for another unspecified company [2] - 56.88 billion market capitalization for another unspecified company [2] - 32.89 billion market capitalization for another unspecified company [2] - 16.27 billion market capitalization for another unspecified company [2] - 12.30 billion market capitalization for Lexin [2] - 9.91 billion market capitalization for Youdao [2] - 5.19 billion market capitalization for Dada [2] Stock Performance - New Oriental's stock increased by 0.09 (+0.50%) [2] - TAL Education's stock decreased by 0.01 (-0.28%) [2] - Vipshop's stock increased by 0.27 (+1.46%) [2] - 51Talk's stock decreased by 1.09 (-2.28%) [2] - Xunlei's stock increased by 0.16 (+1.11%) [2] - 76.67 billion market capitalization company increased by 0.13 (+1.24%) [2] - 56.88 billion market capitalization company decreased by 0.14 (-0.77%) [2] - 32.89 billion market capitalization company increased by 0.65 (+2.58%) [2] - 16.27 billion market capitalization company increased by 0.02 (+1.20%) [2] - Lexin's stock increased by 0.22 (+2.68%) [2] - Youdao's stock decreased by 0.11 (-1.21%) [2] - Dada's stock decreased by 0.06 (-1.58%) [2] Additional Company Insights - The market capitalization of various companies ranges significantly, with some exceeding 10 billion [2] - Companies like New Oriental and TAL Education show contrasting stock performance trends, indicating varying investor sentiment [2] - The overall market appears to be volatile, with both increases and decreases in stock prices across different companies [2]

Core Viewpoint - Company demonstrates resilient demand and continues to optimize marketing strategies, maintaining healthy loan quality and shareholder returns through ongoing share buybacks [1][2] Group 1: Loan Quality and Profitability - In Q1 2025, the C-M2 ratio slightly increased to 0.60% from 0.57% in Q4 2024, while the first-day overdue rate rose to 5.0% from 4.8% [1] - The 30-day repayment rate remained stable at 88.1%, indicating that loan quality is still healthy [1] - The provision coverage ratio stands at 666%, up from 617% in Q4 2024, suggesting high profitability quality [1] Group 2: Demand and Customer Acquisition - Q1 2025 saw new loan issuance of 88.9 billion, a slight decrease of 1.1% quarter-on-quarter, reflecting resilient credit demand despite being a traditional off-peak season [2] - The company expects a year-on-year growth rate of approximately 8% in new loan issuance for 2025 [2] - The cost of customer acquisition increased to 384 RMB in Q1 2025 from 312 RMB in Q4 2024, attributed to a higher proportion of API channel acquisitions and increased spending on high-cost information flow channels [2] Group 3: Shareholder Returns - As of May 19, 2025, the company has repurchased shares worth 178 million USD out of a planned 450 million USD buyback, with expectations to complete the remaining amount within the year [2] - The company has committed to a dividend payout ratio of 20-30%, projecting a minimum shareholder return of approximately 10% for the year [2] Group 4: Profit Forecast - The company maintains net profit forecasts of 7.1 billion, 7.7 billion, and 8.2 billion RMB for 2025, 2026, and 2027 respectively [2] - Target prices for US and Hong Kong stocks are set at 55.6 USD and 220.9 HKD, based on a PE ratio of 6.5x for 2025 and DCF methods [2]

Investment Rating - The investment rating for the company is "Buy" [8] Core Views - The company demonstrates resilient demand and stable loan quality, with a focus on shareholder returns through ongoing share buybacks. The operational stability and quality are expected to enhance profitability in 2025 [1][2][4] Summary by Sections Loan Quality and Profitability - The C-M2 ratio slightly increased to 0.60% in Q1 2025 from 0.57% in Q4 2024, while the first-day overdue rate rose to 5.0% from 4.8%. The 30-day repayment rate remained stable at 88.1%. The loan quality is considered healthy, with a provisioning rate of approximately 4.9%, significantly higher than the long-term vintage overdue rate of 2.5-3.5%, indicating a strong profit cushion [2] Demand and Customer Acquisition Strategy - In Q1 2025, the company achieved a loan issuance of 88.9 billion RMB, reflecting a slight decrease of 1.1% quarter-on-quarter, indicating resilient credit demand. The customer acquisition cost per new credit user increased to 384 RMB from 312 RMB in Q4 2024, attributed to a higher proportion of API channel acquisitions and increased spending on high-cost information flow channels [3] Shareholder Returns - As of May 19, 2025, the company repurchased shares worth 178 million USD under a 450 million USD buyback plan, with expectations to complete the remaining amount within the year. The anticipated minimum shareholder return for the year is approximately 10%, supported by a commitment to a 20-30% dividend payout ratio [4] Profit Forecast - The company maintains its profit forecasts for 2025, 2026, and 2027 at 7.1 billion, 7.7 billion, and 8.2 billion RMB respectively. The target prices are set at 55.6 USD and 220.9 HKD, based on a PE ratio of 6.5x for 2025 and DCF methods [5]

Core Viewpoint - Growth investors are increasingly focusing on stocks with above-average financial growth, and Qifu Technology, Inc. (QFIN) is highlighted as a strong candidate due to its favorable growth metrics and Zacks Rank [2][10]. Group 1: Earnings Growth - The historical EPS growth rate for Qifu Technology, Inc. is 8.3%, but projected EPS growth for this year is expected to be 25.3%, surpassing the industry average of 23.7% [5]. Group 2: Cash Flow Growth - Qifu Technology, Inc. has a year-over-year cash flow growth of 41.5%, significantly higher than the industry average of -11.5% [6]. - The company's annualized cash flow growth rate over the past 3-5 years is 19.2%, compared to the industry average of 14.7% [7]. Group 3: Earnings Estimate Revisions - The current-year earnings estimates for Qifu Technology, Inc. have been revised upward, with the Zacks Consensus Estimate increasing by 2.3% over the past month [9]. Group 4: Overall Positioning - Qifu Technology, Inc. has achieved a Growth Score of A and holds a Zacks Rank 2, indicating strong potential for outperformance in the growth investment space [10][11].

Core Viewpoint - Wall Street is experiencing volatility due to uncertainty surrounding the new U.S. administration's economic tariffs, prompting investors to seek stability through dividend investing [1][2]. Investment Strategy - Dividend investing is highlighted as a strategy that offers income and stability, especially in a rocky market, despite not providing dramatic price appreciation [2]. - Stocks with a history of dividend growth are recommended for building a healthy portfolio with potential for capital appreciation [3][4]. Selected Dividend Growth Stocks - Four dividend growth stocks are identified as compelling picks: - NetEase Inc. (NTES) with an expected earnings growth rate of 10.6% and a Zacks Rank 1 [10]. - Fox Corporation (FOX) with an expected earnings growth rate of 32.4% and a Zacks Rank 1 [11]. - Qifu Technology Inc. (QFIN) with an expected earnings growth rate of 22.6% and a Zacks Rank 2 [12][13]. - UGI Corporation (UGI) with a positive earnings estimate revision and a Zacks Rank 2 [14][15]. Stock Selection Criteria - Stocks selected for dividend growth should have: - 5-Year Historical Dividend Growth greater than zero [6]. - 5-Year Historical Sales Growth greater than zero [7]. - 5-Year Historical EPS Growth greater than zero [7]. - Next 3-5 Year EPS Growth Rate greater than zero [7]. - Price/Cash Flow less than M-Industry [8]. - 52-Week Price Change greater than S&P 500 [8]. - Top Zacks Rank of 1 or 2 [8]. - Growth Score of B or better [9]. Company Fundamentals - Companies with strong fundamentals are characterized by sustainable business models, profitability, rising cash flows, good liquidity, and strong balance sheets, making them promising long-term investments [5].

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]