Economic Overview - The first quarter economic data from China indicates a positive signal, with a notable recovery in the consumer market, laying a solid foundation for the annual economic performance [1] - The total retail sales of consumer goods reached 12.4671 trillion yuan, a year-on-year increase of 4.6%, accelerating by 1.1 percentage points compared to the previous year [1] - In March, retail sales grew by 5.9% year-on-year, an acceleration of 1.9 percentage points compared to January-February, with a month-on-month growth of 0.58% [1] Financial Technology Companies Performance - Four Chinese financial technology companies focusing on consumer credit—Xiaoying Technology, Xinyi Technology, Lexin, and Qifu Technology—reported strong growth in their first-quarter financial results, reflecting the role of consumer finance in boosting consumption [1][2] - Xiaoying Technology reported a revenue of 1.938 billion yuan and a total loan facilitation of 35.149 billion yuan in the first quarter of fiscal year 2025, with a loan balance of 58.403 billion yuan [2][3] - Xinyi Technology achieved a revenue of 3.481 billion yuan and a net profit of 738 million yuan, with a total transaction amount of 52.1 billion yuan, marking a year-on-year growth of 7.9% [3][4] - Lexin's first-quarter revenue reached 3.1 billion yuan, with a non-GAAP EBIT of 580 million yuan, showing a significant year-on-year increase of 104.7% [4] - Qifu Technology reported a net income of 4.691 billion yuan, a year-on-year increase of 12.94%, with a total loan facilitation of 88.883 billion yuan, reflecting a growth of 15.8% [5] Market Trends and Future Outlook - The performance of financial technology companies is attributed to the recovery of the consumer market and the significant role of consumer credit in stimulating consumption [6] - Despite the positive first-quarter data, uncertainties remain regarding the sustainability and strength of the consumption recovery, with underlying issues such as income growth and consumer confidence needing further attention [6][7] - Recent government policies aimed at stabilizing the real estate market and expanding domestic demand have shown initial effectiveness, contributing to the overall economic stabilization [2][6] - The focus on service consumption as a key area for future economic stimulus reflects the government's commitment to enhancing consumer spending [6][7]

Core Viewpoint - QFIN Technology (奇富科技) has demonstrated impressive financial performance, with a quarterly revenue of 46.9 billion and a net profit of 18 million, attracting positive attention from various brokerage firms [1][2][3] Financial Performance - The company reported a quarterly revenue of 46.9 billion and a net profit of 18 million [1] - Major brokerage firms have upgraded their ratings and target prices for QFIN Technology, with Citigroup and Bank of America setting target prices at $58.5 and $52.7 respectively, while CICC maintains a "outperform" rating for the Hong Kong stock with a target price of 253.4 HKD [2] Business Overview - QFIN Technology primarily operates in the credit sector, leveraging AI technology to enhance its business processes [4][5] - The company has established partnerships with 163 financial institutions, serving 58 million users, indicating a strong market presence [6] Technological Integration - The integration of AI into core business processes such as customer acquisition, approval, and risk control has led to significant operational improvements [7] - Key performance indicators show a 6% year-on-year increase in new credit users and a 15.8% increase in loan facilitation volume [10] Cost Control and Competitive Advantage - Effective cost control is crucial for survival and profitability in the financial industry, and QFIN Technology has established a leading advantage in this area [11][12] - The company's intelligent ecosystem is expected to reduce marginal costs and increase marginal returns, thereby enhancing profit margins [13] Business Growth Opportunities - QFIN Technology's subsidiary, QFIN Data Technology, has seen a 144% year-on-year growth in business scale through partnerships with mid-sized city commercial banks [14] - The ongoing investment in AI is likely to lead to a reassessment of the company's long-term value in the market [15] Valuation and Market Position - The competitive barriers created by the credit intelligence model are expected to enhance earnings per share (EPS) and drive valuation increases [16] - The company's first-mover advantage in the intelligent ecosystem positions it favorably for future industry competition, potentially leading to a scarcity premium [17]

Core Insights - The core focus of Qifu Technology is on AI integration within its operations, emphasizing a company-wide shift towards AI-driven strategies and projects [1][2][3] Financial Performance - Qifu Technology reported strong performance in Q1 2025, with AI being a central theme in their financial results and management discussions [1] - The company has established a large model team in the fintech sector, directly managed by CEO Wu Haisheng, indicating a significant commitment to AI [1] AI Strategy and Implementation - The company launched an "all-in AI" initiative, encouraging all employees to participate in AI-related projects, marking a shift from a cautious approach to a more aggressive AI strategy [2][4] - The "Deepbank" project aims to redefine the financial industry's intelligent paradigm, with a focus on rapid output and implementation [2][3] Employee Engagement and Culture - Qifu Technology has created a culture of urgency and excitement around AI, with numerous internal meetings and discussions to align employees on AI strategies [3][4] - Different employee groups have emerged, including those who are enthusiastic, anxious, or resistant to change, reflecting a diverse range of attitudes towards the AI transformation [4] Investment and Resource Allocation - The company has committed to unprecedented investments in AI, with no upper limit on budgets for AI-related human resources and development [7][11] - Qifu Technology's "Deepbank Star Sea Plan" aims to attract top AI talent, offering competitive salaries and internal mobility opportunities [10][11] AI Application and Development - The company has begun implementing AI agents in its core business processes, significantly improving operational efficiency and decision-making capabilities [14][15] - Qifu Technology's AI decision-making module has shown promising results, with a model AUC value of 0.64 in risk prediction, indicating effective AI integration [14] Strategic Partnerships - Qifu Technology has signed "AI+ Financial Strategic Cooperation Agreements" with multiple banks, focusing on enhancing marketing, risk control, and decision-making processes [15] - The CEO emphasized that AI technology is crucial for the next generation of fintech, positioning the company for long-term growth through AI-driven innovations [15]

Market Capitalization Summary - The market capitalizations of various companies are listed, with notable figures including 136.20 billion for a leading company and 88.05 billion for another significant player [2] - Companies like MINISO and VIPSHOP have market caps of 76.81 billion and 75.61 billion respectively, indicating strong positions in the market [2] - TAL Education and other firms show varying market caps, with TAL at 66.64 billion and others like Zai Auto and Huya at 35.18 billion and 29.68 billion respectively [2] Stock Performance Overview - Stock price changes are noted, with MINISO showing a slight increase of +0.07 (+0.41%) and VIPSHOP increasing by +0.24 (+1.70%) [2] - TAL Education's stock rose by +1.03 (+2.43%), while other companies like Dada and Yatsen experienced minor fluctuations [2] - Companies such as Lexin and Huya saw declines, with Lexin down by -0.49 (-5.71%) and Huya down by -0.19 (-4.24%) [2] Company Specific Insights - MINISO and VIPSHOP are highlighted as strong competitors in the retail sector, with significant market caps and positive stock performance [2] - TAL Education continues to show resilience with a notable market cap and stock price increase, reflecting investor confidence [2] - Companies like Dada and Yatsen are also mentioned, indicating a diverse range of players in the market with varying performance metrics [2]

Core Viewpoint - QFIN's stock price increased by 2.49% to $43.57 per share, with a market capitalization of $5.859 billion as of May 23 [1] - For the fiscal year ending December 31, 2024, QFIN reported total revenue of 17.166 billion RMB, a year-on-year increase of 5.38%, and a net profit attributable to shareholders of 6.264 billion RMB, a year-on-year increase of 46.18% [1] Group 1: Company Overview - QFIN is a leading credit technology platform in China, focused on providing innovative credit services to financial institutions, consumers, and small and micro enterprises [2][3] - The company aims to enhance the accessibility and personalization of credit services through technology solutions, helping financial institutions identify and assess potential borrowers [2][3] Group 2: Target Audience - The company targets consumers who are underserved by traditional financial institutions, particularly those with short credit histories and high growth potential [3] - QFIN also focuses on small and micro enterprises that lack sufficient credit history or collateral, offering tailored loan products to meet their needs [4] Group 3: Service Offerings - QFIN provides two main types of services: credit-driven services and platform services, both designed to improve the lending process and borrower experience [4][5] - Credit-driven services involve matching potential borrowers with financial institutions, where QFIN assumes some credit risk [4][6] - Platform services include a range of technology solutions for different stages of the loan lifecycle, such as borrower acquisition and credit assessment, without assuming credit risk [5][6] Group 4: Technology Solutions - The company utilizes its "Intelligent Credit Engine" (ICE) to provide smart marketing services and assist financial institutions in initial credit screening [6][7] - QFIN also offers risk management SaaS services to help financial institutions improve their credit assessment processes [7]

5月20日，全球领先的企业管治及投资者关系研究公司Extel（原《机构投资者》）公布2025年度亚洲 （除日本）最佳管理团队排名结果。中国领先的金融科技公司奇富科技（纳斯达克：QFIN；港交所： 3660）蝉联"最受尊敬公司"称号，并在"最佳首席执行官""最佳首席财务官""最佳投资者关系专业人 员"等多项细分榜单中位列第一，成为亚洲金融科技领域的耀眼标杆。 奇富科技之所以能在此次评选中脱颖而出，源于其将AI技术应用的领先成果，与信息披露透明度、公 司治理完善性及资本市场沟通有效性等方面的突出表现深度协同，构建了难以复制的竞争优势。 同日披露的2025年第一季度财报显示，奇富科技业务规模与用户粘性持续提升：累计连接163家金融机 构合作伙伴，注册用户达2.68亿，授信用户5840万；撮合贷款规模888.83亿元，同比增长15.8%。业绩 增长得益于其"AI+金融"战略的深入落地，公司正打造行业首个赋能信贷核心业务的智能体，该智能体 由多个智能模块组成，已在业务场景中推动流程重构与效率提升。 奇富科技的全链条竞争力离不开核心管理团队的引领。首席执行官吴海生荣膺"最佳首席执行官"，其在 宏观经济挑战中展现出卓越的战 ...

Core Viewpoint - Q1 2025 performance of Qifu Technology exceeded previous expectations, driven by higher loan volumes and improved funding costs [1][2] Financial Performance - Q1 2025 revenue increased by 13% year-on-year and 5% quarter-on-quarter to 4.69 billion yuan, while non-GAAP net profit rose by 60% year-on-year but decreased by 2% quarter-on-quarter to 1.93 billion yuan [1][2] - The net service fee rate was approximately 5.6%, slightly down from 5.96% in Q4 2024, attributed to a decrease in average funding costs and stable asset quality [2] Loan Volume and Structure - Q1 2025 loan volume increased by 16% year-on-year but decreased by 1% quarter-on-quarter to 88.9 billion yuan, with technology solution loans accounting for about 49% [1] - The company expects loan volume growth of 5%-10% year-on-year for 2025, maintaining previous forecasts [1] Shareholder Returns - The company maintains a semi-annual dividend policy, with cash dividends of $0.6 and $0.7 per ADS planned for 1H24 and 2H24 respectively [2] - As of May 19, 2025, the company has repurchased 9.1 million ADS for approximately $405 million, with total repurchase expected to be no less than $680 million for 2025 [2] Regulatory Environment - The introduction of the "Assisted Loan New Regulations" is expected to promote industry standardization and eliminate unreasonable pricing behaviors, benefiting compliant institutions like the company [3] Earnings Forecast and Valuation - Earnings forecasts for 2025 and 2026 have been raised by 2% and 4% to 7.17 billion yuan and 7.82 billion yuan respectively due to optimized funding and credit costs [3] - The company's current trading multiples are 7.1x and 6.5x for 2025 and 2026 P/E in the US market, and 6.6x and 6.0x in the Hong Kong market, with target prices maintained at $60.0 and HK$253.4 [3]

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].

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-on-quarter increase of 4.7% and a year-on-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-on-year increase of 54.6% [1][4]. - The company is expected to maintain a cautious lending strategy, with a projected moderate growth in loan volume for 2025, supported by high-quality earnings and substantial shareholder returns [1][2]. Summary by Sections Financial Performance - 1Q25 loan volume was 889 billion RMB, showing a slight quarter-on-quarter decrease of 1.1% but a year-on-year increase of 15.8%. The loan balance reached 1,403 billion RMB, with a quarter-on-quarter increase of 2.4% and a year-on-year increase of 5.5% [2]. - The net profit take rate for 1Q25 was 5.2%, down from 5.9% in the previous quarter, indicating a potential impact on short-term profitability [3]. Risk Indicators - The C-M2 ratio increased to 0.60% in 1Q25 from 0.57% in 4Q24, while the first-day overdue rate rose to 5.0%. However, these levels remain healthy compared to historical averages [3]. - The provision coverage ratio improved to 666% from 617% in the previous quarter, indicating strong earnings quality [3]. Earnings Forecast - The company’s net profit forecasts for 2025, 2026, and 2027 have been slightly adjusted to 71 billion RMB, 77 billion RMB, and 82 billion RMB respectively, with target prices maintained at 55.6 USD for US stocks and 220.9 HKD for Hong Kong stocks [4][8].