Core Insights - QFIN Technology reported its Q1 2025 financial results, demonstrating a strong performance driven by AI innovations and a commitment to prudent management strategies in a complex market environment [1] - The company is advancing its "AI + Finance" strategy, aiming to create the first intelligent system that empowers core lending operations, which has already begun to enhance business processes and efficiency [1][2] Financial Performance - As of the end of Q1, QFIN Technology connected with 163 financial institutions, providing digital credit services to over 58 million credit users, with a 6% year-on-year increase in new credit users and a 15.8% increase in loan facilitation volume [1] AI-Driven Innovations - The launch of the lending intelligent system integrates various smart modules covering data analysis, operations, compliance, risk strategies, and financial reconciliation, significantly transforming the company's business model [2] - The AI marketing module improved the conversion rate from new credit users to new loan users by 33% year-on-year [2] - The AI compliance module reduced the time required for regulatory document interpretation from 40 hours to 2 hours, with accuracy improving from 68% to 99.2% [2] Risk Control Enhancements - QFIN Technology has developed end-to-end risk control capabilities, achieving an AUC improvement to 0.64 through reinforcement learning on historical decision logs [3] - The user feature verification accuracy reached over 95% through advanced data mining capabilities [3] Strategic Partnerships and Growth - QFIN Technology's subsidiary, QFIN Digital Technology, signed contracts with three mid-to-large city commercial banks, with a 144% year-on-year increase in business scale [4] - The launch of the FocusPRO2.0 platform for digital inclusive credit solutions has led to rapid loan disbursement and exceeded risk control expectations [4] Social Responsibility Initiatives - The company launched the "QFIN Support Program" to assist rural revitalization through interest-free loans for small businesses and farmers, contributing to local economic development [6] - QFIN Technology has been recognized for its efforts in promoting financial technology development and social responsibility, with its CEO participating in high-level forums to discuss opportunities in AI and industry upgrades [6] Future Outlook - The CEO emphasized that AI technology is a core support for the generational leap in fintech, positioning the lending intelligent system as a new growth engine for long-term high-quality development [7] - The intelligent system is expected to facilitate the transition of traditional banks to smart banks, enhancing user experience and commercial efficiency [7]

Company Overview - Qifu Technology is a leading AI-empowered credit-tech platform in China with 584 million cumulative users with approved credit lines[13, 27] - The company has established partnerships with 163 financial institutions[13, 20] - Loan facilitation volume in 1Q25 reached RMB 889 billion, representing a 158% year-over-year increase[13] - Non-GAAP net income in 1Q25 was RMB 1926 million, a 599% year-over-year increase[13] - The company has repurchased US$905 million worth of ADSs cumulatively, leading to a 210% share count reduction[15] Financial Performance - Total net revenue for 1Q25 was RMB 4691 million[62] - Non-GAAP net income for 1Q25 was RMB 1926 million[64] - Platform services contributed 531% to the loan facilitation volume in 1Q25[57] - Platform services contributed 581% to the outstanding loan balance in 1Q25[59] Risk Management - The company maintains robust risk performance, as indicated by delinquency and collection rates[67, 68, 69]

User Growth and Engagement - As of March 31, 2025, the platform has connected with 163 financial institution partners and 268.2 million consumers with potential credit needs, an increase of 11.1% from 241.4 million a year ago[5] - The number of users with approved credit limits reached 58.4 million, up 11.6% from 52.3 million as of March 31, 2024[5] Loan Performance - The total loan volume facilitated reached RMB 88,883 million, a 15.8% increase from RMB 76,784 million in the same period last year[5] - The total outstanding loan balance was RMB 140,273 million, reflecting a 5.5% increase from RMB 132,964 million as of March 31, 2024[5] - The 90-day+ delinquency rate for loans was 2.02% as of March 31, 2025[5] - The first-day overdue rate was 5.0%, while the 30-day recovery rate was 88.1%, indicating stable risk performance despite macroeconomic fluctuations[10] - The weighted average contract term for loans initiated by financial institutions was approximately 10.17 months, slightly up from 10.10 months in the same period last year[5] Financial Performance - Total net revenue for the first quarter was RMB 4,690.7 million (USD 646.4 million), compared to RMB 4,482.3 million in the previous quarter[10] - Net profit for the first quarter was RMB 1,796.6 million (USD 247.6 million), down from RMB 1,912.7 million in the previous quarter[10] - Non-GAAP net profit was RMB 1,926.2 million (USD 265.4 million), compared to RMB 1,972.4 million in the previous quarter[10] - The company reported a diluted net income per American Depositary Share (ADS) of RMB 12.62 (USD 1.74), down from RMB 13.24 in the previous quarter[10] - Total revenue for Q1 2025 reached RMB 4.69 billion (USD 646.4 million), an increase from RMB 4.15 billion in Q1 2024 and RMB 4.48 billion in the previous quarter[13] - Net profit under non-GAAP was RMB 1.93 billion (USD 272.1 million), compared to RMB 1.41 billion in Q1 2024 and RMB 1.95 billion in the previous quarter[18] Operating Costs and Profitability - Operating costs totaled RMB 2.72 billion (USD 374.3 million), a decrease from RMB 2.79 billion in Q1 2024 and an increase from RMB 2.59 billion in the previous quarter[15] - Operating profit margin was 42.1%, with a non-GAAP operating profit margin of 44.9%[19] - The company reported a net profit attributable to the company of RMB 1,800.2 million ($248.1 million), compared to RMB 1,164.3 million in the same period of 2024[20] Future Outlook and Investments - The company plans to continue investing in AI technology to enhance its credit services and improve operational efficiency[10] - The company plans to generate net profit of RMB 1.65 billion to RMB 1.75 billion for Q2 2025, reflecting a year-over-year growth of 24% to 31%[30] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[45] Share Repurchase and Financing - The board approved a share repurchase plan allowing the company to repurchase up to $450 million worth of American Depositary Shares or Class A ordinary shares[28] - The company issued USD 690 million in convertible notes to support its share repurchase plan, enhancing its financial foundation[18] - The company issued $690 million of convertible preferred notes due in 2030, with plans to use the net proceeds for additional share repurchases[29] Cash Flow and Assets - The company’s cash and cash equivalents increased to RMB 8,578,822 thousand as of March 31, 2025, up from RMB 4,452,416 thousand as of December 31, 2024, representing a growth of 93.5%[43] - The company reported a total asset value of RMB 55,627,168 thousand as of March 31, 2025, equivalent to approximately USD 7,665,629 thousand[43] - Operating cash flow for the three months ended March 31, 2025, was RMB 2,805,685, an increase of 43.4% compared to RMB 1,958,267 in 2024[48] Liabilities and Equity - Total liabilities increased to RMB 32,511,226 thousand as of March 31, 2025, compared to RMB 23,886,399 thousand as of December 31, 2024, indicating a rise of 36.5%[44] - The company’s equity totalled RMB 23,115,942 thousand as of March 31, 2025, down from RMB 24,246,219 thousand as of December 31, 2024, showing a decrease of 4.7%[44] - The company’s non-current liabilities surged to RMB 16,133,988 thousand as of March 31, 2025, from RMB 6,414,190 thousand as of December 31, 2024, reflecting a significant increase of 150.5%[44] Non-GAAP Financial Measures - The company emphasizes the importance of non-GAAP financial measures to enhance understanding of past performance and future outlook, despite potential differences in calculation methods compared to other companies[39] - The company’s financial data should be viewed as supplementary to GAAP results, not as a substitute or superior alternative[39] - The company’s net profit margin, calculated using non-GAAP measures, is expected to provide insights into operational performance trends, excluding stock-based compensation expenses[39] Comprehensive Income - The company reported a total comprehensive income of RMB 1,784,813 for the three months ended March 31, 2025, compared to RMB 1,166,297 in 2024, marking a significant increase[49] - Non-GAAP net profit for the three months ended March 31, 2025, was RMB 1,929,789, up from RMB 1,208,932 in 2024, indicating a growth of 59.5%[51] Earnings Per Share - Basic earnings per share for ordinary shares increased to RMB 6.41 in 2025 from RMB 3.73 in 2024, reflecting a growth of 71.5%[46] - The diluted earnings per American Depositary Share under GAAP was RMB 12.62 ($1.74)[21] - The diluted non-GAAP earnings per American Depositary Share was RMB 13.53 ($1.86)[22]

Core Viewpoint - Qifu Technology reported strong financial results for Q1 2025, demonstrating resilience amid macroeconomic challenges, with significant growth in user activity and loan facilitation volume [4][5][35]. Business Highlights - As of March 31, 2025, Qifu Technology connected 163 financial institutional partners and 268.2 million consumers, marking an 11.1% increase from 241.4 million a year ago [4]. - The number of cumulative users with approved credit lines reached 58.4 million, up 11.6% from 52.3 million a year ago [4]. - Cumulative borrowers with successful drawdown totaled 35.5 million, reflecting a 13.8% increase from 31.2 million a year ago [4]. - Financial institutional partners originated 24,401,374 loans through the platform in Q1 2025 [4]. Financial Highlights - Total net revenue for Q1 2025 was RMB 4,690.7 million (US$ 646.4 million), compared to RMB 4,153.2 million in the same period of 2024 [5][9]. - Net income was RMB 1,796.6 million (US$ 247.6 million), an increase from RMB 1,160.1 million in Q1 2024 [28]. - Non-GAAP net income for the quarter was RMB 1,926.2 million (US$ 265.4 million), compared to RMB 1,204.8 million in the same period of 2024 [28]. - The weighted average contractual tenor of loans originated was approximately 10.17 months, slightly up from 10.10 months in Q1 2024 [4]. Revenue Breakdown - Revenue from Credit Driven Services was RMB 3,110.9 million (US$ 428.7 million), up from RMB 3,016.3 million in Q1 2024 [9]. - Loan facilitation and servicing fees under the capital-heavy model were RMB 429.8 million (US$ 59.2 million), significantly higher than RMB 243.8 million in the same period of 2024 [10]. - Financing income increased to RMB 1,817.2 million (US$ 250.4 million) from RMB 1,535.0 million in Q1 2024 [11]. - Revenue from releasing of guarantee liabilities decreased to RMB 778.2 million (US$ 107.2 million) from RMB 1,166.0 million in the same period of 2024 [12]. Operating Costs and Expenses - Total operating costs and expenses were RMB 2,716.0 million (US$ 374.3 million), down from RMB 2,789.1 million in Q1 2024 [17]. - Sales and marketing expenses rose to RMB 591.5 million (US$ 81.5 million) from RMB 415.6 million in the same period of 2024, reflecting increased marketing efforts [19]. - General and administrative expenses increased to RMB 196.5 million (US$ 27.1 million) from RMB 106.4 million in Q1 2024, primarily due to higher share-based compensations [20]. Share Repurchase and Financial Position - The company completed a US$ 690 million convertible notes offering, providing resources to accelerate share repurchase programs [8]. - As of May 19, 2025, approximately 4.4 million ADSs were repurchased for about US$ 178 million under the 2025 Share Repurchase Plan [33]. - The company expects to use remaining net proceeds from the convertible notes offering for further share repurchases [34]. Business Outlook - For Q2 2025, the company anticipates net income between RMB 1.65 billion and RMB 1.75 billion, representing a year-on-year growth of 24% to 31% [35].

Industry Overview - The Technology Services industry has experienced strong growth post-pandemic, driven by the rapid adoption of remote work and advancements in technology such as 5G, blockchain, AI, and ML [1][6] - The industry includes companies involved in software support, data processing, computing hardware, and communications equipment, serving both consumer and business markets [3] Economic Factors - The industry is benefiting from a recovering economy, with GDP growth projected at an annual rate of 2.8% in 2024, up from 2.5% in 2023 [5] - The Services PMI has remained above 50% for 56 out of the last 59 months, indicating healthy economic activity [5] Technological Advancements - The global shift towards digitization is creating opportunities in markets such as 5G, blockchain, and AI, with generative AI expected to grow at a 42% CAGR over the next decade, reaching a $1.3 trillion market by 2032 [6] Industry Performance - The Zacks Technology Services industry ranks 49, placing it in the top 20% of over 246 Zacks industries, indicating a promising outlook [7] - Over the past year, the industry has outperformed the broader Zacks Business Services sector and the S&P 500, returning 42.1% compared to 12% and 12.4% respectively [9] Valuation Metrics - The industry is currently trading at an EV-to-EBITDA ratio of 31.02X, significantly higher than the S&P 500's 16.6X and the sector's 12.03X [12] Company Highlights - **AppLovin Corporation (APP)**: Focuses on a software platform for advertisers, enhancing machine-learning models and AI integration. The company has a Zacks Rank 1 and is expected to see earnings rise 85.2% year over year in 2025, with shares up 340.5% in the past year [20][18][19] - **Priority Technology Holdings (PRTH)**: Operates a platform for financial operations, showing strong growth despite economic challenges. PRTH also holds a Zacks Rank 1, with earnings expected to rise over 100% year over year in 2025, and shares up 116.8% in the past year [24][23] - **Qifu Technology (QFIN)**: A China-based credit tech company improving user acquisition and integrating AI for better credit data analysis. QFIN has a Zacks Rank 1, with earnings expected to rise 22.4% year over year in 2025, and shares up 113.7% in the past year [29][27]

Market Capitalization Overview - The market capitalization of TAL Education Group is 14.95 billion, while Vipshop Holdings has a market cap of 9.21 billion [2] - Other companies such as Miniso and Qifu Technology have market caps of 7.77 billion and 6.33 billion respectively [2] - The market cap of various companies shows a range from 5.22 million to 149.53 billion, indicating a diverse market landscape [2] Stock Performance - TAL Education Group's stock increased by 1.64 (+1.55%), while Vipshop's stock rose by 0.07 (+1.88%) [2] - Miniso's stock saw a significant increase of 1.24 (+6.99%), indicating strong market performance [2] - Companies like Huya and Yiren Digital experienced slight declines in their stock prices, with decreases of -0.03 (-0.81%) and -0.10 (-0.96%) respectively [2] Comparative Analysis - The comparison of market caps shows that TAL Education Group leads with 14.95 billion, followed by Vipshop and Miniso [2] - The performance of stocks varies significantly, with some companies like Miniso showing robust growth compared to others that faced declines [2] - The data indicates a competitive environment among these companies, with varying degrees of market success and stock performance [2]

Core Insights - Investors in the Technology Services sector may consider Qifu Technology, Inc. (QFIN) and Symbotic Inc. (SYM) for potential value opportunities [1] Valuation Metrics - QFIN has a forward P/E ratio of 6.38, significantly lower than SYM's forward P/E of 133.59 [5] - The PEG ratio for QFIN is 0.57, indicating a favorable valuation relative to its expected earnings growth, while SYM's PEG ratio is 4.45 [5] - QFIN's P/B ratio stands at 2.10, compared to SYM's P/B of 37.63, suggesting QFIN is more reasonably valued based on its book value [6] Analyst Outlook - QFIN currently holds a Zacks Rank of 1 (Strong Buy), reflecting a positive earnings estimate revision trend, while SYM has a Zacks Rank of 5 (Strong Sell) [3] - The improving earnings outlook for QFIN positions it as a superior value option compared to SYM [7] Value Grades - QFIN has been assigned a Value grade of A, indicating strong undervaluation metrics, whereas SYM has a Value grade of F, suggesting it is overvalued [6]

Core Viewpoint - Qifu Technology, Inc. is expected to report its first-quarter 2025 results on May 16, with positive revenue and earnings projections driven by increased demand for loan products and effective risk management practices [1][2][3][4]. Group 1: Earnings and Revenue Expectations - The Zacks Consensus Estimate for Qifu's revenues is projected at $615 million, reflecting a 7% increase from the same quarter last year [2]. - The consensus estimate for earnings is set at $1.72 per share, indicating a significant 68.6% increase compared to the previous year [4]. Group 2: Factors Influencing Performance - The anticipated rise in revenue is attributed to higher demand for loan products, supported by China's special action plan aimed at boosting consumption [2]. - Effective risk management practices are expected to have reduced delinquency rates, thereby lowering losses and enhancing revenue from interest and fees [3]. Group 3: Marketing and Profitability - Qifu's AI strategy is projected to optimize marketing costs, leading to increased user growth and lower customer acquisition costs, which will enhance profitability [4]. - The combination of favorable macroeconomic conditions and efficient ad placements is likely to support volume growth [4]. Group 4: Earnings Prediction Model - Current analysis indicates that Qifu Technology does not predict an earnings beat this time, with an Earnings ESP of 0.00% and a Zacks Rank of 1 (Strong Buy) [5].

私募巨头景林资产的海外子公司景林资产管理香港有限公司（以下简称景林香港公司），近期向美国证券交易委员会（SEC）提交了截至2025年一季度末 的美股持仓数据，其持仓总市值为32.28亿美元（约合232.78亿元人民币），较去年底有所增加。 今年一季度，景林香港公司新进阿里巴巴、禾赛科技等，加仓了脸书母公司Meta、贝壳、台积电、新东方等，减持了谷歌、微软、Sea、好未来等，清仓 了英伟达、亚马逊、VISA等公司。 记者从渠道了解到景林资产的最新观点，公司表示，当前市场情绪有所改善，继续对中国资产保持乐观，寻找"阿尔法"的投资机会。 一季度末持有32.28亿美元 前十大重仓股占比86.24% 该公司对地产行业的贝壳的增持幅度超过777%，加仓422.80万股，持股达到477.18万股，一季度末持有市值为9586.56万美元，占组合比例的2.97%；加仓 富途控股61.87万股，持股增至190.16万股，期末持仓市值为1.95亿美元；加仓台积电32.96万股，期末持股增至157.46万股，持股市值为2.61亿美元，占组 合比例的8.10%；小幅增持科技巨头苹果，持股增至78.23万股，期末持有市值为1.74亿美元 ...

Core Viewpoint - Qifu Technology, Inc. (QFIN) has demonstrated exceptional stock performance, significantly outperforming its industry and competitors over the past year and six months, driven by strong financial metrics and strategic initiatives [1][4][17]. Company Performance - QFIN stock has increased by 129% over the past year, compared to a 36.8% rise in the industry and 11.4% growth in the Zacks S&P 500 composite [1]. - In the last six months, QFIN has gained 52.4%, while the industry rose by 7.3%, and competitors N-able and NV5 Global saw declines of 22.3% and 11.3%, respectively [4]. - As of the last trading session, QFIN closed at $46.05, down 6.3% from its 52-week high of $48.94 [4]. Financial Strength - Qifu Technology reported strong cash reserves of $1.4 billion at the end of Q4 2024, with only $188 million in current debt, indicating a healthy financial position [10]. - The current ratio of 2.45 exceeds the industry average of 1.76, reflecting the company's ability to meet short-term obligations, with a 22.5% increase from the previous year [11]. - The return on equity stands at 27.3%, significantly higher than the industry average of 5.5%, showcasing exceptional profitability and efficient capital use [13]. Growth Catalysts - China's consumption-driven policies, aimed at boosting income and reducing burdens, serve as a growth catalyst for QFIN [6]. - The company has integrated AI into its operations, leading to a 25.1% improvement in user outreach and a 10% reduction in the average cost per credit line user [8]. - QFIN's loan portfolio, primarily in credit cards, mortgages, and auto loans, aligns well with government initiatives to enhance consumer lending [7]. Valuation and Prospects - QFIN stock is currently priced at 6.4 times forward 12-month earnings per share, significantly lower than the industry average of 24.2 times [15]. - The Zacks Consensus Estimate projects 2025 revenues at $2.4 billion, reflecting a 2.2% increase, and 2026 revenues at $2.7 billion, indicating a 12.4% year-over-year rise [16]. - Earnings estimates for 2025 are pegged at $6.93 per share, a 22.4% increase from the prior year, with 2026 earnings expected to reach $7.77 per share, suggesting a 12% year-over-year rise [16].