Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks is challenging due to their inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Qifu Technology, Inc. (QFIN) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for investors, with double-digit growth being a strong indicator of future stock price gains [3] - Qifu Technology, Inc. has a historical EPS growth rate of 8.3%, but its projected EPS growth for this year is 25.3%, surpassing the industry average of 23.7% [4] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [5] - Qifu Technology, Inc. has a year-over-year cash flow growth of 41.5%, significantly higher than the industry average of -12.3% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 19.2%, compared to the industry average of 14.6% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [7] - Qifu Technology, Inc. has seen upward revisions in current-year earnings estimates, with the Zacks Consensus Estimate increasing by 2.3% over the past month [7] Group 5: Overall Assessment - Qifu Technology, Inc. has achieved a Zacks Rank of 2 and a Growth Score of A, indicating its potential as a solid choice for growth investors [8][9]

Core Insights - The rapid iteration of artificial intelligence (AI) technology is significantly impacting the financial industry, with AI being a key topic at the 2025 Lujiazui Forum [2] - Qifu Technology, a financial technology company based in Shanghai, is focusing on AI to assist banks in their intelligent transformation, contributing to the development of Shanghai as an international financial center [2] - The CEO of Qifu Technology, Wu Haisheng, stated that the "AI + finance" sector is still in the investment phase but has already shown improvements in marginal efficiency, particularly in credit assessment and risk control for small and micro enterprises [2] Company Insights - Qifu Technology is developing a "super intelligent credit agent" that aims to enhance financial service processes and improve efficiency and quality [2] - The intelligent agent incorporates multi-step planning, memory, and reflection mechanisms, allowing for autonomous interaction in real scenarios and continuous learning [2] - The company has a research and development team of over 1,000 people, with hundreds focused on the integration of AI technology and finance, and has filed 961 patents and holds over 80 copyrights [3] Industry Insights - The financial industry faces challenges with unstructured data and fraud, making the implementation of reasoning technologies in credit risk control complex [3] - Shanghai is positioned as a global financial center and AI hub, providing multi-dimensional support for financial technology companies, including policies, technology, capital, and internationalization [3] - The industry is at a critical point of transformation, where intelligent agents could redefine financial services by autonomously completing demand analysis, strategy formulation, and effect evaluation [3]

Core Viewpoint - QFIN, a leading credit technology platform in China, reported a revenue of 4.691 billion RMB for the fiscal year ending March 31, 2025, representing a year-on-year growth of 12.94%, and a net profit of 1.8 billion RMB, up 54.62% year-on-year [1] Group 1: Company Overview - QFIN is dedicated to using credit technology to serve financial institutions, enabling consumers and small businesses to access more convenient and personalized credit services [1] - The company collaborates with 133 financial institutions, including state-owned and regional banks, as well as consumer finance companies, enhancing its service offerings [1] Group 2: Target Consumers - The company targets consumers who are underserved by traditional financial institutions, particularly those with short credit histories and high growth potential [2] - QFIN utilizes advanced technology and credit analysis capabilities to identify low-risk borrowers, helping financial institutions expand their borrower base [2] Group 3: Small and Micro Enterprises - Since late 2020, QFIN has tailored loan products for high-quality small and micro enterprises, a segment often neglected by traditional banks [3] - The company leverages data analysis to identify small businesses with low default risk, facilitating their access to credit [3] Group 4: Service Offerings - QFIN provides two main types of services: credit-driven services and platform services, each designed to enhance the lending process and borrower experience [3] - Credit-driven services match potential borrowers with financial institutions, where QFIN assumes credit risk for certain loan products [4] - Platform services offer customized technological solutions throughout the loan lifecycle, including borrower acquisition and credit assessment, without assuming credit risk [5] Group 5: Technology Solutions - The company employs the Intelligent Credit Engine (ICE) to provide smart marketing services to financial institutions, enhancing borrower matching and initial credit screening [5] - QFIN also offers referral services for users who do not meet the risk preferences of its partners, generating referral fees [5] - The company has introduced modular risk management SaaS services to help financial institutions improve borrower acquisition and credit assessment [5]

Market Capitalization Overview - New Oriental has a market capitalization of 14.264 billion [2] - TAL Education (好未来) has a market capitalization of 8.983 billion [2] - Vipshop (唯品会) has a market capitalization of 7.770 billion [2] - Zai Ding Pharmaceutical (再鼎医药) has a market capitalization of 4.357 billion [2] - RELX has a market capitalization of 3.519 billion [2] Stock Performance - New Oriental's stock increased by 0.39 (+2.21%) [2] - TAL Education's stock increased by 1.00 (+5.02%) [2] - Vipshop's stock increased by 1.47 (+3.15%) [2] - Zai Ding Pharmaceutical's stock increased by 0.40 (+0.96%) [2] - RELX's stock increased by 0.37 (+2.98%) [2] Additional Companies - Huya (虎牙) has a market capitalization of 1.059 billion with a stock increase of 0.04 (+1.03%) [2] - iQIYI (爱奇艺) has a market capitalization of 2.479 billion with a stock increase of 0.14 (+1.52%) [2] - Lexin (乐信) has a market capitalization of 1.529 billion with a stock increase of 0.34 (+4.15%) [2] - Yihua Smart (宜人智科) has a market capitalization of 0.548 billion [2] Smaller Market Players - Sohu has a market capitalization of 0.323 billion with a stock decrease of 0.04 (-2.02%) [3] - Xiaoniu Electric (小牛电动) has a market capitalization of 0.257 billion [3] - Baozun (宝尊电商) has a market capitalization of 0.173 billion [3] - Huami Technology (华米科技) has a market capitalization of 0.164 billion [3]

Core Insights - Qifu Technology, Inc. (QFIN) stock has experienced remarkable growth of 117% over the past year, significantly outperforming the industry growth of 52.8% and the Zacks S&P 500 composite's rise of 12.3% [1][4] - The company has also outperformed its competitors, Priority Technology (PRTH) and Acuity (AYI), which gained 90.8% and 6.9% respectively during the same period [4] Performance Analysis - In the past six months, QFIN has gained 11.6%, surpassing the industry's marginal growth, while PRTH and AYI have decreased by 10% and 15.23% respectively [4] - QFIN's stock trades at a forward earnings multiple of 5.6X, well below the industry's average of 24.3X [7][12] AI Integration and Growth Strategy - Qifu Technology leverages AI for user acquisition and volume growth, with 74% of graphics and 27% of videos generated by AI technology, resulting in a 10% reduction in average cost per credit line user and a 9% improvement in ROI [6][9] - The company's AI-Plus credit strategy, launched in early 2025, aims to enhance core credit processes through an AI agent platform [9] Financial Position - QFIN reported strong cash reserves of $1.9 billion and low current debt of $168 million, resulting in a current ratio of 3.08, which exceeds the industry average of 1.84 [10] - The Zacks Consensus Estimate for QFIN's 2025 revenues is $2.6 billion, indicating a 7.6% growth from the previous year, with earnings estimated at $7.09 per share, reflecting a 25.3% increase [14] Investment Recommendation - Given the company's strong performance, robust liquidity position, and discounted valuation, it is recommended for investors to consider adding QFIN shares to their portfolios [15][16]

Core Insights - Wall Street has rebounded from early April lows and is near record highs, driven by optimism in U.S.-China trade negotiations, easing inflation, and strong corporate earnings, although uncertainty regarding Trump's policies remains [2]. Dividend Investing - Investors are increasingly turning to dividend investing for stable returns, as dividends provide consistent income and can mitigate portfolio volatility during uncertain market conditions [3]. - Stocks with a history of dividend growth are preferred, as they belong to mature companies that are less volatile and offer downside protection through consistent payout increases [5]. Selected Dividend Growth Stocks - Five dividend growth stocks identified as compelling investment options are Intuit Inc. (INTU), Fox Corporation (FOX), Qifu Technology Inc. (QFIN), UGI Corporation (UGI), and Ingredion Incorporated (INGR) [4][10]. - These stocks exhibit consistent dividend growth and strong long-term earnings potential, with positive earnings estimate revisions and solid expected earnings growth for the current fiscal year [10]. Stock Selection Criteria - Criteria for selecting dividend growth stocks include: - 5-Year Historical Dividend Growth greater than zero, indicating a solid dividend growth history [7]. - 5-Year Historical Sales Growth greater than zero, reflecting strong revenue growth [8]. - 5-Year Historical EPS Growth greater than zero, showing solid earnings growth history [8]. - Next 3-5 Year EPS Growth Rate greater than zero, indicating expected earnings growth [8]. - Price/Cash Flow less than M-Industry, suggesting undervaluation [9]. - 52-Week Price Change greater than S&P 500, ensuring better performance than the broader market [9]. Company Profiles - **Intuit Inc. (INTU)**: A business and financial software company with an expected earnings growth rate of 18.4% and a Zacks Rank 1 [11]. - **Fox Corporation (FOX)**: A media company with an expected earnings growth rate of 32.4% and a Zacks Rank 2 [13]. - **Qifu Technology Inc. (QFIN)**: A Credit-Tech platform in China with an expected earnings growth rate of 25.3% and a Zacks Rank 2 [14]. - **UGI Corporation (UGI)**: An energy products distributor with an estimated growth rate of 2.29% and a Zacks Rank 2 [16]. - **Ingredion Incorporated (INGR)**: An ingredients solutions provider with an estimated earnings growth rate of 5.2% and a Zacks Rank 2 [17].

Core Insights - Qifu Technology, Inc. (QFIN) has launched its AI-Plus credit strategy in early 2025, aiming to create the first AI agent platform in the industry to enhance core credit processes [1] - The AI-Plus strategy has shown significant operational improvements, including a 15.8% year-over-year increase in loan volume and a 41% rise in new borrowers [4][5] Group 1: AI-Plus Strategy Implementation - The company introduced an internal AI agent platform in April 2025, deploying five digital employees by May across various functions [2] - The AI agent "ChatBI" has been successfully integrated, providing real-time insights crucial for strategy optimization [2] - A pilot LLM-backed framework has improved risk tiering ability, with the Area Under Curve reaching 0.64 [3] Group 2: Financial Performance - In Q1 2025, QFIN reported a 15.8% increase in loan volume, with a stable delinquency rate of 0.6% [4] - The company experienced a 30 basis points reduction in funding costs due to enhanced underwriting efficiency [4] - Asset-Backed Securities issuance grew by 25% year-over-year, indicating strong market performance [5] Group 3: Stock Performance and Valuation - QFIN's stock has surged 115.9% over the past year, outperforming the industry and competitors [6] - The company trades at a forward price-to-earnings ratio of 5.58, significantly lower than its peers [10] - QFIN holds a Value Score of A, while competitors Parsons and Jamf have lower scores [12]

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]