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]

Investment Rating - The report assigns a "Buy" rating to Qifu Technology with a 12-month price target of US$58.50, while the current price is US$42.94 [5][25]. Core Insights - Qifu Technology is experiencing stable operating trends in Q2 2025, with a modest quarter-over-quarter decline in loan volume expected due to a strong Q1 and a soft start in Q2 [2]. - The company reaffirms its 2025 net take rate target of 5.2-5.3%, indicating a positive outlook for loan volume growth of 6-7% [3]. - Regulatory risks are considered manageable, with expectations for better clarity on new loan facilitation regulations before October [4]. Summary by Sections Financial Performance - Qifu Technology's revenues are projected to grow from Rmb16,939 million in 2024 to Rmb18,793 million in 2025, with net earnings expected to increase from Rmb6,264 million in 2024 to Rmb6,857 million in 2025 [8]. - The diluted EPS is forecasted to rise from Rmb42.38 in 2024 to Rmb53.52 in 2025 [6]. Market Position - The company is a leading loan facilitation platform in China, focusing on consumer loans and utilizing both credit-driven and platform service models [10]. - The market capitalization of Qifu Technology is approximately US$5.96 billion, with a free float of 79% [5]. Valuation Metrics - The report indicates a P/E ratio of 5.8 for 2025 and a P/BV ratio of 1.6, suggesting a favorable valuation compared to historical performance [8]. - Forecast returns include a price appreciation of 36.2% and a dividend yield of 3.4%, leading to an overall forecast stock return of 39.7% [9].

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]