Can Qifu Technology's AI-Plus Credit Strategy Fuel Future Growth?

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]