Company Overview - Company is a professional automotive finance platform with rapid growth in performance, primarily backed by Tencent Holdings, which holds 53.88% of the shares as of the end of 2024 [1] - The company has shown significant profitability growth since 2020, with a revenue increase of 22% year-on-year to 5.452 billion yuan and a net profit increase of 34% year-on-year to 549 million yuan in the first half of 2025 [1] - The revenue structure indicates a shift from self-operated financing to a focus on transaction platform business, with financial technology services rising quickly [1] Industry Overview - The automotive finance industry in China is expected to reach a scale of 6.8 trillion yuan by 2029, with significant growth opportunities due to low penetration rates compared to mature markets [1] - The competitive landscape includes various players such as automotive finance companies, commercial banks, and internet automotive finance platforms, with internet platforms expected to leverage technology for differentiated competition [1] Business Highlights - The company's transaction platform business generated revenue of 4.346 billion yuan in the first half of 2025, a year-on-year increase of 23.8%, with financial technology services becoming increasingly important [2] - Self-operated financing business has contracted due to strategic adjustments, but asset quality remains stable [2] - The company has integrated AI technology into its operations since 2018, enhancing risk management and business processes [2] Profit Forecast and Investment Rating - The company is projected to achieve net profits of 1.126 billion yuan, 1.398 billion yuan, and 1.701 billion yuan for 2025-2027, with year-on-year growth rates of 39.03%, 24.12%, and 21.72% respectively [3] - Earnings per share (EPS) are expected to be 0.17 yuan, 0.21 yuan, and 0.26 yuan for the same period, with corresponding price-to-earnings (PE) ratios of 16.09, 12.96, and 10.65 [3] - The company is rated as a "buy" due to its competitive advantages in the automotive finance sector and the potential of its financial technology business [3]
易鑫集团(02858.HK)：深耕互联网汽车金融 科技能力催生新动能