信也科技（FINV）：贷款质量修复至平稳水平
HTSC·2024-11-20 08:05

Investment Rating - The investment rating for the company is "Buy" with a target price of $7.10 [7][8]. Core Insights - The company's total revenue for Q3 2024 was RMB 3.28 billion, showing a year-on-year increase of 2.5% and a quarter-on-quarter increase of 3.4%. The net profit attributable to the parent company was RMB 620 million, reflecting a year-on-year increase of 10.2% and a quarter-on-quarter increase of 13.1% [1][2]. - Loan quality has improved, with the first-day overdue rate decreasing by 20 basis points to 4.9%. Domestic demand is recovering, leading to a 6.7% increase in loan issuance quarter-on-quarter, while overseas business saw a 17.4% increase in loan issuance [1][3]. - The company is expected to maintain good loan quality while gradually increasing loan issuance, which will drive profit recovery as the macroeconomic environment stabilizes [1][4]. Summary by Sections Financial Performance - In Q3 2024, the company reported total revenue of RMB 3.28 billion, with a year-on-year growth of 2.5% and a quarter-on-quarter growth of 3.4%. The net profit attributable to the parent company was RMB 620 million, marking a year-on-year increase of 10.2% and a quarter-on-quarter increase of 13.1% [1][2]. - The new loan issuance for Q3 2024 was RMB 52.2 billion, with a year-on-year increase of 1.7% and a quarter-on-quarter increase of 7.2% [2]. Loan Quality - The first-day overdue rate decreased to 4.9% in Q3 2024 from 5.1% in Q2 2024. The vintage overdue rate slightly improved to just over 2.4%, and the 90-day overdue rate decreased to 2.50% [3]. - The company has reduced its funding costs by 50 basis points quarter-on-quarter, attributed to ample funding supply and good asset quality [3]. Profitability and Valuation - The company repurchased shares worth USD 24.3 million in Q3 2024. The net profit forecasts for 2024, 2025, and 2026 have been adjusted to RMB 2.39 billion, RMB 2.62 billion, and RMB 2.94 billion, respectively [4]. - The target price has been raised to $7.10 based on a DCF valuation method, reflecting a robust long-term return on equity (ROE) outlook [4][15].