Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of HKD 115.43, corresponding to a 6.8x P/E for 2024 [4][5]. Core Views - The company's revenue decreased by 1.59% year-on-year to RMB 16.29 billion in 2023, while adjusted net profit increased by 5.92% to RMB 4.45 billion, aligning with expectations. Future revenue projections for 2024-2026 are RMB 16.59 billion, RMB 17.73 billion, and RMB 18.97 billion, reflecting growth rates of 1.8%, 6.8%, and 7.0% respectively. Adjusted net profit is expected to be RMB 4.74 billion, RMB 5.02 billion, and RMB 5.74 billion, with growth rates of 6.4%, 6.0%, and 14.3% respectively [4][8]. Summary by Sections Financial Performance - In 2023, the company achieved a net profit growth of 5.92%, driven primarily by better cost control. Revenue and cost contributed -106% and 261% respectively to profit growth. Sales expenses decreased by 12% year-on-year, indicating effective operational management. Additionally, provisions for liabilities dropped by 30% due to a reduction in capital loan scale. The financing cost also declined, with the company issuing ABS totaling RMB 12.5 billion, a 56% increase year-on-year, benefiting from lower financing costs [4][8]. Operational Strategy - The company plans to focus on refined operations and tighten risk control strategies to achieve quality growth. In Q4 2023, the credit issuance scale was RMB 1.119 trillion, up 13.8% year-on-year but down 3.3% quarter-on-quarter, with approximately 57% of loans provided through a light capital model. The company aims to enhance operational efficiency, which is expected to contribute to profit growth. A new share repurchase plan of USD 350 million has been announced, reflecting the company's confidence [4][8]. Catalysts - Improvement in asset quality and an increase in loan issuance volume are identified as potential catalysts for future growth [4].
2023年年报点评：成本管控推动增长，股份回购彰显信心