Investment Rating - The report maintains an "Overweight" rating for Qifu Technology-S (3660) with a target price of HKD 115.43, corresponding to a 2024 P/E of 6.8x [4] Core Views - The expansion of on-balance sheet loans is the primary driver of profit growth, with financing income increasing by 44% YoY to RMB 1.535 billion in Q1 2024 [4] - Quality growth is identified as the core focus for the company's future development, with continued share buybacks demonstrating management confidence [4] - The company's net take rate (Non-GAAP net profit/average loan balance) expanded to 3.5% in Q1 2024, up from 2.9% in Q1 2023 and 3.2% in Q4 2023 [4] Financial Performance - Q1 2024 revenue reached RMB 4.153 billion, representing a YoY increase of 15.39% but a QoQ decrease of 7.61% [4] - Adjusted net profit for Q1 2024 was RMB 1.205 billion, showing a YoY growth of 23.40% and a QoQ increase of 4.70% [4] - The company's 90+ day delinquency rate rose to 3.35%, primarily due to increased overdue amounts and a decrease in loan balances [4] Future Projections - Revenue is projected to grow to RMB 16.591 billion in 2024, RMB 17.727 billion in 2025, and RMB 18.967 billion in 2026, with YoY growth rates of 1.8%, 6.8%, and 7.0% respectively [4] - Adjusted net profit is expected to reach RMB 4.738 billion in 2024, RMB 5.022 billion in 2025, and RMB 5.738 billion in 2026, with YoY growth rates of 6.4%, 6.0%, and 14.3% respectively [4] Operational Highlights - Q1 2024 credit disbursement amounted to RMB 99.2 billion, a YoY decrease of 9.3%, with approximately 61% of loans provided through the light capital model [4] - The company is actively implementing a USD 350 million share buyback program, with progress ahead of schedule [4]
奇富科技-S：2024年一季报点评：表内贷款扩张拉动业绩，有质量增长是核心