Guotai Haitong maintains a target price of HK$3.91 for YIXIN (02858) and rates it as "hold".

Guotai Haitong released a research report stating that considering the company's fast-paced performance growth, YIXIN (02858) was given a 2025 year 20x P/E ratio (converted at 1HKD = 0.92 RMB) which corresponds to a target price of 3.91 HKD. The corresponding target price for 2025 year 20x P/E ratio is given a "hold" rating. The company's second-hand car and SaaS businesses are experiencing high growth, with the bank maintaining revenue forecasts for 2025-2027 at 11.599/12.940/14.439 billion RMB respectively, with a year-on-year growth rate of 17%/12%/12%. Net profit is forecasted to be 11.86/14.59/18.16 billion RMB with a year-on-year growth rate of 46%/23%/24%. Future catalysts include rapid growth in the automotive finance market and continued decline in CKH HOLDINGS funding costs. Guotai Haitong's main points are as follows: Second-hand car financing maintains high growth, SaaS business continues to accelerate. 1) In the third quarter of 2025, there were 235,000 automobile financing transactions, a year-on-year increase of 22.6%, compared to the first half of the year where there was a 10.7% increase in transactions (364,000 transactions in the first half of 2025). The financing amount reached 21.2 billion RMB, with faster growth in second-hand car credit, an increase of 51.3% reaching 12.1 billion RMB. The proportion of second-hand car credit further increased to 56.9% (182 billion RMB in the first half of 2025, accounting for 56%). 2) In the third quarter of 2025, the company's SaaS business facilitated 11.4 billion RMB in financing, a year-on-year increase of 102%, accelerating compared to the first half of the year (153 billion RMB in the first half of 2025, a 58.2% increase). This contributed to 53.7% of the total financing amount, with the company's excellent risk control capabilities gaining more recognition from financing partners, adding two financial institutions as new cooperation partners in the third quarter. The company's performance is expected to continue to improve quarter by quarter, with AI applications gradually being implemented. Based on third quarter operational data, the bank predicts that the company's performance will continue to improve in the second half of the year, surpassing that of the first half. The company's performance continues to grow with a shift towards light asset transformation, promising future dividends. In terms of AI, the steady progress of the AI product "X Call" was noted in the third quarter of 2025. It is expected that by the end of 2025, the preliminary agent deployment of funds will be completed (including "X Call" and other AI products). Once these AI products are implemented, they are expected to significantly improve the efficiency of online marketing, document processing, and customer management in the credit application process, optimize customer conversion efficiency and experience through highly automated interactions with real-time communication and intelligent voice features.