GTHT Securities has reaffirmed its "Overweight" rating on YIXIN Group (02858), maintaining a target price of HK$3.91, which corresponds to a 16x P/E ratio for 2026. The company's 2025 revenue/net profit reached RMB 11.56 billion/RMB 1.199 billion, increasing by 17%/48% year-on-year, meeting expectations. The used car and SaaS businesses continued their strong growth, leading to adjusted 2026-2028 revenue forecasts of RMB 12.696 billion, RMB 14.230 billion, and RMB 16.114 billion, representing growth rates of +10%, +12%, and +13% year-on-year, respectively. Net profit for the same period is projected at RMB 1.452 billion, RMB 1.760 billion, and RMB 2.152 billion, with year-on-year growth of 21%, 21%, and 22%. Key points from GTHT Securities' analysis are as follows.

The SaaS business continues its rapid expansion, driving the company's revenue growth. Firstly, SaaS business revenue reached RMB 4.501 billion, a 150% increase year-on-year, contributing 161% of the total revenue increment. The company has modularized its mature auto finance capabilities, further increasing its customer base. The number of core clients grew from 17 to 24, and the total financing volume on the SaaS platform reached RMB 40.3 billion, demonstrating outstanding business performance. Secondly, regarding loan facilitation and proprietary businesses, the company's funding cost decreased to 3.7% in 2025 (compared to 4.5% in 2024). This decline in funding costs drove a significant improvement in the net interest margin, rising from 4.9% in 2024 to 6.0%. For the platform business, primarily benefiting from lower funding costs and an increase in higher-yield used car financing volume, the net financing service fee rate (calculated as [loan facilitation income + SaaS income - commission cost] / platform business financing scale) increased substantially from 3.7% in 2024 to 5.1%. The growth in both net interest margin and net financing service fee rate enabled the company to achieve a 48% profit growth despite only a 9% increase in financing scale.

The AI-driven strategy is deepening, receiving high recognition from the industry and capital markets, while accelerated international expansion promises future growth potential. In November 2025, YIXIN officially launched the auto finance industry's first agent-based large AI model, XinMM-AM1. This fundamentally alleviates issues of high manual dependency and process fragmentation in traditional workflows, injecting new momentum into the intelligentization of the auto finance sector. The company received the "New Shining Scenario Award" at the Global Internet Conference and was included in the "HKEX Tech 100" index at year-end, reflecting recognition from both the industry and capital markets. Leveraging its XPort intelligent system and deep experience in auto credit, the company is accelerating its overseas expansion, focusing on the Southeast Asian market to drive internationalization. Significant progress has already been made in countries like Singapore and Malaysia, potentially opening a second growth curve.

Catalysts include rapid growth in the auto finance market and a continued decline in funding costs. Risks involve the potential underperformance of the company's auto finance business.