Fangzheng Securities: Giving Yixin Group (02858) a “highly recommended” rating, optimistic that annual performance will continue to increase

The Zhitong Finance App learned that Fangzheng Securities released a research report stating that Yixin Group (02858) disclosed business updates for the third quarter of 2025. The bank believes that as a leading third-party auto finance company, on the one hand, the company's used car strategy has achieved remarkable results, and the high-priced used car business provides support for the company's performance, and the company's performance is expected to continue to increase in the second half of the year; on the other hand, the company insists on dividend feedback to shareholders and has distinct characteristics of high dividends, giving it a “highly recommended” rating. The estimated net profit of the 2025-2027E company will be 1.24 billion yuan, 1.76 billion yuan, and 1.76 billion yuan, respectively, +48%, +22%, and +21% year-on-year; 25-27E dynamic PE is 13.1x, 10.8x, and 8.9x.

Fangzheng Securities's main views are as follows:

Looking at total business volume: Yixin Group's total financing volume continued to grow in the third quarter

In the third quarter, Yixin Group's business maintained a rapid growth trend. 3q achieved a total automobile transaction volume of 235,000 transactions per YoY +22.6%, and its business performance was significantly better than the industry (3q25, China's total sales volume YoY +11.0%), and the company's total 3q25 financing reached 21.2 billion yuan/YoY +14.6%.

Looking at the business structure: the used car strategy progressed steadily, the 3Q used car financing accounted for 57%, and the scale of Jinke's business continued to grow rapidly

Over the past 25 years, the company has progressed steadily through providing more accurate risk pricing and introducing profitable used car products. 3q25's used car financing transactions reached 12.1 billion yuan/YoY +51.3%, accounting for 56.9%; of these, the used electric vehicle financing volume was 1.5 billion yuan, accounting for 22.5% /yoy+9.4pct of the company's NEV financing amount. The company's fintech business continued its high growth trend. 3q25 promoted a financing amount of 11.4 billion yuan/YoY +102.0% through the fintech platform, accounting for 53.7% /yoy+23.4pct; in addition, the company expanded the financial technology model cooperation network. In addition, the company cooperated with 2 new financial institutions and launched in the third quarter to establish partnerships with 2 well-known electric vehicle brands.

The company's artificial intelligence strategy is progressing according to plan, and the xCall deployment is expected to be fully completed before the end of the year

In the third quarter of 2025, the company steadily promoted the deployment of xCall. xCall is a new product set up in the early stages of financing. It is expected to help greatly improve the efficiency of online marketing, document processing and customer management in the credit application process; in addition, the company can achieve highly automated interaction with real-time communication and intelligent voice through artificial intelligence products to improve conversion rates and enhance customer experience. The company expects that the deployment of artificial intelligence products related to early financing, including xCall, will be fully completed by the end of 2025.

Risk warning: business development falls short of expectations; macroeconomic fluctuations; changes in industry regulatory policies.