Founder: Gives YIXIN (02858) a "strong recommendation" rating and is optimistic about continuing high annual performance.

Founder released a research report stating that YIXIN (02858) disclosed its business update for the third quarter of 2025. The firm believes that as a leading third-party automobile finance company, on the one hand, the company's used car strategy has shown significant results, and high-priced used car business provides support for the company's performance, with expectations that the company's performance will continue to show high growth momentum in the second half of the year; on the other hand, the company adheres to dividend feedback to shareholders and has a distinct feature of high dividend yield, giving it a "strong buy" rating. It is expected that the company's net profit attributable to the parent company for 2025-2027E will be 12.0, 14.6, and 17.6 billion yuan respectively, with a year-on-year growth of +48%, +22%, and +21%; and the dynamic PE for 25-27E will be 13.1x, 10.8x, and 8.9x. The main points of Founder are as follows: In terms of overall business volume: YIXIN's total financing amount continues to grow in the third quarter In the third quarter, YIXIN's business maintained a rapid growth momentum, with a total of 235,000 car transactions in 3Q, a year-on-year increase of 22.6%. The business performance was significantly stronger than the industry (3Q25 total sales of new and used cars in China increased by 11.0% year-on-year), with the company's total financing amount reaching 21.2 billion yuan in 3Q25, a year-on-year increase of 14.6%. In terms of business structure: steady progress in the used car strategy, with the proportion of used car financing amount in 3Q reaching 57%, and the scale of the aviation business continuing to show high growth momentum Since 25 years, the company has steadily promoted its active strategy of providing more accurate risk pricing and introducing profitable used car products. In 3Q25, the company's used car financing transaction amount reached 121 billion yuan, an increase of 51.3% year-on-year, accounting for 56.9%; among them, the financing transaction amount for used electric vehicles was 15 billion yuan, accounting for 22.5% of the company's new energy vehicle financing amount, an increase of 9.4% year-on-year. The company's financial technology business continued to show high growth momentum, with the company facilitating financing amount through its financial technology platform reaching 114 billion yuan in 3Q25, an increase of 102% year-on-year, accounting for 53.7%, an increase of 23.4% year-on-year; in addition, the company expanded its aviation model cooperation network, with two new financial institutions and two well-known electric vehicle brands establishing partnerships in the third quarter. The company's artificial intelligence strategy is progressing as planned, and XCall deployment is expected to be fully completed by the end of the year In the third quarter of 2025, the company steadily promoted the deployment of XCall, a new product designed for the pre-financing stage, which is expected to significantly enhance efficiency in online marketing, document processing, and customer management during the credit application process; in addition, the company can achieve real-time communication and highly automated interaction through artificial intelligence products, improving conversion rates and enhancing customer experience. The company expects that the deployment of artificial intelligence products related to pre-financing, including XCall, will be fully completed by the end of 2025. Risk warning: Business expansion below expectations; macroeconomic fluctuations; changes in industry regulatory policies.