This report is read as follows:
The company is the industry's leading auto finance platform to meet the credit needs of customers for new and used car transactions, building barriers through offline service personnel and excellent risk control capabilities across the country, and future growth is expected.
Summary:
For the first time, it is given an "overweight" rating, with a target price of HK $1.82, corresponding to 0.67xP/B in 2022.
The company is the leader in third-party auto finance, with estimated revenue and adjusted net profit of 44.26 million yuan and 6.87 billion yuan respectively from 2022 to 2024. The company is given a target price of HK $1.82, corresponding to a 2022 0.67x Pamp B relative valuation, with an overweight rating for the first time.
The company is a leader in third-party auto finance to meet the credit needs of customers for new and used car transactions. The company has been engaged in auto finance business for a long time since its establishment in 2014. its shareholders include Internet giants such as Tencent and JD.com, and it has become a leader in the field of third-party auto finance.
The company provides customers with credit services for new and used car transactions, which the company continues to cultivate. At the same time, the company has begun to increase the layout of used car transactions, which currently account for 50% of used car transactions.
The core competitiveness of the company is the offline service personnel and excellent risk control ability throughout the country: in the business model, the company provides credit funds through its own financial leasing companies or third-party financial institutions; through offline service personnel to reach dealers, and then by dealers to reach end consumers. In terms of customer acquisition, after years of accumulation, the company has established an offline service team of more than 4000 people in 340 cities and cooperated with more than 31000 car dealers, greatly expanding the range of customers the company can reach. In terms of risk control, the company has JD.com and Tencent two major Internet groups as shareholders, and the company has invested money and resources for a long time to improve its data analysis ability with the help of massive data accumulated over a long period of time. Its advanced anti-fraud system can automatically analyze multi-dimensional consumer data and evaluate fraud risk in time; its automatic credit scoring system also provides quantitative reference for consumer screening. Effective customer selection and risk control can be achieved through a sound information technology infrastructure. The core competitiveness of the company is the offline service personnel and excellent risk control ability all over the country.
Catalyst: the auto finance market is growing rapidly.
Risk hint: the company's auto finance business is not as expected; the epidemic repeatedly caused an increase in the overdue rate.
