YIXIN (02858), as a leading third-party auto finance platform in China, demonstrates strong momentum driven by its two primary growth engines: financial technology services and used car financing. The company is well-positioned to steadily expand its business scale and market share, leveraging its core advantages in distribution channels, technology, and risk management. It is projected that the company's net profit attributable to shareholders in 2026 will reach 1.486 billion yuan, representing a year-on-year increase of 24%. Based on the closing price on May 13, the corresponding price-to-earnings ratio is 7.4x. An "Overweight" rating is maintained. Key points from the analysis are as follows:
Event Review: On May 12, the company disclosed its operational data for the first quarter of 2026. The sustained high growth in used car and SaaS business validates its growth trajectory. In Q1 2026, the company facilitated a total of 226,000 auto financing transactions (including new and used vehicles), with total financing volume reaching 19.6 billion yuan, a year-on-year increase of 27.9%.
1) Structure by Vehicle Type: In Q1 2026, the company's used vehicle financing volume was approximately 11.2 billion yuan, up about 31.3% year-on-year. The proportion of used vehicle financing further increased to approximately 57.1%. The company's strategy of providing more precise risk pricing and expanding its profitable used vehicle product portfolio continues to yield positive results. Notably, financing for used new energy vehicles grew by about 76.3% year-on-year, accounting for approximately 24.4% of the company's total new energy vehicle financing volume in Q1 2026.
2) SaaS Business Performance: In Q1 2026, the company's financial technology (SaaS) transaction volume reached about 14.2 billion yuan, a year-on-year increase of approximately 132.8%, continuing its high-growth trend. During the quarter, four new SaaS partnership projects went live, further enhancing the influence of the financial technology platform.
Steady Progress in AI Strategy and Accelerated Breakthroughs in Overseas Business Regarding AI empowerment, the proportion of processes autonomously driven by AI agents at the company increased to 65% in Q1 2026. The company has established a three-tier "Harness" AI governance framework (Human Harness, Agentic Harness, Data Harness) to facilitate seamless, millisecond-level human-machine handovers and end-to-end auditability, which is expected to continuously reduce costs and improve efficiency.
In overseas business, the company's total overseas financing volume in Q1 2026 was approximately $62 million, a year-on-year increase of about threefold. Its dealer network expanded to around 1,000 partners. In 2025, the company's auto finance business ranked among the top three non-bank auto finance providers in Singapore and achieved a top-three position in Malaysia within just three months. Future expansion in overseas markets holds significant potential.
Risk Warning: Significant decline in auto sales; intensification of industry competition; credit risk.
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