XtockImages Elevator Pitch My rating for Qifu Technology, Inc. (NASDAQ:QFIN) is a Buy. The company's Q4 2023 top line performance and new $350 million share repurchase program were the focus of the prior March 15, 2024 update. With the latest write-up, I take a look at QFIN's Q2 2024 bottom line guidance and key operating metrics. There are favorable takeaways from Qifu Technology's metrics relating to its capital-light model transition, take rate, asset quality, and buybacks. My opinion is that QFIN is und ...

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Investment Rating - The report maintains a "Buy" rating for QFIN US, with a target price raised from $23.00 to $25.80, indicating a potential upside of 21.1% from the current price of $21.30 [1][7]. Core Insights - The company has shown strong profit growth, with a 24.6% year-over-year increase in net profit for Q1 2024, and a 15.4% increase in net revenue, primarily driven by interest income from on-balance-sheet loans and referral service fees [1]. - The report highlights a significant shift towards a light-asset model, which now accounts for 61% of facilitated loans, despite a 9.3% year-over-year decline in facilitated loans [1][4]. - Asset quality remains stable, with a 90-day delinquency rate of 3.35%, reflecting a slight increase over the past two quarters [1]. - The net take rate has improved, reaching 3.5% in Q1 2024, up 60 basis points year-over-year, attributed to better management of early repayment issues and lower funding costs [1]. Financial Performance Summary - For Q1 2024, the company reported a net income of approximately 1.1 billion RMB, with a guidance for Q2 2024 net profit between 1.17 billion and 1.23 billion RMB, reflecting a year-over-year growth of 7.0% to 12.5% [1][3]. - The company's revenue for 2024 is projected to be 17.233 billion RMB, with a year-over-year growth of 5.8% [5]. - The report anticipates a slight decline in facilitated loan growth, projecting a decrease of 3.0% for 2024, followed by a recovery in subsequent years [6][9]. Key Financial Metrics - The report provides a detailed financial outlook, including projected net profit of 4.713 billion RMB for 2024, with a corresponding EPS of 31.0 RMB [3][8]. - The company’s price-to-earnings ratio is projected to be 5.2 for 2024, indicating a favorable valuation compared to historical performance [3]. - The net take rate is expected to stabilize around 3.61% for 2024, reflecting ongoing improvements in operational efficiency [6].

Qifu Technology, Inc. (NASDAQ:QFIN) Q1 2024 Results Conference Call May 20, 2024 7:30 AM ET Company Participants Karen Ji - Senior Director of Capital Markets Wu Haisheng - Chief Executive Officer Alex Xu - Chief Financial Officer Zheng Yan - Chief Risk Officer Conference Call Participants Chiyao Huang - Morgan Stanley Emma Xu - Bank of America Alex Ye - UBS Yada Li - CICC Operator Thank you for standing by, and welcome to the Qifu Technology First Quarter 2024 Earnings Conference Call. At this time, all pa ...

Financial Performance - For Q1 2024, the total net revenue was RMB 4,153.2 million (USD 575.2 million), an increase from RMB 3,599.2 million in Q1 2023, representing a growth of 15.4%[11] - The operating income for Q1 2024 was RMB 1,364.1 million (USD 188.9 million), up from RMB 1,007.0 million in the same period last year, marking a growth of 35.4%[11] - The non-GAAP net profit for Q1 2024 was RMB 1,204.8 million (USD 166.9 million), compared to RMB 976.3 million in Q1 2023, indicating a growth of 23.3%[11] - Total net income for Q1 2024 reached RMB 1,160,144, an increase of 24.7% compared to RMB 929,822 in Q1 2023[59] - Non-GAAP net profit for Q1 2024 was RMB 1,204,789, a 23.2% increase from RMB 976,318 in Q1 2023[63] - The company reported a diluted earnings per share of RMB 3.65 for Q1 2024, compared to RMB 2.82 in Q1 2023, representing a growth of 29.5%[52] User and Loan Metrics - The number of cumulative users with approved credit limits reached 52.3 million, a 13.8% increase from 46.0 million as of March 31, 2023[9] - The cumulative number of successful borrowers (including repeat borrowers) was 31.2 million, reflecting a 12.6% increase from 27.7 million as of March 31, 2023[9] - The total loan facilitation and initiation amount for Q1 2024 was RMB 99,237 million, a decrease of 9.3% compared to RMB 109,456 million in Q1 2023[9] - The loan balance as of March 31, 2024, was RMB 169,920 million, down 0.8% from RMB 171,302 million a year earlier[9] - The weighted average contract term for loans initiated by financial institutions was approximately 10.10 months, compared to 11.21 months in the same period of 2023[9] - The 90-day+ delinquency rate for loans was 3.35% as of March 31, 2024[9] Revenue and Income Sources - Credit-driven service net income was RMB 3.02 billion, up from RMB 2.63 billion in Q1 2023[16] - Financing income increased to RMB 1.54 billion, compared to RMB 1.07 billion in the same quarter last year[16] - The gross profit margin for Q1 2024 improved to 32.8%, up from 28.0% in Q1 2023[63] Operating Expenses and Cash Flow - Operating expenses totaled RMB 2.79 billion, an increase from RMB 2.59 billion in Q1 2023[17] - Operating cash flow for the quarter was approximately RMB 1.96 billion, with total cash and cash equivalents amounting to RMB 8.32 billion at the end of the quarter[16] - Operating cash flow for Q1 2024 was RMB 1,958,267, up from RMB 1,761,091 in Q1 2023, indicating an 11.2% increase[55] - The company’s cash and cash equivalents at the end of Q1 2024 were RMB 8,156,593, down from RMB 8,745,344 at the end of Q1 2023[55] Strategic Plans and Market Position - The company plans to continue a cautious risk control strategy and optimize its business portfolio in response to macroeconomic uncertainties[13] - The company plans to expand its market presence and invest in new technology development to drive future growth[1] - The company has initiated a share repurchase plan starting April 1, 2024, with a faster pace than scheduled[13] - The company plans to repurchase up to USD 350 million of its American Depositary Shares or Class A ordinary shares under the new buyback plan approved on March 12, 2024[30] Assets and Liabilities - The company reported a total asset value of RMB 47,426,518 thousand as of March 31, 2024, an increase from RMB 45,818,572 thousand as of December 31, 2023, representing a growth of approximately 3.5%[45] - The company’s total liabilities amounted to RMB 25,285,306 thousand as of March 31, 2024, compared to RMB 23,808,715 thousand as of December 31, 2023, indicating an increase of approximately 6.2%[47] - The company reported a total equity of RMB 22,141,212 thousand as of March 31, 2024, a slight increase from RMB 22,009,857 thousand as of December 31, 2023, showing a growth of about 0.6%[47] Financial Metrics and Comparability - The company's net profit margin stands at 27.9%, while the non-GAAP net profit margin is 29.0%[23] - The company highlighted the importance of non-GAAP operating income and net profit metrics to identify potential business trends and avoid distortions from GAAP accounting[39] - Non-GAAP net income excludes stock-based compensation expenses, providing a clearer view of the company's operational performance[32] - The company noted that its financial data calculated under non-GAAP measures may differ from those used by other companies, limiting comparability[39]

SHANGHAI, China, May 19, 2024 (GLOBE NEWSWIRE) -- Qifu Technology, Inc. (NASDAQ:QFIN, HKEx: 3660))) ("Qifu Technology" or the "Company"), a leading Credit-Tech platform in China, today announced its unaudited financial results for the first quarter ended March 31, 2024. First Quarter 2024 Business Highlights As of March 31, 2024, our platform has connected 159 financial institutional partners and 241.4 million consumers*1 with potential credit needs, cumulatively, an increase of 12.5% from 214.5 million a y ...

SHANGHAI, China, May 19, 2024 (GLOBE NEWSWIRE) -- Qifu Technology, Inc. (NASDAQ: QFIN; HKEx: 3660) (“Qifu Technology” or the “Company”), a leading Credit-Tech platform in China, today announced its unaudited financial results for the first quarter ended March 31, 2024. First Quarter 2024 Business Highlights As of March 31, 2024, our platform has connected 159 financial institutional partners and 241.4 million consumers*1 with potential credit needs, cumulatively, an increase of 12.5% from 214.5 million a ye ...

Qifu Technology, Inc. (QFIN) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following year ...

Core Viewpoint - Qifu Technology, Inc. (QFIN) is set to report its first-quarter 2024 results on May 20, with expectations of revenue growth driven by strong consumer credit demand and loan facilitation [1][2]. Group 1: Earnings Expectations - The Zacks Consensus Estimate for QFIN's revenues is $598.9 million, reflecting a 14.3% increase from the same quarter last year [2]. - The consensus estimate for earnings per share is $1.08, indicating a year-over-year growth of 31.7% [2]. Group 2: Earnings Surprise History - QFIN has a mixed earnings surprise history, with two misses, one beat, and one match in the last four quarters, resulting in an average negative surprise of 5.4% [1]. Group 3: Earnings Prediction Model - The Zacks model does not predict a definitive earnings beat for QFIN this season, as it has an Earnings ESP of 0.00% and a Zacks Rank of 2 (Buy) [3].