Financial Performance - Total net revenue for 2024 reached RMB 17,165.7 million (USD 2,351.7 million), an increase from RMB 16,290.0 million in 2023[16]. - Net profit for 2024 was RMB 6,248.1 million (USD 856.0 million), compared to RMB 4,268.6 million in 2023, reflecting a significant growth[16]. - Non-GAAP net profit for 2024 was RMB 6,415.7 million (USD 879.0 million), up from RMB 4,454.2 million in 2023[16]. - Total net income for the three months ended December 31, 2024, reached RMB 4,482,252 thousand, a slight decrease of 0.3% compared to RMB 4,495,503 thousand in the same period of 2023[55]. - The net profit for the year ended December 31, 2024, was RMB 6,248,116 thousand, representing a 46.5% increase from RMB 4,268,577 thousand in 2023[58]. - The company reported a total revenue of RMB 17,165,656 thousand for the year ended December 31, 2024, an increase of 5.4% from RMB 16,290,027 thousand in 2023[55]. - The basic earnings per share for the year ended December 31, 2024, was RMB 21.02, compared to RMB 13.36 in 2023, reflecting a growth of 57.5%[55]. - The company reported a total operating income of RMB 7,528,570 thousand for the full year 2024, compared to RMB 4,856,964 thousand in 2023, indicating strong growth[62]. Loan and Credit Metrics - As of December 31, 2024, the platform has connected with 162 financial institution partners and 261.2 million potential credit-demand consumers, an increase of 11.0% from 235.4 million last year[9]. - The cumulative number of users with approved credit limits reached 56.9 million, up 11.8% from 50.9 million as of December 31, 2023[9]. - The total loan volume facilitated and initiated reached RMB 89,885 million, a 0.4% increase from RMB 89,561 million in the same period of 2023, and a 9.0% increase from RMB 82,436 million in the previous quarter[9]. - The outstanding loan balance as of December 31, 2024, was RMB 137,014 million, a decrease of 5.7% from RMB 145,270 million as of December 31, 2023, but an increase of 7.3% from RMB 127,727 million as of September 30, 2024[9]. - The 90-day+ delinquency rate for loans initiated by financial institutions was 2.09% as of December 31, 2024[9]. - The average contract term for loans initiated by financial institutions was approximately 10.00 months in Q4 2024, compared to 11.47 months in the same period of 2023[9]. - The loan volume under the light capital model, smart credit engine (ICE), and comprehensive technology solutions accounted for 53.2% of the total loan volume, increasing by 23.2% from RMB 38,798 million in the same period of 2023[9]. Cost Management and Expenses - The total operating costs and expenses for Q4 2024 were RMB 2,591.9 million (USD 355.1 million), down from RMB 3,215.9 million in Q4 2023[20]. - The company’s total operating costs and expenses were RMB 9,637.1 million (USD 1,320.3 million), down from RMB 11,433.1 million in 2023, indicating improved cost management[27]. - The total operating expenses for the year ended December 31, 2024, decreased to RMB 9,637,086 thousand from RMB 11,433,063 thousand in 2023, a reduction of 15.6%[55]. - General and administrative expenses amounted to RMB 449.5 million (USD 61.6 million), slightly up from RMB 421.1 million in 2023[29]. Cash Flow and Assets - Operating cash flow for 2024 reached a historical high of RMB 93.4 billion, supporting strategic initiatives and shareholder returns[16]. - Operating cash flow for the three months ended December 31, 2024, was RMB 3,051,606 thousand, up 29.7% from RMB 2,351,791 thousand in the same period of 2023[56]. - The company reported a total asset value of RMB 48,132,618 as of December 31, 2024, an increase from RMB 45,818,572 in 2023, representing a growth of approximately 6.8%[54]. - Cash and cash equivalents increased to RMB 4,452,416 in 2024 from RMB 4,177,890 in 2023, reflecting a growth of about 6.5%[54]. - The company’s cash and cash equivalents at the end of December 31, 2024, were RMB 6,805,800 thousand, down from RMB 7,558,997 thousand at the end of 2023[56]. Shareholder Returns and Dividends - The company plans to distribute a semi-annual dividend of USD 0.70 per ADS for the second half of 2024[40]. - The company has approved a share buyback plan with a total value of up to USD 350 million, with approximately 3.1 million ADS purchased at an average price of USD 34.5 per share[41]. Future Outlook and Strategy - The company expects to generate a net profit of RMB 1.75 billion to RMB 1.85 billion in Q1 2025, reflecting a year-on-year growth of 49% to 58%[42]. - The company plans to invest more resources into AI applications in credit scenarios, aiming for quality growth and innovation[15]. - The company’s strategy includes a focus on growth through partnerships and market expansion, with potential impacts from regulatory changes and market acceptance of its products[52]. - The company is focused on improving operational efficiency amid ongoing macroeconomic uncertainties[42]. Non-GAAP Measures - The company emphasized the importance of non-GAAP financial measures to avoid distortion from certain expenses included in GAAP results, enhancing understanding of past performance and future outlook[50]. - The company’s operating profit margin, calculated using non-GAAP measures, is expected to provide insights into business trends and operational performance[50]. - The company’s net profit attributable to shareholders, calculated using non-GAAP measures, is expected to provide practical information regarding operational performance[50].

Core Viewpoint - Qifu Technology reported strong operational and financial results for the fourth quarter and full year of 2024, despite facing macroeconomic challenges, and announced a semi-annual dividend increase [1][15][20]. Fourth Quarter 2024 Business Highlights - As of December 31, 2024, Qifu Technology connected 261.2 million consumers with potential credit needs, an increase of 11.0% from 235.4 million a year ago [10]. - Cumulative users with approved credit lines reached 56.9 million, up 11.8% from 50.9 million in 2023 [10]. - The company facilitated 24,814,923 loans in the fourth quarter, with total loan facilitation and origination volume reaching RMB89,885 million, a 0.4% increase year-over-year [10]. - The total outstanding loan balance was RMB137,014 million, a decrease of 5.7% from the previous year [10]. - The 90-day+ delinquency rate was 2.09% as of December 31, 2024 [10]. Fourth Quarter 2024 Financial Highlights - Total net revenue for the fourth quarter was RMB4,482.3 million (US$614.1 million), compared to RMB4,370.2 million in the prior quarter [18]. - Net income was RMB1,912.7 million (US$262.0 million), an increase from RMB1,798.8 million in the prior quarter [18]. - Non-GAAP net income was RMB1,972.4 million (US$270.2 million), compared to RMB1,825.1 million in the prior quarter [18]. - Net income per fully diluted ADS was RMB13.24 (US$1.82), up from RMB12.18 in the prior quarter [18]. Full Year 2024 Operational Highlights - Total loan facilitation and origination volume for 2024 was RMB321,969 million, a decrease of 12.8% from RMB369,132 million in 2023 [19]. - The weighted average contractual tenor of loans was 10.05 months, compared to 11.21 months in 2023 [19]. - Repeat borrower contribution was 93.1% for the year, up from 91.6% in 2023 [19]. Full Year 2024 Financial Highlights - Total net revenue for 2024 was RMB17,165.7 million (US$2,351.7 million), compared to RMB16,290.0 million in 2023 [43]. - Net income for the year was RMB6,248.1 million (US$856.0 million), an increase from RMB4,268.6 million in 2023 [43]. - Non-GAAP net income was RMB6,415.7 million (US$879.0 million), compared to RMB4,454.2 million in 2023 [43]. - Net income per fully diluted ADS was RMB41.28 (US$5.66), up from RMB26.08 in 2023 [43]. Dividend and Share Repurchase - The board approved a semi-annual dividend of US$0.35 per Class A ordinary share for the second half of 2024 [57]. - The company repurchased approximately 3.1 million ADSs for about US$107 million in the fourth quarter [59]. - A new share repurchase plan for 2025 was approved, allowing for up to US$450 million in repurchases [60]. Business Outlook - The company expects to generate a net income between RMB1.75 billion and RMB1.85 billion for the first quarter of 2025, reflecting a year-on-year growth of 49% to 58% [62].

Core Viewpoint - Qifu Technology reported strong financial results for the fourth quarter and full year of 2024, despite macroeconomic challenges, and announced an increase in semi-annual dividends [1][8][46]. Group 1: Fourth Quarter 2024 Business Highlights - The platform connected 162 financial institutional partners and 261.2 million consumers, marking an 11.0% increase from 235.4 million a year ago [5]. - Cumulative users with approved credit lines reached 56.9 million, up 11.8% from 50.9 million in the previous year [5]. - The total facilitation and origination loan volume was RMB 89,885 million, a 0.4% increase from RMB 89,561 million in the same period of 2023 [5]. Group 2: Fourth Quarter 2024 Financial Highlights - Total net revenue was RMB 4,482.3 million (US$ 614.1 million), compared to RMB 4,370.2 million in the prior quarter [6]. - Net income was RMB 1,912.7 million (US$ 262.0 million), an increase from RMB 1,798.8 million in the prior quarter [6]. - Non-GAAP net income was RMB 1,972.4 million (US$ 270.2 million), compared to RMB 1,825.1 million in the prior quarter [6]. Group 3: Full Year 2024 Operational Highlights - Total net revenue for 2024 was RMB 17.17 billion, up from RMB 16.29 billion in 2023 [10][32]. - Non-GAAP net income for the year was RMB 6.42 billion, compared to RMB 4.45 billion in 2023 [10][32]. - The company generated a record RMB 9.34 billion in cash from operations in 2024 [10]. Group 4: Business Strategy and Outlook - The company plans to maintain a prudent approach in business planning for 2025, focusing on quality growth and enhancing operational efficiency [10][52]. - Management expects net income for the first quarter of 2025 to be between RMB 1.75 billion and RMB 1.85 billion, representing a year-on-year growth of 49% to 58% [52]. - The company aims to allocate more resources to AI applications across credit scenarios to navigate the current environment effectively [10]. Group 5: Shareholder Returns - The board approved a semi-annual dividend of US$ 0.35 per Class A ordinary share for the second half of 2024 [46]. - The company has initiated a new share repurchase plan for up to US$ 450 million starting January 1, 2025 [50].

Core Viewpoint - Qifu Technology, Inc. will report its unaudited financial results for Q4 and the full year ended December 31, 2024, on March 17, 2025, before U.S. markets open [1] Company Overview - Qifu Technology is a leading Credit-Tech platform in China, providing a comprehensive suite of technology services to assist financial institutions, consumers, and SMEs throughout the loan lifecycle [5] - The company aims to make credit services more accessible and personalized through its Credit-Tech services [5]

Core Viewpoint - Qifu Technology, Inc. (QFIN) has experienced significant stock growth of 106% over the past six months, outperforming the industry average of 46% and competitors like SLM Corporation and Credit Acceptance Corporation [1][15]. Company Performance - QFIN's third-quarter 2024 revenues reached RMB 4.37 billion, marking a 2.1% year-over-year increase, while non-GAAP net income grew by 54.5% year-over-year, indicating effective cost management and operational efficiency [6]. - The company expanded its financial institutional partners to 162 and increased its user base from 53.6 million to 55.2 million, reflecting successful marketing strategies [7]. Financial Position - QFIN reported robust cash reserves of $1.4 billion at the end of the third quarter, with minimal current debt of $149 million, providing ample liquidity for growth initiatives [8]. - The current ratio of 2.56 exceeds the industry average of 2.15, demonstrating the company's ability to meet short-term obligations [8]. - QFIN's return on equity stands at 24.4%, significantly higher than the industry average of 3.6%, showcasing exceptional profitability and efficient use of shareholder capital [9]. Business Model - QFIN's AI-driven business model targets young, urban Chinese professionals, simplifying the loan process by leveraging AI, machine learning, and big data to assess borrowers' repayment abilities [4][5]. - The company focuses on individuals with high, consistent salaries, offering unsecured loans with higher interest rates, which has allowed it to scale effectively and achieve profitability [5].

Group 1 - The stock of Qifu Technology, Inc. (NASDAQ: QFIN) has increased approximately 13% since October 2024, indicating potential for further growth [1] Group 2 - The analyst has a background in Finance and has worked in two financial companies over five years, focusing on Energy, Banking, and Tech stocks [2] - The primary focus is on fundamental analysis and long-term stock positions rather than short-term analysis [2]

Group 1 - Qihoo 360, a sister company of QFIN, is listed on the US DoD Chinese Military Company list, or CMC, but this is not believed to directly impact the company [1] - Astrada Advisors specializes in delivering actionable recommendations that enhance portfolio performance and uncover alpha opportunities, supported by a strong track record in investment research [1] - The firm has expertise in technology, media, internet, and consumer sectors across North America and Asia, excelling in identifying high-potential investments and navigating complex industries [1] Group 2 - Astrada Advisors leverages extensive local and global experience to provide a unique perspective on market developments, regulatory changes, and emerging risks [1] - The research conducted by Astrada Advisors integrates rigorous fundamental analysis with data-driven insights, offering a nuanced understanding of key trends, growth drivers, and competitive landscapes [1] - The focus of the company is to empower investors with timely research and a comprehensive view of industry dynamics, whether navigating volatile markets or exploring new trends [1]

Core Viewpoint - Qifu Technology, Inc. (QFIN) has demonstrated exceptional stock performance, significantly outperforming its industry and competitors, driven by strong financial metrics and favorable economic conditions [1][12][18]. Group 1: Stock Performance - QFIN stock has surged 104.4% over the past six months, compared to a 50.5% increase in the industry and 11.4% growth in the Zacks S&P 500 composite [1]. - As of the last trading session, QFIN closed at $38.3, which is 5.2% below its 52-week high of $40.3, and is trading above its 50-day moving average, indicating bullish investor sentiment [4][5]. Group 2: Financial Metrics - QFIN's D1 delinquency rate has decreased over the last three quarters, with rates of 4.9%, 4.8%, and 4.6% for the first, second, and third quarters of 2024, respectively, while the 30-day collection rate improved from 85.1% to 87.4% during the same period [8]. - The 90-day default rate improved from 3.4% in Q2 2024 to 2.7% in Q3 2024, and funding costs were reduced by 30 basis points per quarter, indicating effective risk management and collection practices [9]. - QFIN's stock is priced at 6.3 times forward 12-month earnings per share, significantly lower than the industry average of 41.7 times, and its trailing 12-month EV-to-EBITDA ratio is 4.9 times, compared to the industry's average of 89.1 times [12]. - The return on equity (ROE) for QFIN is 24.4%, well above the industry average of 3.4%, reflecting strong profitability [13]. - QFIN has a current ratio of 2.56, surpassing the industry average of 2.16, indicating a strong liquidity position [14]. Group 3: Revenue and Earnings Outlook - The Zacks Consensus Estimate for QFIN's 2024 revenues is $2.3 billion, reflecting a 1.8% increase from the previous year, with a projected revenue of $2.4 billion for 2025, indicating a 3.7% year-over-year growth [16]. - The consensus estimate for 2024 earnings is $5.7 per share, suggesting a 55.2% increase from the prior year, with a projected earnings of $6.4 per share for 2025, indicating a 12% year-over-year rise [16]. Group 4: Economic Environment - The People's Bank of China (PBOC) has implemented measures to lower the reverse repurchase rate and reduce the Required Reserve Ratio (RRR), which enhances liquidity in the banking system and lowers lending costs, potentially increasing demand for QFIN's lending services [10][11].

Group 1: Emerging Market Investment Overview - The first half of 2024 was favorable for emerging market investment, with increased investor exposure despite challenges such as China's property crisis and poor consumption patterns in several emerging economies [1] - Emerging-market equities registered a 9.6% return from January to August 2024, driven by strong performances from large-cap semiconductor companies [3] - The positive trend in emerging markets faced challenges due to geopolitical tensions, particularly related to the U.S. election and high import tariff fears, which led to muted investment activities [4] Group 2: Future Prospects and Economic Outlook - The OECD's economic roadmap indicates promising prospects for emerging markets in 2025, with overall momentum in 2024 on par with 2023, despite geopolitical tensions [5] - Foreign direct investment (FDI) inflows for India and China are expected to remain resilient in 2025, driven by competitive wages, increasing domestic demand, and improved business regulations [9] - Global headline FDI is projected to recover in 2025, with world trade in goods and services expected to grow by 3.4% [10] Group 3: Company-Specific Insights - Qifu Technology, Inc. (QFIN) is a leading Credit-Tech platform in China, with projected earnings growth rates of 55.2% for 2024 and 12% for 2025, and a stock increase of 87% over the past six months [13][14] - Yatra Online (YTRA), an online travel operator in India, anticipates significant growth in the MICE sector, with fiscal 2025 revenue and earnings growth rates projected at 90.9% and 350%, respectively [15][16] - Dr. Reddy's Laboratories (RDY), a global pharmaceutical company, is focused on expanding its biosimilars facility in India, with fiscal 2025 revenue and earnings growth rates of 11.5% and 3.8%, respectively [17][18]

Company Overview - Qifu Technology, Inc. (QFIN) currently holds a Momentum Style Score of A, indicating strong potential for momentum investing [3][12] - The company has a Zacks Rank of 1 (Strong Buy), which is associated with a historical outperformance in the market [4][12] Price Performance - Over the past week, QFIN shares have increased by 10.37%, significantly outperforming the Zacks Technology Services industry, which rose by 1.57% [7] - In the last quarter, QFIN shares have risen by 44.98%, and over the past year, they have surged by 145.7%, while the S&P 500 has only increased by 9.71% and 33.24%, respectively [8] Trading Volume - QFIN's average 20-day trading volume is 1,433,438 shares, which serves as a bullish indicator when combined with rising stock prices [9] Earnings Estimates - In the past two months, two earnings estimates for QFIN have been revised upwards, raising the consensus estimate from $5.08 to $5.71 [11] - For the next fiscal year, two estimates have also moved upwards with no downward revisions during the same period [11]