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]

Company Overview - Qifu Technology (NASDAQ: QFIN) is based in Shanghai, China, and operates a credit-tech platform under the 360 Jietiao brand, offering services such as borrower-lender matching, credit verification, risk management, and post-loan facilitation to various financial institutions [1] Services Offered - The company provides platform services that include loan creation, referral, and other credit-based services aimed at enhancing the efficiency of financial transactions [1] Investment Insights - Daniel Sereda, a chief investment analyst at a family office, emphasizes the importance of filtering vast amounts of data to extract critical investment ideas, indicating a focus on high-quality analysis in the investment community [1]

Qifu Technology, Inc. (QFIN) stock has shown remarkable growth over the past six months. The stock has skyrocketed 93.9%, outperforming the 42.1% rally of the industry and 14.6% growth of the Zacks S&P 500 composite.QFIN’s performance is significantly higher than its competitors, SLM Corporation (SLM) and Credit Acceptance Corporation (CACC) . SLM and CACC have gained 33.9% and 3.4% for the same period, respectively.Six Months Price Performance Image Source: Zacks Investment Research As of the last trading ...

I am a conservative yet opportunistic value investor who has been investing since 2005. I am fact-driven, preferring to let financial data inform me of a company's health, followed by qualitative analysis to fill in the gaps to paint a holistic picture of a company's growth prospects.My work is published on two platforms, Seeking Alpha and FAST Graphs (https://fastgraphs.com/blog/category/research-articles/).I appreciate everyone who reads my research and especially those who drop me questions and comments ...