Qifu Technology Stock Doubles in 6 Months: Get it or Let it Go?

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].