QFIN(QFIN)2024-11-21 01:15Investment Rating - The report maintains a "Buy" rating for the company [4][3]. Core Insights - The company reported strong earnings growth, exceeding previous guidance, with a Non-GAAP net profit of 1.83 billion RMB for Q3 2024, representing a year-on-year increase of 54.5% and a quarter-on-quarter increase of 29.1% [1][2]. - The net income for Q3 2024 increased by 2.1% quarter-on-quarter and 5.1% year-on-year, driven by an increase in the take rate and a reversal of provisions [1][2]. - The company has set a Q4 2024 Non-GAAP net profit guidance of 1.8 to 1.9 billion RMB, indicating a year-on-year growth rate of 57-65%, suggesting that the total Non-GAAP net profit for 2024 will exceed 6.2 billion RMB, with a growth rate exceeding 40% [1][3]. Financial Performance - The company achieved a net take rate of 5.9% in Q3 2024, up from 5.2% in the previous quarter, benefiting from improved risk management and lower funding costs [2]. - The company’s loan facilitation increased by 13% quarter-on-quarter in Q3 2024, with a loan balance growth of 3% [2]. - The proportion of light asset models in ongoing loan facilitation reached 55.1%, reflecting a year-on-year increase of 10.3% [2]. Stock Performance and Valuation - The target price has been raised from 38.4, based on a 6.5x P/E ratio for 2024, indicating an attractive valuation [3][4]. - The company announced a stock repurchase plan of $450 million for 2025, enhancing shareholder returns [3].