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Qifu Technology (QFIN)
NASDAQ:QFIN
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Qifu Technology
(NASDAQ:QFIN)
Rating:80Outperform
Price Target:―
Positive Factors
Capital Return
The company announced an interim dividend of USD0.76 per ADS, indicating a strong capital return strategy.
Earnings
QFIN's revenue rose 11.2% quarter-over-quarter and 25.4% year-over-year, exceeding consensus expectations by 9.5%.
Share Buyback
QFIN spent substantial amounts on share buybacks, demonstrating confidence in its financial health and future growth.
Negative Factors
Financial Strategy
Qifu Technology announced a proposed offering of USD600mn convertible senior notes to fund a newly established share repurchase plan.
Loan Growth
New loans declined 4.8% quarter-over-quarter due to regulatory tightening, though they still rose 16.1% year-over-year.
Regulatory Impact
Regulatory uncertainties have led to a conservative outlook and a reduction in new loan facilitation.
Qifu Technology (QFIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.05B
Dividend Yield4.41%
Average Volume (3M)2.36M
Price to Earnings (P/E)4.3
Beta (1Y)1.17
Revenue Growth9.90%
EPS Growth68.56%
CountryUS
Employees3,527
SectorFinancial
Sector Strength73
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)1.78
Shares Outstanding148,270,500
10 Day Avg. Volume2,463,953
30 Day Avg. Volume2,359,877
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.24
Enterprise Value/Revenue0.31
Enterprise Value/Gross Profit0.42
Enterprise Value/Ebitda0.58
Forecast
1Y Price Target
$48.39Price Target Upside66.80% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Qifu Technology Business Overview & Revenue Model
Company DescriptionQifu Technology, listed under the ticker QFIN, is a financial technology company that operates primarily in the Chinese market. The company focuses on providing online consumer finance services through its digital platforms. It offers users access to credit solutions, leveraging technology to streamline the lending process, enhance user experience, and improve credit assessment. The company's core services revolve around facilitating loans to individuals and small businesses, utilizing advanced data analytics and risk management systems to ensure compliance and efficiency.
How the Company Makes MoneyQifu Technology makes money primarily through the interest and fees charged on the loans it facilitates. Its revenue streams include origination fees from borrowers, service fees from institutional funding partners, and interest income from the loans held on its balance sheet. The company partners with multiple financial institutions to secure funding, enabling it to serve a large customer base while managing its own risk exposure. Additionally, Qifu Technology employs sophisticated data analytics to refine its credit risk models, allowing it to better assess borrower risk and optimize its loan offerings. This data-driven approach helps the company maintain a competitive edge and attract a diverse range of customers seeking accessible credit solutions.
Qifu Technology Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 19, 2025
Earnings Call Sentiment Neutral
The earnings call presents a balanced view with significant achievements in loan facilitation volume, non-GAAP net income growth, and ABS issuance, alongside challenges posed by regulatory uncertainty and increased provisions for risk-bearing loans. The company is making strategic advancements in AI and expanding internationally, but faces economic headwinds and regulatory impacts.Q2-2025 Updates
Positive Updates
Increase in Loan Facilitation and Origination Volume
Total loan facilitation and origination volume on the platform increased by approximately 16% year-over-year to RMB 84.6 billion.
Growth in Non-GAAP Net Income
Non-GAAP net income increased by 30.8% year-over-year to RMB 1.85 billion, while non-GAAP EPADS on a fully diluted basis rose by 48.8% to RMB 13.63.
Expansion in ABS Issuance
ABS issuance reached approximately RMB 7.8 billion during the quarter, representing a year-over-year increase of about 70%, nearly matching the full year total in 2024.
User Growth and Decreased Acquisition Costs
Total new credit line users grew 40% year-over-year to 1.79 million, while the average cost per credit line user decreased slightly.
Advancements in AI and Risk Management
Improvements in AI-powered risk decisioning and user profile enhancements, integrating 670 models and over 100 million historical decisions.
Overseas Expansion
Launch of small-scale operations in the U.K., indicating a healthy performance across key metrics.
Negative Updates
Regulatory and Economic Uncertainties
Persistent economic uncertainties and regulatory updates are influencing market dynamics and risk management strategies.
Increase in Provision for Risk-bearing Loans
New provisions for risk-bearing loans in Q2 were approximately CNY 2.5 billion, indicating increased risk-bearing loan volume and near historical high provision booking ratio.
Slight Increase in Delinquency Rates
Day 1 delinquency was 5.1% in Q2 versus 5.0% in Q1, and C2M2 increased modestly Q-on-Q to 0.64%.
Impact of New Regulations on Business Mix
The new regulation effective from October 1 could lead to volatility in take rates and business mix adjustments.
Company Guidance
During the Qfin Holdings Second Quarter 2025 Earnings Conference Call, the company provided detailed guidance on various financial metrics and strategic directions. By the end of Q2, their AI-powered credit decision engine and asset distribution platform had facilitated credit lines for 165 financial institutions and over 60 million users, with total loan facilitation and origination volume increasing by 16% year-over-year to RMB 84.6 billion. The take rate for the quarter improved to 5.4%, up nearly 1 percentage point year-over-year. Non-GAAP net income rose by 30.8% to RMB 1.85 billion, and non-GAAP EPADS increased by 48.8% to RMB 13.63. The company projected a non-GAAP net income between RMB 1.6 billion and RMB 1.8 billion for Q3 2025, highlighting a cautious approach amid regulatory changes. They also reported substantial growth in their ABS issuance, reaching RMB 7.8 billion in Q2, a 70% year-over-year increase, and a 10 basis point sequential decrease in overall funding costs. The call emphasized Qfin's strategic focus on prudent operations, AI-driven innovations, and global expansion, including new operations in the U.K.Qifu Technology Financial Statement Overview
Summary
Qifu Technology shows robust financial performance with strong revenue and net profit margin growth, low leverage, and effective cash flow generation. The company has demonstrated excellent operational efficiency and financial stability, positioning it well for future growth.Income Statement
Qifu Technology exhibits robust financial performance with a consistent increase in revenue from $9.2 billion in 2019 to $17.2 billion in 2024, reflecting strong revenue growth. The Gross Profit Margin has remained solid, consistently above 60% over the years. The 2024 Net Profit Margin improved significantly to 36.5% from 26.3% in 2023, indicating enhanced profitability. EBIT and EBITDA margins also show a positive trend, reinforcing operational efficiency. Overall, the company shows strong growth and profitability in its income statement.88
Very Positive
Balance Sheet
The company's balance sheet is strong, featuring a Debt-to-Equity Ratio of 0.07 in 2024, highlighting low leverage and financial stability. The Return on Equity (ROE) climbed to 25.9% in 2024, indicating effective use of equity to generate profit. The Equity Ratio stands at 50.3%, showcasing a healthy capital structure with substantial shareholder equity relative to total assets. The overall balance sheet strength is marked by low debt levels and high equity, mitigating financial risk.91
Very Positive
Cash Flow
Qifu Technology demonstrates strong cash flow performance with steady Free Cash Flow growth, reaching $9.3 billion in 2024. The Operating Cash Flow to Net Income Ratio is 1.49 in 2024, indicating strong cash generation from operations. The Free Cash Flow to Net Income Ratio is also favorable at 1.49, underscoring the company's ability to convert net income into cash. Despite fluctuations in investing and financing cash flows, the company's capacity to generate cash remains robust, supporting its financial flexibility.85
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.28B | 17.17B | 16.29B | 16.55B | 16.64B | 13.56B |
| Gross Profit | 12.07B | 10.60B | 10.45B | 11.70B | 12.84B | 10.36B |
| EBITDA | 8.60B | 8.08B | 0.00 | 8.92B | 9.93B | 8.62B |
| Net Income | 6.90B | 6.26B | 4.29B | 4.02B | 5.78B | 3.50B |
Balance Sheet | ||||||
| Total Assets | 55.63B | 48.13B | 45.82B | 40.34B | 33.50B | 24.39B |
| Cash, Cash Equivalents and Short-Term Investments | 10.62B | 7.85B | 4.19B | 7.22B | 6.12B | 4.42B |
| Total Debt | 6.13B | 1.40B | 827.73M | 150.00M | 436.53M | 230.30M |
| Total Liabilities | 32.51B | 23.89B | 23.81B | 21.41B | 18.29B | 14.91B |
| Stockholders Equity | 23.06B | 24.19B | 21.94B | 18.85B | 15.20B | 9.48B |
Cash Flow | ||||||
| Free Cash Flow | 10.19B | 9.19B | 7.03B | 5.90B | 5.76B | 5.31B |
| Operating Cash Flow | 10.19B | 9.34B | 7.12B | 5.92B | 5.79B | 5.33B |
| Investing Cash Flow | -8.10B | -7.99B | -11.15B | -7.36B | -6.06B | 892.77M |
| Financing Cash Flow | 1.56B | -2.11B | 1.07B | 3.20B | 2.26B | -3.28B |
Qifu Technology Technical Analysis
Negative
29.01
Price Trends
37.60
Negative
39.33
Negative
39.05
Negative
Market Momentum
-2.15
Negative
29.55
Positive
25.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QFIN, the sentiment is Negative. The current price of 29.01 is below the 20-day moving average (MA) of 31.90, below the 50-day MA of 37.60, and below the 200-day MA of 39.05, indicating a bearish trend. The MACD of -2.15 indicates Negative momentum. The RSI at 29.55 is Positive, neither overbought nor oversold. The STOCH value of 25.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QFIN.
Qifu Technology Risk Analysis
Qifu Technology disclosed 88 risk factors in its most recent earnings report. Qifu Technology reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Qifu Technology Peers Comparison
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $4.05B | 4.32 | 31.10% | 4.41% | 9.90% | 68.56% | |
79 Outperform | $2.25B | 6.31 | 18.75% | 3.32% | 8.41% | 34.76% | |
76 Outperform | $7.27B | 11.05 | 20.47% | 6.75% | 9.41% | 13.98% | |
73 Outperform | $1.07B | 5.03 | 14.86% | 4.86% | 3.11% | 95.40% | |
68 Neutral | $17.89B | 12.03 | 10.28% | 3.73% | 9.80% | 1.66% | |
52 Neutral | $2.43B | ― | -3.79% | 4.57% | -38.81% | -425.73% | |
49 Neutral | $6.63B | ― | -0.96% | ― | 60.62% | 96.91% |
* Financial Sector Average
Performance Comparison
QFIN
Qifu Technology
29.01
4.11
16.51%
OMF
OneMain Holdings
61.59
16.39
36.26%
FINV
FinVolution Group
8.35
3.24
63.41%
LX
Lexinfintech Holdings
6.25
4.68
298.09%
LU
Lufax Holding
2.96
0.73
32.74%
UPST
Upstart Holdings
73.76
30.96
72.34%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.