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Qifu Technology, Inc (QFIN)
:QFIN
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Qifu Technology
(NASDAQ:QFIN)
Rating:80Outperform
Price Target:―
Positive Factors
Loan Regulations
The loan facilitation new regulations are viewed as beneficial for long-term industry growth and favorable to leading players like QFIN.
Revenue Performance
QFIN's revenue rose 4.7% quarter-over-quarter and 12.9% year-over-year, surpassing consensus expectations.
Share Buybacks
QFIN spent substantial amounts on share buybacks, demonstrating confidence in its financial health and future growth.
Negative Factors
Convertible Notes Offering
Qifu Technology announced a proposed offering of USD600mn convertible senior notes to fund a newly established share repurchase plan.
Macroeconomic Uncertainties
The company maintains a strong loan growth target, even amidst macroeconomic uncertainties.
Qifu Technology (QFIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.43B
Dividend Yield3.33%
Average Volume (3M)1.16M
Price to Earnings (P/E)6.5
Beta (1Y)1.29
Revenue Growth3.88%
EPS Growth56.29%
CountryUS
Employees3,527
SectorFinancial
Sector Strength75
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)1.76
Shares Outstanding148,270,500
10 Day Avg. Volume1,220,295
30 Day Avg. Volume1,160,347
Financial Highlights & Ratios
PEG Ratio0.49
Price to Book (P/B)1.86
Price to Sales (P/S)0.00
P/FCF Ratio2.01
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$58.73Price Target Upside41.96% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Qifu Technology Business Overview & Revenue Model
Company DescriptionQifu Technology, Inc., together with its subsidiaries, operates credit-tech platform under the 360 Jietiao brand in the People's Republic of China. The company provides credit-driven services that matches borrowers with financial institutions to conduct customer acquisition, initial and credit screening, advanced risk assessment, credit assessment, fund matching, and other post-facilitation services; and platform services, including loan facilitation and post-facilitation services to financial institution partners under intelligence credit engine, referral services, and risk management software-as-a-service. It offers e-commerce loans, enterprise loans, and invoice loans to SME owners. It serves financial institutions, consumers, and small- and micro-enterprises. The company was formerly known as 360 DigiTech, Inc. and changed its name to Qifu Technology, Inc. in March 2023. Qifu Technology, Inc. was founded in 2016 and is headquartered in Shanghai, the People's Republic of China.
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:May 19, 2025
(Q1-2025)
| % Change Since: -5.87%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Positive
The earnings call highlights significant growth in AI-driven operations, non-GAAP net income, and embedded finance and Technology Solutions segments, all contributing to a positive outlook. However, increased sales and marketing expenses and macroeconomic uncertainties are noteworthy challenges.Q1-2025 Updates
Positive Updates
AI-Driven Growth and Efficiency
The AI-powered credit decision engine and asset distribution platform served 58 million users and 163 financial institutions. Take rate improved by 2.2 percentage points year-over-year to 5.7%.
Significant Increase in Non-GAAP Net Income
Non-GAAP net income increased by 59.9% year-over-year to RMB1.93 billion, with non-GAAP EPADS rising by 78.5% to RMB13.5.
Expansion of Embedded Finance Business
Credit line users from embedded finance channels grew by 36% year-over-year, and loan volume surged by roughly 106%.
Growth in Technology Solutions Business
Partnerships with three additional municipal banks drove a 144% year-over-year increase in loan volume from the Technology Solutions segment.
Strong Cash Position and Shareholder Returns
Generated RMB2.81 billion in cash from operations. Total share repurchases in 2025 projected to be no less than USD 680 million, with a planned 11% decrease in total share count.
Negative Updates
Increased Sales and Marketing Expenses
Sales and marketing expenses increased by 13% quarter-on-quarter and 42% year-on-year, driven by higher volume contribution from API channels.
Macroeconomic Uncertainty and Trade Tensions
Impacts from the U.S.-China trade tensions have added uncertainty to the market, affecting credit demand and risk levels.
Slight Increase in Day-One Delinquency Rate
Day-one delinquency rate increased to 5.0% in Q1 due to changes in loan mix and a smaller portion of early-stage loans.
Company Guidance
In the first quarter of 2025, Qifu Technology reported a 15.8% year-over-year increase in total loan facilitation and origination volume, while its take rate rose by 2.2 percentage points to 5.7%. The company achieved a 59.9% year-over-year growth in non-GAAP net income, reaching RMB1.93 billion, and a 78.5% increase in non-GAAP EPADS on a fully diluted basis to RMB13.5. The AI-powered credit decision engine and asset distribution platform supported 163 financial institutions and served over 58 million users. Despite macroeconomic headwinds, Qifu Technology maintained a stable C2M2 metric at 0.6% and reduced overall funding costs by 30 basis points sequentially. The firm issued RMB6.6 billion in ABS, marking a 25% year-over-year increase, and expanded its user base by adding 1.54 million new credit line users, a 6% year-over-year increase. The company also executed significant share buybacks, reducing its share count by approximately 11% for the year. Looking ahead, Qifu Technology remains cautiously optimistic, focusing on enhancing operational efficiency, optimizing capital allocation, and pursuing a "one core two wings" strategy to sustain high-quality growth.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 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 17.17B | 16.29B | 16.55B | 16.64B | 13.56B |
| Gross Profit | 10.60B | 10.45B | 11.70B | 12.84B | 10.36B |
| EBITDA | 8.08B | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Income | 6.26B | 4.29B | 4.02B | 5.78B | 3.50B |
Balance Sheet | |||||
| Total Assets | 48.13B | 45.82B | 40.34B | 33.50B | 24.39B |
| Cash, Cash Equivalents and Short-Term Investments | 7.85B | 4.19B | 7.22B | 6.12B | 4.42B |
| Total Debt | 1.40B | 827.73M | 150.00M | 397.58M | 186.80M |
| Total Liabilities | 23.89B | 23.81B | 21.41B | 18.29B | 14.91B |
| Stockholders Equity | 24.19B | 21.94B | 18.85B | 15.20B | 9.48B |
Cash Flow | |||||
| Free Cash Flow | 9.19B | 7.03B | 5.90B | 5.76B | 5.31B |
| Operating Cash Flow | 9.34B | 7.12B | 5.92B | 5.79B | 5.33B |
| Investing Cash Flow | -7.99B | -11.15B | -7.36B | -6.06B | 892.77M |
| Financing Cash Flow | -2.11B | 1.07B | 3.20B | 2.26B | -3.28B |
Qifu Technology Technical Analysis
Neutral
41.37
Price Trends
43.07
Negative
41.85
Positive
38.81
Positive
Market Momentum
-0.16
Positive
44.42
Neutral
15.89
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QFIN, the sentiment is Neutral. The current price of 41.37 is below the 20-day moving average (MA) of 43.37, below the 50-day MA of 43.07, and above the 200-day MA of 38.81, indicating a neutral trend. The MACD of -0.16 indicates Positive momentum. The RSI at 44.42 is Neutral, neither overbought nor oversold. The STOCH value of 15.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $2.55B | 7.38 | 17.91% | 2.76% | 5.13% | 25.93% | |
80 Outperform | $5.43B | 6.45 | 30.67% | 3.33% | 3.88% | 56.29% | |
71 Outperform | $1.10B | 6.14 | 12.60% | 3.36% | 7.53% | 37.86% | |
68 Neutral | $6.81B | 12.18 | 17.46% | 7.27% | 9.07% | ― | |
66 Neutral | $7.05B | ― | -10.30% | ― | 34.69% | 63.65% | |
64 Neutral | $6.54B | 11.13 | 7.19% | 5.10% | 23.85% | 5.18% | |
52 Neutral | $2.41B | ― | -3.79% | 4.57% | -38.81% | -425.73% |
* Financial Sector Average
Performance Comparison
QFIN
Qifu Technology
42.00
23.50
127.03%
OMF
OneMain Holdings
57.53
10.36
21.96%
FINV
FinVolution Group
10.13
5.30
109.73%
LX
Lexinfintech Holdings
6.50
4.86
296.34%
LU
Lufax Holding
2.77
-0.04
-1.42%
UPST
Upstart Holdings
77.58
49.79
179.17%
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.