SHANGHAI - Qifu Technology, Inc. (NASDAQ: QFIN; HKEx: 3660), a prominent credit-tech platform in China, has announced the completion of its 2023 Share Repurchase Plan and the initiation of a new plan for 2024.
The company disclosed that as of March 28, it had nearly exhausted the authorized $150 million for the 2023 plan, having acquired 9,348,543 American depositary shares (ADSs) at an average price of $16.02 per ADS, totaling approximately $149.98 million. These shares are set to be cancelled in line with relevant regulations.
Moving forward, the Qifu board of directors approved a new share repurchase plan on March 12, which authorizes the company to repurchase up to $350 million of its ADSs or Class A ordinary shares over the next 12 months, starting April 1. The repurchases will be conducted in various manners, including open market transactions, privately negotiated deals, and block trades, adhering to the U.S. Securities Exchange Act rules.
Qifu Technology offers technology services that support the loan lifecycle for financial institutions, consumers, and small and medium-sized enterprises (SMEs), from borrower acquisition to credit assessment and fund matching. The company aims to make credit services more personalized and accessible through its platform.
The information presented here is based on a press release statement, which includes forward-looking statements under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.
These statements reflect the company's current expectations and projections about future events, which are subject to risks, uncertainties, and changes in circumstances that may cause actual outcomes to differ materially from those expressed or implied by these forward-looking statements.
InvestingPro Insights
As Qifu Technology continues to expand its footprint in the credit-tech arena, the company's financial metrics present an intriguing picture for investors. With a market capitalization of $3.02 billion, Qifu Technology showcases a robust financial position.
The company's P/E ratio stands at a low 5.05, which, when juxtaposed with its adjusted P/E ratio for the last twelve months as of Q4 2023, remains consistent at 5.06. This valuation implies a strong free cash flow yield, according to one of the InvestingPro Tips.
Another InvestingPro Tip highlights that Qifu Technology is trading at a high P/E ratio relative to near-term earnings growth, with a PEG ratio for the last twelve months as of Q4 2023 at 1.18. This suggests that while the company is valued attractively based on earnings, its price relative to growth expectations presents a more nuanced opportunity for investors.
From a profitability standpoint, Qifu Technology has been profitable over the last twelve months, and analysts predict the company will maintain profitability this year. The company's strong return over the last month, with a 17.48% price total return, and an even more impressive three-month price total return of 23.63%, underscores its recent market performance.
For those interested in further analysis and additional InvestingPro Tips, there are 9 more tips available on InvestingPro's platform for Qifu Technology. These can offer deeper insights into the company's financial health and market position. To access these tips and comprehensive analytics, investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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