Qudian: Success With Last-Mile Delivery And More Share Repurchases

Core Viewpoint - Qudian Inc. remains significantly undervalued, with ongoing share repurchase agreements and recent profitability in its last-mile delivery business indicating potential for value creation for shareholders [1][3][5]. Company Overview - Qudian operates as a consumer-oriented technology company providing credit solutions in China, and is transitioning into the last-mile delivery business with initial success in New Zealand and Australia [2]. Profitability - The latest quarterly report indicates a net income of RMB99.8 million (US$13.7 million), marking the first profit in a year, although most of this profit stems from interest and investment income rather than core operations [3][4]. Business Model Transition - The last-mile delivery business, branded as "Fast Horse," has shown steady progress since its launch in December 2022, with expectations for continued commitment to this transition and prudent cash management [5][6]. Share Repurchase Agreements - Qudian has two active share repurchase agreements, with approximately US$8 million spent on the latest program, which is set to continue until June 13, 2027 [6][7]. - The company has repurchased around 37 million shares, creating significant shareholder value, with an estimated value of US$164 million generated in the past year [8]. Future Outlook - Management expresses confidence in the last-mile delivery business and plans to maximize share buybacks, which could lead to substantial stock movement given the current undervaluation [7][8].