QFIN(QFIN) The Motley Fool·2025-03-17 15:52Core Viewpoint - Qifu Technology has reported strong financial results, showing significant growth and a low earnings multiple, making it an attractive investment opportunity despite its stock price more than doubling last year [1][2]. Company Overview - Qifu Technology is an AI-empowered credit-tech platform in China, providing credit solutions to 56.9 million users and a total of 261.2 million consumers, connecting them with 162 financial service providers [3]. - The company primarily serves consumers and small to medium businesses, focusing on credit needs in rural Tier 3 and Tier 4 communities, with 81% of users located in these areas [4]. Financial Performance - Revenue for Qifu rose by less than 3% to 5.81, reflecting consistent performance above Wall Street estimates [6]. Shareholder Returns - Qifu has been returning value to shareholders through aggressive share buybacks and announced a semiannual dividend of 0.60 distribution in September [7][8]. - The company's dividend payouts have increased annually since initiating a variable distribution policy in 2021, more than doubling from 1.30 in 2024 [10]. Valuation - Despite strong earnings growth and capital appreciation, Qifu's stock trades at a compelling valuation of just 7.4 times trailing earnings, having been available at only 2.6 times earnings at the start of the previous year [8]. - The company has improved operations even with modest revenue growth, indicating potential for further upside as demand for personal and small business loans in China increases [9].