|Over a week ago|
China Renaissance ups LexinFintech to Buy, raises Fintech sector to Overweight » 06:4706/1606/16/20
LX, QFIN, QD
As previously reported,…
As previously reported, China Renaissance analyst Jacky Zuo upgraded LexinFintech (LX) to Buy from Hold with a price target of $13, up from $12, as part of a broader upgrade of the Fintech sector to Overweight due to expectations for steady improvement of credit post COVID-19 and what are viewed as positive regulatory developments. Within the group, Zuo said 360 Finance (QFIN) remains the sector Top Pick given its "resilient earnings and undemanding valuation. Zuo reiterates a Hold rating on Qudian (QD) citing what is seen as "still-low visibility" into a turnaround at the company.
LexinFintech upgraded to Buy following pullback at Citi » 07:4006/0906/09/20
As previously reported,…
As previously reported, Citi upgraded LexinFintech (LX) to Buy from Neutral, arguing that COVID-19 "has been the perfect stress test for the online consumer lenders" and that 360 Finance (QFIN) and Lexin have emerged as the leaders. The analyst believes the worst of the earnings hit asset quality risk from COVID-19 is over and notes the recent underperformance of LexinFintech share, which are down 36% year-to-date.
360 Finance affiliate acquires 30% stake in Kincheng Bank of Tianjin » 16:0706/0506/05/20
360 Finance announced…
360 Finance announced that 360 Group, one of its affiliates, acquired a 30% stake in Kincheng Bank of Tianjin Co., Ltd. making 360 Group the biggest shareholder of the bank. Upon completion of the deal, Kincheng Bank will become the third Chinese digital bank to be backed by an internet giant. Kincheng Bank has long been a strategic partner of 360 Finance and the two companies have collaborated in areas such as technology and customer service. The deal will allow both parties to collaborate and realize greater synergies. 360 Finance's leading technology in the fintech sector will be further bolstered by the comprehensive financial service offerings of Kincheng Bank, which has specific expertise and extensive experience serving medium, small and micro-sized companies. The collaboration should help 360 Finance to further lower funding costs, expand the customer base and increase the loans facilitated through the company's platform services. As a result of the deal, 360 Finance continues to accomplish its goal of minimizing regulatory uncertainties by obtaining a comprehensive set of financial licenses, including for online micro-lending, financing guarantees, consumer finance, insurance brokerage and fund sales. The acquisition of Kincheng Bank also provides the company with a banking license, which is one of the most difficult and valuable financial licenses in China to obtain.
|Over a month ago|
360 Finance receives App Security, Information Security certifications » 07:4706/0206/02/20
360 Finance announced…
360 Finance announced that its fintech services application, 360 Jietiao, has received both the App Security Certification and the App Information Security Certification from China's National Computer Virus Emergency Response Center. Specifically, 360 Jietiao received a level 3 rating for both app privacy and data security, the highest level granted by the agency. CVERC is the official agency for anti-virus internet security and designated testing body for the "Special Crackdown on the Illegal Collection and Misuse of Personal Information by Apps" initiative by China's Ministry of Public Security.
360 Finance appoints Dan Zhao to board of directors » 07:5105/2805/28/20
360 Finance announced…
360 Finance announced that Dan Zhao has been appointed as a director on the board of directors of the Company, effective immediately. Dan Zhao is currently the vice president of 360 Group.
360 Finance sees 2020 loan origination volume RMB200B-RMB220B 07:3005/2805/28/20
360 Finance reports Q1 EPS RMB2.40 vs. RMB0.61 last year » 07:3005/2805/28/20
Reports Q1 revenue…
Reports Q1 revenue RMB3.18B vs. RMB2.01B last year. Mr. Haisheng Wu, Chief Executive Officer and Director of 360 Finance, commented, "The first quarter of 2020 was an unusual quarter, as the entire fintech industry essentially went through a COVID-19-induced extreme stress test in terms of business performance and asset quality. Our results for the quarter demonstrate that we successfully passed this test with flying colors, while maintaining high standards in compliance and a prudent risk management strategy. We attribute this success to our high-quality borrower base and the cautious operation approach. Furthermore, we attained remarkable progress in every aspect of our business operation despite challenging market conditions. Loan origination volume reached RMB51.8 billion during the quarter, a 25.6% year-over-year increase. Despite the unfavorable market conditions in the first quarter, we endeavored to sustain a considerable loan origination volume with decent risk profile compared to last quarter in 2019. During the quarter, the total revenue reached RMB3.18 billion. Free cash flow increased substantially as well which will provide additional cushion for risk management and further uphold our strong risk resilience. In face of COVID-19 outbreak, we persist in refining our management, continuously improving operational efficiency and bolstering sustainable development. This is the third sequential quarter during which we effectively brought down both customer acquisition cost and funding cost. What's worth noting here is that we have successfully issued three ABSs to date this year. The cost of the most recent one reached a coupon rate as low as 4.2% for the senior A tranche. During this quarter, the outstanding balance of loans under capital-light model within Platform Services, for which we bear limited principle risk, continued to increase and accounted for 21.2% out of total outstanding loan balance contributing to a further descending leverage ratio and a sufficient 4.0x of provision coverage ratio. In terms of compliance, recently China Banking and Insurance Regulatory Commission for the first time issued a consultative "Guidelines on Commercial Banks' Online Lending Business" draft which is viewed as the basic law for the online lending industry in China. The Draft substantially reduces regulatory overhang and is beneficial for the overall fintech industry, and in particular, the leading players like us. In addition, we have committed great efforts in launching more pilot projects aiming to expand customer acquisition channels and boost existing users' stickiness. We not only have expanded more user traffic channels such as external platforms with consumption scenarios, but also considerably enhanced users' stickiness through a virtual credit product called V-pocket. As indicated by recent operation data, our business is stably recovering with growth prospects. We management team anticipate a very solid quarter going forward and remain in full confidence to achieve full year operation target."
Fly Intel: Top five analyst initiations » 10:0804/2404/24/20
RDUS, QFIN, AWK, WTRG, SJW, ARW, AVT, TEVA, MNK, ENDP, BHC
Catch up on today's…
Catch up on today's top five analyst initiations with this list compiled by The Fly: 1. Radius Health (RDUS) initiated with a Hold at Stifel. 2. 360 Finance (QFIN) initiated with an Overweight at Morgan Stanley. 3. American Water (AWK), Essential Utilities (WTRG), and SJW Group (SJW) were initiated with an Outperform at RBC Capital. 4. Arrow Electronics (ARW) was initiated with a Buy at Loop Capital while Avnet (AVT) was initiated with a Hold. 5. Endo (ENDP) and Bausch Health (BHC) were initiated with a Buy at Citi, while Mallinckrodt (MNK) was initiated with a Sell, and Teva (TEVA) was initiated with a Neutral. This list is just a portion of The Fly's analyst coverage. To see The Fly's full Street Research coverage, click here.
360 Finance initiated with an Overweight at Morgan Stanley » 06:3904/2404/24/20
Morgan Stanley analyst…
Morgan Stanley analyst John Cai initiated coverage of 360 Finance with an Overweight rating and $12.40 price target.
|Over a quarter ago|
Fly Intel: Pre-market Movers » 09:1403/2703/27/20
WW, SCWX, GME, KBH, ALT, OCGN, QFIN, LULU, TXMD, HTZ, GPS
Check out this morning's…