Qifu Technology $QFIN reported earnings on Monday, and the market rewarded it with a fresh all-time high.
The stock rallied 9.1% for its 3rd consecutive positive earnings reaction. It has been consistently rewarded for its reports.
We also love the technical setup, which we'll talk about later.
Q4 2024 was a record-breaking quarter for the company. Non-GAAP net income reached an all-time high of RMB 1.97B, a 71.5% year-over-year increase.
The market has given the stock a forward earnings multiple of 6, a bargain for a company growing at this rate. We think the valuation has plenty of room to run to the upside.
In addition, the Chinese government is encouraging the development of the consumer credit industry. This is a sweet tailwind for investors to ride.
Shareholders have been spoiled lately. The company repurchased approximately 12% of its share count in 2024 and paid an additional $180M in dividends.
This aggressive return of capital is expected to continue for the foreseeable future.
They're also playing with all of the new AI tools. This is expected to reshape operations, boost efficiency, and unlock great potential within teams.
The market loves everything this company is doing, and so do we.
Here's how we're trading QFIN ๐
Qifu Technology put the finishing touches on a textbook accumulation pattern with this earnings report. The stock made a gap-n-go above the prior all-time high from the last cycle, sparking a brand-new uptrend.
We're long QFIN above 45, with an initial target of 67 over the coming 2-4 months. We ultimately want to hold this stock for at least a year for the long-term capital gains treatment.
On the flip side, we'll cut our loss if the stock closes below 45.
