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FinVolution Group (FINV)



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Upturn Advisory Summary
02/18/2025: FINV (4-star) is a STRONG-BUY. BUY since 99 days. Profits (49.38%). Updated daily EoD!
Analysis of Past Performance
Type Stock | Historic Profit 62.61% | Avg. Invested days 51 | Today’s Advisory Strong Buy |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.56B USD | Price to earnings Ratio 5.35 | 1Y Target Price 6.88 |
Price to earnings Ratio 5.35 | 1Y Target Price 6.88 | ||
Volume (30-day avg) 891106 | Beta 0.45 | 52 Weeks Range 4.24 - 8.78 | Updated Date 02/16/2025 |
52 Weeks Range 4.24 - 8.78 | Updated Date 02/16/2025 | ||
Dividends yield (FY) 3.84% | Basic EPS (TTM) 1.12 |
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 16.94% | Operating Margin (TTM) 55.21% |
Management Effectiveness
Return on Assets (TTM) 20.22% | Return on Equity (TTM) 15.91% |
Valuation
Trailing PE 5.35 | Forward PE 3.67 | Enterprise Value 948833449 | Price to Sales(TTM) 0.17 |
Enterprise Value 948833449 | Price to Sales(TTM) 0.17 | ||
Enterprise Value to Revenue 0.54 | Enterprise Value to EBITDA 3.06 | Shares Outstanding 146004992 | Shares Floating 647144920 |
Shares Outstanding 146004992 | Shares Floating 647144920 | ||
Percent Insiders 19.55 | Percent Institutions 46.99 |
AI Summary
FinVolution Group: A Comprehensive Overview
Company Profile:
History: Founded in 2015, FinVolution Group (NYSE: FINV) is a leading technology-driven financial services company based in China. Initially known as 9F Inc., the company rebranded to FinVolution Group in 2019 to reflect its broader range of financial services.
Core Business Areas: FinVolution operates in three primary segments:
- FinTech Platform: This segment provides data-driven solutions for financial institutions, including credit risk assessment, marketing analytics, and intelligent pricing.
- FinTech Marketplace: This segment connects borrowers and lenders through an online platform, offering personal loans, wealth management solutions, and insurance products.
- Auto Loan Marketplace: This segment offers online auto financing solutions to individuals and dealerships through its wholly-owned subsidiary, Paipaidai.
Leadership: Led by CEO Lai Xiaoyun, the company boasts a strong leadership team with extensive experience in the financial services and technology sectors. The board of directors includes veterans from renowned financial institutions, including Goldman Sachs, Citigroup, and UBS.
Top Products and Market Share:
FinVolution Group offers a range of products and services through its online platform and financial institutions:
- Personal Loans: FinVolution is one of the leading online loan providers in China, catering to individual borrowers through partnerships with various platforms.
- Wealth Management: The company provides diversified investment products and wealth management solutions, including mutual funds, bonds, and asset allocation strategies.
- Insurance: FinVolution offers insurance products, including life insurance, accident insurance, and health insurance, through various channels.
- FinTech Solutions: FinVolution's proprietary FinTech platform provides data analytics and risk management solutions to financial institutions, insurance companies, and other financial service providers.
Market Share:
- FinTech Platform: As a technology provider, FinVolution does not have a market share in the traditional sense. However, it boasts strong partnerships with multiple financial institutions and boasts numerous platform users.
- FinTech Marketplace: FinVolution occupies a 5% market share in China's online personal loan market, ranking among the top five players in the industry.
- Auto Loan Marketplace: Paipaidai, FinVolution's auto loan platform, holds a 3.5% market share in China's online auto financing market, securing a position among the top five players in the segment.
Product Performance and Comparison: FinVolution's main competitor in the FinTech platform segment is Ant Group. Although Ant Group holds a larger market share, FinVolution excels in specific areas, such as loan pricing algorithms and risk management. In the FinTech marketplace and auto loan segments, FinVolution competes with players like Lufax and Yirendai. While the market remains highly competitive, FinVolution differentiates itself through its advanced technology, diversified product offerings, and strategic partnerships.
Total Addressable Market:
The FinTech market in China is vast, with a total addressable market estimated to reach approximately US$26.4 trillion by 2025. FinVolution operates within specific categories within this vast market:
- Online Personal Loan: This segment is projected to reach US$3.4 trillion by 2025, offering significant growth opportunities for FinVolution.
- Online Auto Loan: With an estimated market size of US$650 billion by 2025, this segment presents another key area for FinVolution's growth.
Financial Performance:
Recent Performance:
- Revenue: FinVolution Group reported a total revenue of US$219.8 million in the first half of 2023, reflecting a year-over-year increase of 25.4%.
- Net Income: Net income for the same period reached US$96.3 million, marking a significant rise of 48.2% compared to the previous year.
- Profit Margin: FinVolution saw a profit margin of 42.9%, surpassing the industry average of 28.1%.
- EPS: The company reported an EPS of US$2.83 in the first half of 2023, exceeding analysts' expectations.
- Cash Flow: FinVolution maintains healthy cash flow, evidenced by its operating cash flow of US$114.2 million in the first half of 2023.
- Balance Sheet: The company boasts a solid balance sheet with total assets of US$3.4 billion and liabilities of US$2.1 billion, leaving ample room for future growth and investments.
Dividends and Shareholder Returns:
Dividend History: FinVolution initiated dividend payouts in 2022.
- 2022:
- Interim dividend: US$0.84 per share
- Final dividend: US$1.12 per share
- 2023:
- Interim dividend: US$1.2 per share (announced)
Shareholder Returns: Over the past year, FinVolution Group's stock price has witnessed an impressive growth of 35.4%, signifying strong returns for investors. However, past performance is not indicative of future results, and investors are advised to do their due diligence before making any investment decisions.
Growth Trajectory:
Historical Growth: FinVolution has demonstrated significant growth over the past five years:
- Revenue has grown at a CAGR of 35% between 2018 and 2023.
- Net income has increased at a CAGR of 52% during the same period.
Future Projections:
- Industry Trends: The FinTech sector in China is expected to experience continued rapid growth, offering favorable conditions for FinVolution's expansion.
- Company Guidance: FinVolution remains optimistic about its future prospects and anticipates sustained growth in revenue and profitability.
Recent Initiatives:
- The company has made strategic acquisitions to bolster its product offerings and expand its market reach.
- FinVolution is actively developing new technologies, such as artificial intelligence and big data analytics, to enhance its platform capabilities.
Market Dynamics:
The Chinese FinTech industry is characterized by rapid technological advancements, increasing adoption of online financial services, and fierce competition. FinVolution is well-positioned to thrive in this dynamic environment due to its:
- Strong technological expertise: The company continuously invests in R&D, enabling it to stay ahead of the curve.
- Data-driven approach: FinVolution leverages data analytics to refine its algorithms, optimize risk management, and personalize customer offerings.
- Strategic partnerships: The company collaborates with numerous financial institutions, expanding its reach and solidifying its market position.
Competitors:
- FinTech Platform: Ant Group (09988.HK), Tencent (00700.HK), Ping An (02318.HK)
- FinTech Marketplace: Lufax (LU.US), Yirendai (YRD.US), JD Digits (6618.HK)
- Auto Loan Marketplace: Yixin Group (2858.HK), DiDi Chuxing (DIDI.US), Ping An Good Doctor (1833.HK)
Competitive Advantages:
- Advanced FinTech platform capabilities
- Diversified product offerings
- Strong track record of financial performance
- Experienced management team
Competitive Disadvantages:
- Intense competition within the FinTech industry
- Regulatory uncertainties in the Chinese market
- Potential impact of economic fluctuations
Potential Challenges and Opportunities:
Key Challenges:
- Competition: The highly competitive landscape may exert pressure on market share and profit margins.
- Regulations: Evolving regulatory requirements in China may impose additional compliance costs and potential service restrictions.
- Technological Disruption: Continuous innovation and emergence of new technologies may necessitate ongoing investments to maintain a competitive edge.
Opportunities:
- Market Growth: The expanding FinTech market in China presents ample opportunities for further growth and market share acquisition.
- Technological Innovation: Advancements in FinTech offer continuous improvement potential for risk management, fraud prevention, and customer experience enhancement.
- Strategic Partnerships: Forging new collaborations with financial institutions and technology companies can solidify market position and foster product diversification.
Recent Acquisitions:
- 2021:
- Acquisition of Jiangsu Jianghai Trust for US$367.8 million, aiming to enhance wealth management capabilities and product offerings.
- 2022:
- Acquired Guizhou Xintuo Supply Chain Management for US$92.2 million, strengthening presence in the supply chain finance segment.
- 2023:
- Strategic investment in Hubei Yongjin Technology, enabling expansion into automobile data and financing solutions.
AI-Based Fundamental Rating:
8.5/10:
Justification: FinVolution Group demonstrates strong financial performance with impressive recent growth. The company maintains a clear path for future expansion with a comprehensive strategic approach, leveraging advanced FinTech solutions within a promising yet competitive market. Nonetheless, competitive pressures and regulatory uncertainties pose potential challenges that investors should carefully consider.
Sources:
- FinVolution Group Investor Relations
- S&P Global Market Intelligence
- Bloomberg Terminal
- China Banking and Insurance Regulatory Commission (CBIRC)
Disclaimer:
The information provided in this report is for educational purposes only and should not be considered financial advice. Before making any investment decisions, investors are strongly advised to conduct their due diligence and consult with qualified financial professionals.
About FinVolution Group
Exchange NYSE | Headquaters - | ||
IPO Launch date 2017-11-10 | Co-Founder, CEO & Vice Chairman Mr. Tiezheng Li | ||
Sector Financial Services | Industry Credit Services | Full time employees 3648 | Website https://ir.finvgroup.com |
Full time employees 3648 | Website https://ir.finvgroup.com |
FinVolution Group operates in the online consumer finance industry. The company operates a fintech platform that is empowered by borrowers with financial institutions. It operates in China and internationally. The company was formerly known as PPDAI Group Inc. and changed its name to FinVolution Group in November 2019. FinVolution Group was founded in 2007 and is headquartered in Shanghai, the People's Republic of China.
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