360 DigiTech: Still In Transition


  • 360 DigiTech’s share price jump and positive valuation re-rating in recent months have priced in favorable changes in the regulatory environment for Chinese fintech companies.
  • QFIN will require some time to fully transition into a capital-light business model, so I don’t expect a substantial re-rating of the stock’s valuations to happen in the near future.
  • I assign a Hold rating to 360 DigiTech, as I think that it is too early to turn bullish on QFIN when its business model transition is still in progress.

Chinese Coin, Good Fortune


Elevator Pitch

My rating for 360 DigiTech, Inc.’s (NASDAQ:QFIN) [3660:HK] stock is a Hold. Positive regulatory developments are already priced in, and QFIN still has capital-heavy services accounting for a significant part of its loans for now. My take is that 360

Key Characteristics Of Loan Products Offered By QFIN

QFIN’s December 2022 Corporate Presentation

360 DigiTech's Key Service Offerings

QFIN’s December 2022 Corporate Presentation

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Asia Value & Moat Stocks is a research service for value investors seeking Asia-listed stocks with a huge gap between price and intrinsic value, leaning towards deep value balance sheet bargains (i.e. buying assets at a discount e.g. net cash stocks, net-nets, low P/B stocks, sum-of-the-parts discounts) and wide moat stocks (i.e. buying earnings power at a discount in great companies like “Magic Formula” stocks, high-quality businesses, hidden champions and wide moat compounders). Sign up here to get started today!

Leave a Reply

Your email address will not be published. Required fields are marked *