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【券商聚焦】交银削360数科(QFIN)目标价6.5%至18.7美元 维持“买入”评级

[brokerage focus] pay Bank cut 360 DigiTech Inc (QFIN) target price of 6.5% to $18.70 to maintain a "buy" rating

金吾資訊 ·  May 25, 2022 21:05

BoCom International Development and Research report Index$360 DigiTech Inc (QFIN.US) $Adjusted profits fell 13% year-on-year in the first quarter of 2022, offset by higher provisions and marketing expenses. Net income increased by 20% compared with the same period last year. Loans rose 33 per cent year-on-year to 98 billion yuan, of which light capital services accounted for 54 per cent.

Asset quality is stable: the delinquency rate of more than 90 days in the first quarter rose 0.86 percentage points from the previous quarter to 2.40%. The delinquency rate of more than one day fell from 5.4% to 5.2%. The 30-day collection rate dropped slightly from 87% to 86%.

The reduction of the annual interest rate (APR) has made good progress: 360 DigiTech Inc's average APR in the first quarter was about 23.6%. The company is confident that the APR transition will be completed within the first half of the year, with an average APR of about 23% and a conversion rate of about 3%. BoCom believes that the company can further improve the cost of capital and delinquency rate to cope with the decline in APR.

BoCom maintained its buy rating, lowering its target price to $18.70 from $20.00 (corresponding to about 4 times 2022 P / E) as it still faces macro and regulatory pressures in the future. BoCom expects 360 DigiTech Inc's good fundamentals to support its transformation, but consumer demand in the second quarter will be weaker than expected due to the epidemic, coupled with policy guidelines for downgrading APR, the company may need to step up efforts to control credit and capital costs to offset the decline in APR.

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