Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 17 Jan, 25 | QFIN | Buy | USD 38.37 | USD 41.9 | USD 45.5 | 13 days | 18.6% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
Qifu Technology, Inc., together with its subsidiaries, operates credit-tech platform under the 360 Jietiao brand in the People's Republic of China. The company provides credit-driven services that matches borrowers with financial institutions to conduct customer acquisition, initial and credit screening, advanced risk assessment, credit assessment, fund matching, and other post-facilitation services; and platform services, including loan facilitation and post-facilitation services to financial institution partners under intelligence credit engine, referral services, and risk management software-as-a-service. It offers e-commerce loans, enterprise loans, and invoice loans to SME owners. It serves financial institutions, consumers, and small- and micro-enterprises. The company was formerly known as 360 DigiTech, Inc. and changed its name to Qifu Technology, Inc. in March 2023. Qifu Technology, Inc. was founded in 2016 and is headquartered in Shanghai, the People's Republic of China.
Increase in Operating Margin
(52.4% in Q3 FY24 vs 32.4% in Q3 FY23)
Increase in Net Margin
(41.2% in Q3 FY24 vs 26.6% in Q3 FY23)
Higher Debt-Equity Ratio
(0.05x in Q3 FY24 vs 0.04x in Q3 FY23)
Decrease in Gross Margin
(83.8% in Q3 FY24 vs 85.1% in Q3 FY23)
Data Breaches and Hacking, Technology Risks, Partnership and Vendor Risks, Regulatory Risks, etc.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 38.37 | 34.0 | 41.9 | 45.5 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Price Action Analysis (on the daily chart)
The share price of QFIN is currently hovering near key support levels, suggesting a potential for short-term gains. As the stock rises, it is anticipated to encounter a notable resistance level at USD 42, which may be reached in the next 2-4 weeks. Should the stock break through this level, it could trigger additional buying momentum and pave the way for further gains.
Technical Indicators Analysis (On the daily chart)
On the daily chart, the 14-period Relative Strength Index (RSI) is trending higher, indicating a positive bias. Trading volumes seem to confirm this upward trend. Furthermore, the stock price moving above its 21-day Exponential Moving Average (EMA), supporting positive bias.
As per the above-mentioned price action and technical indicators analysis, Qifu Technology Inc (NASDAQ: QFIN) is looking technically well-placed on the chart, and a ‘Buy’ recommendation has been given on the stock.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Financial Services Industry: Credit Services
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | |
|---|---|---|---|---|---|---|---|---|
| QFIN 360 Finance Inc |
-5.34 12.28% | 38.14 | 8.02 | 3.27 | 0.35 | 1.91 | 3.11 | |
| V Visa Inc. Class A |
-23.09 6.80% | 316.30 | 31.25 | 25.97 | 16.18 | 13.64 | 16.19 | 23.37 |
| MA Mastercard Inc |
-34.31 6.47% | 496.24 | 37.04 | 29.50 | 16.14 | 62.35 | 16.47 | 27.24 |
| AXP American Express Company |
-13.48 5.46% | 233.52 | 21.83 | 20.04 | 3.53 | 7.21 | 4.18 | |
| PYPL PayPal Holdings Inc |
-2.85 4.62% | 58.86 | 21.96 | 18.69 | 2.93 | 4.56 | 2.86 | 12.64 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is January 17, 2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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