On August 24th, 360 Finance (QFIN.US) released its 2020 second quarter financial report.
Data show that 360 Finance's revenue in the second quarter was 3.34 billion yuan, a year-on-year increase of 50.3%.
In the second quarter, 360 Finance's net profit was 877 million yuan, an increase of 41.8% from 618 million yuan in the same period last year. Its non-GAAP net profit was 942 million yuan, an increase of 36.2% from 618 million yuan in the same period last year.
Wu Haisheng, CEO of 360 Finance, said in the financial report: "We have seen both customer demand and asset quality return to pre-pandemic levels at the end of the second quarter, and some metrics were even at the best levels ever."
In terms of operating data, during the reporting period, 360 Finance contributed RMB 58.905 billion in total loans, an increase of 21.8% from RMB 48.378 billion in the second quarter of 2019. Previously, the company estimated that the loan issuance scale in fiscal year 2020 would be between 200 billion yuan and 2,200 yuan.
As of June 30, 2020, 360 Finance's loan balance was 78.48 billion yuan, an increase of 28% from 61.289 billion yuan at the end of the second quarter of last year.
Its cumulative credit users were 27.71 million, an increase of 41.7% from 12.54 million in the same period last year; the cumulative borrowers were 17.77 million, an increase of 41.7% from 12.54 million in the same period last year.
In the second quarter, the loan repayment rate of 360 Finance users was 86.4%, compared with 84.9% at the end of the previous quarter.
As of the end of the reporting period, the overdue rate of 360 Finance for over 90 days was 2.82%, compared with 2.17% at the end of the previous quarter.
On July 23, China Securities issued a research report stating that in the short term, 360 Finance has a strong competitive advantage in risk control, and its underlying self-examination recovery will be faster than its listed peers.
With the relief of the recent health situation, China's consumer finance policy is good for the recovery of consumption. The company's annual loan is expected to grow more than expected, better than listed peers to drive the return of valuation. The securities company gave 360 Finance a "Buy" rating with a target price of $21.
As of press time, all of the six analysts that Bloomberg that track 360 Finance have given a "buy" rating, with a 12-month target price of $18.6.