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Stock impact report

Morgan Stanley Remains a Buy on Qfin Holdings (QFIN) [Yahoo! Finance]

Qfin Holdings, Inc. - American Depositary Shares (QFIN) 
Company Research Source: Yahoo! Finance
?Analyst Xu of Morgan Stanley noted that he sees a mix of potential headwinds and competitive strengths for the company, with the positive factors outweighing the negative ones. Some of the headwinds identified by the analyst include new rules in microloans, which will cap yields at 12% and are expected to squeeze the company's take rate. Xu elaborated that this hits harder for high-yield on-balance-sheet loans shifting to lower-margin models. The analyst noted that the estimated impact on earnings from this rule will be manageable; however, the take rate could decline. ?However, on the bright side, Xu noted that China has over 4,800 micro-loan firms. Many of these firms are weak and expected to falter under this new rule. In this situation, Qfin Holdings, Inc. (NASDAQ:QFIN) stands out with cheap funding, allowing it to offer loans below 12% yield, and capturing market share under tough market scenarios. ?Qfin Holdings, Inc. (NASDAQ:QFIN) operates as a holding company focused on Show less Read more
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