Qifu Technology (NasdaqGS:QFIN): Evaluating Valuation After Q2 Growth in Customers and Analyst Upgrades

Qfin Holdings (QFIN) has drawn renewed investor attention after releasing its fiscal second quarter results, showing an 11% rise in consumers on its platform and solid growth in approved credit lines. This operational momentum is reflected in analyst sentiment.

See our latest analysis for Qfin Holdings.

Despite the upbeat report, Qfin Holdings' share price has pulled back sharply in recent months, with a 36% drop over the past 90 days and a year-to-date decline of 30%. Even so, the company’s three- and five-year total shareholder returns, at 130% and 174% respectively, highlight its longer-term value creation. Recent volatility contrasts sharply with its strong track record.

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The question for investors now is whether Qfin Holdings is trading at a discount that could reward patient buyers, or if the market has already factored in its improving outlook and future growth potential.

Most Popular Narrative: 45% Undervalued

With Qfin Holdings’ fair value calculated at $49.30 and shares last closing at $27.00, the most widely followed analysis implies a steep upside from here. Investors now face a valuation gap shaped by ambitious projections and sector transformation.

Qfin's ongoing integration of advanced AI and large language models into its risk assessment and user profiling systems is already reducing default rates (for example, FPD 7-day down 5%, improved model KS scores) and improving operational efficiency, which should protect and gradually enhance net margins in the medium and long term.

Read the complete narrative.

Ready to find out what bold financial levers the analysts believe will power this stock higher? The playbook reveals aggressive growth moves and margin tactics that break from industry norms. Want to know the tension between scale, risk, and rapid gains? Discover the full narrative and see which numbers are driving this striking valuation.

Result: Fair Value of $49.30 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, risks such as regulatory tightening and soft consumer credit demand in China could still dampen growth and challenge Qfin Holdings' current optimistic outlook.

Find out about the key risks to this Qfin Holdings narrative.

Build Your Own Qfin Holdings Narrative

If you have a different perspective or want to dive into the numbers yourself, it’s quick and easy to craft your own take on Qfin Holdings. You can often do this in just a few minutes — Do it your way

A great starting point for your Qfin Holdings research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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