Mar. 18 at 12:20 AM
$LU $QFIN is rapidly moving to LU's 100% model just as I predicted in April and gives us a taste of what is to come for Lufax. QFIN has now moved to 54% of their book at 100% guaranteed. Provision for loans jumped to 170 million from 119 million last years due to "increases in loan origination volume of on-balance-sheet loans". Of the
$585 million in revenue,
$131 million came from revenue from releasing of guarantee liabilities over the past year. Introduction fees have been cut in half, since they cannot push the light model anymore. I noted before that QFIN would be one of the few players surviving since they have the balance sheet but all the small players are going to die off. They are guiding for
$132 million in net income next quarter (4 PE ration), which is down 50% from last year. However, people are missing that some of that is from the increased in provisions. QFIN now selling at 50% of tangible asset value compared to 20% for LU.
