10 Cheap Chinese Stocks to Buy Now

5. Qifu Technology, Inc. (NASDAQ:QFIN)

Forward P/E Ratio: 7.01

Earnings Growth This Year: 50.99%

Number of Hedge Fund Holders: 30

Qifu Technology, Inc. (NASDAQ:QFIN), formerly known as 360 DigiTech Inc, is a Chinese company that specializes in credit technology services. It connects people or businesses who want to borrow money with banks and helps these institutions evaluate the creditworthiness of borrowers, match funds, and manage loans after they are issued. Moreover, the company also offers platform services to financial institutions including loan assistance, intelligent marketing, referral services, and risk management.

Earlier in December, Analyst Manyi Lu from DBS issued a Buy rating on the stock with a price target of HK$164.30. The analyst noted that the company achieved a 37% year-on-year growth in earnings during the first nine months of 2024, exceeding market expectations. This growth was attributed to an improved take rate, which is the percentage of loans originated that the company retains as income, and also due to lower funding costs, indicating a more efficient business model. The analyst anticipates mid-single-digit earnings growth for the fiscal years 2025 and 2026.

During the fiscal third quarter of 2024, Qifu Technology, Inc. (NASDAQ:QFIN) connected with 162 financial institutional partners and reached 254.3 million consumers with potential credit needs, marking an 11.6% increase year-over-year. Moreover, there were 55.2 million users with approved credit lines, up 12.2% from the previous year. It is one of the cheap Chinese stocks to buy now.