7 Cheap Chinese Stocks To Invest In Now

5. Qifu Technology (NASDAQ:QFIN)  

Number of Hedge Fund Investors: 21  

Forward P/E Ratio as of September 29: 5.72

Qifu Technology (NASDAQ:QFIN), formerly known as 360 DigiTech, is a data-driven digital platform that enables financial institutions to provide better and targeted products and services to a broader consumer base. The company also offers standardized risk management services in the form of software-as-a-service (SaaS) modules to institutional clients. Qifu Technology (NASDAQ:QFIN) primarily offers credit solutions in the form of loans to consumers and small businesses in China.

Qifu Technology (NASDAQ:QFIN) has strong earnings growth prospects, driven by its ability to improve asset quality and reduce operating costs. In Q2, the company’s net income increased 23% year-over-year, driven by a significant provision write-back and lower operating costs. This improvement in earnings is expected to continue in the third quarter, with the company guiding for normalized earnings growth of 36% year-over-year. Qifu Technology (NASDAQ:QFIN) management has also indicated that it expects additional provision write-backs in the coming quarters, driven by improving asset quality.

Qifu Technology (NASDAQ:QFIN) has a strong track record of growth and profitability. The company offers an attractive shareholder yield and has a potential FY 2024 buyback yield of 9.5%, driven by its ongoing share repurchase program. The company has already executed on 60% of its one-year $350 million buyback plan, and its management has indicated that it intends to sustain a “very active pace” of share repurchases. Furthermore, the company’s forward FY 2024 dividend yield is 5.7%, providing investors with a regular stream of income. The combination of the buyback yield and dividend yield results in a potential FY 2024 shareholder yield of 15.2%.

Qifu Technology (NASDAQ:QFIN) has a forward P/E ratio of 5.72, which represents a 52% discount compared to the sector median of 11.93. The company’s earnings are expected to grow by 31.34% this year. Industry analysts have a consensus Buy rating on the stock, with an average share price target of $29.58, indicating a potential upside of 3.5% from its current levels.

As of the second quarter, 21 hedge funds held stakes in the company worth $319.22 million. According to Insider Monkey’s hedge fund database, OLP Capital is the largest shareholder in the company and owns stock valued at $141.19 million as of June 30.