360 DigiTech Inc. (QFIN) stock prices were down by 4.14% as of the market closing on August 19th, 2021. This brought the price per share down to USD$16.90 at the end of the trading day. Subsequent premarket fluctuations saw the stock rise by 3.55%, bringing it up to USD$17.50.
QFIN Stock’s Expanding Consumer Base
QFIN stock reported having 175.9 million consumers connected with its digital platform as of June 30th 2021. This represents a cumulative increase of 18.1% from the 149 million reported in the prior year quarter. As of the same date, the company also reported having connected 108 financial institutional partners with potential credit needs. Cumulative users with approved credit lines came out to 34.7 million as of June 30th 2021. This is a 25.3% increase from the 27.7 million reported as of June 30th 2020.
QFIN Stock Reports Stellar Q2 2021
The second quarter of fiscal 2021 saw QFIN stock break previously set records as it exceeded expectations across several fronts of operations. The quarter reported a 50% year over year increase in loans originating from financial institutions. Roughly 56% of the loans were facilitated under the capital-light model and other technology solutions. This further consolidates the appeal of its capital-light models to financial institutions. This marks the continued success in the company’s technology driven strategic transition and upgrading.
Further Growth in Q2 2021
The company’s embedded finance model gained traction among QFIN’s business partners, with the end of the quarter signaling 22 leading traffic platforms being on board. This contributed roughly 39% of new users with approved lines for Q2 2021. The company continued to ramp up SME operations with 22% sequential growth resulting from the rapid growth of the number of new SME borrowers. The quarter saw the company successfully execute its strategic collaboration with KCB stock, which remained the company’s largest institution partner in terms of loan facilitation volume.
Exceeding Expectations
Operating margins for the quarter were up following continued improvement in asset quality and increased contribution from capital light model. The first half of fiscal 2021 saw the company close the quarter stronger than expected. The company is confident in the momentum it has generated and is set to exceed previous guidance for 2021.
Future Outlook for QFIN Stock
QFIN stock reported a strong quarter, rife with opportunities that the company is set to capitalize on. Current and potential investors are hopeful for sustained increases in shareholder value as the company executes its business plan. The company is keen to usher in organic growth as it continues its trajectory of success.
