Q4 2023 Earnings Summary
- Commitment to Returning Shareholder Value: The company has initiated a dividend policy and declared a semiannual dividend of USD 0.17 per share for the second half of 2023, demonstrating a commitment to return value to shareholders. Management is also exploring additional ways to enhance shareholder value, including potential share buybacks and other methods beyond dividends. ,
- Focus on Increasing Stock Price and Attracting Institutional Investors: Management plans to raise the stock price above $5, which they believe will enable institutional investors to engage with the company. Achieving this stock price target could increase demand for the shares and contribute to share price appreciation.
- Minimal Impact from Regulatory Changes: Recent regulatory changes requiring minimum registered capital and majority ownership for consumer financing companies do not materially affect the company. As a fintech company, rather than a traditional consumer financing firm, these regulations are not directly applicable, allowing the company to continue its operations and growth plans without significant regulatory hurdles. ,
- The company anticipates slower growth in 2024 compared to the previous year, indicating potential challenges in the business environment and reduced growth prospects.
- There are regulatory uncertainties affecting the company, including new regulations on minimum registered capital and major investor holdings, which could pose compliance challenges and impact the business.
- The company's stock is thinly traded with low valuation multiples, and management lacks a clear plan to improve investor awareness or increase liquidity, potentially limiting shareholder value appreciation.
-
Growth Outlook
Q: What is your growth outlook for 2024 and beyond?
A: The operating environment is improving slightly, but not as favorable as the first half of 2023. We will gradually return to growth mode, but growth will be slower than last year. -
Dividend Policy
Q: Can you do more on dividends, given peers are returning more capital?
A: We've decided on a dividend payout and are exploring more ways to return shareholder value this year. However, thin trading volumes restrict buybacks as we're limited to 25% of daily flow. -
Impact of New Regulations
Q: How will new capital requirements and ownership regulations affect you?
A: These regulations target consumer financing companies, but we are a fintech company, so they don't directly apply to us. Therefore, we don't see any effect on us. -
Share Price and Investor Awareness
Q: What is your plan to improve share price and investor awareness?
A: We'll focus on running our business well and returning shareholder value. Our goal is to get the stock over $5 to attract institutional investors and then reconsider our PR policy.
Research analysts covering X Financial.