Q3 2024 X Financial Earnings Call Transcript
Key Points
- X Financial (XYF) reported a strong quarter with loan volume exceeding forecasts and a significant improvement in asset quality.
- Non-GAAP adjusted net income reached a record high, indicating robust financial performance.
- Total net revenue increased by 30% year-over-year, driven by growth in various revenue streams.
- The company raised its guidance, expecting monthly loan volume to exceed RMB10 billion in the fourth quarter.
- X Financial (XYF) continues to execute its dividend policy and share repurchase program, reflecting a commitment to returning value to shareholders.
- Total loan amount of facilities and originated was down 4% year-over-year, despite a sequential increase.
- Origination and servicing expenses increased by 14%, primarily due to higher collection expenses.
- Borrower acquisition and marketing expenses rose by 21%, indicating increased costs in acquiring new borrowers.
- The company faces challenges with low trading volume, which affects its ability to execute share buybacks effectively.
- Despite strong financial performance, the stock is trading at a low valuation compared to peers, indicating potential market undervaluation.
Hello and welcome to the X Financial third quarter 2024 earnings conference call. (Operator Instructions) Please note this so that is being recorded.
I would now like to turn the conference over to Victoria Yu. Please go ahead.
Thank you operator. Hello, everyone and thank you for joining us today. The company's results were released earlier today and are available on the company's IR website at ir.xiaoyinggroup.com. On the call today from X Financial are Mr. Kan Li, President; and Mr. Frank Fuya Zheng, Chief Financial Officer.
Mr. Li will give a brief overview of the company's business operations and highlights followed by Mr. Zheng who will go through the financials. They are all available to answer your questions during the Q&A session.
I remind you that this call may contain forward-looking statements under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and current market and
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