Finvolution Stock Rises After-Hours On Dividend Hike, Share Buyback Plan: Retail’s Ecstatic
The Shanghai-based firm posted revenue of 3.46 billion yuan for the three months ended Dec. 31, compared with 3.22 billion yuan last year.
Finvolution stock gained 7.6% in aftermarket hours on Monday after the company posted a nearly 30% rise in quarterly earnings and boosted shareholder returns.
The financial technology firm reported a net income of 680.7 million yuan ($93.3 million), or 2.61 yuan, per American depository share (ADS), for the fourth quarter, compared with 524.6 million yuan, or 1.92 yuan per ADS, last year.
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The Shanghai-based firm posted revenue of 3.46 billion yuan for the three months ended Dec. 31, compared with 3.22 billion yuan last year.
Due to an 8.6% rise in transaction volume, its loan facilitation service fees jumped to 1.34 billion yuan from 1.11 billion yuan a year earlier.
The company said its cumulative registered users reached 172.6 million in China as of Dec. 31, a 10.6% increase from a year earlier.
Finvolution, which operates in Indonesia and the Philippines, said its international user count jumped by 45% to 35.7 million.
The company said its average loan size in China was 11,466 yuan for the fourth quarter, compared with 9,044 yuan for the same period last year.
Its net interest income was 217.9 million yuan for the reported quarter, compared with 227.4 million yuan last year.
This company attributed the decline to the fall in the international markets' average outstanding loan balances of on-balance sheet loans.
Finvolution also unveiled a fresh share buyback program worth $150 million and raised its dividend to $0.277 per ADS. The company expects to pay 20% to 30% of its net income after tax as dividends in 2025.
The firm expects its full-year 2025 total revenue to be between 14.4 billion yuan and 15 billion yuan.
Retail sentiment on Stocktwits jumped to ‘extremely bullish’ (90/100) territory from ‘bearish’(28/100) a day ago, while retail chatter surged to ‘extremely high.’
One user expected the stock to move higher with an expected dividend rise.
Another user said that the new dividend and share buyback plan indicates that the company considers its stock very cheap.
Over the past year, Finvolution stock has gained 79.9%.
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