What is the core business of Qudian (QD)? Has it turned a profit?

Qudian (趣店) is a well-known Internet consumer finance technology company in China. Its main business is to provide customers with small online cash loan and also allow them to shop with credit (ie., buy now pay later). Qudian’s founder and CEO is: Luo Min (罗敏).

At present, Qudian’s target users are hundreds of millions of non-credit card users in China (i.e. high-quality users who can not get credit services from traditional channels).

In October 2017, Qudian went public on the New York Stock Exchange (NYSE), and its U.S. stock trading symbol is QD. As of this writing, the highest price of interesting stores in history is $24.90, and the lowest price is $4.17. The current stock price is $7.09 and the price-earnings ratio (PE) is 6.73 times.

In terms of operating performance, the revenue of Qudian has increased steadily in recent three years (2016-2018). In 2018, the annual revenue of Interest Store was RMB: 7.6 billion, the net profit was RMB: 2.5 billion, and the net profit margin was about 33%. Initially, the financial data and profitability of the store are relatively stable. Compared with the overall price-earnings ratio of the U.S. stock market, We think the share price of the store is somewhat undervalued.

Related links:

http://www.qufenqi.com/

https://finance.yahoo.com/quote/QD