Qudian Raises its Income Guidance by 1 Billion Yuan, Stock Drops Slightly

Qudian boosts its earning expectation, failing to send its stock up.

Author: Belinda Zhou   

Qudian Inc. (NYSE: QD) announced on Friday it is raising its guidance for net income in fiscal year 2019 to 4.5 billion yuan, or $650 million.

The online small consumer credit provider in China said it expects a bullish market in 2019, on the basis of its latest operational outlook and market conditions, as well as expectations  of regulatory environment.

"Thanks to strong momentum in our open platform initiative, Qudian is generating a higher level of no-risk, high margin incremental profits than we had anticipated," Min Luo, the chief executive officer of Qudian, said.

Previously, Qudian affirmed that it expects to generate non-GAAP net income for the full year 2019 in an amount exceeding 3.5 billion yuan, representing a 37 percent rise from 2018.

"Given our sufficient funding and strong user demand, growth of our loan book is well ahead of our previously set targets, giving us strong confidence that we will meet our revised guidance," Min added.

According to its latest financial statement in May, the company reported an increase in registered users as of March 31 to 73 million, up 12 percent from one year earlier. The number of new active borrowers rose 17 percent to 523,979 from 449,480 in the fourth quarter of 2018.

Shares in Qudian were trading at $8.12 apiece intraday Friday, down 1 percent.