Nice post. I have similar thesis but worry about parent company not returning any cash to shareholders via dividends or sig buy backs.. Any change in views recently?
This particular concern has been repeatedly emphasized by different shareholders during the recent earnings call. The company is fully cognizant of this issue and has expressed its intention to utilize cash reserves in a manner that maximizes shareholder value, primarily through investments thus far. Additionally, they highlighted their commitment to benchmarking against industry best practices. Interestingly, a significant competitor recently distributed a substantial one-time dividend, yielding around 40%. It is hoped that this development will prompt the management to reconsider their approach and to issue a dividend as well.
Thank you for your kind words, Vinicius904! I aim to post at least once per month, with the frequency also depending on the discovery of new quality stocks. Stay tuned!
Hi, I can't find any website where this company sell their products (p2p loans, but not theirs either electronic commerce business that provides products such as skin care and beauty). This makes me quite worried if this company is a scam.
I would be very happy if someone could clarify this for me.
Hi Jony, The company operates across various brands and channels. Yixianghua is their online lending platform, providing small revolving loan facilitation services. Yiren Select (operated by Yiyouxuan, which holds both an ICP License and an EDI License) is the “Finance Plus Life” super-app. Yiren Credit is the financial services platform that offers a wide range of online multi-channel loan products for individual borrowers and small business owners. Their insurance business is partly managed by their subsidiary, Hexiang Insurance Brokers, and also distributed through other avenues.
Nice post. I have similar thesis but worry about parent company not returning any cash to shareholders via dividends or sig buy backs.. Any change in views recently?
This particular concern has been repeatedly emphasized by different shareholders during the recent earnings call. The company is fully cognizant of this issue and has expressed its intention to utilize cash reserves in a manner that maximizes shareholder value, primarily through investments thus far. Additionally, they highlighted their commitment to benchmarking against industry best practices. Interestingly, a significant competitor recently distributed a substantial one-time dividend, yielding around 40%. It is hoped that this development will prompt the management to reconsider their approach and to issue a dividend as well.
I have not come across this stock before and I linked to your piece in my post for today - Emerging Market Links + The Week Ahead (April 1, 2024) https://emergingmarketskeptic.substack.com/p/emerging-markets-week-april-1-2024
Another rare Gold one. You should POST more often. Great substack. Best regards
Thank you for your kind words, Vinicius904! I aim to post at least once per month, with the frequency also depending on the discovery of new quality stocks. Stay tuned!
Hi, I can't find any website where this company sell their products (p2p loans, but not theirs either electronic commerce business that provides products such as skin care and beauty). This makes me quite worried if this company is a scam.
I would be very happy if someone could clarify this for me.
Hi Jony, The company operates across various brands and channels. Yixianghua is their online lending platform, providing small revolving loan facilitation services. Yiren Select (operated by Yiyouxuan, which holds both an ICP License and an EDI License) is the “Finance Plus Life” super-app. Yiren Credit is the financial services platform that offers a wide range of online multi-channel loan products for individual borrowers and small business owners. Their insurance business is partly managed by their subsidiary, Hexiang Insurance Brokers, and also distributed through other avenues.
Ok, thank you Phil. Perhaps it's a bit strange that their site is only for investors and lacks any advertising of what they do.
There are interesting discussions on Reddit.
https://www.reddit.com/r/ValueInvesting/comments/1bnspoj/chinese_multibagger_yrd/