r/valueinvesting
Deep value in US fintech… MEGADEEP value in chinese fintech?
Author sees deep value in QFIN at 4x earnings and strong capital discipline despite regulatory risks, finding US peers too obvious.
- Extremely low valuation (4x earnings) suggests regulatory and geopolitical risks are already priced in.
- Strong capital management and discipline, maintaining profitability and avoiding dilution during margin compression.
- Ongoing regulatory restructuring poses significant uncertainty to the business model.
- Geopolitical risks and potential for extreme regulatory actions that could theoretically wipe out equity value.
Anyone else looking at chinese fintech like QFIN?
Regulation is restructuring their business model, but I can’t help but admire their capital management and discipline to stay profitable and avoid dilution during the margin compression.
what do you guys think? PYPL FISV is too easy/obvious of buys, but the Chinese fintechs are much more uncertain and Im wondering if im missing anything? at 4x earnings i think regulatory risk is priced in, as I have no reason to believe these companies will be regulated into zeros. but thats what i want to check if anyone else has analyzed them and found concrete info to avoid them — and not just anchoring china risks to ukraine recency bias.