PPDAI Soars 16% in New York Trading After Posting Strong Earnings
PPDai&`#`39;s shares soared 16 percent in New York today after the company reported substantial revenue growth for the first quarter of 2018.
PPDai Group Inc. (NYSE: PPDF), an online peer-to-peer lending platform in China, said its operating revenue for the first quarter increased to $146.2 million, a more than 37 percent jump compared with a year earlier.
The Shanghai-based company said that during the quarter, it had a net profit attributable to ordinary shareholders of $70 million, or 22 cents per American depositary share. That was in contrast to a net loss of $45.5 million a year earlier. Net revenue for the three months ended Mar. 31 was $150.5 million, up from $106.7 million in the year-earlier period.
"We are pleased to kick off 2018 fiscal year by achieving an operating revenue growth of 37.1% on a year-over-year basis, as well as achieving significant improvement in operating efficiencies in the first quarter of 2018," said Jun Zhang, the chairman and CEO of PPDai. "Our strong profitability clearly demonstrates the resilience of our core business model despite the changes in the operating and regulatory environment during the past few months. With delinquency trends improving and volume growth resuming since March, we are confident the consumer lending market in China will continue to present significant growth opportunities for PPDAI."
Looking forward, the management of PPDai expects total loan volume for the fiscal year 2018 to be in the range of 70 billion yuan to 80 billion yuan, or from about $11.2 billion to $12.8 billion.
PPDai, which went public at $13 per ADS in November, closed today at $7.98 per share, up $1.10, or 16 percent.
In a separate announcement in March, the company said it would begin a share buyback of up to $60 million over the next 12 months "to maximize shareholders value." Each ADS represents five ordinary shares.
Despite a 16 percent jump today, shares in PPDai have had a rough ride
since its IPO in November. (Source: Thomson Reuters Eikon)