SHENZHEN, China - X Financial (NYSE:XYF), a prominent online personal finance company in China, has initiated a tender offer to repurchase up to 2 million of its American Depositary Shares (ADSs) at $4.52 each, the company disclosed today. This repurchase is part of a previously approved $20 million share buyback program from May 2024.
The tender offer, which is not subject to a minimum share tender condition or financing prerequisites, will conclude at 5:00 P.M. New York City time on July 12, 2024, unless it is extended or concluded earlier. Shareholders looking to participate must adhere to the instructions provided in the Offer to Purchase and the Letter of Transmittal documents filed with the U.S. Securities and Exchange Commission (SEC).
The Board of Directors of X Financial has authorized the tender offer, but neither the company nor its board, the information agent, or the depositary are advising shareholders on whether to tender their shares or at what price. Shareholders are encouraged to consult their tax advisors, financial advisors, and/or brokers before deciding on their participation in the offer.
The information and depositary agent for the tender offer is Broadridge Corporate Issuer Solutions, LLC. Registered holders will receive mailed copies of the Offer to Purchase and related documents, while beneficial owners will be informed through their respective banks, brokers, or custodians.
X Financial, known for leveraging big data-driven technology to connect borrowers with institutional funding partners, has established strategic partnerships with financial institutions, facilitating and originating loans to prime borrowers under a comprehensive risk assessment and control system.
The information provided in this press release is based solely on a press release statement and is intended for informational purposes only. It is not an offer to buy or a solicitation to sell shares. Shareholders can obtain the Tender Offer statement, the Offer to Purchase, and other related documents for free from the SEC's website or from the information agent.
In other recent news, X Financial has reported a strong start to the first quarter of 2024, despite a decrease in loan volumes. The company's total loan amount facilitated and originated dropped by 11% year-over-year and 18% quarter-over-quarter to RMB 22 billion. However, total net revenue and net income rose to RMB 1.2 billion and RMB 363 million, respectively. The company's CFO, Frank Fuya Zheng, also announced a share repurchase program of up to $20 million.
These are recent developments and should be noted by investors. Despite a rise in delinquency rates, X Financial has managed to increase profits. The company expects the total loan amount facilitated and originated for the full year 2024 to be around RMB 100 billion. For the second quarter of 2024, the anticipated loan amount is between RMB 23 billion and RMB 24.5 billion. X Financial remains committed to sustainable profitability and shareholder value creation.
InvestingPro Insights
As X Financial (NYSE:XYF) embarks on its share repurchase initiative, current market metrics from InvestingPro reveal a potentially undervalued company. With a Price / Book ratio last reported at a mere 0.12, InvestingPro Tips suggest that the stock is trading at a low Price / Book multiple. This could indicate that the company's market valuation is less than its net asset value, which may attract investors looking for value stocks.
Furthermore, the company has demonstrated significant price returns, with a one-week total return of 12.87% and a one-month total return of 14.96%. These returns are substantial, particularly for shareholders considering the tender offer. The InvestingPro Tips highlight this strong performance, suggesting that the market is responding positively to the company's strategies or market conditions.
From a financial health perspective, the latest data indicates that X Financial has a robust P/E Ratio (Adjusted) of 1.03 for the last twelve months as of Q1 2024. This low earnings multiple, coupled with a high dividend yield of 7.7%, positions the company as an attractive option for income-focused investors. The dividend is backed by a solid operating income margin of 31.25%, which underscores the company's ability to generate profits efficiently.
For those looking to delve deeper into X Financial's financials and future prospects, InvestingPro offers additional insights and metrics. With the use of the promo code PRONEWS24, readers can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of information, including 9 more InvestingPro Tips for X Financial at https://www.investing.com/pro/XYF.
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