Jun. 23 at 10:57 AM
$JFIN business it’s collapsing, the main differences with
$XYF are:
1) Cash reserves,
$XYF has much more cash available to manage uncertainty and weather the fund disruption.
$JFIN is much more fragile from this point of view, they must rely almost entirely on asset light business.
2) Efficiency discrepancies, both companies saw a sharp reduction in revenue, but bottom line looks differently.
$XYF still makes money while
$JFIN lost 70 million RMB.
3)
$JFIN Market cap still exceeds
$XYF despite being a much more risky company and having much less assets.
4)Dividends and buybacks,
$JFIN can’t afford to pay dividends or buyback shares like
$XYF.
5)Awful guidance.
The only thing that may sustain
$JFIN would be the international expansion which is a good strategy to diversify.
Let’s see what they will say on the CC.
