PPDAI Group Inc – ADR (NYSE: PPDF) stock plunged 15.68% on 20th May, 2019 (Source: Google finance). Net interest income/(expenses) and loan provision losses for the first quarter of 2019 were an income of RMB133.3 million (US$19.9 million), compared to an income of RMB38.6 million in the same period of 2018, mainly on the back of the increased interest income from the expansion in the number of consolidated trusts established.
The company’s net profit grew by 60.7% to RMB703.1 million (US$104.8 million) for the first quarter of 2019. As of March 31, 2019, the company had cash and cash equivalents of RMB1,907.3 million (US$284.2 million) and short-term investments mainly in wealth management products of RMB1,444.1 million (US$215.2 million).
Moreover, Loan facilitation service fees has risen by 51.2% to RMB938.6 million (US$139.9 million) for the first quarter of 2019. Post-facilitation service fees rose by 36% to RMB308 million for the first quarter of 2019 from the same period of 2018 primarily due to the rise in loan origination volume and the rolling impact of deferred transaction fees. Other income was RMB50 million for the first quarter of 2019 compared with RMB132 million in the same period of 2018, primarily on the back of the fair value change of financial guarantee derivatives.
The company had reported the adjusted revenue growth of 52.6 percent to $217.3 million in the first quarter of FY 19. This is primarily due to the increase in loan facilitation service fees and interest income from loans invested mainly through trusts. For the first quarter of FY 19 the analysts’ had estimated the adjusted earnings per share to be 22 cents. Non-GAAP adjusted operating income, was RMB807.0 million (US$120.2 million) for the first quarter of 2019, which represents the growth of 94.6% from RMB414.7 million in the same period of 2018.
Additionally, PPDF’s share repurchase program started in March 2018 and since then the company had bought back approximately US$69 million of the shares.
For 2019, the monthly loan originations are demonstrating continued healthy and steady growth. In April, the company had originated approximately RMB6.4 billion of loans, which means for the first four months of 2019, the company had originated a total of RMB25.5 billion of loans. In May, the company expect loan originations to increase to a range of RMB6.5 billion to RMB7 billion.