Citigroup has recently upgraded FinVolution Group (NYSE: FINV) from “Neutral” to “Buy,” raising the price target from $6 to $11. This upgrade reflects confidence in FinVolution’s strong financial performance and strategic international expansion efforts.
Reasons for the Upgrade
📊 Strong Financial Performance – FinVolution reported a non-GAAP net profit after tax of RMB715 million for the fourth quarter of 2024, marking a 7.8% increase quarter-over-quarter and a 27.9% increase year-over-year. Operating profit for the same period rose sharply by 40.6% quarter-over-quarter and 53.7% year-over-year, reaching a six-year high of RMB788 million.
📈 Positive Revenue Guidance – The company provided stronger-than-expected revenue guidance for 2025, indicating accelerated growth prospects.
🌍 International Expansion – FinVolution aims to increase its international revenue contribution to 25% by 2025 and targets 50% by 2030, reflecting a strategic focus on global market penetration.
Dividend Fundamentals
💰 Dividend Yield – As of March 18, 2025, the company’s forward dividend yield stands at approximately 2.60%.
📅 Annual Dividend – FinVolution declared an annual dividend of $0.277 per share for 2025, representing a 15.4% increase from the prior dividend of $0.24.
📈 Dividend Growth – The company has increased its dividends for four consecutive years, showcasing its financial stability and commitment to rewarding shareholders.
Investors seeking growth opportunities may find FinVolution’s robust financial performance, strategic international expansion, and consistent dividend growth appealing.