FinVolution Group Sees Revenue Growth, Announces Buyback & Dividend

FinVolution Group expects revenue growth of 10-15% for fiscal 2025, alongside a $150M share buyback and a 17% dividend hike. The company's stock surged 8% in after-hours trading as investors react positively.

Date: 18-03-2025

AI Rating: 7

Revenue Growth: FinVolution Group has projected its total revenue for fiscal 2025 to be between RMB14.4 billion and RMB15.0 billion, indicating a year-over-year growth of approximately 10.0% to 15.0%. This positive outlook on revenue is likely to attract investors and suggest strong demand for the company's services.

Share Repurchase Program: The company's authorization of a $150 million share repurchase program reflects the management's confidence in the company's future prospects. This action can boost the stock price by reducing the number of shares outstanding, thereby increasing value for existing shareholders. The program is scheduled to start on March 20 and will last until March 19, 2027.

Dividend Increase: FinVolution has also announced a 17% increase in its cash dividend to $0.277 per ADS. The decision is geared towards providing returns to shareholders and reflects the company's policy to allocate between 20% to 30% of net income after tax as a recurring cash dividend from fiscal 2025 onwards. This gives a positive signal regarding the company's cash flow and profitability.

Overall, the details in this report present a favorable outlook for FinVolution Group, indicating growth in revenue and commitment to shareholder returns, which could enhance market confidence and demand for its stock.

Stocks: FINV