Qudian (QD) announced the withdrawal of the 2019 guidance, which was RMB4bn in net profit (vs. the earlier guidance of RMB4.5bn).
QD stock has been down 33% since we initiated on the stock with a bearish rating citing lack of stable traffic following the breakup with Ant Financial, its questionable asset quality given the large subprime borrower group and the lack of competitive advantage from its Open Platform, which we view just as a traffic referral platform for subprime borrowers.
The Bottom Line
The recent withdrawal of the guidance is nothing short