FinVolution Stock Up In After-hours On Positive Outlook, $150 Mln Share Repurchase, Dividend Hike

(RTTNews) - Chinese fintech company FinVolution Group (FINV) issued fiscal 2025 outlook, expecting higher revenues. The company also announced $150 million share repurchase program, as well as a 17 percent increase in cash dividend.

On the NYSE, the stock was up 8 percent in Monday's after-trade hours at $9.81. FINV closed Monday's regular trade at $9.12, up 5 percent.

For fiscal 2025, the company expects total revenue guidance to be in the range of approximately RMB14.4 billion to RMB15.0 billion, representing year-over-year growth of approximately 10.0 percent to 15.0 percent.

Separately, the firm said its Board of Directors had authorized a new share repurchase program, which will come into effect from March 20. As per the program, the company can repurchase up to $150.0 million worth of shares, including ADSs, from March 20 to March 19, 2027.

Commenting on the share repurchase program, Vice Chairman and Chief Executive Officer, Tiezheng Li, said, "This New Share Repurchase Program is also our fourth share repurchase program, reflecting our confidence in the Company's 'Local Excellence, Global Outlook' strategy, business operations and outlook."

In addition, FinVolution announced that the Board had approved a cash dividend of $0.277 per ADS, a 17 percent increase from last year's dividend payout. The payout ratio is around 21.5 percent of FinVolution Group total income for fiscal 2024.

The dividend will be given on/around May 7 to shareholders of record as of the close of business on April 16.

The company said that from fiscal 2025 onwards, as per the new dividend policy, it will declare and distribute a recurring cash dividend of between 20 percent to 30 percent of the net income after tax for the year.

FinVolution added that the distributions to shareholders for fiscal year 2024 will be around $160.4 million, consisting of $90.2 million in share repurchases and $70.2 million in dividends, thus representing total payout ratio of approximately 49.1 percent.

On the NYSE, the stock was up 8 percent in Monday's after-trade hours at $9.81. FINV closed Monday's regular trade at $9.12, up 5 percent.