Qudian: Asset Deterioration Rising

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About: Qudian Inc. (QD)
by: Terracotta Investments
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Terracotta Investments
Long/short equity, Growth, contrarian
Summary

QD's withdrawal of 2019 guidance underscores its asset deterioration and issues of management credibility.

Open Platform is unlikely to be a profit driver as its traffic quality comes into question.

We remain bearish on QD.

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