Revenue has grown for 7 consecutive quarters.
According to the Futu Securities app, the U.S. stock market closed on Monday (October 28) Eastern Time. Driven by factors such as the collective rise of China concept stocks, the start of singles' day sales, and valuation recovery, Lexin, a leading Chinese new consumer digital technology service provider (LX.US), rose by 6.09% to a closing price of $3.31, with a daily trading volume of $9.2463 million.
On the market front, driven by investors' expectations for the financial reports of large tech stocks, the three major U.S. indices all rose collectively: the Dow Jones Industrial Average rose by 0.65%, the S&P 500 Index rose by 0.27%, and the Nasdaq Composite Index rose by 0.26%, closing at 18567.19 points, approaching historical highs.
Popular China concept stocks saw a general rise, with the Nasdaq Golden Dragon China Index up by 4.05%. Among them, JinkoSolar rose by over 17%, Canadian Solar rose by over 15%, NIO Inc. rose by over 10%, iQiyi rose by over 9%, Xpeng rose by over 8%, Bilibili rose by over 7%.
The rise in Lexin's stock price is mainly influenced by factors such as increasing dividend payouts, the start of singles' day sales, accelerated performance growth, and valuation recovery.
"Singles' Day" is China's grandest annual online shopping extravaganza. At 10 a.m. on October 18, Lexin's Fenqile Mall officially launched the Singles' Day shopping festival. It is reported that this year's Singles' Day event will last 26 days, including a pre-sale period, rotation period, peak period, and return period. In terms of the full reduction mechanism, the Fenqile Mall's explosive products are as low as 85% off, and there is a cross-store full reduction of $50 for every $300 spent.
On the performance side, in 2024 Q2, LexinFintech's loan scale reached 51 billion yuan, with assets totaling 115 billion yuan, both ranking at the forefront of the industry. With the introduction of domestic economic stimulus policies, the credit demand is expected to gradually recover in the future.
At the same time, based on the continuous revenue growth for seven consecutive quarters, LexinFintech has made a huge breakthrough in its overseas business. For example, in the second quarter, the loan scale in the Mexican market increased by 61% quarter-on-quarter, and revenue increased by 113% compared to the previous period. The company has now identified overseas business as an important strategic direction.
From a macro perspective, compared to global markets, Chinese assets still offer good value for money. Based on the expectation of gradual recovery and anticipation of gradual improvement in fundamentals, China concept stocks still have attractive valuation and high risk-return ratio.
From an investment perspective, Lexin's current net assets are approximately 10 billion, with low valuation levels of PE (PE ratio) and PB (pb ratio) compared to its peers. Despite its recent impressive stock price increase - exceeding 100%, the pb ratio is still only 0.4x, which is relatively low compared to the industry average, making it still attractive to investors.
Founded in August 2013 and based in Shenzhen, China, Lexinfintech has actively connected online and offline extensive consumer scenarios through its platforms, linking millions of young Chinese consumers with new consumer brands. In December 2017, Lexinfintech officially landed on the Nasdaq in the USA.