中国经济回升向好，离不开内需的拉动。消费信贷作为扩大内需的重要力量，可以进一步激发消费者的潜力，有助于扩大金融覆盖面、提升消费意愿等，更好地服务实体经济。在目前宏观政策加码提振消费的背景下，消费金融公司正在发挥更加积极的作用。Lexinfintech (LX.US) continued its uptrend, closing up 13.89% on Thursday at $2.05. The stock has risen nearly 20% this week.
According to the "Securities Times" app, buoyed by favorable macro policies and positive factors such as company fundamentals, China's leading new consumer digital technology service provider Lexinfintech (LX.US) continued its uptrend, closing up 13.89% on Thursday at $2.05. The stock has risen nearly 20% this week.
On a macro level, with the dense implementation of favorable policies, market confidence continues to recover. Recently, Chinese concept stocks continued their strong uptrend, with the Nasdaq China Golden Dragon Index closing up 10.9% on Thursday, while Lexinfintech showed even more rapid growth.
The recovery of the Chinese economy depends on domestic demand. Consumer credit, as an important force to expand domestic demand, can further stimulate consumer potential, help expand financial coverage, enhance consumer willingness, and better serve the real economy. Against the backdrop of intensified macro policies to boost consumption, consumer finance companies are playing a more active role.
As a leading new consumer digital technology service provider in China, Lexinfintech, with its innovative financial services and consumer credit products, not only caters to the trend of expanding domestic demand and serving the real economy but also has broad market prospects. Its impressive financial data demonstrates strong profitability and growth potential.
Lexinfintech has a huge market space, providing diversified consumer credit solutions for consumers through platforms like Fenqile Mall, meeting the needs of different consumers. In addition, Lexinfintech's expansion into overseas markets, such as the success in the Mexican market, has opened up new growth opportunities.
Lexinfintech's financial report for the second quarter of 2024 shows that the company's revenue reached 3.64 billion RMB, a 12.3% increase from the previous quarter; net income attributable to common shareholders was 0.227 billion RMB, a 12.4% increase from the previous quarter. As of June 30th, the total number of registered users has reached 0.219 billion, a 10.2% increase from the same period last year. These data not only reflect Lexinfintech's strong profitability but also its leading position in the fintech field.
In addition, Lexinfintech is equally generous to its shareholders. The company announced that it will continue to implement a semi-annual dividend policy, with the first half of 2024 dividend officially distributed on October 18, approximately $0.072 per ADS, about 20% of the net income for the first half of the year. Lexinfintech's annual dividend yield is close to 10%, providing investors with a substantial return.
However, Lexinfintech's stock price is still undervalued by the market. Lexinfintech's price-to-book ratio (PB) is only 0.23, indicating that its market cap is far below the net asset value, providing investors with a higher margin of safety. It is estimated that in the next two years, with changes in the regulatory environment and the overall upward valuation of peer companies, the company's valuation will also increase.
In conclusion, as a leading player in China's financial technology sector, Lexinfintech demonstrates solid financial performance, attractive dividend policy, and its undervalued stock price makes it a value oasis worth investors' attention. With the continuous improvement in Lexinfintech's second-half profits, the dividend yield is also expected to continue to increase, providing investors with more investment opportunities.