According to the latest news from the Financial World APP, as of the US Eastern Time on Tuesday, November 26th, the US stock market closed with leading Chinese new consumer digital technology service provider LexinFintech (LX.US) experiencing a 25.59% increase, closing at $4.27, with a daily turnover of $63.4015 million, four times higher than the $15.03 million of the previous trading day.

LexinFintech opened with a high and continued to rise, reaching a peak of $4.36 in the final trading session. With a 25.59% increase, it achieved the second-largest increase of the year, surpassing the previous largest increase of 26.5% on October 1st; the closing price of $4.27 is only a step away from the yearly high of $4.7.

Post-market data also shows that LexinFintech's stock price rose by another 1.41%, closing at $4.33.

At the market level, the minutes of the Federal Reserve monetary policy meeting indicated that officials believe there will be future interest rate cuts, but they will only be gradual. As a result, the three major US stock indexes all closed higher, with the Dow Jones, S&P 500 Index hitting new historical highs at the close, with the Dow rising by 0.28%, the Nasdaq rising by 0.63%, and the S&P 500 Index rising by 0.57%.

The rise in LexinFintech's stock price is mainly influenced by factors such as the Q3 financial report and valuation recovery.

After the closing on Monday Eastern Time, LexinFintech released the unaudited financial performance for the third quarter of 2024, with a revenue of 3.66 billion yuan and a profit (Non-GAAP EBIT) of 0.409 billion yuan, a 33.2% increase from the previous period.

At the same time, all indicators also performed well. In terms of risk, high-quality assets in the newly added assets in the third quarter accounted for over 75%, with early risk indicator FPD7 down about 13% month-on-month; large-cap entry rate decreased by about 9% compared to the second quarter; and the cost of funds hit a new historical low, down 98 basis points compared to the second quarter.

LexinFintech achieved a significant breakthrough in overseas business. In the third quarter, in addition to the Mexican market, LexinFintech increased investment and operations in the Southeast Asian market. Within the quarter, the Indonesian market grew rapidly, with trading users increasing by 31% month-on-month and trading volume increasing by 18%.

LexinFintech CEO Xiao Wenjie stated that the company's large-cap assets are healthier, with a better structure, and risks have reached a turning point with asset profitability beginning to recover. "By 2025, we are confident in the continuous improvement of asset quality and accelerated profit recovery."

Due to the continuous growth in profits, LexinFintech announced an increase in dividend payout ratio on top of the semi-annual dividends (with the first half-year dividend already distributed in October). Approved by the board of directors, starting from 2025, LexinFintech's dividend ratio will be raised from the current 20% of net income to 25%.

Shortly after LexinFintech released its financial report, several well-known brokerages promptly issued research reports to evaluate it. Bocom International quickly raised LexinFintech's target price to $4.20 and maintained a "buy" rating. Their rationale is that with risk control improvement, LexinFintech's asset quality will improve, driving a rapid increase in profit growth speed; Citi also holds a more optimistic view, believing that LexinFintech's asset quality has reached a turning point, and profit capability will rapidly increase by 2025, raising LexinFintech's target price from $1.90 to $4.80.

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.