LexinFintech (LX, Financial) shares surged over 7.7% to $3.37 as of the latest report. The company revealed plans to potentially increase its dividend payout ratio next year from the current 20% of net profit to 25%.
LexinFintech (LX, Financial), a leading Chinese digital consumption technology service provider, is contemplating raising its dividend payout ratio from the current 20% to 25% next year. This consideration was revealed during a recent internal meeting organized by China International Capital Corporation, which was attended by numerous institutional and high-net-worth investors.
LexinFintech Holdings Ltd. shows strong user base and cumulative borrower growth, driven by AI, proprietary software, and financial institution partnerships. LX's focus on young Chinese consumers and strategic equity investments in fintech and insurance sectors are expected to drive future FCF growth. Financial improvements include reduced debt, increased equity, and substantial cash reserves, indicating robust operational performance and potential stock price appreciation.
LexinFintech Holdings Ltd.'s Q2 2024 loan origination was a 5%-7% miss as compared to prior management guidance, and the company's Q3 prospects are unfavorable with expectations of flattish loan origination growth. Despite near-term challenges, LexinFintech Holdings' long-term outlook is positive, with growing contributions from asset-light businesses and international operations. LexinFintech stock is still rated as a Hold, as the company's shares are cheap in the absence of short-term catalysts.
LexinFintech Holdings Ltd. (NASDAQ:LX ) Q2 2024 Earnings Conference Call August 27, 2024 10:00 PM ET Company Participants Mandy Dong - Head, Investor Relations Jay Xiao - Chief Executive Officer Arvin Qiao - Chief Risk Officer James Zheng - Chief Financial Officer Conference Call Participants Yada Li - CICC Zoe Zou - CLSA Alex Ye - UBS Operator Good day, and thank you for standing by.