LexinFintech (LX, Financial) has revealed that its board of directors has sanctioned a share repurchase initiative, allowing the company to buy back up to $50 million worth of its own shares over the coming year. Concurrently, Jay Wenjie Xiao, who serves as both Chairman and CEO of Lexin, has communicated his intention to personally invest up to $10 million in the firm's American depository shares (ADSs). Xiao aims to complete these purchases within a twelve-month timeframe, adhering to relevant legal and company trading guidelines.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for LexinFintech Holdings Ltd (LX, Financial) is $11.54 with a high estimate of $14.20 and a low estimate of $4.80. The average target implies an upside of 82.52% from the current price of $6.32. More detailed estimate data can be found on the LexinFintech Holdings Ltd (LX) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, LexinFintech Holdings Ltd's (LX, Financial) average brokerage recommendation is currently 1.5, indicating "Buy" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for LexinFintech Holdings Ltd (LX, Financial) in one year is $3.06, suggesting a downside of 51.58% from the current price of $6.32. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the LexinFintech Holdings Ltd (LX) Summary page.
LX Key Business Developments
Release Date: May 22, 2025
- GAAP Net Profit: RMB430 million, a record high in 13 quarters, with 18.6% quarter-over-quarter growth and 113% year-over-year growth.
- Net Income Margin: Increased to 13.9% from 9.9% last quarter.
- Net Profit Take Rate: Increased to 1.58% from 1.31% last quarter and 0.66% a year ago.
- Revenue Take Rate: Increased from 6.22% to 6.69% quarter-over-quarter.
- Day One Delinquency Ratio: Decreased by about 11% quarter-over-quarter.
- 90 Days Delinquency Ratio: Decreased by 9% quarter-over-quarter.
- Customer Acquisition Costs: Decreased by 19% quarter-over-quarter for overseas business.
- Capital-Light Model Volume: Increased by 43% quarter-over-quarter, accounting for 28% of total GMV.
- APR for Capital Heavy Model: Lowered by about 100 basis points from 23.9% to 22.6%.
- Total Revenue from Lending Related Business: Decreased by 15% quarter-over-quarter.
- Tech Empowerment Service Income: Increased by 4% quarter-over-quarter, accounting for 20% of total revenue.
- Installment E-commerce GMV: Increased by 16.2% quarter-over-quarter.
- Gross Profit from E-commerce Business: More than doubled in the first quarter.
- Cash Position: Approximately RMB5 billion as of March 31.
- Shareholders' Equity: Approximately RMB11.2 billion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- LexinFintech Holdings Ltd (LX, Financial) achieved a record high GAAP net profit of RMB430 million, marking a 113% year-over-year growth.
- The company has successfully transformed its business model, focusing on data analytics, risk management, and refined operations, leading to high-quality development.
- Significant progress was made in enhancing customer acquisition capabilities and efficiency in the online consumer finance business.
- The company has improved its risk management framework, resulting in a decline in risk levels for both new and overall assets.
- LexinFintech Holdings Ltd (LX) increased its cash dividend payout ratio to 30% of net profit, reflecting a commitment to shareholder returns.
Negative Points
- Despite the profit growth, the overall new loan volume and loan balance declined slightly due to Chinese New Year seasonality.
- Total revenue from lending-related business decreased by 15% quarter over quarter, attributed to lower APR, increased early payoffs, and a shift to the capital-light model.
- The installment e-commerce platform service income decreased by 16.4% despite a 16.2% growth in GMV, due to a shift in volume mix.
- The company faces ongoing macroeconomic uncertainties and geopolitical challenges, which could impact future performance.
- There is a potential impact from new regulatory rules on the loan facilitation business, although the company is confident in managing these changes.
