LexinFintech Holdings Ltd. (LX.US) saw its shares rise 6.04% on Friday, closing at $2.81 with a daily trading volume of $4.0042 million. The increase was driven by a broad market rally, the approach of the Lunar New Year holiday, and new multi-departmental policies supporting consumption, alongside anticipation for the company's upcoming Q4 2025 earnings report.

In the broader capital markets, the three major U.S. stock indices closed higher, with the Dow Jones Industrial Average surpassing the 50,000-point mark for the first time, closing at a record high of 50,115.67, up 2.47%. The Nasdaq Composite rose 2.18% to 23,031.21, and the S&P 500 increased 1.97% to 6,932.30. Chinese stocks continued their strong performance, with the Nasdaq Golden Dragon China Index advancing 3.71% and the Wind China Tech Leaders Index gaining 2.90%. Several other Chinese companies also posted significant gains.

The primary drivers for LexinFintech's stock surge include a joint policy document issued by multiple departments, including the central bank, supporting financial services and new types of consumption, as well as the company's relatively low valuation. Recently, the Ministry of Commerce, the People's Bank of China, and the National Financial Regulatory Administration jointly issued a notice outlining 11 policy measures to stimulate consumption in areas such as goods consumption and new consumption models. Subsequently, nine departments, including the Ministry of Commerce and the National Financial Regulatory Administration, released a special Spring Festival activity plan aimed at boosting holiday spending through enhanced financial support.

In terms of its business ecosystem, LexinFintech has strengthened its integrated capabilities across its installment e-commerce platform, personal consumer credit, inclusive finance, digital technology, and overseas operations, creating a seamless online-to-offline experience. Its flagship platform, Fenqile Mall, China's first installment shopping platform, has actively engaged in the New Year shopping festival and promotional campaigns to stimulate online installment demand. It has also optimized inclusive financial services in county-level regions to foster consumption growth in rural markets.

The installment mall market can be broadly categorized based on two core elements: genuine transactions and physical fulfillment. Key differentiating factors include whether a platform manages its own inventory and supply chain, focuses on essential consumer goods, operates its own logistics and warehousing, offers subsidies, and provides guarantees for physical goods. Established in 2013, Fenqile Mall has become a core component of LexinFintech's ecosystem. Leveraging its installment consumption scenarios and brand resources, along with self-built logistics and innovative models, it effectively serves young consumers, lowers spending barriers, and helps drive brand growth.

Recent promotional data from Fenqile Mall shows a significant surge in demand for winter essentials: sales of warm apparel increased by 406% year-over-year, with order volume up 2577%, while sales of heating appliances rose 1495%, with orders growing 480%. In the inclusive finance sector, during the third quarter of 2025, Fenqile's inclusive services helped nearly 160,000 users access close to 5 billion RMB in loans. By the end of Q3 2025, its initiative had cumulatively served over 4 million customers.

LexinFintech is expected to release its Q4 and full-year 2025 financial results in March. Previously reported unaudited results for Q3 2025 showed a net profit take rate of 2%, an increase of 9 basis points from the previous quarter and 92 basis points year-over-year. The company's net profit take rate has improved steadily for seven consecutive quarters since Q4 2023.

According to a February 6th update on the company's official WeChat account, the total loan facilitation volume for the first three quarters of 2025 exceeded 200 billion RMB, with annual installment retail transaction volume growing by 100%. The total volume of loans facilitated for small and micro-enterprises approached 20 billion RMB.

Regarding shareholder returns, the dividend for the first half of the year was distributed in the third quarter. The company had previously announced an increase in the second-half dividend payout ratio from 25% to 30%. Furthermore, a $60 million share repurchase and increase plan is already over halfway completed. These actions, combined with the consecutive dividend ratio hikes, have significantly enhanced shareholder returns, with the dividend yield rising to 10.93%, positioning it as a leader among peers. The company's current PE ratio is approximately 1.91x, and its PB ratio is 0.28x, which is lower than industry averages.

Founded in August 2013 and headquartered in Shenzhen, China, LexinFintech connects millions of young Chinese consumers with new consumption brands through its platforms, guided by its brand philosophy of "Easy Consumption, Flexible Liquidity." The company listed on the Nasdaq Stock Market in December 2017.