Overview

• LexinFintech Q3 revenue decreased 6.7% yr/yr, reflecting challenges in loan facilitation

• Net income for Q3 increased 68% yr/yr, indicating improved profitability

• Company repurchased $25 mln worth of ADSs, enhancing shareholder value

Outlook

• LexinFintech expects industry-wide risk fluctuations due to new regulatory framework

• Company maintains guidance for significant year-over-year growth in net income

• LexinFintech increases dividend payout ratio from 25% to 30% of net profit starting from second half of this year.

Result Drivers

• REGULATORY COMPLIANCE - Lexin transitioned operations to comply with new regulations, pricing new loans at or below 24% interest rate

• REVENUE STREAM CHANGES - Decrease in loan facilitation income offset by increases in tech-empowerment and e-commerce platform services

• SHAREHOLDER VALUE - Co increased dividend payout ratio and repurchased $25 mln worth of ADSs

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the consumer lending peer group is "buy."

• Wall Street's median 12-month price target for Lexinfintech Holdings Ltd is $12.40, about 71.8% above its November 21 closing price of $3.50

• The stock recently traded at 2 times the next 12-month earnings vs. a P/E of 3 three months ago

Press Release: ID:nGNXc0WD1Q

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)