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Highlights

  • LexinFintech saw 21.9% hike in total loan originations in 2023 compared to 2022
  • The company’s total operating revenue improved by 32.3% in FY23 and net income surged by about 29%
  • EBITDA margin surged from 4.7% in FY22 to 16.2% in FY23, indicating enhanced profitability and operational efficiency
  • LexinFintech has announced a semi-annual dividend of US$ 0.033 per ordinary share, or US$ 0.066 per ADS, slated for May 24, 2024

LexinFintech Holdings Ltd. (NASDAQ: LX) is a leading provider of personal financial services, empowered by credit technology. It aims to enhance financing accessibility for younger consumers through technology and risk management proficiency. The company's online consumer finance platform, Fenqile, offers personal installment loans, installment purchase loans, and other loan products to customers.

The company reported that in FY23, its total registered user base increased to 210 million, marking a year-on-year surge of around 11%. Driven by this, the company’s credit line users also expanded by around 6%. Further, growing demand for the company’s loan products was highlighted by the 21.9% hike in total loan originations in 2023 compared to 2022.

In terms of operating metrics, the company’s total operating revenue improved by 32.3% in FY23 and net income increased by about 29%. Similarly, the EBITDA margin surged from 4.7% in FY22 to 16.2% in FY23, indicating enhanced profitability and operational efficiency.

Recent business update

The company has announced a semi-annual dividend of US$ 0.033 per ordinary share, or US$ 0.066 per American Depositary Share (ADS), for the six-month period ended on December 31, 2023.  Scheduled for May 24, 2024, the dividend will be distributed to shareholders of record, including ADS holders, as of April 18, 2024, as per New York time. Remarkably, for the entire FY23, the company distributed a cash dividend of US$ 0.182 per ADS.

Company outlook

LexinFintech is expecting that the annual GMV for 2024 will reach at least that of 2023. This reflects the company’s cautious business strategy amidst weak consumption recovery and prioritisation of risk management.

Top 10 shareholders

LX has a diverse shareholding in which the top 10 shareholders collectively hold around 23.06% of the company’s total shares. Fidelity International holds maximum stake in the company at around 5.53% followed by FIL Investment Management (Hong Kong) Limited which holds around 4.01%.

 

Stock performance

Over the last three months, the stock price of the company has declined by approximately 15.52%, while over the past six months, it has dipped by about 13.45%. Additionally, it is currently trading near the lower band of its 52-week high of USD 3.01 and 52-week low price of USD 1.56.

 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is May 08, 2024. The reference data in this report has been partly sourced from EODHD/Others.