Core Insights - The article discusses the Asia Value & Moat Stocks research service, which targets value investors looking for significant discrepancies between stock prices and intrinsic values, focusing on deep value balance sheet bargains and wide moat stocks [1] Group 1: Company Performance - The company's quarterly revenue barely met expectations, indicating potential challenges in financial performance [1] - Management forecasts that loan volumes will remain largely unchanged between the fourth quarter of 2025 and the first quarter of 2026, suggesting a stagnation in growth [1] - The stock's earnings-based valuation is closely aligned with that of its peers, indicating a competitive market position [1] Group 2: Investment Strategy - The Asia Value & Moat Stocks service provides investment ideas specifically for the Asian market, with a strong emphasis on the Hong Kong market [1] - The focus is on identifying deep value balance sheet bargains, such as net cash stocks and low price-to-book (P/B) stocks, as well as wide moat stocks that represent high-quality businesses [1] - The service includes a range of watch lists with monthly updates to assist investors in tracking potential opportunities [1]

在资本市场里，最危险的从来不是高估值，而是——看起来很便宜，但永远无法兑现增长的公 司。投资者往往沉迷于市盈率（PE）的数字游戏，认为低估值意味着安全边际，意味着下跌空 间有限。 然而，在金融科技这个特殊赛道，低估值往往不是市场的馈赠，而是风险的定价。当一家公司 失去了成长的想象力，即便利润表再好看，也只是一座无法增值的孤岛。 乐信当下的处境，正是这一逻辑的典型案例。它揭示了一个残酷的真相：在周期下行与监管重 塑的双重夹击下，曾经的成长股可能正在悄然蜕变为价值陷阱。 表 面 " 稳 健 " ， 实 则 增 长 失 速 — — 低 估 值 的 第 一 层 错 觉 从财报表面看，乐信似乎具备典型的"价值股特征"：业务结构多元、用户规模扩大、经营指标 稳定。在不少价值投资者的筛选器中，这样的公司往往能轻易通过初筛。较低的市盈率、稳定 的现金流、看似可控的坏账率，这些指标组合在一起，构建了一种"安全"的幻觉。 但如果把视角从"是否稳定"切换到"是否增长"，问题就开始显现。金融科技公司的核心，不在 于当期利润，而在于资产扩张能力与风险定价能力。换句话说，真正决定估值的，是未来的放 【如需和我们交流可扫码添加进社群】 贷 ...

Chief financial officer James Xigui Zheng said the fourth quarter was the first period after the new regulatory framework officially came into force. The company said it followed the requirement that the comprehensive interest rate for all new loans be capped at or below 24%.Management reported that fourth-quarter loan volume reached RMB 50 billion and revenue was RMB 3 billion, with 4.53 million active users and 884,000 new active users. For the full year 2025, total loan volume was RMB 205.3 billion and n ...

LexinFintech (NasdaqGS:LX) Q4 2025 Earnings call March 19, 2026 07:00 AM ET Company ParticipantsArvin Zhanwen Qiao - Chief Risk Officer and DirectorJames Xigui Zheng - CFO and DirectorJay Wenjie Xiao - Chairman and CEOJudy Zhang - Executive AssistantWill Tan - Head of Investor RelationsNone - TranslatorConference Call ParticipantsAlex Ye - Equity Research AnalystZhuhan Wang - AnalystOperatorGood day and thank you for standing by. Welcome to the LexinFintech fourth quarter 2025 earnings conference call. At t ...

Financial Data and Key Metrics Changes - In Q4 2025, the company's loan volume reached CNY 50 billion, with total revenue of CNY 3 billion and a net profit of CNY 1.7 billion, reflecting a year-over-year increase of 52.4% [4][5] - The net income for Q4 was CNY 214 million, a decrease of CNY 307 million quarter-over-quarter, primarily due to pricing adjustments and a contraction in loan volume [20][24] - The weighted average APR of new loans was 21.7%, a decline of 140 basis points quarter-over-quarter [22] Business Line Data and Key Metrics Changes - The net revenue from the credit business was CNY 1.4 billion, a decrease of CNY 586 million quarter-over-quarter, driven by a drop in credit facilitation service income [21] - The e-commerce business saw an increase in net revenue to CNY 167 million, up CNY 56 million from the previous quarter, with a gross margin of 7.8%, an increase of 295 basis points [22][25] Market Data and Key Metrics Changes - The company reported a month-over-month improvement in risk indicators for new loans, with the day one delinquency ratio decreasing by over 10% from its peak in October [8][15] - The overall risk indicators in Q4 were higher than in Q3, but a downward trend began in November, indicating stabilization [44] Company Strategy and Development Direction - The company is focused on optimizing operations within the new regulatory framework, emphasizing compliance and a customer-centric strategy [5][6] - Plans include enhancing product competitiveness and customer experience, particularly in high-quality segments, to drive steady growth [38] - The company aims to deepen its diversified business ecosystem, including tech-empowerment and overseas markets, to strengthen operational resilience [37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about market development potential in 2026, anticipating a gradual return to normalized growth following stabilization of risk levels [13][39] - The company will continue to adopt a prudent approach to risk management while enhancing customer acquisition capabilities [39][47] Other Important Information - The company has repurchased $39 million worth of ADSs and approved a dividend of $0.188 per ADS, reflecting a more than 100% increase compared to the previous year [31][32] - The cash position as of December 31 was approximately CNY 4.0 billion, with shareholders' equity at about CNY 12 billion [31] Q&A Session Summary Question: How will LexinFintech's development strategy change under the new regulatory environment? - Management indicated that the focus will be on quality and compliance, with a user-centric approach to engage customers across different segments [36] Question: What is the outlook for the company's operating performance in 2026? - Management expects a more proactive user acquisition strategy and improved asset quality, with loan volume gradually returning to a normalized growth range [38][39] Question: What is the company's latest risk performance and future outlook? - Management noted that while risk indicators were elevated in Q4, a downward trend has begun, and efforts will continue to manage high-risk segments [44] Question: What is the outlook for the company's full-year financial performance for 2026? - Management refrained from providing full-year guidance but highlighted that revenue will be influenced by loan volume stability and pricing adjustments [46][47] Question: What are the plans for enhancing shareholder returns? - Management confirmed a commitment to dividends and share repurchases, reflecting confidence in the company's long-term value [52]

Financial Data and Key Metrics Changes - In Q4 2025, the company's loan volume reached CNY 50 billion, with total revenue of CNY 3 billion and a net profit of CNY 1.7 billion, reflecting a year-over-year increase of 52.4% [4][5] - The net income for Q4 was reported at CNY 214 million, a decrease of CNY 307 million quarter-over-quarter, primarily due to pricing adjustments and a contraction in loan volume [19][24] - The weighted average APR of new loans was 21.7%, a decline of 140 basis points quarter-over-quarter [22][35] Business Line Data and Key Metrics Changes - The credit business net revenue was CNY 1.4 billion, down CNY 586 million quarter-over-quarter, driven by a decrease in credit facilitation service income and increased credit costs [21][22] - The e-commerce business net revenue increased by CNY 56 million to CNY 167 million, with a gross margin of 7.8%, up 295 basis points quarter-over-quarter [22][25] Market Data and Key Metrics Changes - The company observed an upward trend in credit risk across the industry, with day one delinquency ratio increasing by 7% in Q4, although it showed signs of stabilization towards the end of the quarter [14][43] - The day one delinquency ratio decreased by over 10% from its peak in October 2025, indicating improvement in risk indicators [8][43] Company Strategy and Development Direction - The company is focusing on a user-centric approach and compliance with new regulations, aiming to lower overall loan rates and enhance service offerings for micro and small business owners [36][37] - The strategy includes optimizing credit allocation and building a differentiated pricing system to improve product competitiveness and customer experience [37][38] Management's Comments on Operating Environment and Future Outlook - Management noted that while the industry is stabilizing, it will take time for risk levels to return to pre-2025 levels, and they expect a gradual improvement in asset quality [43][44] - The company anticipates loan origination to remain stable in Q1 2026, with a focus on high-quality customer acquisition and operational resilience [31][44] Other Important Information - The company has repurchased $39 million worth of ADSs and approved a dividend of $0.188 per ADS, reflecting a commitment to enhancing shareholder value [30][49] - The funding cost decreased from 4.4% in Q3 to 3.8% in Q4, indicating improved funding conditions following regulatory changes [29][30] Q&A Session Summary Question: How will LexinFintech's development strategy change under the new regulatory environment? - Management emphasized a focus on quality and compliance, with a user-centric approach to serve diverse customer segments and lower loan rates [34][35] Question: What is the outlook for the company's operating performance in 2026? - Management expects to adopt a proactive user acquisition strategy, focusing on high-quality segments and improving asset quality, with loan volume gradually returning to normalized growth [37][38][44] Question: Can management share the company's latest risk performance and future outlook? - Management indicated that while risk levels remain elevated, there are signs of stabilization, and they will continue to strengthen risk controls [41][43] Question: What is the outlook for the company's full-year financial performance for 2026? - Management refrained from providing full-year guidance but noted that revenue will be influenced by loan volume stability and pricing adjustments, with a focus on cost reduction and operational efficiency [44][46]

Core Viewpoint - LexinFintech Holdings Ltd. reported its financial results for Q4 and full year 2025, highlighting a significant increase in net profit despite a challenging macro environment and regulatory changes [3][4]. Financial Performance - For the full year 2025, net profit reached RMB1.7 billion, a year-over-year increase of 52.4% [3]. - Q4 2025 net income was RMB214 million, down 41.0% from RMB363 million in Q4 2024 [23]. - Total operating revenue for Q4 2025 was RMB3,043 million, a decrease of 16.8% from RMB3,659 million in Q4 2024 [13]. - Full year operating revenue was RMB13,152 million, down 7.4% from RMB14,204 million in 2024 [24]. User and Loan Metrics - The total number of registered users reached 245 million as of December 31, 2025, up 7.6% from 228 million in 2024 [9]. - Active users in Q4 2025 were 4.5 million, a decrease of 3.8% from 4.7 million in Q4 2024 [9]. - Cumulative borrowers with successful drawdown increased to 36.7 million, up 8.9% from 33.8 million in 2024 [9]. - Total loan originations in 2025 were RMB205 billion, down 3.2% from RMB212 billion in 2024 [9]. Revenue Breakdown - Credit facilitation service income for Q4 2025 was RMB2,485 million, down 8.4% from RMB2,712 million in Q4 2024 [13]. - Tech-empowerment service income decreased significantly to RMB170 million, down 71.7% from RMB602 million in Q4 2024 [16]. - Installment e-commerce platform service income increased to RMB388 million, up 12.5% from RMB345 million in Q4 2024 [16]. Cost and Expenses - Cost of sales in Q4 2025 was RMB248 million, down from RMB353 million in Q4 2024 [17]. - Funding costs decreased to RMB34.2 million in Q4 2025 from RMB57.5 million in Q4 2024 [18]. - Processing and servicing costs increased to RMB633 million in Q4 2025, up from RMB583 million in Q4 2024 [18]. Shareholder Returns - The board approved a dividend of US$0.188 per ADS, representing 30% of net income from the second half of 2025 [5]. - The company has repurchased US$39 million worth of ADSs as part of its share repurchase program [36]. Business Outlook - The company anticipates continued consolidation in the market towards compliant platforms with prudent risk management [4]. - For Q1 2026, total loan origination is expected to remain flat due to ongoing macroeconomic uncertainties [38].

Core Viewpoint - LexinFintech Holdings Ltd. will report its unaudited financial results for Q4 and the fiscal year ended December 31, 2025, on March 19, 2026, before the U.S. market opens [1] Group 1: Financial Reporting - The earnings conference call is scheduled for 7:00 AM U.S. Eastern time on March 19, 2026 [2] - Participants must register online to receive the dial-in number and unique access PIN for the conference call [2] - A live and archived webcast of the conference call will be available on the Company's investor relations website [3] Group 2: Company Overview - Lexin is a leading technology-empowered personal financial service enabler in China, focusing on making financing accessible for young consumers [4] - The Company connects consumers with financial institutions through a unique model that includes online and offline channels, an installment consumption platform, and AI-driven credit risk management capabilities [4] - Lexin also provides proprietary technology solutions to financial institutions to support their digital transformation needs [4]

Group 1 - The U.S. stock market opened higher on February 18, with the Dow Jones up 0.5%, Nasdaq up 0.5%, and S&P 500 up 0.41% [1] - Major tech stocks showed mixed performance, with Nvidia rising by 2% [1][2] - Meta announced the deployment of Nvidia's new standalone CPU and next-generation Vera Rubin system in its AI data centers, marking the first large-scale independent deployment of the Grace CPU [3] Group 2 - The Nasdaq China Golden Dragon Index increased by 0.2%, with notable gains from companies like Kandi Technologies (+4.92%) and Yatsen Holding (+2.48%) [4] - European stock indices also saw gains, with the UK FTSE Index rising by 1.07%, reaching a historical high [5] - International crude oil futures surged, with WTI up 3.02% at $64.14 per barrel and Brent up 3.04% at $69.47 per barrel [7]

Core Viewpoint - Lexin (LX.US), a leading new consumption digital technology service provider in China, saw its stock price rise by 8.7% to close at $3, driven by a slight increase in U.S. stocks and the onset of the Spring Festival consumption season [2] Group 1: Stock Performance - Lexin's stock experienced its second increase of over 8% since the beginning of the year, with the previous instance occurring on February 9 [2] - The trading volume for Lexin on that day was $5.7791 million, indicating a continued increase in trading activity [2] - The stock price further increased by 0.33% after the initial rise [2] Group 2: Market Context - U.S. stock indices showed a slight upward trend, with the Dow Jones increasing by 0.07% to 49,533.19 points, the S&P 500 rising by 0.1% to 6,843.22 points, and the Nasdaq Composite up by 0.14% to 22,578.38 points [2] - Chinese concept stocks had mixed performances, with the Livermore Chinese concept stock index rising by 0.12% while the Nasdaq Golden Dragon China Index fell by 0.10% [2] Group 3: Company Background - Lexin was established in August 2013 and is based in Shenzhen, China, focusing on connecting young consumers with new consumption brands through its platforms [2] - The company emphasizes a brand philosophy of "easy consumption, flexible turnover" to tap into vast online and offline consumption scenarios [2] - Lexin officially listed on the Nasdaq in December 2017 [2]