Investment Rating - The report maintains a "Buy" rating for the company, Lexin Group (LX US), with a target price of $11.80, indicating a potential upside of 84.1% from the current price of $6.41 [1][2][9]. Core Insights - The company's profitability is on a continuous improvement path, driven by a decrease in provisioning costs and an increase in technology-enabled revenue [5]. - The net profit for Q2 2025 reached 511 million RMB, showing a significant year-on-year increase of 126% and a quarter-on-quarter increase of 19% [5]. - The report highlights the company's strong performance in the e-commerce sector, with transaction amounts significantly increasing year-on-year and quarter-on-quarter [5]. - Shareholder returns are expected to improve, with a dividend payout ratio increasing from 25% in the first half of 2025 to 30% in the second half [5]. - The asset quality is showing a positive trend, with a decrease in the overdue rate [5]. Financial Overview - Revenue projections for Lexin Group are as follows: 13,057 million RMB in 2023, 14,204 million RMB in 2024, and an estimated 13,871 million RMB in 2025, reflecting a year-on-year growth of 32.3% in 2023 and a decline of 2.3% in 2025 [4][13]. - The net profit is projected to be 2,008 million RMB in 2025, representing a year-on-year increase of 82.4% [5][8]. - The company's price-to-earnings ratio is expected to be below 4 times in 2025, indicating an attractive valuation [5]. - The report anticipates a net take rate improvement, with projections of 1.88% for 2025 and 2.47% for 2026 [8]. Market Performance - The stock has shown a year-to-date change of 10.52% and has a market capitalization of approximately 849.90 million USD [4]. - The stock's 52-week high and low are 11.43 USD and 1.63 USD, respectively, indicating significant volatility and potential for growth [4]. Conclusion - The report concludes that Lexin Group's improving profitability, strong revenue growth in technology-enabled services, and attractive valuation make it a compelling investment opportunity [5][8].

近年来，国家有关部门、地方监管部门一直在整治"黑灰产"。去年8月，原中国银保监会办公厅发布 《关于进一步加强消费金融公司和汽车金融公司投诉问题整治的通知》，要求严厉打击非法代理黑产， 严肃查处以"征信修复、洗白、铲单、征信异议投诉咨询、代理"为名行骗等。今年以来，上海、深圳等 多地也积极整治"代理退保"等乱象。 互联网金融企业一直在与"黑灰产"较量。例如，美团小贷近日披露了两起该公司协助警方打击非法代理 维权的最新案例。据悉，自2022年以来，该公司已联动全国各地公安机关，协助查办包括电信诈骗、保 险诈骗、反催收代理维权等各类金融"黑灰产"案件77起。 上周，中国互联网金融协会发布《关于加强互联网金融行业协同、维护行业正常秩序的倡议》，呼吁互 联网金融领域从业机构团结一心，共同抵御"黑灰产"活动的侵害，身体力行站在反"黑灰产"的第一线。 倡议一经发布，就得到美团小贷、乐信、奇富科技、信也科技、融360、马上消费、数禾科技等多家机 构的积极响应。 近年来，互联网金融频频受到各类"黑灰产"活动的侵害。"黑灰产"主要通过非法代理维权、反催收联 盟、有组织逃废债、征信修复、非法代理退保、电信网络诈骗、非法贷款中介、盗 ...

Core Viewpoint - The stock price of Lexin (LX.US) increased by 6.08% to $6.8, driven by strong Q2 2025 performance and support from UBS research [1][3] Financial Performance - Lexin reported Q2 2025 unaudited financial results: revenue of 3.59 billion yuan, a 15.6% increase quarter-over-quarter; profit (Non-GAAP EBIT) of 670 million yuan, a 15.2% increase quarter-over-quarter and a 116.4% increase year-over-year [1][2] - The company achieved its highest profit in 14 quarters, marking five consecutive quarters of quarter-over-quarter growth [1][2] Operational Metrics - In Q2, Lexin's transaction volume reached 52.86 billion yuan, with a managed loan balance of 105.78 billion yuan and a user base of 236 million [2] - Risk indicators showed improvement for four consecutive quarters: Q2 new asset FPD decreased by approximately 5% quarter-over-quarter, total asset collection rate decreased by approximately 2%, and total assets with over 90 days overdue decreased by approximately 6% [2] Dividend and Shareholder Returns - Lexin announced a new dividend plan, with a payout of $0.194 per ADS, representing about 25% of the net profit for the first half of the year, an increase of approximately 76% compared to the $0.11 per ADS payout in the second half of 2024 [2] - Starting in the second half of the year, the dividend payout ratio will increase from 25% to 30% of net profit; additionally, a $60 million share buyback plan was initiated [2] Strategic Outlook - The CEO of Lexin emphasized a strategy focused on risk and data-driven operations, aiming for high-quality growth and maintaining a positive outlook for net profit growth for the year [3] - UBS research highlighted two main points: continuous improvement in asset quality and the potential of ecosystem business for future growth [4]

Group 1 - The core viewpoint of the news highlights that Lexin (LX) experienced a stock price increase of 5.07% on August 12, reaching $6.735 per share, with a total market capitalization of $1.133 billion [1] - Financial data shows that as of March 31, 2025, Lexin's total revenue was 3.104 billion RMB, representing a year-on-year decrease of 4.25%, while the net profit attributable to shareholders was 430 million RMB, reflecting a significant year-on-year increase of 113.43% [1] Group 2 - On August 7, Lexin disclosed its interim report for the fiscal year 2025, with the actual disclosure date subject to company announcements [2] - Lexin Holdings Limited is recognized as a leading new consumption service platform in China, focusing on technological innovation to create new consumption methods, primarily through its installment consumption brand Fenqile and membership-based service brand Lekar [2] - The main business segments of Lexin include the quality installment shopping platform Fenqile Mall, the membership service platform Lekar APP, the fintech open platform Dingsheng Technology, the online lending information intermediary service platform Juzi Finance, and the wealth management service brand Lexin Wealth [2]

Group 1 - The core viewpoint of the article highlights that Lexin (LX) experienced a stock price increase of 3.12% on August 11, reaching $6.61 per share, with a total market capitalization of $1.112 billion [1] - Financial data indicates that as of March 31, 2025, Lexin's total revenue was 3.104 billion RMB, representing a year-on-year decrease of 4.25%, while the net profit attributable to shareholders was 430 million RMB, showing a significant year-on-year increase of 113.43% [1] Group 2 - Lexin is identified as a leading new consumption service platform in China, focusing on technological innovation to create new consumption methods, with core brands including the installment consumption brand Fenqile and the membership-based service brand Lekar [2] - The company's main business segments include the quality installment shopping platform Fenqile Mall, the membership service platform Lekar APP, the fintech open platform Dingsheng Technology, the online lending information intermediary service platform Juzi Finance, and the wealth management service brand Lexin Wealth [2]

Financial Performance - Lexin reported Q2 2025 revenue of RMB 3.59 billion, a 15.6% increase quarter-over-quarter (QoQ) [1] - Non-GAAP EBIT profit reached RMB 670 million, up 15.2% QoQ and 116.4% year-over-year (YoY), marking the highest profit in 14 quarters [1] - The company's transaction volume in Q2 was RMB 52.86 billion, with total loans under management at RMB 105.78 billion and user count reaching 236 million [3] Asset Quality - Risk indicators improved for four consecutive quarters, with the First-payment default (FPD7) of newly added assets decreasing by approximately 5% QoQ [4] - The delinquency rate of all assets dropped by about 2% QoQ, and the 90+ day non-performing loan ratio fell by around 6% QoQ [4] - The profit margin in Q2 increased by 34 basis points compared to Q1, with consistent quarterly growth of over 20 basis points [6] Shareholder Returns - A cash dividend of US$0.194 per ADS will be distributed on September 15, representing approximately 25% of the first-half net profit, a 76% increase from the previous dividend [7] - The dividend payout ratio will increase from 25% to 30% of net profit starting in the second half of the year [7][8] - Lexin launched a US$60 million share-repurchase program to enhance shareholder returns [8] Strategic Initiatives - The company is focusing on a strategic transformation driven by risk and data, achieving refined operations and high-quality growth [9] - Lexin is aligning with government policies to boost consumption by enriching its product suite and optimizing user experience [10] - The Fenqile Mall upgraded its supply chain and saw a 139% YoY increase in GMV during the "6·18" promotion period [12] Inclusive Finance - Fenqile Inclusive upgraded its products using big data and AI, facilitating RMB 4.69 billion in loan disbursements to small and micro enterprises [14] - The company supports small enterprises with low-interest, high-limit financial products, enhancing their resilience [13] Digital Technology and Risk Management - Lexin invested RMB 160 million in R&D in Q2, up 10% YoY, focusing on risk control and operational resilience [18] - The company upgraded its risk control system using AI large models, improving decision-making efficiency and risk management accuracy [20] - Lexin's self-developed AI Agent positions increased to 50, with plans to expand to over 100, enhancing operational efficiency [21][22] Consumer Protection - Lexin is integrating consumer protection into its business chain, improving over 50 digital tools to enhance service response and user satisfaction [23]

Central Bank and Foreign Exchange Reserves - As of July 2025, China's foreign exchange reserves stood at $32,922 billion, a decrease of $252 billion from June, marking a decline of 0.76% [1] - The central bank has increased its gold reserves for the ninth consecutive month, reaching 7,396 million ounces (approximately 2,300.41 tons), with a month-on-month increase of 6,000 ounces (approximately 1.86 tons) [1] - The gold reserve balance increased by $10 billion to $243.985 billion, accounting for 7.41% of the foreign exchange reserves, up 0.09 percentage points from the previous month [1] Banking Sector Performance - Five banks, including Ningbo Bank and Hangzhou Bank, reported double-digit growth in both operating income and net profit for the first half of 2025 [1] - Ningbo Bank's total assets reached 3.47 trillion yuan, growing by 11.04% year-on-year, while Hangzhou Bank's total assets were 2.24 trillion yuan, up 5.83% [1] - As of June 2025, the total assets of Qilu Bank and Qingdao Bank were in the range of 700 billion to 800 billion yuan, and Changshu Bank's total assets exceeded 400 billion yuan, reaching 401.251 billion yuan [1] Retail Banking Developments - China Merchants Bank's retail assets under management (AUM) surpassed 16 trillion yuan, making it the first joint-stock commercial bank in China to achieve this milestone [2] - The bank's AUM growth accelerated, with the first 5 trillion yuan taking 9 years, the second 5 trillion yuan taking 5 years, and the latest 5 trillion yuan achieved in just over 3 years [2] - The bank's asset custody scale exceeded 24 trillion yuan, and its asset management scale approached 4.5 trillion yuan [2] Corporate Governance Changes - 18 listed banks have announced the cancellation or advancement of the dissolution of their supervisory boards, following a trend initiated by several state-owned banks [4] - This change is attributed to the implementation of the new Company Law in 2024 and regulatory guidance, indicating a shift in corporate governance practices [4] - The supervisory board's functions will be primarily taken over by the audit committee of the board of directors and employee directors, raising the governance standards for companies [4] Credit Card and Asset Management Innovations - China Bank will include litigation fees related to overdue credit card accounts in the billing statements starting September 14, 2025 [3] - The fees will cover various costs such as litigation, arbitration, and legal fees, with a pilot program starting in Shanghai [3] - Gansu Bank has sold non-performing assets to local asset management companies, with the latest sale valued at 14.922 billion yuan, resulting in a projected financial impact of 1.26 billion yuan [3] Insurance Sector Performance - 147 non-listed insurance companies reported a net profit exceeding 29 billion yuan in the first half of 2025, a significant increase from the previous year [4] - The number of loss-making insurance companies decreased from 30 to 21, with notable profits from companies like Taikang Life and Zhongyi Insurance [4] - Taikang Life's net profit surged by 164% year-on-year, reaching a historical high, while Zhongxin Insurance turned a profit after previous losses [4] Dividend Distribution by Major Insurers - Five major listed insurers announced a total cash dividend distribution of 907.89 billion yuan for 2024, reflecting a year-on-year increase of 20.21% [5] - China Insurance and New China Life announced significant cash dividends, with New China Life's total cash dividends for 2024 increasing by 197.6% compared to 2023 [5] Financial Technology Developments - Lexin's Q2 revenue reached 3.59 billion yuan, a 15.6% increase from the previous quarter, with a profit of 670 million yuan, marking a 116.4% year-on-year increase [9] - The company reported improved asset quality, with a decrease in various risk indicators for four consecutive quarters [9] - Yika's subsidiary in Japan achieved significant milestones, including registration for credit card business and compliance with global security standards [10]

Core Viewpoint - Lexin (LX.US) reported strong financial performance in Q2, with revenue of 3.59 billion RMB, a 15.6% increase quarter-over-quarter, and a GAAP net profit of 511 million RMB, up 19% quarter-over-quarter and 126% year-over-year, marking the highest profit in 14 quarters [1] Financial Performance - Q2 operating revenue reached 3.64 billion RMB, with significant contributions from credit facilitation service income and tech-empowered service income [3] - Financial net income increased from 1.818 billion RMB in the previous quarter to 2 billion RMB, reflecting a 10% growth [1][2] Risk Improvement - The company has shown continuous improvement in risk indicators, with new asset FPD decreasing by approximately 5% and the overall asset 90+ delinquency rate down by about 6% [4] - The positive change in the fair value of financial guarantee derivatives and loans has further contributed to profit, indicating improved risk levels [4][5] Strategic Adjustments - In response to the new lending regulations, Lexin proactively adjusted its risk strategy in Q2, enhancing risk identification and management for high-risk clients [5] - The company is leveraging technology upgrades to improve risk control capabilities and differentiate pricing strategies, leading to quality growth [5][6] Ecosystem Development - Lexin's ecosystem business is rapidly expanding, with significant growth in installment retail and e-commerce, achieving a 71% increase in gross profit to 97 million RMB and an 80% increase in GMV to 2 billion RMB [6][7] - The integration of technology and finance is seen as a long-term competitive advantage, with AI being embedded in various operational processes [8][9] Shareholder Returns - The company announced a dividend of 0.194 USD per ADS, a 76% increase from the previous period, and plans to increase the dividend payout ratio from 25% to 30% of net profit [10][11] - A stock buyback plan of up to 50 million USD is also in place, aimed at enhancing shareholder value and boosting stock performance [10][11] Valuation Perspective - Lexin's current PE ratio is below 4, and PB ratio is 0.67, indicating it is undervalued compared to peers, with potential for valuation premium as risk improves and technology integration progresses [11]

业绩表现不一 《金融时报》记者梳理发现，从营收、净利润等数据来看，已披露财报的多数金融科技公司实现盈 利，不过也有个别公司录得亏损，出现业务收缩。 具体来看，2024年三季度，7家金融科技公司中，实现营收最多的是陆金所控股，达到55.43亿元， 不过其营收同比下降31.14%，净利润同比下降超过100%。 作为已披露业绩的金融科技公司中唯一一家净利润为负数的公司，陆金所在财报中披露了原因。财 报显示，2024年三季度公司的销售和营销费用、一般和管理费用、运营和服务费用等都出现了不同程度 的下降。 截至2024年11月末，包括陆金所控股、奇富科技、信也科技、乐信、小赢科技、嘉银科技、宜人智 科在内的7家金融科技公司披露三季度财报。从财报可见，上市金融科技公司经营情况表现不一，但整 体资产质量持续改善。 营收位列第二位的是奇富科技，实现营收43.70亿元。不仅如此，奇富科技2024年三季度实现净利 润最多，达17.99亿元；同时，其营收同比增长2%，净利润同比增长50%左右，是实现同比双增的金融 科技公司之一，另外两家公司分别是小赢科技与信也科技。 资产质量改善 从各家财报数据来看，尽管部分金融科技公司三季度业绩 ...

Investment Rating - The investment rating for the company is "Buy" with a target price of $12.00 [8][9]. Core Insights - The company's net profit for Q2 2025 reached 510 million RMB, showing a year-on-year increase of 126% and a quarter-on-quarter increase of 19%, aligning with the company's guidance for significant profit growth this year [1]. - The net profit take rate (NTR) improved to 1.92% from 1.59% in Q1 2025, driven by increased revenue from light capital and e-commerce businesses [1]. - The company has announced a share repurchase plan of $50 million and a management buyback plan of $10 million, indicating a commitment to shareholder returns [1]. - The main uncertainty for the future is the potential impact of the new lending regulations on the industry, which could affect profitability and loan risk performance [1]. Summary by Sections Quality - Risk indicators have shown continuous improvement, with a 2% decrease in the first-day overdue rate and a 5% decrease in the first payment default (FPD) rate for new loans [2]. - The company has been upgrading its risk control system since early 2024, and the improving loan quality is gradually validating these efforts [2]. - Despite positive forward-looking risk indicators, the company remains cautious in provisioning, with credit costs increasing by 13.6% quarter-on-quarter [2]. Scale - New loan issuance slightly increased to 5.29 billion RMB, reflecting a year-on-year growth of 3.5% and a quarter-on-quarter growth of 2.5% [3]. - The proportion of loans under the ICP model decreased to 15% from 24% in Q1 2025 due to stricter regulations, but the company's diversified business ecosystem helps mitigate related impacts [3]. - E-commerce GMV reached 2 billion RMB, a quarter-on-quarter increase of 80.2%, with 97% of consumers using installment services [3]. Profitability - The NTR increased to 1.92%, primarily driven by a 126 basis points increase in revenue take rate to 11.64% [4]. - Light capital income rose by 32.9% to 830 million RMB, significantly contributing to profitability [4]. - E-commerce gross profit also increased by 71% to 97 million RMB due to rapid growth in GMV [4]. - Factors negatively impacting profitability include a 27 basis points rise in funding costs to 4.2% and an increase in customer acquisition costs to 810 RMB [4]. Profit Forecast and Valuation - The company's performance is relatively stable, with minor adjustments to net profit forecasts for 2025, 2026, and 2027, now projected at 2.18 billion RMB, 3.21 billion RMB, and 3.60 billion RMB respectively [6]. - The average price-to-book (PB) ratio for comparable consumer loan platforms is estimated at 1.07x for 2025, and the company is assigned a PB of 1.15x based on its unique business ecosystem [6].