Lexin(US:LX) Zhi Tong Cai Jing·2025-05-13 05:52Core Viewpoint - The significant rise in the stock price of Lexin (LX.US) is driven by key developments in US-China trade negotiations and the company's strong performance, marking a return to a growth trajectory [1][2]. Group 1: Stock Performance - Lexin's stock increased by 11.81% to close at $8.71, with a trading volume of $34.42 million on May 12 [1]. - The stock reached a high of $8.86 during the day, achieving its highest increase in one and a half months [1]. - The Nasdaq China Golden Dragon Index (HXC) rose by 5.40%, with several Chinese concept stocks, including Lexin, experiencing gains of over 10% [2]. Group 2: Company Performance - Lexin's performance indicators have shown consistent improvement, with early risk indicators for new assets decreasing by approximately 8% and 9% for FPD7 and FPD30+, respectively, in Q4 of the previous year [2]. - The company's profits have significantly improved, with Non-GAAP EBIT for the last four quarters being $282 million, $307 million, $409 million, and $460 million, reflecting sequential growth rates of 9%, 33.2%, and 12.5% [2]. - The market holds a generally optimistic view regarding Lexin's upcoming quarterly performance due to its established growth trend [2]. Group 3: Shareholder Returns - Lexin plans to increase its dividend payout ratio to 25% of net profits starting this year, continuing its tradition of biannual dividends [3]. - The company will distribute approximately $0.11 per ADS in cash dividends for the second half of the year, with payments scheduled for May 16 [3]. - Several major brokerages, including UBS and Citigroup, have raised their target price for Lexin, with UBS increasing it to $13.6, a 41.7% increase from the previous target of $9.6 [3].