Core Viewpoint - The stock price of Lexin (LX.US) has increased by 5.05% to $7.49, driven by strong Q1 2025 performance and positive market conditions [1][2][3] Group 1: Stock Performance - Lexin's stock rose by 5.05% to close at $7.49, with a trading volume of $12.4679 million [1] - After-hours trading saw a further increase of 0.4%, bringing the stock price to $7.519 [2] - The overall market was buoyed by a ceasefire agreement between Israel and Iran, with major indices rising over 1% [2] Group 2: Financial Performance - Lexin's Q1 2025 financial report showed total revenue of 3.1 billion yuan, with a GAAP net profit of 430 million yuan, reflecting a quarter-on-quarter growth of 18.6% and a year-on-year growth of 113.4% [3] - The company's take rate reached 1.58%, up from 1.31% in Q4 2024 and 0.66% in Q1 2024, indicating improved profitability [3] - Net profit margin increased from 9.9% in Q4 2024 to 13.9%, marking the highest level in three years [3] Group 3: Shareholder Returns and Analyst Ratings - Lexin announced an increase in its dividend payout ratio from 25% to 30% of net profit starting in the second half of the year [3] - Several major brokerages, including DBS and UBS, have raised their target prices for Lexin, with DBS estimating a fair value of $11 based on a projected P/E ratio of 6 times for FY 2025 [3] - The stock has previously fallen over 30% due to trade tensions, but analysts believe the current price does not fully reflect its growth potential [4] Group 4: Company Background - Lexin was established in August 2013 and is based in Shenzhen, China, focusing on connecting young consumers with new brands through its platforms [4] - The company went public on NASDAQ in December 2017 [4]

Core Insights - The company reported a total revenue of 357 million yuan in Q1 2025, representing a year-on-year growth of 10.01%, despite a net loss of 10.39 million yuan, indicating an improvement in profitability metrics [1] Financial Performance - The gross margin reached 30.04%, an increase of 17.66% year-on-year, while the net margin was -3.15%, reflecting a year-on-year increase of 70.32%, suggesting effective cost control and enhanced product value [2] Cost Control - Total selling, administrative, and financial expenses amounted to 48.81 million yuan, with the expense ratio decreasing from 16.91% to 13.69% year-on-year, a decline of 19.07%, indicating effective expense management [3] Cash Flow and Debt Management - Operating cash flow per share improved from -0.31 yuan to -0.11 yuan, a year-on-year increase of 65.58%, although it remains negative; cash and cash equivalents decreased by 7.73% to 798 million yuan, and accounts receivable fell by 13.20% to 1.741 billion yuan. Interest-bearing debt rose to 1.574 billion yuan, an increase of 2.94%, with a cash to current liabilities ratio of only 60.38%, highlighting ongoing cash flow and debt challenges [4] Business Model and Financing - The company's performance is primarily driven by research and development, with cumulative financing of 1.032 billion yuan and cumulative dividends of 422 million yuan since its listing, resulting in a dividend-to-financing ratio of 0.41, reflecting a balance between R&D investment and shareholder returns [5]

Operating Overview - The total operating revenue of ST Longjin (002750) for 2024 was 66.48 million yuan, a year-on-year decrease of 23.25% [2] - The net profit attributable to shareholders was -41.44 million yuan, an increase of 41.58% year-on-year; the net profit after deducting non-recurring gains and losses was -50.46 million yuan, up 37.78% year-on-year [2] - Despite poor annual performance, the fourth quarter showed improvement with total operating revenue of 19.87 million yuan, a year-on-year increase of 27.65% [2] Profitability Analysis - The company's profitability improved in 2024, with a gross margin of 64.25%, an increase of 5.53% year-on-year [3] - The net profit margin was -70.66%, an increase of 27.36% year-on-year, indicating that the company remains in a loss position [3] Cost and Expense Analysis - Total sales, management, and financial expenses amounted to 66.58 million yuan, accounting for 100.15% of revenue, a decrease of 7.73% year-on-year [4] - The reduction in sales expenses was primarily due to the implementation of centralized procurement price linkage policies in non-centralized procurement provinces [4] Cash Flow Situation - The operating cash flow per share was -0.09 yuan, an increase of 12.8% year-on-year, indicating some improvement [5] - However, the average operating cash flow over the past three years relative to current liabilities was -78.8%, suggesting ongoing concerns regarding cash flow [5] Asset and Liability Situation - The company's cash and cash equivalents amounted to 262 million yuan, a year-on-year increase of 24.2%, indicating a healthy cash position [6] - Accounts receivable decreased by 27.86% year-on-year to 8.75 million yuan, reflecting improved collection [6] Development Prospects and Risks - The company has been deeply involved in the pharmaceutical manufacturing industry for many years, holding nearly 40 domestic and foreign invention patents [7] - However, the product structure remains single, with revenues from other chemical generic drugs being relatively small [7] - The company faces multiple risks, including industry policy changes, research and development innovation, management, and safety and environmental protection [7] Summary - Overall, ST Longjin showed some recovery in profitability in 2024, but the overall operating condition remains under significant pressure [8] - The company needs to further optimize its product structure, enhance market competitiveness, and strengthen cash flow management and risk prevention for sustainable development [8]