US Stock Market News | LexinFintech rises again by 7.06%, ranking highest in the price increase among the components of China Golden Dragon Index for 9 consecutive trading days

According to the financial news app Zhitong Finance, on Friday (October 4th) Eastern Time, the U.S. stock market closed with the continuous surge of Chinese concept stocks, the booming consumption during the National Day holiday, and the upcoming release of Q3 earnings driving the influence. Lexin, a leading new consumer digital technology service provider in China, rose by 7.06% to a closing price of $3.65, with a daily trading volume of $32.0659 million.

After-hours data also shows that Lexin's stock price rose by another 0.55%; $32.0659 million is the sixth consecutive trading day that Lexin's trading volume has exceeded $10 million.

Lexin's recent stock price performance has been strong. Currently, among the 64 constituent stocks of the China Golden Dragon Index, Lexin has the highest increase, with a recent increase of up to 118% over the past 9 trading days.

On the market front, boosted by U.S. employment data, the three major U.S. stock indexes closed higher. At the close, the Dow Jones Industrial Average rose by 0.81%, the S&P 500 Index rose by 0.90%, and the Nasdaq Composite Index rose by 1.22%.

As for Chinese concept stocks, the Nasdaq China Golden Dragon Index rose by 3.05%, accumulating an 11.85% increase for the week. Most popular Chinese concept stocks rose, with Miniso up by 8.76%, Ctrip up by 5.88%, and JD.com up by 5.31%.

The rise in Lexin's stock price is mainly driven by optimistic expectations for the second half-year performance and the continuous increase in consumption during the National Day holiday.

Data shows that consumption was active in the first three days of the National Day holiday, with nearly 300 million people traveling daily in China. The warming of consumption is expected to contribute to the continued growth of Lexin's performance. Lexin is set to release its Q3 earnings in November, and the market generally has optimistic expectations for this.

Lexin's financial report for the second quarter of 2024 shows that the company's revenue reached 3.64 billion RMB, a quarter-on-quarter increase of 12.3%; net profit attributable to shareholders was 227 million RMB, a quarter-on-quarter increase of 12.4%.

The management of Lexin stated that risk management will be a top priority in the second half of the year, actively promoting the accelerated development of overseas business, closely monitoring and exploring more emerging market opportunities, and believing that the company's dividend scale is also likely to increase.

In the semi-annual financial report, Lexin continued its bi-annual dividend policy. Based on the closing price of $1.77 before the financial report was released (August 27th, Eastern Time), the company's semi-annual dividend yield exceeded 8.1%, far exceeding the returns of mainstream financial products in the market. It can be seen that Lexin is in a "value valley" with sufficient cost-effectiveness.

Performance is the catalyst for driving stock prices and dividends. Based on the continuous growth of the company's revenue for seven consecutive quarters, Lexin's overseas business has made significant breakthroughs. For example, in the second quarter, the loan scale in the Mexican market increased by 61% quarter-on-quarter, and revenue increased by 113% quarter-on-quarter. Currently, the company has made overseas business an important strategic direction.

Previously affected by the capital market, Lexin had fallen by around 80%. This rebound is a return to value, but based on PE and PB values, it is still at a low level, indicating relatively large room for growth compared to peers.

It is reported that Lexin was established in August 2013 and is based in Shenzhen, China. It has been actively connecting millions of young Chinese consumers with new consumer brands through its platforms, bridging online and offline consumption scenes. In December 2017, Lexin officially listed on the Nasdaq in the United States