Changes in US stocks | Significant increase in profit+dividend ratio increased to 25%, Lexin (LX.US) rose 9.85%

The Zhitong Finance App learned that US stocks closed on Monday (October 14) EST. Driven by factors such as a significant increase in 2025 performance and consideration of increasing the dividend ratio in 2025, China's leading new consumer digital technology service provider Lexin (LX.US) rose 9.85% to a closing price of 3.68 US dollars, with a daily turnover of US$28.2451 million.

Against the backdrop of the general decline in Chinese securities, Lexin's rise has received much attention. With an increase of 9.86%, it ranked 14th out of 300 securities; with a rise of US$28.2451 million, it ranked 1st among the top 40 Chinese securities by gains.

Since September 26, Lexin has become the new favorite of investors. By the close of trading on October 14, its turnover had exceeded 10 million US dollars for 12 consecutive trading days.

At the market level, the three major US stock indices collectively closed higher, benefiting from the intensive voices of many Federal Reserve officials and continuing to release signals of interest rate cuts. By the close, the NASDAQ was up 0.87%, the S&P 500 was up 0.77%, and the Dow was up 0.47%.

Popular Chinese securities generally fell, and the Nasdaq China Golden Dragon Index fell 2.09%. Notably, Xiaopeng Motors fell more than 9%, NIO dropped more than 7%, and Pinduoduo fell more than 6%.

The rise in Lexin's stock price was mainly affected by factors such as increasing the dividend ratio and valuation restoration.

At the business model level, investors and analysts are optimistic about Lexin's future growth potential, particularly in the fields of digital payments and online consumer loans. Lexin is actively building its technology platform and is committed to providing more innovative financial products. The market expects its Q3 results to be announced in November to perform well.

At the beginning of October, at an investor conference, Lexin management said that it is expected that the company will achieve significant growth by 2025, and plans to gradually increase the dividend ratio from the first quarter of next year, from 20% of the current net profit to about 25%.

Since 2023, Lexin has been steadily paying dividends to investors every six months. Based on current stock prices, a dividend ratio of around 25% is equivalent to an annual dividend rate of around 5%.

Performance is the catalyst that drives stock prices and dividends. In 2024Q2, Lexin's loan scale reached 51 billion yuan, and the asset balance was 115 billion yuan. Both are at the top of the industry. With the introduction of domestic economic stimulus policies, demand for credit is expected to gradually recover in the future.

Meanwhile, on the basis of the company's revenue growth for 7 consecutive quarters, Lexin's overseas business achieved a huge breakthrough. For example, in the second quarter, the volume of loans in the Mexican market increased 61% month-on-month, and revenue increased 113% month-on-month. Currently, the company has taken overseas business as an important strategic direction.

From an investment perspective, Lexin's current net assets are around $10 billion, and the price-earnings ratio (PE) and net price-earnings ratio (PB) valuation levels are lower than those of its peers. Despite the recent astonishing increase in its stock price — over 100%, the net market ratio is still only 0.4x. Compared with the industry level, it is still in a low position, and is still very attractive to investors.

According to reports, Lexin was founded in August 2013 and is based in Shenzhen, China. It has been actively opening up a broad range of online and offline consumption scenarios through its platforms, connecting hundreds of millions of young Chinese consumers with new consumer brands. In December 2017, Lexin officially launched on NASDAQ in the US.