US Stock Market Move | Multiple positive factors boost Lexinfintech Holdings Ltd. Sponsored ADR Class A (LX.US) to close up nearly 14%

Driven by multiple positive factors such as favorable macro policies and company fundamentals, Lexinfintech Holdings Ltd. Sponsored ADR Class A (LX.US), a leading new consumption digital technology service provider in China, continued its upward trend, closing at $2.05 on Thursday, up 13.89%. The stock has risen nearly 20% this week. At the macro level, favorable policies have been implemented, and market confidence continues to recover. Recently, Chinese stocks have continued their strong rally, with the Nasdaq Golden Dragon Index closing up 10.9% on Thursday, and Lexinfintech Holdings Ltd. Sponsored ADR Class A showing even more rapid growth. The recovery and improvement of the Chinese economy cannot be separated from the stimulus of domestic demand. Consumer credit, as an important force in expanding domestic demand, can further stimulate consumer potential, help expand financial coverage, enhance willingness to consume, and better serve the real economy. Against the backdrop of macro policies boosting consumption, consumer finance companies are playing a more proactive role. As a leading new consumption digital technology service provider in China, Lexinfintech Holdings Ltd. Sponsored ADR Class A, with its innovative financial services and consumer credit products, not only conforms to the trend of expanding domestic demand and serving the real economy, but also has broad market prospects, impressive financial data, demonstrating strong profitability and growth potential. The market space for Lexinfintech Holdings Ltd. Sponsored ADR Class A is huge. Through platforms like Fenqile Mall, it provides diversified consumer credit solutions for consumers, meeting the needs of different consumers. In addition, the company's expansion into overseas markets, such as the success in the Mexican market, has opened up new growth opportunities. The financial report for the second quarter of 2024 showed that Lexinfintech Holdings Ltd. Sponsored ADR Class A's revenue reached 3.64 billion RMB, an increase of 12.3% quarter-on-quarter; net profit attributable to shareholders was 227 million RMB, an increase of 12.4% quarter-on-quarter. As of June 30, the total number of registered users has reached 219 million, an increase of 10.2% from the same period last year. These data not only reflect the strong profitability of Lexinfintech Holdings Ltd. Sponsored ADR Class A, but also its leading position in the financial technology field. Furthermore, Lexinfintech Holdings Ltd. Sponsored ADR Class A is generous in returning value to shareholders. The company announced that it will continue its biannual dividend policy, with the dividend for the first half of 2024 to be officially distributed on October 18, at approximately $0.072 per ADS, around 20% of the net profit for the first half of the year. With an annual dividend yield of close to 10%, Lexinfintech Holdings Ltd. Sponsored ADR Class A provides investors with significant returns. Despite this, the stock price of Lexinfintech Holdings Ltd. Sponsored ADR Class A is still undervalued by the market. With a price-to-book ratio (PB) of only 0.23, its market value is far below its net asset value, providing investors with a high safety margin. It is estimated that in the next two years, as the regulatory environment changes and the overall valuation level of peer companies increases, the company's valuation will also rise. In conclusion, as a leader in the field of financial technology in China, Lexinfintech Holdings Ltd. Sponsored ADR Class A demonstrates solid financial performance, attractive dividend policy, and its undervalued stock price makes it a value investment opportunity worth considering for investors. With the continuous improvement in profitability in the second half of the year, the dividend yield is expected to increase, providing investors with more investment opportunities.