According to Zhitong Finance APP, on Tuesday (December 17) Eastern Time, U.S. stocks closed higher, driven by the return of Chinese asset values, excellent performance during the Double 12 shopping festival, and several brokerages raising their target prices. China's leading new consumption digital technology service provider Lexin (LX.US) rose 5.36%, closing at $6.09, with a trading volume of $36.3241 million for the day.
Lexin opened with a high price and continued to rise, reaching a peak of $6.285 at the end of trading, marking a new high in three years. Notably, this also marks Lexin's 17 consecutive trading days with a trading volume exceeding $10 million, indicating a sustained increase in market attention.
In the market, major U.S. stock indices closed lower, influenced by the decline of most large technology stocks. The three major U.S. indices collectively fell, with the Nasdaq down 0.32%, the S&amp;P 500 down 0.39%, and the Dow down 0.61%.
Most popular Chinese concept stocks rose, with the Nasdaq Golden Dragon China Index up 1.97%. Among them, Hesai rose 36.47%, Bilibili and Tencent Music both rose over 4%, and XPeng rose over 3%.
After three years of sluggishness in Chinese concept stocks, the value of Chinese assets has returned. Recently, major overseas institutions have also released their 2025 outlooks and strategic rules, with investment strategies from leading foreign firms such as Goldman Sachs, Morgan Stanley, Morgan Asset Management, Fidelity, Invesco, HSBC, and Barclays all favoring Chinese assets.
The rise in Lexin's stock price is mainly influenced by the performance of Double 12 and the target price increases from several well-known brokerages.
Recently, Lexin's subsidiary Fenqile Mall announced its performance report for the 2024 Double 12, with impressive data: the average number of orders per person increased by 17.4% year-on-year over 14 days, and the average transaction value per customer increased by 8.4% year-on-year. Data from the mall shows that the &#34;Zhenpin Hui&#34; campaign, which focuses on high value and platform quality selection, achieved a cumulative transaction amount that increased by 18.9% compared to the previous month during Double 12, with cumulative transaction orders increasing by 19.98% month-on-month; the &#34;Factory Store,&#34; which emphasizes direct sales from source factories and high cost-performance ratio, saw transaction order volume increase by 42% month-on-month and the number of transaction users increase by 49% month-on-month.
This has led investors to have a relatively optimistic expectation for Lexin's Q4 performance.
Previously, Lexin released its unaudited financial results for the third quarter of 2024, showing revenue of 3.66 billion yuan and profit (Non-GAAP EBIT) of 409 million yuan, a quarter-on-quarter increase of 33.2%. By the end of the first three quarters, Lexin's profit had exceeded 1 billion yuan.
If Q4 profits are added, Lexin's profit may reach a three-year high. Given the continuous growth in profits, Lexin announced that it would increase its dividend payout. With the board's approval, starting in 2025, Lexin's dividend payout ratio will increase from the current 20% of net profit to 25%.
At the same time, Lexin performed excellently across various indicators in Q3. For example, in overseas business, Lexin increased its investment and operations in the Southeast Asian market outside of Mexico in the third quarter, with rapid growth in the Indonesian market, where the number of transaction users increased by 31% quarter-on-quarter and transaction volume increased by 18% quarter-on-quarter
LexinFintech released its financial report not long ago, and several well-known brokerages such as Bank of Communications International, Citigroup, CITIC Lyon, and Huatai have published research reports to provide evaluations.
Bank of Communications International raised Lexin's target price and maintained a &#34;Buy&#34; rating, reasoning that with the improvement in risk control, Lexin's asset quality will show a trend of improvement, which will drive a rapid rebound in profit growth; Citigroup analysts upgraded Lexin to a &#34;Buy&#34; rating and raised the target price; CITIC Lyon is even more optimistic, believing that Lexin's asset quality has reached a turning point, and profitability will be rapidly enhanced by 2025, raising Lexin's target price more than double.
It is reported that Lexin was established in August 2013 and is based in Shenzhen, China. It has been actively connecting online and offline consumption scenarios through its platforms, linking millions of young consumers in China with new consumer brands. In December 2017, Lexin officially landed on the NASDAQ in the United States

Lexin's stock price rose by 5.36%, closing at USD 6.09, with a trading volume of USD 36.3241 million, marking 17 consecutive trading days with a trading volume exceeding USD 10 million. The increase was influenced by the return of Chinese asset values and excellent performance during the Double 12 shopping festival, leading several brokerages to raise their target prices. Major U.S. stock indices collectively fell, but Chinese concept stocks generally rose, with the market holding an optimistic outlook on Lexin's Q4 performance

Zhitong

LexinFintech

NASDAQ Golden Dragon China Index

Suochen

Morgan Stanley

BOCOM INTL

XPENG-W

J&T EXPRESS-W

BANKCOMM

Hesai

Tongxing

Skychem Technology

TME-SW

Barclays

Goldman Sachs

CHINA NEW CONS

HSBC HOLDINGS

Citigroup

BILIBILI-W

US Stock Movement | Lexin's stock price rose 5.36%, with trading volume exceeding $10 million for 17 consecutive trading days