LexinFintech Surges 28% on 'All-time Highs' in Q1

The consumer lending platform is diversifying and seeing strong user growth.
CapitalWatch StaffJun 01,2021,21:01

LexinFintech Holdings Ltd. (Nasdaq: LX) was among the top gainers among Chinese U.S.-listed stocks Tuesday after posting financial results for the first quarter.

The consumer finance platform enjoyed “all-time highs in our key financial metrics,” said its chairman and chief executive officer, Jay Wenjie Xiao, in a statement today.

Indeed, Lexin beat analyst estimates, showing earnings of 53 cents per American depositary share on a fully diluted basis in contrast to losses at the same time last year. Revenues came in below estimates but still showed strong growth, at $449 million.

Lexin also said it saw 57% increase in user numbers, at 132 million as of March 2021. Users with a credit line at the company reached more than 30 million, while the number of active users with a loan product was 8.2 million. Overall, loan originations rose 58% year-over-year to $8.4 billion, according to the report.

Several other developments are worth noting. Lexin has launched a new fintech line, providing regional banks with “a series of technological services, including tailor-made product development, customer acquisition, user operation, and risk management support.” The company also said it is diversifying from lending for young consumers to providing loans to small and micro business owners.

In the first quarter, Lexin saw significant improvement in the interest and financial services segment, as well as platform-based services, loan facilitation, and credit-oriented services. Online direct sales on its e-commerce platform decreased 13% year-over-year, the report said.

Xiao said, "This record quarter was driven by our larger and growing user base, the rapid growth of our loan originations, and the continued improvement of our asset quality due to the implementation of our New Consumption Strategy and the continuous refinement of our risk management efforts."

The report sent Lexin’s shares surging 28% to $11.70 apiece. For Lexin, it’s the strongest level since late March. Earlier, in February, LX stock reached as high as $15.42 per share, but for the most part this year, LX has been traded at under $10 per share.

In the full year 2021, Lexin expects loan originations to reach up to 250 billion yuan.

Topics:Lexin, LexinFintech, LX