Video: Strong 11% Yield for LexinFintech Emerging Market Opportunity

June 16, 2024
  • 11% dividend yield.
  • Provides consumer and small business loans to the Chinese market.
  • New risk officer implementing improved pricing and credit metrics, high tech loan selection process.
  • Trading at a massive discount to tangible book value, with tangible book value sitting at $7.59, compared to a stock price of $1.66.
  • We expect earnings to be $0.95 this year, with $1.10 in earnings next year. This less than a 2.0x P/E which would make it an incredibly cheap stock.
  • However, there are risks such as the Chinese regulatory system and increasing US-China Tensions.