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Lufax Holding (LU)
NYSE:LU
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Lufax Holding
(NYSE:LU)
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Rating:52Neutral
Price Target:―
Lufax Holding faces significant financial hurdles with declining income and profitability, impacting its overall stock score. Despite operational efficiencies and positive cash flow, the negative valuation metrics and financial instability weigh heavily. Technical analysis and earnings call insights show potential growth areas but also underline persistent challenges. The stock's dividend yield offers some appeal, but broader risks must be managed for improvement.
Lufax Holding (LU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.43B
Dividend YieldN/A
Average Volume (3M)1.52M
Price to Earnings (P/E)―
Beta (1Y)1.31
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees36,215
SectorN/A
Sector StrengthN/A
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)N/A
Shares Outstanding866,688,900
10 Day Avg. Volume1,288,856
30 Day Avg. Volume1,516,847
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)0.07
Price to Sales (P/S)0.15
P/FCF Ratio0.42
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.36
Revenue Forecast (FY)$25.10B
Lufax Holding Business Overview & Revenue Model
Company DescriptionLufax Holding Ltd (LU) is a leading technology-empowered personal financial services platform in China. The company focuses on providing retail credit facilitation services and wealth management solutions to small business owners and salaried workers. Lufax leverages its advanced technology and data analytics capabilities to offer innovative financial products and services that cater to the diverse needs of its clients.
How the Company Makes MoneyLufax makes money primarily through two main revenue streams: retail credit facilitation and wealth management. In the retail credit facilitation segment, the company generates income by connecting borrowers with financial institutions, earning fees for facilitating loans. Lufax's wealth management segment earns revenue by offering a variety of investment products through its platform, charging management and advisory fees. Additionally, the company benefits from strategic partnerships with financial institutions, leveraging these relationships to expand its product offerings and customer base.
Lufax Holding Earnings Call Summary
Earnings Call Date:Oct 21, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Dec 09, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with notable growth in consumer finance and improved asset quality, but also significant challenges including decreased income and a quarterly net loss. While there are positive developments such as the acquisition of a new lending license, the financial performance shows areas of concern.Q3-2024 Updates
Positive Updates
Growth in Consumer Finance Business
New consumer finance loans increased by 27.8% year-over-year and accounted for 52% of total renewal sales in the third quarter.
Improved Asset Quality
The asset quality of consumer finance loans stayed strong, with the NPL ratio decreasing to 1.2% from 1.4% in the second quarter.
Decreased Operating Expenses
Total operating expenses declined by 35.9% to RMB 3 billion from RMB 4.7 billion.
Decreased Sales and Marketing Expenses
Sales and marketing expenses decreased by 49.9% to RMB 1.1 billion.
New Nationwide Small Lending License
Lufax acquired a nationwide small lending license in July and provided more than RMB 1 billion in loans under this new license.
Negative Updates
Significant Decrease in Total Income
Total income decreased by 31.1% to RMB 5.5 billion from RMB 8.1 billion.
Net Loss for the Quarter
Recorded a net loss of RMB 725 million for the third quarter.
Increased Credit Impairment Losses
Credit impairment losses increased by 9% to RMB 3.3 billion.
Decrease in Technology Platform-Based Income
Technology platform-based income decreased by 49.9% to RMB 1.6 billion.
Challenges in Small Business Loan Demand
Puhui loan demand remained weak due to the complex macro environment faced by small business owners.
Company Guidance
During the third quarter of 2024, Lufax Holding reported a total loan volume of RMB 50.5 billion, marking a 11.7% increase from the previous quarter, despite challenging macroeconomic conditions. The company saw a notable 27.8% year-over-year rise in new consumer finance loans, which represented 52% of total renewal sales. Asset quality remained stable, with the C-M3 flow rate of Puhui loans at 0.9% and a decrease in the NPL ratio of consumer finance loans to 1.2%. Total income declined by 31.1% to RMB 5.5 billion, largely due to a 41.8% reduction in outstanding loan balance, while expenses fell by 19.2% to RMB 6.3 billion. The take rate increased by 1.9 percentage points to 9.7%, driven by an increased proportion of loans under the 100% guarantee model. Despite a net loss of RMB 725 million, Lufax remains optimistic about leveraging its consumer finance and small lending licenses to reduce funding costs and improve its capital management efficiency.Lufax Holding Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
60
Neutral
Cash Flow
55
Neutral
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Lufax Holding Technical Analysis
Negative
2.52
Price Trends
2.92
Negative
3.03
Negative
2.95
Negative
Market Momentum
-0.06
Negative
43.90
Neutral
35.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LU, the sentiment is Negative. The current price of 2.52 is below the 20-day moving average (MA) of 2.56, below the 50-day MA of 2.92, and below the 200-day MA of 2.95, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 43.90 is Neutral, neither overbought nor oversold. The STOCH value of 35.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LU.
Lufax Holding Peers Comparison
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
71 Outperform | $1.29B | 3.48 | 17.76% | 5.42% | 9.32% | 29.40% | |
70 Outperform | $1.90B | 10.12 | 13.72% | 3.31% | 27.36% | 12.55% | |
70 Outperform | $374.14M | 2.17 | 12.53% | 9.70% | 10.48% | -30.67% | |
63 Neutral | $620.88M | 5.51 | 6.75% | ― | -62.48% | 1441.74% | |
52 Neutral | $2.43B | -3.38 | ― | ― | ― | ― | |
45 Neutral | $678.79M | -2.58 | -79.90% | ― | 510.69% | -145.92% |
* Sector Average
LU
Lufax Holding
2.58
0.17
7.05%
AGM
Federal Agricultural
177.25
-15.78
-8.17%
YRD
Yiren Digital
4.33
0.07
1.64%
QD
Qudian
3.69
1.16
45.85%
AHG
Akso Health Group Sponsored ADR
1.22
0.03
2.52%
FINV
FinVolution Group
5.14
-1.43
-21.77%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.