Lufax Holding (LU) AI Stock Analysis

• Market Cap: $2.43B
• Dividend Yield: 4.57%
• Average Volume (3M): 2.20M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• Revenue Growth: -38.81%
• EPS Growth: -425.73%
• Country: US
• Employees: 36,215
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): N/A
• Shares Outstanding: 866,688,900
• 10 Day Avg. Volume: 2,838,926
• 30 Day Avg. Volume: 2,200,856
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $2.40
• Price Target Upside: -33.15% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• 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.

Positive Factors

Consumer Finance Growth

The significant growth in consumer finance loans indicates a strong demand for Lufax's services, potentially leading to increased market share and revenue stability in the long term.

Improved Asset Quality

Improved asset quality with a lower NPL ratio suggests better risk management, which can enhance financial stability and reduce future credit losses.

Operational Efficiency

A significant reduction in operating expenses demonstrates operational efficiency, which can improve profitability and provide a buffer against revenue fluctuations.

Negative Factors

Declining Revenue

The sharp decline in revenue highlights significant financial challenges, potentially impacting the company's ability to invest in growth and maintain competitive positioning.

Net Loss

A net loss indicates profitability issues, which can strain cash reserves and limit strategic investments, affecting long-term growth prospects.

Increased Credit Impairment Losses

Rising credit impairment losses suggest deteriorating credit conditions, which can lead to higher costs and reduced financial flexibility, impacting future earnings.

Lufax Holding Business Overview & Revenue Model

Company Description

Lufax 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 Money

Lufax 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 Financial Statement Overview

Summary

Lufax Holding is experiencing financial challenges, with declining revenues and profitability. The income statement reflects negative profit margins, while the balance sheet shows manageable leverage but potential instability due to declining equity. Positive cash flow generation is a strength, but the company must address revenue contraction and manage leverage for long-term health.

Income Statement

Lufax Holding's income statement reveals declining revenue trends and negative profit margins. The TTM (Trailing-Twelve-Months) data shows a net loss, with a net profit margin of -16.7% and negative EBIT margin. Revenue has decreased significantly from the previous annual period, indicating financial stress. However, a strong EBITDA margin of 58.6% suggests potential operational efficiency.

Balance Sheet

The balance sheet indicates a moderate level of debt with a debt-to-equity ratio of 0.56, suggesting manageable leverage. The equity ratio stands at 40.9%, indicating a reasonable proportion of equity financing. However, the decline in stockholders' equity and total assets over recent periods could signal potential financial instability.

Cash Flow

The cash flow statement shows a positive free cash flow and a high operating cash flow to net income ratio, indicating strong cash generation relative to reported losses. However, the free cash flow has decreased from the previous year, and the free cash flow to net income ratio is negative due to the net loss.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	22.85B	41.68B	50.45B	54.31B	43.13B	40.92B
Gross Profit	8.33B	28.99B	36.84B	45.31B	36.36B	35.52B
EBITDA	11.92B	0.00	0.00	0.00	0.00	0.00
Net Income	-3.38B	886.87M	8.70B	16.80B	12.35B	13.33B
Balance Sheet
Total Assets	206.45B	237.02B	349.26B	360.43B	248.89B	149.53B
Cash, Cash Equivalents and Short-Term Investments	28.32B	39.99B	43.88B	34.74B	24.16B	7.35B
Total Debt	47.59B	44.86B	53.11B	44.80B	28.94B	13.94B
Total Liabilities	120.11B	143.34B	254.48B	265.87B	165.74B	101.39B
Stockholders Equity	84.55B	92.14B	93.19B	93.05B	81.56B	48.04B
Cash Flow
Free Cash Flow	8.65B	14.98B	4.33B	4.83B	6.91B	2.01B
Operating Cash Flow	8.70B	15.03B	4.46B	4.99B	7.12B	2.19B
Investing Cash Flow	-3.41B	-5.94B	8.45B	313.82M	-15.00B	-11.01B
Financing Cash Flow	-14.04B	-20.55B	-9.92B	-2.45B	24.87B	-2.61B

Lufax Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LU, the sentiment is Positive. The current price of 3.59 is above the 20-day moving average (MA) of 3.14, above the 50-day MA of 3.00, and above the 200-day MA of 2.82, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 74.00 is Negative, neither overbought nor oversold. The STOCH value of 83.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LU.

Lufax Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QFIN	80 Outperform	3.97B	4.23	―	4.87%	9.90%	68.56%
FINV	79 Outperform	1.91B	5.11	15.67%	3.67%	8.41%	34.76%
JFIN	79 Outperform	559.31M	2.51	33.76%	7.54%	8.27%	33.89%
LX	73 Outperform	927.13M	4.35	10.25%	5.52%	3.11%	95.40%
TIGR	65 Neutral	1.81B	15.54	9.27%	―	58.88%	305.98%
LU	52 Neutral	$2.43B	―	-3.79%	4.57%	-38.81%	-425.73%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%