LX - LexinFintech: Regulatory Risks Are Still A Concern Despite Good Results
- LexinFintech's 1Q 2021 top-line increased by +18% YoY to RMB2.9 billion, on the back of robust growth in loans and the user base.
- Other positives for the company included the improvement in its asset quality and the good performance of its new BNPL product.
- Recent news flow suggests that the regulators are still targeting the Chinese fintech and online consumer finance sector, and regulatory risks for LexinFintech and its peers should not be ignored.
- The market currently values LexinFintech at consensus forward FY 2021 and FY 2022 normalized P/E ratios of 5.8 times and 5.1 times, respectively.
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LexinFintech: Regulatory Risks Are Still A Concern Despite Good Results