LU - Lufax: Massive Special Dividend Overshadows Below-Expectations Results (Rating Upgrade)
2024-03-22 07:30:00 ET
Summary
- Lufax Holding declared a substantial special dividend of $2.42 per ADS on the day of its results announcement, which translated into a one-off dividend yield of 49.3%.
- LU's recent fourth-quarter results were below the market's expectations, but the company's loan mix has become more favorable with an increase in contribution from consumer finance.
- I upgrade my rating for Lufax to a Buy, considering its massive special dividend and the positive read-through relating to the loan mix from its latest results announcement.
Elevator Pitch
I rate Lufax Holding Ltd ( LU ) [6623:HK] as a Buy.
In my earlier January 29, 2024 write-up , I performed a peer comparison analysis for LU. The current update shines the spotlight on Lufax's special dividend announcement and its latest quarterly financial results....
Lufax: Massive Special Dividend Overshadows Below-Expectations Results (Rating Upgrade)