LU - Lufax: Peer Comparison Offers Mixed Read-Throughs

2024-01-29 11:29:22 ET

Summary

• Lufax posted relatively weaker user growth numbers as compared to the company's key peers in December last year and the early part of this year.
• The market already expects LU's top line to contract in FY 2024, and Lufax is now trading at a discount to its peers on metrics like P/E and P/S.
• I retain a Hold rating for Lufax after taking into account the results of my peer comparison exercise.

Elevator Pitch

I have a Hold investment rating for Lufax Holding Ltd ( LU ) (6623:HK). I touched on Lufax's Q3 2023 financial performance and its proposed purchase of a virtual bank in my prior article published on November 14, 2023....

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