Added to YB: 2025-09-24
Pitch date: 2025-09-23
LX [bullish]
LexinFintech Holdings Ltd.
-58.44%
current return
Author Info
Cluseau Research seeks to exploit these two edges by identifying special situations that provide a compelling risk-to-reward that are “off limits” to traditional Institutional Investors. Sign up for the newsletter.
Company Info
LexinFintech Holdings Ltd., together with its subsidiaries, offers online direct sales and online consumer finance services in the People’s Republic of China.
Market Cap
$2.2B
Pitch Price
$5.37
Price Target
N/A
Dividend
N/A
EV/EBITDA
3.41
P/E
1.61
EV/Sales
0.35
Sector
Consumer Finance
Category
value
Chinese Fintech ADR Basket With Options Overlay (40% LX)
LX: Chinese fintech ADR basket (60% QFIN, 40% LX) w/ options overlay. 24% rate cap pressures profits but eliminates smaller competitors, benefiting leaders. QFIN at 4.3x P/E, 1.26x TBV; LX at 3x P/E, 1.22x TBV. Risk reversal: Feb '26 45/30 on QFIN (max loss 11%, max gain 31%); 7.50/5.00 on LX (max loss 12.7%, max gain 31.3%). Strong buybacks/dividends offset ADR risk.
Read full article (6 min)