{"id":6894,"date":"2020-01-05T10:56:48","date_gmt":"2020-01-05T15:56:48","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?page_id=6894"},"modified":"2020-01-05T11:05:19","modified_gmt":"2020-01-05T16:05:19","slug":"lexinfintech-lx-report","status":"publish","type":"page","link":"https:\/\/www.mainstbeatswallst.com\/?page_id=6894","title":{"rendered":"Lexinfintech (LX) Report"},"content":{"rendered":"

Here is the report I prepared on LexinFintech. This report will help you understand why I placed LexinFintech in my 5 Star Trading Portfolio<\/strong>.<\/p>\n

LexinFintech Holdings (LX)<\/strong><\/h3>\n

I bought LexinFintech Holdings Ltd.(LX) on 11\/25\/19 at $11.89 per shares. Read here<\/a><\/span>.<\/p>\n

Before we get into LexinFintech (LX), let\u2019s first define Fintech, and what a Fintech company does.<\/p>\n

Wikipedia \u2013 Financial technology, often shortened to fintech, is the technology and innovation that aims to compete with traditional financial methods in the delivery of financial services. It is<\/em> an emerging industry that uses technology to improve activities in finance. The use of smartphones for mobile banking, investing services, and cryptocurrency are examples of technologies aiming to make financial services more accessible to the general public. Financial technology companies consist of both startups and established financial institutions and technology companies trying to replace or enhance the usage of financial services provided by existing financial companies.<\/em><\/p>\n

Fintech is innovative, it\u2019s disruptive, it\u2019s in it\u2019s infancy and it\u2019s here to stay. The fast and innovative progresses such as Mobile Payments changed the way we manage our finances. Tech-savvy customers, especially millenials expect money transfer, lending, loan management and investing to be effortless, secure and scalable, ideally without the assistance of a person or the visit of a bank. The world is changing!<\/p>\n

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The impact that fintech<\/span> is making throughout our economy is still in its infancy stages. Fintech<\/span> is really just about innovating and bringing solutions to the banking, lending and capital markets<\/em>. \u2013\u00a0<\/span>\u00a0Jason Raznick<\/span><\/span><\/span><\/em><\/p>\n

From payments to wealth management, from peer to peer\u00a0lending to crowdfunding, a new generation of startups is taking aim at the heart of the industry \u2026 . Like other disrupters from Silicon Valley, \u201cfintech<\/span>\u201d firms are growing fast. \u2013 The Economist <\/em><\/p>\n

Traditional banks are eager to court fintechs as clients, partners or\u00a0<\/em>vendors \u2013 often in all three roles at once. \u2013 <\/i>Mark Calvey<\/em><\/p>\n

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Below is a business summery of LexinFintech taken from the LX\u2019s page of my brokerage account. LexinFintech\u00a0a young Chinese financial technology (fintech) firm with millions of customers. And that number is growing 56% year over year.<\/p>\n

LexinFintech Holdings Ltd. is a holding company. The Company is primarily engaged in providing online direct sales services and online consumer finance services. The Company\u2019s online consumer finance platform, Fenqile, offers customers personal installment loans, installment purchase loans and other loan products. Through its online investment platform, Juzi Licai, the Company matches funding from individual investors with customer loans. The Company also offers Le Card credit line to its customers. The Company serves the credit needs of the customers aged between 18 and 36 in China.<\/em><\/p>\n

The company owns and operates Fenqile, a popular online shopping mall that also offers installment loans. In addition, it matches borrowers with other lenders, including commercial banks and consumer finance companies.<\/p>\n

One of LexinFintech\u2019s main services is Juzi Licai. It\u2019s an online loan platform that allows access to credit without going through a bank. It matches customer loans with diversified funding sources, including individual investors, third-party commercial banks, consumer finance companies\u00a0and other licensed financial institutions.<\/p>\n

LexinFintech has partnered with more than 100 financial institutions. They include the likes of the Industrial and Commercial Bank of China, People\u2019s Insurance Company of China Group, and China Minshen<\/p>\n

China has one of the fastest-growing middle classes in the world, with about 430 million people currently. That alone is larger than the entire population of the United States. China, and every other country in the world, are learning a lot about the way of life here in the United States. And everyone wants a piece of it<\/p>\n

In China these increasingly affluent young consumers want all the things we take for granted here in America: TVs, computers, smartphones, cameras, major appliances, beauty products, upscale clothing, etc.\u00a0And they have adopted another idea from the free world, buy now \u2013 \u00a0pay later! And that\u2019s playing right into the hands of LexinFintech (LX).<\/p>\n

China\u2019s growing middle class is young and urban. It\u2019s tech savvy and credit starved. LexinFintech is the leader of a new online loan industry that has emerged around its needs, as well as the needs of small business owners and rural communities.\u00a0LexinFintech is China\u2019s premier online consumer finance firm.<\/p>\n

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The fintech industry that LexinFintech exemplifies could become a $100 trillion market. \u2013 \u00a0PayPal CEO Dan Schulman<\/em><\/p>\n

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LexinFintech\u2019s Growth and Financials<\/h4>\n

China isn\u2019t just the world\u2019s most populous country. It is also the world\u2019s fastest-growing consumer market. Tens of millions join its middle class each year.<\/p>\n

More than 90% of LexinFintech\u2019s customers are young, educated, and between the ages of 18 and 36. This is a demographic group that has been underserved by China\u2019s traditional banking system.<\/p>\n

At the end of 2016, the company had just 12 million registered users. But in early 2019, it reported 42.2 million users! That\u2019s a 250% increase in less than 2 1\/2 years. And it\u2019s positioned to keep growing for years to come.<\/p>\n

In Q4 2018, Juzi Licai drew 66% of its funding from its institutional partners. It\u2019s getting the best of both worlds, new peer-to-peer (P2P) lending and established traditional lending.<\/p>\n

There are huge numbers of small and medium sized businesses hungry for credit that LexinFintech is now well positioned to provide.<\/p>\n

The company has been publicly traded only since late 2017. Since then, it has seen a huge, fast rise. LexinFintech first turned a profit in 2016 when it brought in $653.4 million in revenue and $90.7 million in profit.<\/p>\n

In 2017, its revenue climbed by almost $200 million to $827 million. Its profits more than doubled to $195.6 million.<\/p>\n

Last year, it broke the $1 billion mark. It brought in $1.149 billion in revenue, and its profits more than doubled again to $455 million.<\/p>\n

It\u2019s also worth noting that it\u2019s beaten consensus earnings per share estimates for the last four quarters.<\/p>\n

With a market cap of $1.79 billion, LexinFintech has staying power and plenty of room to grow.<\/p>\n

In fact, analysts at Bloomberg expect LexinFintech to earn $1.82 a share in fiscal 2019. If it meets that goal, it will be an 84% increase over 2018. That means it is trading at less than 5.49 times prospective earnings.<\/p>\n

If you look at my Wealth Builder<\/strong> stock buying criteria, here<\/span>,<\/a> you will see LexinFintech fits into most of the criteria on my list.<\/p>\n

The company is still small and almost completely unknown on Wall Street. Its market cap is less than $1.8 billion.<\/p>\n

It is a tremendous innovator, offering online shopping, with installment financing, to China\u2019s young and increasingly affluent consumers.<\/p>\n

Revenue is up 36%. Customer growth is up 56%.<\/p>\n

The company enjoys a 42.2% profit margin protected by a wide array of brand names and patents.<\/p>\n

Insiders own 22% of the outstanding shares. That means they have plenty of skin in the game.<\/p>\n

When I Googled \u201chedge funds holding LexinFintech,\u201d one of the first articale was titles, Hedge Funds Have Never Been More Bullish On LexinFintech Holdings Ltd. (LX). <\/strong>LexinFintech is held by more than 100 hedge funds, among them are: Goldman Sachs, Credit Suisse, Renaissance Technologies, Vanguard Group, Bank of America, Merian Global Investors, Morgan Stanley, State Street Corp, Barclays, U.S. Bankcorp, Raymond James, Bank of Montreal, Citigroup, Blackrock, the list goes on and on.<\/p>\n

I bought the stock at $11.89 a share. As I prepare this report the stock is trading at $15. If you read the email when I bought the stock, read here<\/a><\/span>, I was very high on the stock then. And I still am. I feel this stock has a long runway of growth ahead of it. When I bought the stock I put on a 20% Trailing Stop Loss. Because it\u2019s up more than 10% from purchase I changed to a 25% Trail Stop.<\/p>\n

All of the facts and stats of this report were taken from various articles and websites while I was doing my investigation.<\/p>\n","protected":false},"excerpt":{"rendered":"

Here is the report I prepared on LexinFintech. This report will help you understand why I placed LexinFintech in my 5 Star Trading Portfolio. LexinFintech Holdings (LX) I bought LexinFintech Holdings Ltd.(LX) on 11\/25\/19 at $11.89 per shares. Read here. Before we get into LexinFintech (LX), let\u2019s first define Fintech, and what a Fintech company […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-6894","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-1Nc","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/6894","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6894"}],"version-history":[{"count":3,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/6894\/revisions"}],"predecessor-version":[{"id":6899,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/6894\/revisions\/6899"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}