Lufax says it is focusing on lower-risk borrowers and AI-powered operations to improve asset quality.
Analyst coverage and valuation
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell".
The average consensus recommendation for the corporate financial services peer group is "buy".
Wall Street's median 12-month price target for Lufax Holding Ltd is $3.15, about 105.9% above its August 18 closing price of $1.53.
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 43 three months ago.
Q2 income falls as costs decline
China financial services enabler's Q2 total income fell 15.5% yr/yr.
Net loss narrowed sharply from prior year, reflecting cost controls and efficiency gains.
Company attributed revenue decline to lower loan balances and reduced service fees.
Key drivers and financial details
Lower loan balances - Decline in technology platform-based and guarantee income was mainly due to lower loan balances and reduced service fees.
Consumer finance growth - Net interest income rose 8.4% yr/yr, mainly due to expansion of consumer finance and microloan lending business.
Cost controls - Sales and marketing, general and administrative, and operation and servicing expenses fell sharply due to personnel optimization and expense control measures.
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