LexinFintech: Mixed Signals From Q4 Results

The Value PendulumInvesting Group LeaderFollow5ShareSavePlay(7min)CommentsSummaryI keep LexinFintech as a "Hold"-rated name after considering the positives and negatives implied by its recent disclosures.LX's asset quality and monetization efficiency deteriorated in 4Q25, but its funding cost and user acquisition got better during the same period.Management is anticipating flattish loan growth for 1Q2026, considering policy uncertainty for China's loan market.Its 2H25 dividend payout was lifted to 30%, but there wasn't any new buyback plan announced.Looking for more investing ideas like this one? Get them exclusively at Asia Value & Moat Stocks. Learn More » Warawan Tongsri/iStock via Getty Images I've stayed "Neutral" on LexinFintech Holdings Ltd. (LX). Its quarterly revenue barely met expectations. Management is forecasting that the company's loan volumes will be largely unchanged between 4Q25 and 1Q26. The stock's earnings-based valuation is also pretty close to that of itsThis article was written byThe Value Pendulum13.35K FollowersFollowThe Value Pendulum is an Asian equity market specialist with over a decade of experience on both the buy and sell sides.He is the author of the investing group Asia Value & Moat Stocks, providing ideas for value investors seeking investment opportunities listed in Asia, with a particular focus on the Hong Kong market. He hunts for deep value balance sheet bargains and wide moat stocks and provides a range of watch lists with monthly updates within his investing group.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.