Lufax Holding Ltd (LU), a company operating a tech-empowered personal financial services platform in China, has seen a massive decrease of 8.47% in its share price in the premarket trading session. As a result that, LU stock currently stands at $8.10. In Monday’s trading session, LU stock gained an increase of 1.03%.
Award for LU Hong Kong
LU has announced today that its subsidiary, Lu International (Hong Kong) Limited (LU Hong Kong), has won the silver award for the wealth management tech at the IFTA FinTech Achievement Awards 2020. The award is given in recognition of LU Hong Kong’s achievements with regard to the provision of high-quality and round-the-clock wealth management services via its online management platform and its mobile application. IFTA FinTech Achievement Awards are annually hosted by a Hong Kong based non-profit organization, namely the Institute of Financial Technologists of Asia (IFTA). The organization is committed to providing fintech talents around the world with an opportunity to connect among them. Hua CAI, CEO of LU Hong Kong said on the occasion that the company remains committed to providing a one-stop, easy-to-use online wealth management platform with Robo-advisory solutions, to assist local investors with their long-term wealth planning.
Q2 2021 Results
On the 9th of August, LU announced the unaudited quarterly results for the second quarter of the fiscal year 2021, which ended on 30th June. According to the details, the company generated a total income of $2297 million during the quarter, an increase of 17.3% when compared with the equivalent period of 2020. The net profit increased by 53.2% from the equivalent period of 2020 and stood at $732 million. The total expenses during the quarter stood at $1313 million, an increase of 2.2% when compared with the equivalent time of the previous year. The company also reported operational highlights of the quarter. According to those, the outstanding balance of loans facilitated increased to $94 billion. The cumulative number of borrowers increased to 15.5 million. He Company’s retail credit facilitation revenue take rate1 based on loan balance was 9.7% during the quarter. The total number of registered users of wealth management business increased up to 47.1 million, while the total number of active investors grew up to 14.8 million. The annualized take rate for current products and services on the company’s wealth management platform stood at 31.8 bps during the quarter. Mr. JiGuangheng, Chairman of Lufax, praised the performance of the company and said that although market sentiment towards Chinese ADRs had fluctuated substantially due to changes in macro policies and market conditions, Lufax had greatly improved its operating performance while maintaining strong regulatory compliance and corporate governance.
What’s ahead for LU stock?
Statistical analyses reveal a very positive picture of LU. The revenue of the company is expected to increase to $10.76 billion during the coming year. The company is expected to grow by some 15.10% per annum during the next 5 years, while during next year, its expected growth percentage stands at 10.60%. These and alike figures should prove to be a motivating force for potential investors to maintain an interest in LU stock in the near future.
