Report
EUR 88.49
For Business Accounts Only
Lufax is a technology-empowered personal financial services platform in China. The company aims to address the demand for personal lending among small business owners, as well as salaried workers in China. It also provides wealth management solutions to China’s middle class and affluent population.
Lufax has managed to grow its loan book and revenue despite having to undertake a vast change in its business/funding model. It appears to have developed a niche for itself versus other fintech providers by giving out larger and longer duration loans.
However, there are still a number of issues which need to be dealt with, not to mention the ever changing regulations. Acquiring customers doesn’t appear to be all that easy and the company is still making the bulk of its money from providing post-origination services which leaves it exposed to the loan quality.
I have covered the company’s background in my previous note, Lufax Pre-IPO - In flux.
In this note, I’ll undertake a peer comparison.
Lufax Pre-IPO
Lufax aims to raise around US$3bn via its US listing. The company is backed by Ping An.Lufax is a technology-empowered personal financial services platform in China. The company aims to address the demand for personal lending among small business owners, as well as salaried workers in China. It also provides wealth management solutions to China’s middle class and affluent population.
Lufax has managed to grow its loan book and revenue despite having to undertake a vast change in its business/funding model. It appears to have developed a niche for itself versus other fintech providers by giving out larger and longer duration loans.
However, there are still a number of issues which need to be dealt with, not to mention the ever changing regulations. Acquiring customers doesn’t appear to be all that easy and the company is still making the bulk of its money from providing post-origination services which leaves it exposed to the loan quality.
I have covered the company’s background in my previous note, Lufax Pre-IPO - In flux.
In this note, I’ll undertake a peer comparison.
Underlyings
LUFAX HOLDING LTD
Ping An Insurance (Group) Company of China Ltd. Class H
Provider
Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Sumeet Singh
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