Yixin Steers Away From Young Joint Venture To Stay Focused On China Auto Market
Portfolio Pulse from The Bamboo Works
Yixin Group Ltd. is selling its 49% stake in a joint venture with Qingdao Caitong Group to focus on its core auto financing business in China, particularly benefiting from the EV boom. Despite a challenging Chinese car market, Yixin's auto financing grew 30% year-on-year in Q3 2023. The company's diversification efforts remain within the auto industry, such as a SaaS platform for auto financing-related technology. Yixin's shares saw a brief rally after the announcement, indicating investor confidence. Other Chinese online lenders like FinVolution and LexinFintech also have low P/S ratios, reflecting a depressed valuation in the sector.
January 10, 2024 | 6:13 pm
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NEUTRAL IMPACT
FinVolution, a consumer loan facilitator, is mentioned as having a low price-to-sales ratio, indicating a depressed valuation in the Chinese online lending sector.
While FinVolution is mentioned in the context of the broader market valuation, the news is primarily about Yixin and does not directly impact FinVolution's operations or financials. Therefore, the short-term impact on FinVolution's stock is likely neutral.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 30
NEUTRAL IMPACT
LexinFintech, similar to FinVolution, is noted for its low price-to-sales ratio, which suggests a general undervaluation in the sector of Chinese online lenders.
LexinFintech is referenced as part of the valuation discussion of Chinese online lenders, but the article's main focus is Yixin's strategic move. There is no direct short-term impact on LexinFintech's stock from this news.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 30