Lufax is going crazy! They announced a cash dividend of ¥10 billion
This unremarkable Chinese stock has really shaken Wall Street! After releasing their financial report yesterday, they announced a cash dividend of ¥10 billion, accounting for about 72% of the market value!
The company behind this madness is $Lufax(LU)$ , which is backed by $PING AN(02318)$ and specializes in small loans.
As soon as the news of the huge dividend hit the market, Lufax's stock price skyrocketed, surging 45.7% in a single day!
Looking at their performance, Lufax has been struggling in recent years. With tighter financial policies, their earnings have been dwindling. For example, in the fourth quarter of last year, their revenue was ¥6.86 billion, a whopping 44% decrease year-over-year.
But hey, they've still made a ton of money in the past few years. From 2017 to now, their net profit has exceeded ¥70 billion!
And as of the end of 2023, Lufax had a cash stash of ¥39.6 billion, which is enough to cover this ¥10 billion dividend easily.
From the historical dividend situation, their dividend payout ratio was 27.8% in 2021 and rose to 40.9% in 2022. Now they're pulling out an even crazier ¥10 billion cash dividend. This company is really going all out!
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