Lufax Holding (NYSE:LU) has just posted another tough set of FY 2025 numbers, with Q3 2024 revenue of C¥5.5b alongside a basic EPS loss of C¥1.12 and net income loss of C¥874.8m. The company has seen quarterly revenue move from C¥9.3b in Q2 2023 to C¥8.1b in Q3 2023, then to C¥5.5b in Q3 2024, while basic EPS shifted from a profit of C¥1.68 in Q2 2023 and C¥0.16 in Q3 2023 to losses across the last four reported quarters. At a share price of US$1.95 and with losses weighing on recent margins, investors are likely to focus on how quickly profitability can stabilise from here.

See our full analysis for Lufax Holding.

With the latest figures on the table, the next step is to see how these results line up with the widely followed growth and risk narratives around Lufax and where those stories might be challenged by the numbers.

Losses Persist Across The Last Five Quarters

• Net income on a trailing 12 month basis moved from a profit of C¥809.6 million in Q4 2023 to a loss of C¥3,870.6 million by Q4 2024, with quarterly losses in 2024 ranging between C¥792.1 million and C¥874.8 million.
• Bears focus on this shift into losses, and the data gives them support because:
  • Basic EPS on a trailing 12 month basis went from a profit of C¥1.41 in Q4 2023 to a loss of C¥5.55 by Q4 2024. This shows that profitability has weakened across several reporting periods.
  • Each of the last four standalone quarters shows a net income loss between C¥844.2 million and C¥874.8 million, so the current unprofitable status is not just a single quarter issue.

Stay grounded in the cautious case by seeing how these repeated losses fit into the wider bear argument for Lufax Holding 🐻 Lufax Holding Bear Case.

Revenue Base Has Compressed From Over C¥50b

• Total revenue on a trailing 12 month basis declined from C¥50,628.8 million in Q3 2023 to C¥28,364.0 million in Q4 2024, while individual quarterly revenue in 2024 ranged from C¥5,543.4 million to C¥6,963.8 million.
• Critics highlight this compression in the revenue base when challenging bullish growth expectations because:
  • The latest trailing 12 month revenue of about C¥28.4b is materially lower than the C¥41,585.4 million level reported for Q4 2023. This sits in contrast to revenue growth forecasts of about 14.3% per year in the provided data.
  • Net income losses of C¥3,381.6 million to C¥3,870.6 million on a trailing 12 month basis through 2024 mean that even this smaller revenue base has not translated into profits in the recent period.

Cheap 0.4x P/S Versus Peers

• Lufax trades on a P/S of 0.4x, compared with 1.4x for the US consumer finance industry and 1.1x for its peer group. Analysts in the supplied data expect revenue to grow about 14.3% per year and earnings about 31.79% per year, with a move back to profitability within three years.
• Supporters of a more bullish stance point to this valuation gap, but the numbers show a mixed picture because:
  • The low 0.4x P/S and growth projections contrast with trailing 12 month net losses of up to C¥3,870.6 million and a Basic EPS loss of C¥5.55, so the forecasted path to profitability is not yet reflected in the recent income statement.
  • The current share price of US$1.95 is also being compared with those growth forecasts without any DCF valuation in the supplied data, so investors are relying mainly on the combination of the low sales multiple and the projected earnings recovery.

To see how this low sales multiple lines up with different long term storylines for Lufax, check out the broader community views 📊 Read the what the Community is saying about Lufax Holding..

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Lufax Holding's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

The tone here has focused on pressure points, but you do not need to wait to form an opinion. Look through the full risk and reward picture and weigh what matters most to you, including 2 key rewards.

See What Else Is Out There

Lufax is wrestling with compressed revenue, persistent net income losses and a low P/S that still hinges on forecasts rather than recently reported profitability.

If this mix of earnings pressure and uncertainty around the path back to profit concerns you, compare it with companies that score well in our 67 resilient stocks with low risk scores so you can quickly focus on more resilient ideas.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.