Lufax ($LU) is our 10x candidate

As we predicted about two weeks ago, Chinese stocks have skyrocketed.

• A rumor was circulated that they are easing the Covid restrictions.
• The government is going to help the struggling property market.

And now, funds are scooping up Chinese stocks like there is no tomorrow.  This is precisely why we invested in $YINN and got 100% return in about 3 weeks.

While this might also work for those who don’t want to do individual research, I believe $LU might be one stock you should consider.

What is $LU / Lufax?

Lufax Holding Ltd operates a technology-empowered personal financial services platform in China. It offers loan products, including unsecured loans and secured loans, as well as consumer finance loans. The company also provides wealth management platforms, such as Lufax (Lu.com), Lu International (Singapore), and Lu International (Hong Kong) to the middle class and affluent investors to invest in products and portfolios; retail credit facilitation services platform that offers small business owners with lending solutions; and technology empowerment solutions for financial institutions. Lufax Holding Ltd was founded in 2005 and is headquartered in Shanghai, China.

And here are reasons why we think $LU will head back above $5, which will be 150%+ upside.  (Actually, we think it will go to $22, which will be 11x return).

• It’s already profitable.
• Wealth management market is recovering and growing.
• Middle class is growing massively in China.
• Middle class borrowing is going up and that’s good for $LU.

These are all good signs for a company like $LU especially when the Covid-restriction gets even looser, people travel more, property price goes up and everyone feels wealth and want to accumulate wealth.

• It currently has 3 with a Buy rating and 2 with a Hold and nobody is recommending a Sell rating.
• Consensus price target is $4.83, an upside of 141.7%
• Good dividend as well with 8.21%

Again, do your own DD before making any investment decisions but I think it’s a no brainer.  We took a large position this week, FYI