Could Lufax Holding’s (LU) Ping An Deal Mark a Turning Point for Its Financing Strategy?

• At its extraordinary general meeting in Shanghai on September 30, 2025, Lufax Holding Ltd shareholders approved the 2025 Ping An Consumer Finance Collaboration Supplemental Agreement and revised annual caps for the year ending December 31, 2025, authorizing a Director to complete related actions.
• This strengthens Lufax’s position as a financial services partner for small business owners, reinforced by collaborations with 85 financial institutions.
• We’ll explore how the renewed partnership with Ping An Consumer Finance could shape Lufax’s investment narrative and capital access outlook.

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What Is Lufax Holding's Investment Narrative?

To take a constructive view on Lufax Holding, investors typically need to have confidence in its ability to regain profitability and grow its role as a core partner for small business financing in China, despite recent losses and board-level changes. The shareholder approval of the 2025 Ping An Consumer Finance Collaboration Supplemental Agreement now stands out as a short-term catalyst, potentially boosting capital access and cementing funding relationships. The agreement’s real impact may be limited without a turnaround in Lufax’s weak revenue trends and ongoing net losses, but it could still support a more optimistic narrative if it leads to more stable income streams. That said, risks like continued earnings volatility, board inexperience, recent auditor changes, and delays in regulatory filings persist. These factors could affect confidence, making it essential to monitor how new partnerships and management changes play out. On the other hand, questions around auditing transitions and timely filings remain critical watchpoints.

The analysis detailed in our Lufax Holding valuation report hints at an deflated share price compared to its estimated value.

Exploring Other Perspectives

Most estimates from two Simply Wall St Community members cluster between CN¥1.81 and CN¥2.79 per share, showing wide-ranging expectations. With confidence hinging on Lufax’s turnaround and stability, community valuation diversity may reflect ongoing uncertainty around these critical risks.

Explore 2 other fair value estimates on Lufax Holding - why the stock might be worth as much as $2.79!

Build Your Own Lufax Holding Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Lufax Holding research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Lufax Holding research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Lufax Holding's overall financial health at a glance.

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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.

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