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LVGEM (China) Real Estate Investment Company Limited (HK:0095)
:0095
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LVGEM (China) Real Estate Investment Company Limited (0095) AI Stock Analysis

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HK:0095

LVGEM (China) Real Estate Investment Company Limited

(0095)

Rating:45Neutral
Price Target:
HK$0.50
▲(56.25% Upside)
The overall stock score is primarily impacted by the company's poor financial performance and unattractive valuation. While there is some positive short-term technical momentum, the financial distress and negative profitability weigh heavily on the stock's outlook.

LVGEM (China) Real Estate Investment Company Limited (0095) vs. iShares MSCI Hong Kong ETF (EWH)

LVGEM (China) Real Estate Investment Company Limited Business Overview & Revenue Model

Company DescriptionLVGEM (China) Real Estate Investment Company Limited, an investment holding company, engages in property development and investment businesses in the People's Republic of China. The company operates through Real Estate Development and Sales of Properties, Commercial Property Investment and Operations, and Comprehensive Services segments. It develops and sells properties; invests in, operates, and leases commercial properties, office premises, apartments, and car parks; operates hotels; and offers property management, consultancy, and other services to customers and tenants of its residential and commercial properties. LVGEM (China) Real Estate Investment Company Limited was founded in 1995 and is headquartered in Kwun Tong, Hong Kong.
How the Company Makes MoneyLVGEM (China) Real Estate Investment Company Limited generates revenue through several key streams. The primary source of income is from the sale of developed residential and commercial properties. The company strategically invests in land acquisition and property development to cater to the growing demand for urban living spaces. Additionally, LVGEM earns revenue from property leasing activities, deriving income from tenants occupying its commercial and retail properties. The company also engages in property management services, providing maintenance and operational support for its developments, further contributing to its revenue. Strategic partnerships with local governments and other real estate entities can enhance development opportunities and financial performance.

LVGEM (China) Real Estate Investment Company Limited Financial Statement Overview

Summary
The company is experiencing significant financial distress with declining revenues, negative profitability, poor cash flow generation, high leverage, and deteriorating financial stability. These factors represent a severe financial challenge.
Income Statement
35
Negative
The company has experienced a significant decline in revenue from 2023 to 2024 and decreasing gross profit margins from 2020 to 2024, indicating challenges in maintaining cost efficiencies. The net profit margin is negative, and EBIT and EBITDA margins have deteriorated significantly, indicating operational inefficiencies and financial distress.
Balance Sheet
40
Negative
The company's debt-to-equity ratio has been increasing, indicating rising financial leverage and potential risk. The equity ratio has been decreasing, reflecting weakened financial stability. Return on equity is negative, which is concerning for shareholder value.
Cash Flow
25
Negative
The company has had negative free cash flow growth, and the operating cash flow has been negative for several years, reflecting poor cash generation from operations. The free cash flow to net income ratio is not favorable, indicating challenges in converting income into cash.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.71B6.12B2.34B4.38B5.42B
Gross Profit150.93M1.58B1.03B2.19B2.67B
EBITDA-403.34M-39.67M450.54M1.53B2.13B
Net Income-5.17B-2.13B-730.15M1.15B3.45B
Balance Sheet
Total Assets103.59B105.51B99.70B84.94B74.27B
Cash, Cash Equivalents and Short-Term Investments597.46M486.35M1.57B3.91B5.43B
Total Debt33.95B35.55B34.50B31.35B30.75B
Total Liabilities79.61B76.12B68.73B55.50B46.38B
Stockholders Equity18.04B23.18B24.76B25.93B24.72B
Cash Flow
Free Cash Flow3.63B-3.63B-3.54B-2.03B491.28M
Operating Cash Flow3.63B-3.63B-3.53B-2.02B506.97M
Investing Cash Flow1.08B-2.36B195.13M830.18M-1.41B
Financing Cash Flow-4.47B4.98B1.26B17.43M656.40M

LVGEM (China) Real Estate Investment Company Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.32
Price Trends
50DMA
0.26
Positive
100DMA
0.25
Positive
200DMA
0.37
Negative
Market Momentum
MACD
0.01
Negative
RSI
67.19
Neutral
STOCH
85.61
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0095, the sentiment is Positive. The current price of 0.32 is above the 20-day moving average (MA) of 0.29, above the 50-day MA of 0.26, and below the 200-day MA of 0.37, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 67.19 is Neutral, neither overbought nor oversold. The STOCH value of 85.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0095.

LVGEM (China) Real Estate Investment Company Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$6.87B13.23-1.00%7.29%3.62%-23.52%
45
Neutral
HK$1.91B-25.08%-39.64%-125.38%
€136.14M-102.67%
€134.59M
€195.24M3.019.93%
52
Neutral
HK$1.60B2.80-2.45%8.66%56.41%-167.15%
44
Neutral
HK$1.43B-16.13%10.08%-118.45%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0095
LVGEM (China) Real Estate Investment Company Limited
0.32
-0.18
-36.00%
DE:ONF
Minmetals Land Limited
0.04
0.02
100.00%
DE:CS4
China South City Holdings Limited
0.01
-0.01
-50.00%
DE:C7B
China New City Commercial Development Ltd
0.10
0.02
25.00%
HK:1238
Powerlong Real Estate Holdings Ltd.
0.34
-0.19
-35.85%
HK:0563
Shanghai Industrial Urban Development Group Ltd
0.34
-0.02
-5.56%

LVGEM (China) Real Estate Investment Company Limited Corporate Events

LVGEM Faces Adjourned Winding-Up Petition Hearing
Aug 4, 2025

LVGEM (China) Real Estate Investment Company Limited has announced that the High Court has adjourned the hearing of a winding-up petition against the company to 3 November 2025. The company has committed to keeping shareholders and investors informed of significant developments related to the petition, advising caution in dealing with its securities.

LVGEM (China) Updates on Winding-Up Petition
Jul 9, 2025

LVGEM (China) Real Estate Investment Company Limited announced an update regarding a winding-up petition, with the High Court adjourning the hearing to 4 August 2025. The company advises shareholders and investors to exercise caution when dealing with its securities and to consult professional advisers if needed.

LVGEM (China) Real Estate Takes Steps to Address Financial Concerns
Jun 30, 2025

LVGEM (China) Real Estate Investment Company Limited has taken several steps to address a disclaimer of opinion issued by its auditor regarding the company’s ability to continue as a going concern. These measures include opposing a winding-up petition, negotiating with banks and creditors for debt restructuring, promoting bulk property sales, and cost control initiatives. The company has also completed the sale of a hotel property in California to improve its financial position. The board is committed to implementing these strategies and will provide quarterly updates to stakeholders.

LVGEM (China) Real Estate Passes All AGM Resolutions
Jun 16, 2025

LVGEM (China) Real Estate Investment Company Limited announced that all resolutions proposed at their Annual General Meeting on June 16, 2025, were passed by shareholders. This includes the re-election of several directors and the appointment of Prism Hong Kong Limited as the auditor. The successful passing of these resolutions indicates strong shareholder support and is likely to maintain stability in the company’s governance and operations.

LVGEM (China) Schedules 2025 Annual General Meeting with Key Resolutions
May 20, 2025

LVGEM (China) Real Estate Investment Company Limited has announced its upcoming Annual General Meeting scheduled for June 16, 2025, in Hong Kong. Key agenda items include the adoption of financial statements for 2024, re-election of several directors, appointment of a new auditor, and resolutions on share allotment and buyback. These decisions are pivotal for the company’s governance and financial strategies, potentially impacting its market positioning and shareholder value.

LVGEM Faces Adjourned Winding-Up Petition Hearing
May 14, 2025

LVGEM (China) Real Estate Investment Company Limited announced that the High Court has adjourned the hearing of a winding-up petition to 9 July 2025. The company plans to keep shareholders and investors informed of significant developments related to the petition, advising caution when dealing in its securities.

LVGEM Enhances Compliance Measures After U.S. Property Disposal
May 13, 2025

LVGEM (China) Real Estate Investment Company Limited announced a supplemental disclosure regarding the disposal of a hotel property in Los Angeles, USA. The company acknowledged a delay in compliance with Hong Kong Stock Exchange Listing Rules due to a misunderstanding by its U.S. sales team. To prevent future occurrences, LVGEM is implementing remedial measures, including enhanced training and reporting procedures, to ensure timely and accurate transaction reporting and compliance.

LVGEM (China) Announces Board Changes and Auditor Rotation
May 13, 2025

LVGEM (China) Real Estate Investment Company Limited has appointed Ms. Wong Ting Dan as an independent non-executive director, enhancing the board’s compliance with Hong Kong Stock Exchange listing rules. Additionally, the company announced a proposed change of auditor, with Deloitte Touche Tohmatsu set to retire, aiming to improve audit independence and effectiveness.

LVGEM (China) Announces Board Composition and Committee Roles
May 13, 2025

LVGEM (China) Real Estate Investment Company Limited announced the composition of its Board of Directors and the roles within its various committees as of May 13, 2025. The announcement highlights the leadership structure, with Ms. HUANG Jingshu serving as both Chairman and CEO, and outlines the responsibilities of executive and independent non-executive directors across four key committees, which may influence the company’s strategic direction and governance practices.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 09, 2025