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

• Market Cap: HK$1.79B
• Dividend Yield: N/A
• Average Volume (3M): 3.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.08
• Revenue Growth: -39.64%
• EPS Growth: -125.38%
• Country: HK
• Employees: 1,987
• Sector: Real Estate
• Sector Strength: 64
• Industry: Real Estate - Development
• EPS (TTM): -0.71
• Shares Outstanding: 6,057,492,700
• 10 Day Avg. Volume: 4,131,200
• 30 Day Avg. Volume: 3,085,800
• PEG Ratio: <0.01
• Price to Book (P/B): 0.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.56
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 40 Underperform
• Price Target: HK$0.50 ▲(66.67%Upside)

The overall stock score is heavily influenced by the company's critical financial distress, including declining revenues, negative margins, and high leverage. While there is some short-term technical momentum, the negative valuation metrics highlight significant risks. Without positive earnings call insights or corporate events to offset these challenges, the stock remains a high-risk investment.

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

Company Description

LVGEM (China) Real Estate Investment Company Limited (0095) is a prominent real estate company headquartered in China. The company specializes in property development, property investment, and property management. LVGEM is primarily focused on developing high-quality residential, commercial, and mixed-use properties, leveraging its expertise to create urban complexes that integrate various functionalities and amenities. The company aims to provide premium living and working environments in key cities across China.

How the Company Makes Money

LVGEM (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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.71B	6.12B	2.34B	4.38B	5.42B
Gross Profit	150.93M	1.58B	1.03B	2.19B	2.67B
EBITDA	-403.34M	-39.67M	450.54M	1.53B	2.13B
Net Income	-5.17B	-2.13B	-730.15M	1.15B	3.45B
Balance Sheet
Total Assets	103.59B	105.51B	99.70B	84.94B	74.27B
Cash, Cash Equivalents and Short-Term Investments	597.46M	486.35M	1.57B	3.91B	5.43B
Total Debt	33.95B	35.55B	34.50B	31.35B	30.75B
Total Liabilities	79.61B	76.12B	68.73B	55.50B	46.38B
Stockholders Equity	18.04B	23.18B	24.76B	25.93B	24.72B
Cash Flow
Free Cash Flow	3.63B	-3.63B	-3.54B	-2.03B	491.28M
Operating Cash Flow	3.63B	-3.63B	-3.53B	-2.02B	506.97M
Investing Cash Flow	1.08B	-2.36B	195.13M	830.18M	-1.41B
Financing Cash Flow	-4.47B	4.98B	1.26B	17.43M	656.40M

LVGEM (China) Real Estate Investment Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.3 is above the 20-day moving average (MA) of 0.25, above the 50-day MA of 0.24, and below the 200-day MA of 0.40, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 67.12 is Neutral, neither overbought nor oversold. The STOCH value of 64.90 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1321	69 Neutral	HK$1.18B	2.36	9.93%	―	207.10%	―
Sector *	54 Neutral	$1.23B	3.77	0.67%	6.13%	-2.39%	-129.28%
0563	51 Neutral	HK$1.63B	2.80	-2.45%	8.53%	56.41%	-167.15%
0230	50 Neutral	€1.49B	―	-102.67%	―	-21.75%	-246.70%
1238	45 Neutral	HK$1.59B	―	-16.13%	―	10.08%	-118.45%
0095	40 Underperform	HK$1.79B	―	-25.08%	―	-39.64%	-125.38%
1668	38 Underperform	€1.36B	―		12.50%	―	―

LVGEM (China) Real Estate Investment Company Limited Corporate Events

LVGEM (China) Updates on Winding-Up Petition

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

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

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

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

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

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

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

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.