Lai Sun Development Co (0488) AI Stock Analysis

• Market Cap: HK$959.20M
• Dividend Yield: N/A
• Average Volume (3M): 29.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• Revenue Growth: -18.16%
• EPS Growth: 21.78%
• Country: HK
• Employees: 3,700
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): -1.90
• Shares Outstanding: 1,453,328,900
• 10 Day Avg. Volume: 30,097
• 30 Day Avg. Volume: 29,005
• PEG Ratio: 0.02
• Price to Book (P/B): 0.05
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 6.12
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: HK$0.58 ▲(0.52% Upside)

The score is driven primarily by weak financial performance (persistent losses, declining revenue, high leverage, and significant cash flow deterioration). Technicals are mixed but generally soft with a negative MACD and price below key longer-term averages. Valuation provides limited support due to a negative P/E and no dividend yield data.

Positive Factors

Diversified revenue streams

A multi-pronged revenue model (sales, rents, hotel operations) provides structural resilience versus pure-play developers. Recurring rental and hospitality income can stabilize cash flow across cycles, supporting operations and debt servicing over the medium term.

High-quality asset base

Ownership of high-profile commercial and luxury hotel assets supports pricing power, brand recognition and demand from affluent and international customers. Strong assets help preserve long-term value and enable redevelopment or repositioning strategies when markets recover.

Relatively stable equity proportion

A stable equity ratio indicates the company has maintained a baseline capital cushion despite earnings weakness. That structural equity base can help absorb shocks, preserve borrowing capacity and support project financing or refinancing over a multi-month horizon.

Negative Factors

Declining revenue and persistent losses

Sustained revenue decline and heavy net losses erode retained earnings and limit ability to fund development or maintain properties. Continued negative margins reduce reinvestment capacity and increase reliance on external funding, weakening long-term operational viability.

High financial leverage

Material leverage raises refinancing and interest-rate vulnerability, restricting strategic flexibility. High debt loads can force asset sales or defer capital projects, and amplify downside in a property market downturn or higher rate environment over the coming months.

Severe cash flow deterioration

Sharp negative FCF growth and poor operating cash conversion signal liquidity stress. Weak cash generation may necessitate external financing or asset disposals, hindering long-term maintenance, development execution and debt service capacity.

Lai Sun Development Co Business Overview & Revenue Model

Company Description

Lai Sun Development Company Limited, together with its subsidiaries, invests in, develops, leases, and sells real estate properties in Hong Kong, Mainland China, Macau, the United Kingdom, Vietnam, and internationally. It operates through Property Development and Sales; Property Investment; Hotel Operation; Restaurant Operation; Media and Entertainment; Film and TV Program; Cinema Operation; Theme Park Operation; and Others segments. The company also invests in, develops, operates in, and manages cultural, leisure, entertainment, and related facilities; hotels and restaurants; and provides management and consultancy services to hotels, serviced apartments, and restaurants. In addition, it engages in the development, operation, and investment of media and entertainment events; cinema operations; golf apparel retailing; and music production and distribution, as well as provision of related advertising services. Further, the company invests in, produces, licenses, and distributes television programs, films, and video format products. Additionally, the company offers property management, real estate agency, leasing agency, performance agency, and building services; and luxury yachts brokerage, charter, marketing, management, and crew placement services; and finance and treasury services. It also provides artiste management services; sells albums; distributes and licenses music and film rights; and trades in gaming products. In addition, the company distributes movie video compact discs, digital video discs, and Blu-ray discs. Further, it engages in film library management; video duplication services; and translating and subtitling of television programs. The company is headquartered in Central, Hong Kong. Lai Sun Development Company Limited is a subsidiary of Lai Sun Garment (International) Limited.

How the Company Makes Money

Lai Sun Development generates revenue through multiple key streams, primarily from real estate sales, rental income, and hotel operations. The company develops residential and commercial properties, selling them to buyers or leasing them to tenants for steady rental income. Additionally, its hospitality segment contributes significantly to earnings through room bookings, food and beverage sales, and event hosting at its hotels. Strategic partnerships with other developers and investors, as well as a focus on high-demand locations, enhance its revenue potential. The company's ability to navigate market trends and leverage its property portfolio plays a critical role in its financial performance.

Lai Sun Development Co Financial Statement Overview

Summary

Overall financials indicate material weakness: declining revenue (-15.53%), very large losses (net margin -58.67%) with negative EBIT/EBITDA margins, high leverage (debt-to-equity 1.13) and negative ROE, plus severe cash flow deterioration (free cash flow growth -190.22%) and weak cash conversion.

Income Statement

Lai Sun Development Co has faced declining revenues with a negative growth rate of -15.53% in the latest period. The company has consistently reported negative net profit margins, with the most recent at -58.67%, indicating ongoing profitability challenges. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. Overall, the income statement shows a struggling financial performance with significant room for improvement.

Balance Sheet

The company's balance sheet reveals a high level of leverage with a debt-to-equity ratio of 1.13, which poses a risk in terms of financial stability. The return on equity is negative, indicating that the company is not generating profits from its equity base. However, the equity ratio remains relatively stable, suggesting that the company maintains a reasonable proportion of equity in its capital structure. The balance sheet reflects a cautious outlook with potential risks due to high leverage.

Cash Flow

Cash flow analysis shows negative free cash flow growth of -190.22%, highlighting significant cash flow challenges. The operating cash flow to net income ratio is low, indicating difficulties in converting income into cash. The free cash flow to net income ratio is positive, but this is due to negative net income rather than strong cash flow generation. Overall, the cash flow statement indicates liquidity issues and a need for improved cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.90B	4.90B	6.00B	5.21B	5.34B	6.20B
Gross Profit	990.18M	990.18M	1.53B	328.95M	968.81M	701.88M
EBITDA	-118.34M	-1.47B	-1.69B	-434.59M	398.01M	-593.18M
Net Income	-2.87B	-2.87B	-3.67B	-2.97B	-1.97B	-2.09B
Balance Sheet
Total Assets	64.23B	64.23B	67.42B	73.97B	80.90B	83.04B
Cash, Cash Equivalents and Short-Term Investments	3.19B	3.19B	2.88B	5.01B	7.62B	10.74B
Total Debt	26.12B	26.12B	26.20B	27.01B	29.09B	28.17B
Total Liabilities	34.84B	34.84B	35.11B	37.11B	39.91B	40.05B
Stockholders Equity	23.12B	23.12B	25.81B	29.78B	32.79B	34.15B
Cash Flow
Free Cash Flow	886.63M	173.30M	-907.79M	-570.00M	-4.58B	755.09M
Operating Cash Flow	1.00B	269.72M	-763.84M	-379.60M	-4.31B	1.21B
Investing Cash Flow	-662.14M	297.32M	899.15M	559.11M	-767.50M	-1.88B
Financing Cash Flow	146.30M	-379.08M	-977.20M	-1.45B	2.15B	4.67B

Lai Sun Development Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0488, the sentiment is Positive. The current price of 0.58 is below the 20-day moving average (MA) of 0.62, below the 50-day MA of 0.62, and below the 200-day MA of 0.63, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 59.96 is Neutral, neither overbought nor oversold. The STOCH value of 60.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0488.

Lai Sun Development Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0672	52 Neutral	HK$715.75M	30.98	0.21%	―	-43.28%	-93.81%
0251	50 Neutral	HK$812.87M	-3.63	-5.69%	3.85%	-1.26%	54.17%
0978	50 Neutral	HK$1.42B	-0.75	-20.96%	4.36%	-16.06%	-529.92%
0480	48 Neutral	€1.83B	-2.31	-3.56%	―	72.75%	25.44%
0488	41 Neutral	HK$959.20M	-0.33	-11.79%	―	-18.16%	21.78%
3377	40 Underperform	HK$1.19B	-0.16	-154.48%	―	-57.94%	45.77%

Lai Sun Development Co Corporate Events

Lai Sun Development’s Public Float Falls Below Hong Kong Minimum After Major Share Accumulation

Lai Sun Development has disclosed that substantial shareholders Mr. Yu Cheuk Yi and Ms. Yu Siu Yuk have jointly acquired a further 60.66 million shares, lifting their combined holding to about 24.12% of the company’s issued share capital. As the Yus and other major holders are classified as connected persons under Hong Kong listing rules, their enlarged stake reduces the company’s public float to roughly 19.60%, below the 25% minimum required by the Stock Exchange, potentially obliging the company to pursue remedial measures to restore compliance and affecting the liquidity available to public investors.

The most recent analyst rating on (HK:0488) stock is a Hold with a HK$0.60 price target. To see the full list of analyst forecasts on Lai Sun Development Co stock, see the HK:0488 Stock Forecast page.

Lai Sun Development Shareholders Approve Disposal Deal at General Meeting

Lai Sun Development Company Limited announced that shareholders at its 31 December 2025 general meeting approved all resolutions put forward, following a poll in which all eligible shares were entitled to vote and no shareholders were required to abstain. The key business decision endorsed was the sale and purchase agreement relating to a disposal transaction, which received 99.98% of votes cast in favour, effectively greenlighting the disposal and authorising the board to implement the deal and related matters, thereby confirming strong shareholder support for the company’s strategic transaction and governance processes.

The most recent analyst rating on (HK:0488) stock is a Hold with a HK$0.60 price target. To see the full list of analyst forecasts on Lai Sun Development Co stock, see the HK:0488 Stock Forecast page.

Lai Sun Development Wins Full Shareholder Backing at 2025 AGM

Lai Sun Development has confirmed that all resolutions put to shareholders at its 19 December 2025 annual general meeting were approved by poll, underscoring strong investor support for the company’s current governance and financial direction. Shareholders adopted the audited financial statements for the year ended 31 July 2025, re-elected three directors, reappointed Ernst & Young as auditor, and granted the board general mandates to repurchase up to 10% of its shares and to issue up to 20% new shares, as well as to extend the issuance mandate by the number of shares bought back, providing the company with considerable flexibility in future capital management and funding strategies.

The most recent analyst rating on (HK:0488) stock is a Hold with a HK$0.60 price target. To see the full list of analyst forecasts on Lai Sun Development Co stock, see the HK:0488 Stock Forecast page.

Lai Sun Development Shareholders Approve All Resolutions at December General Meeting

Lai Sun Development Company Limited announced that all resolutions put to shareholders at its general meeting on 19 December 2025 were duly passed by poll, with independent shareholders entitled to vote on 1.18 billion shares, representing about 80.95% of the company’s issued share capital. Investors approved the automatic renewal of the LSD-LF Framework Agreement, including the related loan transactions and annual caps, and confirmed the election of Mr. Cheung Sum, Sam as chairman of the general meeting in place of the absent board chairman; the strong level of support, with near-unanimous votes in favour, reinforces board-endorsed related-party financing arrangements and signals shareholder backing for the company’s current governance and funding structure.

The most recent analyst rating on (HK:0488) stock is a Hold with a HK$0.60 price target. To see the full list of analyst forecasts on Lai Sun Development Co stock, see the HK:0488 Stock Forecast page.

Lai Sun Development Announces General Meeting for Strategic Approvals

Lai Sun Development Company Limited has announced a general meeting scheduled for December 31, 2025, at the Hong Kong Ocean Park Marriott Hotel. The meeting will address the approval of a Sale and Purchase Agreement and related disposals, which are significant for the company’s strategic operations and may impact its market positioning. Shareholders are encouraged to participate and vote on these resolutions, which could have implications for the company’s future direction.

The most recent analyst rating on (HK:0488) stock is a Hold with a HK$0.60 price target. To see the full list of analyst forecasts on Lai Sun Development Co stock, see the HK:0488 Stock Forecast page.

Lai Sun Development to Discuss Renewal of Key Financial Agreement

Lai Sun Development Company Limited has announced a general meeting scheduled for December 19, 2025, to discuss the renewal of the LSD-LF Framework Agreement for a term of three years starting January 1, 2026. The meeting will address the approval and ratification of the LSD-LF Loan Transactions and Annual Caps, with the aim of authorizing directors to execute necessary actions to implement the agreement. This move indicates the company’s strategic direction in maintaining its financial agreements and potentially impacts its operational continuity and stakeholder interests.

The most recent analyst rating on (HK:0488) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Lai Sun Development Co stock, see the HK:0488 Stock Forecast page.

Lai Sun Development Announces 2025 AGM Agenda

Lai Sun Development Company Limited has announced its upcoming Annual General Meeting (AGM) scheduled for December 19, 2025, in Hong Kong. The AGM will address several key agenda items, including the adoption of audited financial statements for the year ending July 31, 2025, the re-election of three directors, the re-appointment of Ernst & Young as the independent auditor, and the consideration of resolutions for share buy-backs and the issuance of additional shares. These resolutions, if passed, will empower the company’s directors to manage share buy-backs and issue new shares, potentially impacting the company’s market operations and shareholder value.

The most recent analyst rating on (HK:0488) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Lai Sun Development Co stock, see the HK:0488 Stock Forecast page.

Lai Sun Development Co Reports Reduced Annual Loss Amid Strategic Adjustments

Lai Sun Development Co reported a net loss of HK$2,874.3 million for the year ending July 31, 2025, an improvement from the previous year’s loss. The decrease in loss was attributed to reduced impairments and depreciation, lower finance costs, and resilient rental income from investment properties. However, property sales declined significantly, and the company faced increased losses from joint ventures. Despite challenging conditions, the company managed to narrow segment losses in non-property businesses through closures and lease renegotiations. The company is actively negotiating asset disposals to enhance liquidity, with potential proceeds of HK$4,500 million if successful.

The most recent analyst rating on (HK:0488) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Lai Sun Development Co stock, see the HK:0488 Stock Forecast page.