Lai Sun Development Co (0488) AI Stock Analysis

• Market Cap: $872.00M
• Dividend Yield: N/A
• Average Volume (3M): 29.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• 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: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 33.87
• Enterprise Value/Revenue: 6.03
• Enterprise Value/Gross Profit: 29.83
• Enterprise Value/Ebitda: -249.56
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: HK$0.60 ▼(-2.90% Downside)

Lai Sun Development Co's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, high leverage, and cash flow challenges. Technical analysis indicates a bearish trend with no strong momentum, while valuation metrics highlight unprofitability and lack of dividend yield. These factors collectively result in a low overall stock score.

Positive Factors

Diverse Revenue Streams

Lai Sun Development's diverse revenue streams from real estate and hospitality provide resilience against sector-specific downturns, supporting long-term stability.

Strategic Location Focus

By focusing on high-demand locations, Lai Sun Development can capitalize on premium pricing and higher occupancy rates, which supports sustainable revenue growth.

Strategic Partnerships

Strategic partnerships enhance Lai Sun's ability to undertake large projects, share risks, and access new markets, strengthening its competitive position.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and weather economic downturns.

Declining Revenues

Declining revenues indicate challenges in maintaining market share and pricing power, which could impact long-term profitability and growth.

Cash Flow Challenges

Significant cash flow challenges limit the company's ability to fund operations and investments, posing a risk to its financial health and strategic initiatives.

Lai Sun Development Co Business Overview & Revenue Model

Company Description

Lai Sun Development Co. (0488) is a Hong Kong-based investment holding company primarily engaged in real estate development and investment, hospitality, and property management. The company operates across several sectors, including commercial, residential, and hotel properties, focusing on maximizing asset value through strategic management and development initiatives. Lai Sun Development is known for its diverse portfolio, which includes high-profile properties and luxury hotels, catering to both local and international markets.

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

Lai Sun Development Co is facing significant financial challenges across all verticals. The income statement reflects declining revenues and persistent losses, while the balance sheet shows high leverage and negative returns on equity. Cash flow issues further exacerbate the company's financial position, with negative growth and liquidity concerns. The company needs to address these challenges to improve its financial health and stability.

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: Negative
• Last Price: 0.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 0.62 is below the 20-day moving average (MA) of 0.63, below the 50-day MA of 0.64, and below the 200-day MA of 0.63, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.92 is Neutral, neither overbought nor oversold. The STOCH value of 25.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	€687.57M	29.76	0.21%	―	-43.28%	-93.81%
0251	50 Neutral	HK$770.72M	-3.44	-5.69%	3.85%	-1.26%	54.17%
0978	50 Neutral	€1.47B	-0.77	-20.96%	4.21%	-16.06%	-529.92%
0480	50 Neutral	€1.66B	-2.12	-3.56%	―	72.75%	25.44%
0488	41 Neutral	$872.00M	-0.30	-11.79%	―	-18.16%	21.78%
3377	39 Underperform	$1.26B	―	-154.48%	―	-57.94%	45.77%

Lai Sun Development Co Corporate Events

Lai Sun Development Updates Nomination Committee Terms

Lai Sun Development Co. has revised the terms of reference for its Nomination Committee to align with updated Listing Rules effective from July 2025. The committee’s responsibilities include reviewing the board’s structure and diversity, assessing director independence, and making recommendations on board appointments and succession planning, which are crucial for maintaining effective governance and strategic alignment.

Lai Sun Development Announces Nomination Committee Changes

Lai Sun Development Company Limited, a prominent player in the real estate and investment industry, has announced changes in its Nomination Committee. Effective July 18, 2025, Madam U Po Chu and Mr. Luk Hon Man have been appointed as members, ensuring the committee maintains a majority of independent non-executive directors and includes gender diversity. This strategic move may enhance the company’s governance and decision-making processes.

Lai Sun Development Announces Board Composition and Roles

Lai Sun Development Company Limited has announced the composition of its board of directors, which includes a total of nine directors. The announcement details the roles and functions of each director, highlighting their involvement in various board committees such as the Audit Committee, Executive Committee, Nomination Committee, and Remuneration Committee. This update provides stakeholders with a clear understanding of the leadership structure and governance at Lai Sun Development, which may influence the company’s strategic direction and operational decisions.