Lai Sun Development Co (0488) AI Stock Analysis

• Market Cap: $1.06B
• Dividend Yield: N/A
• Average Volume (3M): 128.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: 2.20%
• EPS Growth: 43.92%
• Country: HK
• Employees: 3,700
• Sector: Real Estate
• Sector Strength: 56
• Industry: Real Estate - Diversified
• EPS (TTM): N/A
• Shares Outstanding: 1,453,328,900
• 10 Day Avg. Volume: 292,547
• 30 Day Avg. Volume: 128,441
• PEG Ratio: -0.01
• Price to Book (P/B): 0.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.52
• 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: 49 Neutral
• Price Target: HK$0.50 ▼(-26.47%Downside)

Lai Sun Development Co's overall stock score is primarily impacted by its challenging financial performance, including persistent net losses and liquidity issues. Technical analysis suggests potential overbought conditions despite slight bullish momentum, while valuation remains unattractive due to a negative P/E ratio and lack of dividend yield.

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 Co generates revenue through multiple streams. The primary source of income is from the sale and leasing of properties, including residential, commercial, and retail spaces. The company's hotel operations also contribute significantly to its revenue, with income derived from room bookings, food and beverage sales, and other hotel services. Additionally, the media and entertainment segment provides earnings through film production, distribution, and other related activities. Strategic partnerships and investments in various sectors further enhance the company's financial performance, allowing it to capitalize on diverse market opportunities.

Lai Sun Development Co Financial Statement Overview

Summary

Lai Sun Development Co faces significant financial challenges, including persistent net losses and negative cash flows. Despite some revenue growth, the company struggles with profitability and liquidity, which may impact future financial stability. High leverage adds to the financial risks.

Income Statement

Lai Sun Development Co has experienced declining revenue over the past years, with the most recent annual revenue showing a slight increase. However, persistent net losses and a negative EBIT margin indicate ongoing operational challenges. The company has an adverse trend in profitability, with gross profit margins fluctuating and net profit margins consistently negative.

Balance Sheet

The company's debt-to-equity ratio is relatively high, reflecting increased leverage, which may pose financial risks. However, the equity ratio remains stable, indicating a strong asset base. The negative return on equity is concerning, reflecting the company's inability to generate sufficient returns for shareholders due to ongoing losses.

Cash Flow

Lai Sun Development Co has faced challenges in generating positive operating cash flows, with recent free cash flows turning negative. The firm's cash flow from operations is insufficient to cover its capital expenditures, indicating potential liquidity issues. The free cash flow to net income ratio is unfavorable, reflecting cash generation difficulties amid substantial net losses.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	6.00B	5.21B	5.34B	6.20B	5.39B
Gross Profit	1.53B	328.95M	968.81M	701.88M	913.78M
EBITDA	-1.69B	-434.59M	398.01M	-515.35M	13.17M
Net Income	-3.67B	-2.97B	-1.97B	-2.09B	-2.93B
Balance Sheet
Total Assets	67.42B	73.97B	80.90B	83.04B	77.12B
Cash, Cash Equivalents and Short-Term Investments	2.88B	5.01B	7.62B	10.74B	6.18B
Total Debt	26.20B	27.01B	29.09B	28.17B	23.54B
Total Liabilities	35.11B	37.11B	39.91B	40.05B	33.67B
Stockholders Equity	25.81B	29.78B	32.79B	34.15B	34.97B
Cash Flow
Free Cash Flow	-907.79M	-570.00M	-4.58B	755.09M	-916.50M
Operating Cash Flow	-763.84M	-379.60M	-4.31B	1.21B	-272.01M
Investing Cash Flow	899.15M	559.11M	-767.50M	-1.88B	-2.02B
Financing Cash Flow	-977.20M	-1.45B	2.15B	4.67B	2.82B

Lai Sun Development Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.68
• 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 0.68 is above the 20-day moving average (MA) of 0.59, above the 50-day MA of 0.56, and above the 200-day MA of 0.65, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 64.25 is Neutral, neither overbought nor oversold. The STOCH value of 74.67 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 *	61 Neutral	AU$2.82B	8.14	4.17%	5.14%	17.25%	41.52%
0488	49 Neutral	$1.06B	―	-7.26%	―	2.20%	43.92%
SIOLF	―	$152.50M	―	-118.67%	―	―	―
0251	45 Neutral	HK$740.61M	―	-3.41%	4.88%	0.96%	83.98%
TNY1	―	€145.13M	―	-20.46%	6.92%	―	―
HKR	―	€149.74M	―	-3.45%	1.37%	―	―
35Z	―	€77.20M	22.50	0.19%	―	―	―

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.