Lai Sun Development Co Ltd (HK:0488)
:0488
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Lai Sun Development Co
(0488)
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Rating:41Neutral
Price Target:
HK$0.65
▲(11.90% Upside)
Action:ReiteratedDate:01/15/26
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 business model
Lai Sun's mix of development, investment properties and hotel operations creates multiple, structurally different revenue streams. Over months, this diversification can smooth cash flow volatility from single-project cycles and provides optionality to shift focus between development and recurring-income assets.
Negative Factors
Declining revenue trend
A persistent revenue decline reduces operating scale and undermines margin recovery potential. Over several months this trend tightens cash available for capex and debt service, increases reliance on asset disposals or external funding, and complicates timing of project completions and handovers.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified business model
Lai Sun's mix of development, investment properties and hotel operations creates multiple, structurally different revenue streams. Over months, this diversification can smooth cash flow volatility from single-project cycles and provides optionality to shift focus between development and recurring-income assets.
Read all positive factors
Lai Sun Development Co (0488) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$973.73M
Dividend YieldN/A
Average Volume (3M)29.00K
Price to Earnings (P/E)―
Beta (1Y)0.83
Revenue Growth-18.16%
EPS Growth21.78%
CountryHK
Employees3,700
SectorReal Estate
Sector Strength53
IndustryReal Estate - Diversified
Share Statistics
EPS (TTM)N/A
Shares Outstanding1,453,328,900
10 Day Avg. Volume30,097
30 Day Avg. Volume29,005
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.05
Price to Sales (P/S)0.22
P/FCF Ratio6.12
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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...
How the Company Makes Money
Lai Sun Development generates earnings mainly from (1) property development: revenue is recognized from the sale of developed residential/commercial properties, with profitability driven by project margins (land cost, construction cost, financing ...
Lai Sun Development Co Financial Statement Overview
Summary
Income Statement
35
Negative
Balance Sheet
45
Neutral
Cash Flow
30
Negative
| Breakdown | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.90B | 6.00B | 5.21B | 5.34B | 6.20B |
| Gross Profit | 990.18M | 1.53B | 328.95M | 968.81M | 701.88M |
| EBITDA | -1.47B | -1.69B | -434.59M | 398.01M | -593.18M |
| Net Income | -2.87B | -3.67B | -2.97B | -1.97B | -2.09B |
Balance Sheet | |||||
| Total Assets | 64.23B | 67.42B | 73.97B | 80.90B | 83.04B |
| Cash, Cash Equivalents and Short-Term Investments | 3.19B | 2.88B | 5.01B | 7.62B | 10.74B |
| Total Debt | 26.12B | 26.20B | 27.01B | 29.09B | 28.17B |
| Total Liabilities | 34.84B | 35.11B | 37.11B | 39.91B | 40.05B |
| Stockholders Equity | 23.12B | 25.81B | 29.78B | 32.79B | 34.15B |
Cash Flow | |||||
| Free Cash Flow | 173.30M | -907.79M | -570.00M | -4.58B | 755.09M |
| Operating Cash Flow | 269.72M | -763.84M | -379.60M | -4.31B | 1.21B |
| Investing Cash Flow | 297.32M | 899.15M | 559.11M | -767.50M | -1.88B |
| Financing Cash Flow | -379.08M | -977.20M | -1.45B | 2.15B | 4.67B |
Lai Sun Development Co Technical Analysis
Positive
0.58
Price Trends
0.64
Positive
0.63
Positive
0.65
Positive
Market Momentum
<0.01
Negative
59.90
Neutral
95.83
Negative
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 0.63, below the 50-day MA of 0.64, and below the 200-day MA of 0.65, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.90 is Neutral, neither overbought nor oversold. The STOCH value of 95.83 is Negative, 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | HK$146.50B | 24.10 | 1.76% | 6.20% | -19.91% | -6.92% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | HK$22.62B | 7.71 | 1.39% | 5.62% | -9.78% | -29.50% | |
59 Neutral | HK$13.08B | -6.82 | -3.14% | 5.93% | 1.37% | -157.43% | |
45 Neutral | HK$1.16B | -0.55 | -32.15% | 4.36% | -16.06% | -529.92% | |
41 Neutral | HK$973.73M | -0.21 | -11.79% | ― | -18.16% | 21.78% | |
40 Underperform | HK$21.79B | -1.70 | -9.54% | ― | -40.92% | -42.67% |
* Real Estate Sector Average
HK:0488
Lai Sun Development Co
0.68
0.10
17.24%
HK:0041
Great Eagle Holdings
17.84
6.03
50.99%
HK:0012
Henderson Land Development Co
30.52
11.23
58.22%
HK:0010
Hang Lung Group
17.38
7.73
80.07%
HK:0017
New World Development
8.88
4.36
96.46%
HK:0978
China Merchants Land Limited
0.25
0.03
12.33%
Lai Sun Development Co Corporate Events
Lai Sun Development Still Below Required Public Float, Plans Monthly Updates
Apr 2, 2026
Lai Sun Development has disclosed that its current public float stands at 19.60%, below the 25% minimum required under Hong Kong Listing Rules, after earlier announcements flagged the shortfall. The company remains in discussions with connected pe...
Lai Sun Deepens Interim Loss but Advances Deleveraging with Major Asset Disposals
Mar 27, 2026
Lai Sun Development reported a modest 1.4% rise in turnover to HK$2.58 billion for the six months ended 31 January 2026, supported by stronger property development sales but offset by weaker property investment and hotel revenues. Despite this, ad...
Lai Sun Development Flags Over HK$1.1 Billion Interim Loss on Property Write-Downs
Mar 20, 2026
Lai Sun Development has warned that it expects a sharply wider consolidated loss attributable to shareholders of between HK$1.1 billion and HK$1.2 billion for the six months ended 31 January 2026, compared with a loss of about HK$118 million a yea...
Lai Sun Development Sets March Board Meeting on Interim Results and Dividend
Mar 17, 2026
Lai Sun Development Company Limited has scheduled a board meeting for 27 March 2026 to review and approve the unaudited interim results for the six months ended 31 January 2026. The board will also consider the declaration of an interim dividend, ...
Lai Sun Development Outlines Plan to Restore Shortfall in Public Float
Mar 4, 2026
Lai Sun Development Company Limited has reported that its current public float stands at 19.60%, below the 25% minimum required under Hong Kong Listing Rules. The company reiterates that it is exploring measures, including potential share disposal...
Lai Sun Development Wins Listing Rule Waiver for Delayed Transaction Circular
Feb 4, 2026
Lai Sun Development Company Limited has announced a delay in sending a shareholder circular relating to a major transaction involving the disposal of an asset, as the company requires more time to finalise key information, including a working capi...
Lai Sun Development Outlines Plan to Restore Insufficient Public Float
Feb 4, 2026
Lai Sun Development Company Limited has disclosed that its current public float stands at 19.60%, below the 25% minimum required by the Hong Kong Listing Rules, and remains non-compliant as of 4 February 2026. The company is exploring measures to ...
Lai Sun Development Delays Dispatch of Circular on Major Disposal
Feb 2, 2026
Lai Sun Development Company Limited has announced a delay in sending a shareholder circular related to a major transaction involving the disposal of an asset, for which it has already obtained written approval from its controlling shareholder, Lai...
Lai Sun Development’s Public Float Falls Below Hong Kong Minimum After Major Share Accumulation
Jan 15, 2026
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...
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.