Lisi Group (Holdings) Limited (0526) AI Stock Analysis

• Market Cap: HK$1.02B
• Dividend Yield: N/A
• Average Volume (3M): 1.46M
• Price to Earnings (P/E): 158.8
• Beta (1Y): 0.35
• Revenue Growth: 8.78%
• EPS Growth: -98.52%
• Country: HK
• Employees: 1,154
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Auto - Dealerships
• EPS (TTM): >-0.01
• Shares Outstanding: 8,844,020,500
• 10 Day Avg. Volume: 1,467,000
• 30 Day Avg. Volume: 1,459,666
• PEG Ratio: 0.09
• Price to Book (P/B): 0.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.91
• 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: 55 Neutral
• Price Target: ―

Lisi Group's stock score reflects its improved financial health and profitability but is tempered by high valuation and cash flow inefficiencies. Technical indicators suggest neutral momentum, and the absence of a dividend yield further weighs on the stock's attractiveness.

Lisi Group (Holdings) Limited Business Overview & Revenue Model

Company Description

Lisi Group (Holdings) Limited (0526) is a diversified investment holding company based in Hong Kong. The company operates across various sectors, primarily focusing on the manufacturing and distribution of plastic and household products. It also engages in other business activities including retail operations and property investment.

How the Company Makes Money

Lisi Group (Holdings) Limited generates revenue through multiple streams. The primary source of income is the manufacturing and sale of plastic and household products. These products are distributed both domestically and internationally, catering to a wide range of consumer needs. Additionally, the company earns income from its retail operations, which involve selling a variety of consumer goods. Property investment provides another revenue stream, contributing to the company's earnings through rental income and potential capital appreciation. Strategic partnerships and a diversified portfolio help stabilize and enhance the company's financial performance.

Lisi Group (Holdings) Limited Financial Statement Overview

Summary

Lisi Group (Holdings) Limited shows improvement in profitability and leverage with better net profit margins and a reduced debt-to-equity ratio. However, cash flow management remains a challenge, and historical high leverage poses a risk.

Income Statement

Lisi Group (Holdings) Limited demonstrated significant improvement in financial performance over the past few years. The gross profit margin improved from 23.6% in 2020 to 25.9% in 2024, while the net profit margin increased from a negative 5.8% in 2020 to a positive 12.1% in 2024. Notably, the company achieved consistent revenue growth, with a 10.9% rise in 2024 from the previous year. However, past negative EBIT and EBITDA margins due to high expenses highlight potential risk factors.

Balance Sheet

The company has shown improvement in its financial stability, with stockholders' equity growing from negative figures in 2022 to positive in 2024. The debt-to-equity ratio decreased significantly from 10.8 in 2022 to 0.29 in 2024, indicating better leverage management. However, the equity ratio remains low, reflecting potential vulnerabilities in asset financing.

Cash Flow

Operating cash flow has been erratic, with a significant decline in 2024 compared to 2023. The free cash flow turned negative in 2024 after being positive in 2023, indicating challenges in managing cash from operations and capital expenditures. The operating cash flow to net income ratio is low, suggesting inefficiencies in converting income into cash.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
2.76B	2.69B	2.42B	2.13B	1.85B	2.67B
	Gross Profit
666.74M	695.22M	628.18M	550.01M	320.10M	501.40M
	EBIT
-166.63M	467.17M	390.45M	322.30M	-1.47B	257.37M
	EBITDA
548.95M	541.84M	461.25M	386.36M	-2.22B	323.48M
	Net Income Common Stockholders
5.63M	325.05M	269.76M	237.22M	-2.55B	-154.46M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.77B	1.35B	468.80M	327.58M	419.10M	21.06M
	Total Assets
4.06B	4.07B	3.87B	5.01B	5.13B	7.95B
	Total Debt
733.13M	690.98M	887.19M	2.85B	2.93B	1.38B
	Net Debt
-236.47M	142.72M	433.69M	2.53B	2.60B	1.37B
	Total Liabilities
1.69B	1.67B	1.80B	5.27B	5.01B	5.30B
	Stockholders Equity
2.37B	2.39B	2.07B	-254.79M	119.27M	2.65B
Cash Flow		Free Cash Flow
430.42M	-5.49M	173.42M	-89.69M	-247.36M	13.65M
	Operating Cash Flow
516.56M	68.33M	247.91M	37.83M	-175.40M	73.72M
	Investing Cash Flow
94.92M	143.94M	-26.37M	127.97M	-27.08M	241.53M
	Financing Cash Flow
-12.57M	-117.77M	-88.90M	-176.76M	-50.59M	106.38M

Lisi Group (Holdings) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0526, the sentiment is Negative. The current price of 0.12 is above the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.11, and below the 200-day MA of 0.14, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.14 is Neutral, neither overbought nor oversold. The STOCH value of 9.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0526.

Lisi Group (Holdings) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2388	78 Outperform	$367.93B	9.62	11.58%	3.35%	8.61%	16.84%
0001	75 Outperform	$176.37B	10.32	3.16%	6.63%	2.10%	-27.28%
0012	75 Outperform	$121.52B	19.30	1.94%	10.46%	-7.64%	-32.01%
0016	73 Outperform	HK$244.57B	14.04	2.88%	4.85%	20.91%	-29.29%
0083	70 Outperform	HK$74.94B	19.71	2.17%	1.83%	-30.38%	-43.73%
Sector *	63 Neutral	$6.94B	11.34	2.80%	4.26%	2.68%	-24.70%
0526	55 Neutral	HK$1.02B	158.75	0.24%	―	8.78%	-98.52%

Lisi Group (Holdings) Limited Corporate Events

Lisi Group Announces New Lease Agreement for Operational Properties

Lisi Group (Holdings) Limited has announced the renewal of a lease agreement between its subsidiary, Lisi Household, and Lisi Electrical for a property lease spanning three years from June 2025 to May 2028. The new lease agreement, recognized as a one-off connected transaction under the Hong Kong Listing Rules, involves a monthly rental increase and will be accounted for as right-of-use assets, impacting the company’s financial reporting.

Lisi Group Faces Uncertainty in Potential Acquisition

Lisi Group (Holdings) Limited announced a letter of intent regarding a potential acquisition, which involved exclusive negotiations with a vendor. Despite efforts to proceed with the acquisition and conduct due diligence, no significant progress has been made, and the exclusivity period has expired without a definitive agreement. The company is assessing the situation and communicating with the vendor, but there is a possibility that the acquisition may not proceed. Shareholders and potential investors are advised to exercise caution.

Lisi Group Announces Change in Hong Kong Share Registrar

Lisi Group (Holdings) Limited has announced a change in its Hong Kong share registrar and transfer office. Effective from March 31, 2025, the company will transition its services to Tricor Investor Services Limited, impacting the process for registration of share transfers and collection of share certificates.