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

• Market Cap: HK$1.10B
• Dividend Yield: N/A
• Average Volume (3M): 946.27K
• Price to Earnings (P/E): 3.9
• Beta (1Y): 0.29
• Revenue Growth: -13.48%
• EPS Growth: 1525.00%
• Country: HK
• Employees: 1,154
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): <0.01
• Shares Outstanding: 8,844,020,500
• 10 Day Avg. Volume: 2,185,200
• 30 Day Avg. Volume: 946,266
• PEG Ratio: -0.30
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 4.94
• 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: 58 Neutral
• Price Target: HK$0.13 ▲(61.25% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is held back primarily by weakening financial performance—sharp margin compression, a steep decline in free cash flow, and low cash conversion—despite a stable leverage position. Offsetting this, the stock shows positive price momentum above key moving averages and trades at a low P/E, supporting a mid-range overall score.

Positive Factors

Moderate leverage / stable balance sheet

A debt-to-equity of 0.33 and an equity-heavy asset base provide financial flexibility. Moderate leverage reduces refinancing risk and gives the company capacity to absorb shocks or fund targeted investments, supporting resilience over the next several months.

Ongoing cash conversion ability

Despite a decline in absolute free cash flow, a FCF-to-net-income ratio of 0.60 shows the business still converts a material portion of accounting profits into cash. That conversion supports medium-term operational funding and reduces reliance on external financing.

Revenue resilience

A modest revenue decline (~2.7%) rather than a steep drop suggests underlying demand or core operations remain largely intact. With stable top-line base, management can focus on margin restoration and efficiency initiatives to drive recovery over 2–6 months.

Negative Factors

Severe margin compression

A collapse in net margin from 12.10% to 1.33% materially reduces internal capital generation and buffer against cost shocks. Sustained margin pressure will impair reinvestment, hurt return metrics, and make the business more sensitive to cyclical downturns over the medium term.

Material decline in free cash flow

A >50% drop in free cash flow and OCF-to-net-income of 0.20 indicate earnings are not translating into cash. That weak cash generation constrains capex, debt servicing and strategic investments, raising medium-term liquidity and operational risk.

Return on equity deterioration

ROE collapsing to ~1.4% signals the company is generating minimal returns for shareholders versus prior year levels. Persistently low ROE undermines investor confidence, limits ability to attract capital, and reflects structural profitability or efficiency issues.

Lisi Group (Holdings) Limited Business Overview & Revenue Model

Company Description

China Automobile New Retail (Holdings) Limited, an investment holding company, manufactures and trades in plastic and metallic household products. The company operates through six segments: Car Trading Platform, Car-Sale, Manufacturing and Trading, Retail, Wholesale, and Investments Holding. It provides imported cars platform and ancillary services, property rental services, and agency services for trading of cars. The company is also involved in the trading and selling of imported cars and related services; and wholesale of wine, as well as wholesaling, and installation of electrical appliances and HVAC equipment. In addition, it operates department stores; and supermarkets, as well as investments in debt and equity securities. The company operates in the Mainland China, Hong Kong, the United States, Europe, and internationally. The company was formerly known as Lisi Group (Holdings) Limited and changed its name to China Automobile New Retail (Holdings) Limited in July 2019. China Automobile New Retail (Holdings) Limited was incorporated in 1995 and is headquartered in Tsuen Wan, Hong Kong.

How the Company Makes Money

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Lisi Group (Holdings) Limited Financial Statement Overview

Summary

Financial results are weak overall: profitability deteriorated sharply (net margin fell from 12.10% to 1.33% and gross margin declined), revenue slipped (-2.68%), and cash generation weakened (free cash flow down 54.82% with low operating cash flow to net income of 0.20). The balance sheet is comparatively steadier with moderate leverage (debt-to-equity 0.33), but ROE fell to 1.44%.

Income Statement

The income statement shows a mixed performance. Gross profit margin has decreased from 25.87% to 22.47% over the last year, indicating reduced efficiency in generating profit from sales. Net profit margin has also declined significantly from 12.10% to 1.33%, reflecting challenges in maintaining profitability. Revenue has slightly decreased by 2.68%, which is concerning given the previous year's growth. EBIT and EBITDA margins have also fallen, suggesting increased operational challenges.

Balance Sheet

The balance sheet presents a stable debt-to-equity ratio of 0.33, indicating moderate leverage. Return on equity has decreased to 1.44% from 13.58%, highlighting reduced profitability for shareholders. The equity ratio is healthy, with stockholders' equity making up a significant portion of total assets, suggesting a stable financial structure.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth by 54.82%, indicating potential liquidity issues. The operating cash flow to net income ratio is 0.20, suggesting that cash generation from operations is not keeping pace with net income. The free cash flow to net income ratio of 0.60 indicates some ability to convert income into cash, but overall cash flow performance is weak.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2021
Income Statement
Total Revenue	2.39B	2.68B	2.69B	2.42B	2.13B	1.85B
Gross Profit	455.86M	603.38M	695.22M	628.18M	550.01M	320.10M
EBITDA	299.77M	155.22M	541.84M	461.25M	407.39M	-2.22B
Net Income	106.25M	35.69M	325.05M	269.76M	237.22M	-2.55B
Balance Sheet
Total Assets	4.04B	4.20B	4.07B	3.87B	5.01B	5.13B
Cash, Cash Equivalents and Short-Term Investments	1.23B	976.16M	1.35B	468.80M	327.58M	419.10M
Total Debt	732.74M	806.77M	690.98M	887.19M	2.85B	2.93B
Total Liabilities	1.51B	1.72B	1.67B	1.80B	5.27B	5.01B
Stockholders Equity	2.53B	2.48B	2.39B	2.07B	-254.79M	119.27M
Cash Flow
Free Cash Flow	24.55M	194.48M	-5.49M	173.42M	-89.69M	-247.36M
Operating Cash Flow	150.69M	323.85M	68.33M	247.91M	37.83M	-175.40M
Investing Cash Flow	-86.01M	-65.86M	143.94M	-26.37M	127.97M	-27.08M
Financing Cash Flow	37.97M	169.88M	-117.77M	-88.90M	-176.76M	-50.59M

Lisi Group (Holdings) Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.08
• 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:0526, the sentiment is Positive. The current price of 0.08 is below the 20-day moving average (MA) of 0.09, below the 50-day MA of 0.09, and below the 200-day MA of 0.09, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 64.92 is Neutral, neither overbought nor oversold. The STOCH value of 77.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0526	58 Neutral	HK$1.10B	3.92	4.24%	―	-13.48%	1525.00%
1728	52 Neutral	HK$1.43B	-0.14	1123.27%	―	-9.07%	-26.94%
1872	51 Neutral	HK$3.72B	-35.38	-8.58%	―	71.00%	-579.14%
2418	48 Neutral	HK$1.10B	20.65	3.86%	0.39%	-14.92%	-15.82%
3836	45 Neutral	HK$1.93B	-18.53	-4.42%	3.49%	11.33%	56.94%
1771	45 Neutral	HK$136.20M	-0.47	-8.81%	―	-24.42%	-115.68%

Lisi Group (Holdings) Limited Corporate Events

Lisi Group Undertakes Major Board and Committee Reshuffle

Lisi Group (Holdings) Limited has announced a sweeping overhaul of its board and committee structure, effective 12 March 2026, including the resignation of chairman and executive director Li Lixin, two other executive directors, and two independent non-executive directors. These departures also trigger changes in leadership of the remuneration, nomination and audit committees, as several outgoing directors are stepping down from key governance roles to focus on other business commitments.

To fill the vacancies, the company has appointed Xu Jinbo and Wang Yong as executive directors, with Xu also taking on the role of authorised representative and membership in the remuneration and nomination committees. In addition, Ke Yue and Jiang Yuexiang join as independent non-executive directors and assume chairmanships of the remuneration and nomination committees respectively, while Chen Wei becomes a member of the nomination committee, reshaping the company’s governance framework and signalling a significant refresh of its oversight structure for stakeholders.

The most recent analyst rating on (HK:0526) stock is a Hold with a HK$0.14 price target. To see the full list of analyst forecasts on Lisi Group (Holdings) Limited stock, see the HK:0526 Stock Forecast page.

Lisi Group Sets Out Board and Committee Structure

Lisi Group (Holdings) Limited has announced the current composition of its board, listing two executive directors, Xu Jinbo and Wang Yong, alongside three independent non-executive directors, Chen Wei, Ke Yue and Jiang Yuexiang. The disclosure clarifies the corporate governance structure by detailing the memberships and chairmanships of the Audit, Remuneration and Nomination Committees, underscoring the company’s adherence to board oversight and regulatory transparency in Hong Kong.

Chen Wei chairs the Audit Committee with Ke Yue and Jiang Yuexiang as members, while the Remuneration Committee is led by Ke Yue and includes Chen Wei and executive director Xu Jinbo. The Nomination Committee is chaired by Jiang Yuexiang, with membership from Chen Wei and Xu Jinbo, reflecting a separation of oversight roles that aims to support independent monitoring of financial reporting, pay policies and board appointments.

The most recent analyst rating on (HK:0526) stock is a Hold with a HK$0.14 price target. To see the full list of analyst forecasts on Lisi Group (Holdings) Limited stock, see the HK:0526 Stock Forecast page.

Lisi Group Implements Enhanced Internal Control Measures

Lisi Group (Holdings) Limited has announced the implementation of enhanced internal control measures aimed at preventing unauthorized payments to connected persons and ensuring compliance with Hong Kong Stock Exchange Listing Rules. These measures include stringent reporting protocols, approvals by the Internal Control Monitoring Group and the Board, and a detailed transaction review and approval process involving multiple layers of oversight to mitigate potential risks and conflicts of interest.

The most recent analyst rating on (HK:0526) stock is a Hold with a HK$0.09 price target. To see the full list of analyst forecasts on Lisi Group (Holdings) Limited stock, see the HK:0526 Stock Forecast page.