tiprankstipranks
Trending News
More News >
Lai Fung Holdings Limited (HK:1125)
:1125
Hong Kong Market
Advertisement

Lai Fung Holdings (1125) AI Stock Analysis

Compare
1 Followers

Top Page

HK:1125

Lai Fung Holdings

(1125)

Rating:46Neutral
Price Target:
HK$1.00
▲(2.04%Upside)
Lai Fung Holdings' stock is rated low due to significant financial performance challenges, including negative profitability measures and inconsistent revenue growth. Technical analysis signals bearish trends, and valuation metrics are unfavorable with a negative P/E ratio. The lack of earnings call and corporate events data leaves these aspects unassessed.

Lai Fung Holdings (1125) vs. iShares MSCI Hong Kong ETF (EWH)

Lai Fung Holdings Business Overview & Revenue Model

Company DescriptionLai Fung Holdings Limited, an investment holding company, engages in the property development and investment businesses in Mainland China, Hong Kong, and internationally. It operates through four segments: The Property Development, The Property Investment, The Hotel and Serviced Apartment Operation, and The Theme Park Operation. The company invests in and develops hotels and serviced apartments, as well as residential, office, and commercial properties; and invests in, develops, and operates cultural, leisure, and entertainment and related facilities. It is also involved in the property and building management business. In addition, the company operates theme parks. The company was incorporated in 1997 and is headquartered in Central, Hong Kong. Lai Fung Holdings Limited is a subsidiary of Lai Sun Development Company Limited.
How the Company Makes MoneyLai Fung Holdings generates revenue through the sale and leasing of its developed properties. The company earns income by selling residential units in its real estate developments and leasing commercial spaces such as shopping malls and office buildings. Additionally, the company may generate revenue from property management services and partnerships with local governments or other real estate firms for joint development projects. Lai Fung Holdings' revenue streams are influenced by the real estate market conditions, property valuations, and consumer demand in Mainland China.

Lai Fung Holdings Financial Statement Overview

Summary
Lai Fung Holdings shows mixed financial health with stable revenue growth but ongoing profitability challenges, evident from negative net profit margins and return on equity. The balance sheet is moderately stable with manageable leverage, while cash flow operations remain resilient despite reduced free cash flow.
Income Statement
45
Neutral
Lai Fung Holdings has shown some volatility in its financial performance over the years. The gross profit margin for the most recent year stands at 40.6%, indicating a stable ability to cover costs relative to revenue. However, the company has faced challenges with net income, as evidenced by the negative net profit margin of -12.2% for the latest period, reflecting ongoing profitability issues. Revenue growth has been inconsistent, with a positive growth rate of 21.8% in the most recent year, a recovery from a previous decline. The EBIT and EBITDA margins are relatively healthy at 39.7% and 41.9%, respectively, but the persistent losses highlight underlying profitability concerns.
Balance Sheet
55
Neutral
The balance sheet of Lai Fung Holdings exhibits moderate financial health. The debt-to-equity ratio is 0.80, indicating a balanced approach to leveraging. However, the equity ratio of 43.3% suggests a moderate level of financial stability, as a substantial portion of the company's assets is financed by equity. Return on equity is negative at -2.2%, pointing to challenges in generating returns for shareholders given the net losses. The company's financial structure remains stable, but profitability needs improvement.
Cash Flow
60
Neutral
Cash flow analysis reveals a mixed picture for Lai Fung Holdings. The free cash flow growth rate is negative, at -38.1%, indicating a reduction in available cash after capital expenditures. However, the operating cash flow to net income ratio is favorable at -1.47, suggesting that the company generates sufficient cash from operations relative to its net losses. The free cash flow to net income ratio is -1.28, reflecting the cash-generating challenges in light of negative net income. The company shows resilience in cash flow generation despite profitability issues.
BreakdownTTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue1.47B2.19B1.80B2.52B3.20B1.20B
Gross Profit466.00M889.99M901.99M1.30B719.12M597.27M
EBITDA172.06M918.86M588.87M1.05B390.87M-561.60M
Net Income-257.12M-267.66M-584.70M-283.88M-675.57M-1.22B
Balance Sheet
Total Assets28.30B28.47B30.12B33.78B35.14B30.96B
Cash, Cash Equivalents and Short-Term Investments1.78B1.01B1.65B2.11B2.82B1.19B
Total Debt10.02B9.81B10.57B11.89B11.54B10.29B
Total Liabilities15.89B15.76B17.61B19.32B19.69B16.54B
Stockholders Equity12.04B12.32B12.78B14.61B15.43B14.31B
Cash Flow
Free Cash Flow-33.23M342.64M553.26M238.23M1.38B-565.09M
Operating Cash Flow-10.66M394.71M626.41M407.38M1.65B-164.06M
Investing Cash Flow-80.89M-261.62M798.02M-907.80M-1.19B-1.47B
Financing Cash Flow-221.70M-749.85M-1.77B-118.37M1.09B982.03M

Lai Fung Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.98
Price Trends
50DMA
1.07
Negative
100DMA
1.09
Negative
200DMA
1.16
Negative
Market Momentum
MACD
-0.03
Positive
RSI
38.15
Neutral
STOCH
29.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1125, the sentiment is Negative. The current price of 0.98 is below the 20-day moving average (MA) of 1.03, below the 50-day MA of 1.07, and below the 200-day MA of 1.16, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 38.15 is Neutral, neither overbought nor oversold. The STOCH value of 29.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1125.

Lai Fung Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$17.09B11.289.28%3.81%11.08%-4.02%
46
Neutral
HK$317.79M-2.09%-33.68%55.84%
$54.89M-3320.67%
€49.02M-31.96%61.90%
€47.34M-280.53%
€42.11M-42.12%
39
Underperform
HK$387.22M
-55.88%-10.72%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1125
Lai Fung Holdings
0.95
-0.70
-42.42%
TMPPF
Times China Holdings
0.05
-0.02
-28.57%
DE:GUW
Guangdong Land Holdings Limited
0.02
0.00
0.00%
DE:MKU0
Peking University Resources Holdings Co. Ltd.
0.01
-0.03
-75.00%
DE:3ZH
Zhongliang Holdings Group Company Limited
0.01
0.00
0.00%
HK:1628
Yuzhou Group Holdings Co., Ltd.
0.04
-0.02
-33.33%

Lai Fung Holdings Corporate Events

Lai Fung Holdings Updates Nomination Committee Terms
Jul 15, 2025

Lai Fung Holdings Limited has revised the terms of reference for its Nomination Committee to align with the updated Listing Rules of the Hong Kong Stock Exchange effective from July 2025. The committee, established in January 2022, is responsible for reviewing the board’s structure and composition, identifying suitable director candidates, and ensuring diversity and independence among its members. These changes aim to enhance the company’s corporate strategy and promote shareholder value.

Lai Fung Holdings Announces Changes to Nomination Committee
Jul 15, 2025

Lai Fung Holdings Limited has announced changes to its Nomination Committee, effective from July 15, 2025. The company has appointed Madam U Po Chu, an executive director, and Mr. Au Hoi Fung, an independent non-executive director, as new members. This change maintains a majority of independent non-executive directors in the committee, which now includes two executive directors and three independent non-executive directors. The appointments reflect the company’s commitment to diverse representation and independent oversight, potentially enhancing its governance structure.

Lai Fung Holdings Announces Board of Directors and Their Roles
Jul 15, 2025

Lai Fung Holdings Limited has announced its current board of directors, comprising 13 members, along with their roles and principal functions within the company. This announcement provides clarity on the governance structure and delineates the responsibilities of each director, which is crucial for stakeholders to understand the leadership dynamics and decision-making processes within the company.

Lai Fung Holdings Continues Efforts to Restore Public Float Amid Ongoing Operations
May 7, 2025

Lai Fung Holdings Limited has announced ongoing discussions regarding the potential sell-down of shares by its core connected persons to restore the public float of the company. Despite the lack of legally binding agreements, the company continues its normal operations and plans to provide quarterly updates on the progress of the public float restoration, advising caution to shareholders and potential investors due to potential trading suspensions.

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.Date of analysis: Jul 15, 2025