Lai Fung Holdings (1125) AI Stock Analysis

• Market Cap: HK$304.55M
• Dividend Yield: N/A
• Average Volume (3M): 10.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: -39.37%
• EPS Growth: -56.69%
• Country: HK
• Employees: 1,500
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): -0.77
• Shares Outstanding: 331,033,450
• 10 Day Avg. Volume: 11,440
• 30 Day Avg. Volume: 10,073
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: HK$1.00 ▲(8.70% Upside)

Lai Fung Holdings' overall stock score is primarily impacted by its financial performance challenges, including declining revenue and profitability issues. Technical analysis provides some positive signals, but valuation concerns due to a negative P/E ratio and lack of dividends weigh heavily on the score.

Positive Factors

Stable Asset Base

A stable equity ratio indicates a strong asset base, providing a foundation for future growth and financial stability.

Operational Efficiency

Stable gross profit margins reflect effective cost management, which can support profitability even amid revenue challenges.

Cash Generation from Operations

Positive cash flow from operations indicates the company's ability to generate cash internally, supporting liquidity and operational needs.

Negative Factors

Declining Revenue

Declining revenue growth poses a challenge to sustaining long-term business expansion and market competitiveness.

Profitability Challenges

Negative profit margins indicate ongoing profitability issues, which can impact the company's ability to reinvest and grow.

Cash Flow Concerns

Declining free cash flow growth suggests potential liquidity constraints, affecting the company's financial flexibility and investment capacity.

Lai Fung Holdings Business Overview & Revenue Model

Company Description

Lai Fung Holdings Limited (1125) is a prominent real estate development and investment company based in Hong Kong. The company primarily operates in the property sector, focusing on the development, management, and sale of residential, commercial, and industrial properties. Lai Fung also engages in property leasing and investment activities, which contribute to its portfolio of high-quality real estate assets. The company is dedicated to enhancing its property holdings and ensuring sustainable growth through strategic land acquisitions and development projects.

How the Company Makes Money

Lai Fung Holdings generates revenue through several key streams, primarily from the sale of residential and commercial properties within its development projects. The company profits from the leasing of its properties, which provides a stable income through rental agreements. Additionally, Lai Fung engages in property management services, further contributing to its revenue. Significant partnerships with local government entities and collaborations with other real estate developers can enhance its operational capabilities and lead to lucrative development opportunities. Factors such as the demand for residential and commercial spaces in Hong Kong, market trends, and the company’s strategic development initiatives play critical roles in driving its earnings.

Lai Fung Holdings Financial Statement Overview

Summary

Lai Fung Holdings faces significant financial challenges, with declining revenue and profitability issues. Despite a stable balance sheet, cash flow problems pose risks to future operations.

Income Statement

Lai Fung Holdings has experienced declining revenue over the past year, with a negative revenue growth rate of -11.99% in 2025. The company also faces challenges with profitability, as indicated by a negative net profit margin. Despite these challenges, the gross profit margin remains relatively stable, suggesting some operational efficiency.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. However, the return on equity is negative, reflecting ongoing profitability challenges. The equity ratio is stable, suggesting a solid asset base relative to equity.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth, indicating potential liquidity issues. The operating cash flow to net income ratio is positive, suggesting that the company is generating cash from operations despite net losses. However, the free cash flow to net income ratio is concerning, highlighting cash flow challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.39B	1.29B	2.19B	1.80B	2.52B	3.20B
Gross Profit	525.17M	525.17M	889.99M	901.99M	1.30B	719.12M
EBITDA	359.63M	280.61M	918.86M	235.54M	868.46M	390.87M
Net Income	-419.42M	-419.42M	-267.66M	-584.70M	-283.88M	-675.57M
Balance Sheet
Total Assets	28.59B	28.59B	28.47B	30.12B	33.78B	35.14B
Cash, Cash Equivalents and Short-Term Investments	1.04B	1.04B	1.01B	1.65B	2.11B	2.82B
Total Debt	10.26B	10.26B	9.81B	10.57B	11.89B	11.54B
Total Liabilities	16.24B	16.24B	15.76B	17.61B	19.32B	19.69B
Stockholders Equity	12.03B	12.03B	12.32B	12.78B	14.61B	15.43B
Cash Flow
Free Cash Flow	-305.91M	292.17M	342.64M	553.26M	238.23M	1.38B
Operating Cash Flow	-277.18M	320.90M	394.71M	626.41M	407.38M	1.65B
Investing Cash Flow	-94.29M	-22.07M	-261.62M	798.02M	-907.80M	-1.19B
Financing Cash Flow	340.64M	-281.25M	-749.85M	-1.77B	-118.37M	1.09B

Lai Fung Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.92
• 50DMA: Positive
• 100DMA: Positive
• 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:1125, the sentiment is Positive. The current price of 0.92 is below the 20-day moving average (MA) of 1.00, below the 50-day MA of 0.97, and below the 200-day MA of 1.04, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 52.02 is Neutral, neither overbought nor oversold. The STOCH value of 14.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1125.

Lai Fung Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
1125	50 Neutral	HK$304.55M	-0.71	-3.45%	―	-39.37%	-56.69%
2772	40 Underperform	HK$303.17M	-0.17	-34.31%	―	-63.41%	77.97%
0124	39 Underperform	€390.23M	-0.45	-21.15%	―	69.55%	64.09%
1233	38 Underperform	HK$385.74M	-0.01	―	―	-45.56%	-191.99%
1628	38 Underperform	HK$163.46M	>-0.01	―	―	-62.71%	-16.95%
0618	35 Underperform	€500.95M	0.56	260.87%	―	82.96%	―

Lai Fung Holdings Corporate Events

Lai Fung Holdings Continues Efforts to Restore Public Float

Lai Fung Holdings Limited has been actively working to restore its public float since the resumption of trading in its shares on the Stock Exchange in November 2022. The company is in discussions with its core connected persons to potentially sell down some of their holdings to achieve this goal. No binding agreements have been made yet, and the company will continue to update shareholders quarterly on the progress. Shareholders and potential investors are advised to exercise caution, as trading may be suspended if market conditions become disorderly.

Lai Fung Holdings Renews Property Management Agreements

Lai Fung Holdings has announced the renewal of its property management services agreements for Novotown Business Management with Laisun Creative Culture and Novotown Creative Culture. These agreements, effective from July 31, 2025, to July 31, 2026, ensure the continuation of connected transactions under the previous agreements. The transactions are subject to specific reporting and review requirements under the Hong Kong Stock Exchange Listing Rules, but they are exempt from the need for independent shareholders’ approval.

Lai Fung Holdings Updates Nomination Committee Terms

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

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

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.