Lai Fung Holdings (1125) AI Stock Analysis

• Market Cap: HK$354.21M
• Dividend Yield: N/A
• Average Volume (3M): 1.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.59
• Revenue Growth: -33.68%
• EPS Growth: 55.84%
• Country: HK
• Employees: 1,500
• Sector: Financial
• Sector Strength: 82
• Industry: Real Estate - Development
• EPS (TTM): -0.49
• Shares Outstanding: 331,033,450
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 1,060
• PEG Ratio: -0.58
• Price to Book (P/B): 0.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.16
• 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: 53 Neutral
• Price Target: HK$1.00 ▼(-6.54%Downside)

The overall stock score for Lai Fung Holdings is primarily impacted by ongoing financial performance challenges, with negative profitability metrics as a key concern. Technical analysis shows moderate bullish momentum, providing some positive outlook. However, valuation remains weak due to the negative P/E ratio and lack of dividend yield, underscoring the need for the company to stabilize earnings and improve profitability to enhance investor confidence.

Lai Fung Holdings Business Overview & Revenue Model

Company Description

Lai 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 Money

Lai Fung Holdings generates revenue primarily through the sale and leasing of properties developed by the company. The company develops residential properties and sells them to generate immediate revenue. Additionally, Lai Fung Holdings invests in commercial properties such as office buildings, retail spaces, and hotels, which are leased to generate recurring income. The company also benefits from property appreciation over time, which contributes to increased asset value and potential capital gains. Strategic partnerships and joint ventures with local developers and international investors further enhance their project capabilities and financial performance.

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

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

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

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.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	1.47B	2.19B	1.80B	2.52B	3.20B	1.20B
Gross Profit	466.00M	889.99M	901.99M	1.30B	719.12M	597.27M
EBITDA	172.06M	918.86M	588.87M	1.05B	390.87M	-561.60M
Net Income	-257.12M	-267.66M	-584.70M	-283.88M	-675.57M	-1.22B
Balance Sheet
Total Assets	28.30B	28.47B	30.12B	33.78B	35.14B	30.96B
Cash, Cash Equivalents and Short-Term Investments	1.78B	1.01B	1.65B	2.11B	2.82B	1.19B
Total Debt	10.02B	9.81B	10.57B	11.89B	11.54B	10.29B
Total Liabilities	15.89B	15.76B	17.61B	19.32B	19.69B	16.54B
Stockholders Equity	12.04B	12.32B	12.78B	14.61B	15.43B	14.31B
Cash Flow
Free Cash Flow	-33.23M	342.64M	553.26M	238.23M	1.38B	-565.09M
Operating Cash Flow	-10.66M	394.71M	626.41M	407.38M	1.65B	-164.06M
Investing Cash Flow	-80.89M	-261.62M	798.02M	-907.80M	-1.19B	-1.47B
Financing Cash Flow	-221.70M	-749.85M	-1.77B	-118.37M	1.09B	982.03M

Lai Fung Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 1.07 is below the 20-day moving average (MA) of 1.11, below the 50-day MA of 1.09, and below the 200-day MA of 1.21, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 32.45 is Neutral, neither overbought nor oversold. The STOCH value of 68.27 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	67 Neutral	$17.01B	11.90	9.70%	3.76%	11.63%	-9.47%
1125	53 Neutral	HK$354.21M	―	-2.09%	―	-33.68%	55.84%
TMPPF		$51.14M	―	-3320.67%	―	―	―
GUW		€41.90M	―	-31.96%	61.90%	―	―
MKU0		€50.33M	―	-280.53%	―	―	―
3ZH		€39.47M	―	-42.12%	―	―	―
1628	40 Neutral	HK$467.28M	―		―	-55.88%	-10.72%

Lai Fung Holdings Corporate Events

Lai Fung Holdings Continues Efforts to Restore Public Float Amid Ongoing Operations

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.