Lai Fung Holdings (1125) AI Stock Analysis

• Market Cap: HK$324.41M
• Dividend Yield: N/A
• Average Volume (3M): 28.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.52
• Revenue Growth: -33.68%
• EPS Growth: 55.84%
• Country: HK
• Employees: 1,500
• Sector: Real Estate
• Sector Strength: 49
• Industry: Real Estate - Development
• EPS (TTM): -0.49
• Shares Outstanding: 331,033,450
• 10 Day Avg. Volume: 9,537
• 30 Day Avg. Volume: 28,397
• PEG Ratio: N/A
• 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: HK$1.00
• Price Target Upside: -5.66% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 47 Neutral
• Price Target: HK$1.00 ▼(-5.66% Downside)

Lai Fung Holdings' overall stock score is primarily impacted by its mixed financial performance and concerning valuation. The company's stable revenue growth is overshadowed by persistent profitability issues and a negative P/E ratio. Technical analysis indicates a neutral to slightly bearish trend, further contributing to the lower score.

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 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

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: Positive
• Last Price: 1.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 1.06 is above the 20-day moving average (MA) of 0.97, above the 50-day MA of 0.99, and below the 200-day MA of 1.10, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 63.49 is Neutral, neither overbought nor oversold. The STOCH value of 67.67 is Neutral, 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 *	53 Neutral	$1.24B	3.03	-6.08%	5.65%	-8.21%	-81.31%
1125	47 Neutral	HK$324.41M	―	-2.09%	―	-33.68%	55.84%
TMPPF	―	$41.83M	―	-3320.67%	―	―	―
GUW	―	€50.38M	―	-21.15%	―	―	―
MKU0	―	€46.16M	―	-280.53%	―	―	―
3ZH	―	€37.14M	―	-34.29%	―	―	―
1628	38 Underperform	HK$460.80M	―		―	-62.71%	-16.95%

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.