Lion Rock Group (1127) AI Stock Analysis

• Market Cap: HK$1.08B
• Dividend Yield: 7.02%
• Average Volume (3M): 1.32M
• Price to Earnings (P/E): 5.1
• Beta (1Y): 0.13
• Revenue Growth: 4.13%
• EPS Growth: 14.42%
• Country: HK
• Employees: 1,817
• Sector: Industrials
• Sector Strength: 76
• Industry: Specialty Business Services
• EPS (TTM): N/A
• Shares Outstanding: 770,000,000
• 10 Day Avg. Volume: 1,203,999
• 30 Day Avg. Volume: 1,318,707
• 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$1.50
• Price Target Upside: 2.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: HK$1.50 ▲(2.74% Upside)

Lion Rock Group's strong financial performance and attractive valuation are the primary drivers of its overall score. The company's consistent revenue growth and solid margins, combined with a low P/E ratio and high dividend yield, make it appealing. Technical analysis suggests some short-term uncertainties, but the stock's fundamental strengths are a positive indicator.

Lion Rock Group Business Overview & Revenue Model

Company Description

Lion Rock Group Limited (1127) is a prominent printing and publishing company headquartered in Hong Kong. The company specializes in the production and distribution of a wide array of printed materials, including books, magazines, and other educational and commercial publications. Lion Rock Group operates through various subsidiaries and maintains a strong presence in the global printing market, offering high-quality printing services tailored to the needs of its diverse clientele.

How the Company Makes Money

Lion Rock Group primarily generates revenue through its comprehensive printing services, catering to publishers, educational institutions, and corporate clients worldwide. The company's key revenue streams include the production of books and educational materials, which are sold to a variety of markets, including North America, Europe, and Asia. Additionally, Lion Rock Group benefits from strategic partnerships with renowned publishing houses and educational organizations, enhancing its market reach and contributing to its earnings. The group's ability to offer competitive pricing, high-quality printing, and timely delivery further solidifies its revenue base.

Lion Rock Group Financial Statement Overview

Summary

Lion Rock Group exhibits strong financial health with consistent revenue growth and solid profitability margins. The company maintains a stable balance sheet with prudent leverage and a strong equity buffer. While cash flow data for 2024 is incomplete, historical performance suggests effective cash management. Overall, the company is well-positioned within the Specialty Business Services industry, demonstrating both growth and stability.

Income Statement

Lion Rock Group has demonstrated strong revenue growth, with a 4.1% increase from 2023 to 2024. The company maintains healthy margins with a Gross Profit Margin of 33.4% and a Net Profit Margin of 8.0% in 2024. The EBIT margin is stable at 10.6%, reflecting efficient operations. The EBITDA margin of 17.1% indicates strong earnings before interest, taxes, depreciation, and amortization.

Balance Sheet

The company has a strong equity base with an Equity Ratio of 58.3% in 2024, indicating financial stability. The Debt-to-Equity Ratio has improved to 0.20, suggesting prudent leverage management. Return on Equity remains robust at 14.2%, showcasing effective utilization of shareholders' equity. The company's liquidity position is commendable, with significant cash reserves.

Cash Flow

The absence of operating and free cash flow data for 2024 hinders a complete assessment. However, historical data shows strong free cash flow generation with a positive trend in previous years. The company has consistently managed to generate cash flow to support its operations and capital expenditures.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.67B	2.56B	2.50B	1.74B	1.37B
Gross Profit	890.14M	852.34M	831.42M	447.08M	337.96M
EBITDA	544.68M	553.59M	524.98M	230.92M	232.32M
Net Income	214.41M	185.25M	219.91M	132.49M	104.32M
Balance Sheet
Total Assets	2.59B	2.89B	2.80B	2.03B	1.87B
Cash, Cash Equivalents and Short-Term Investments	500.49M	780.09M	770.22M	431.92M	502.29M
Total Debt	299.42M	485.74M	551.97M	335.70M	290.33M
Total Liabilities	848.09M	1.09B	1.14B	680.46M	589.40M
Stockholders Equity	1.51B	1.45B	1.36B	1.23B	1.15B
Cash Flow
Free Cash Flow	219.05M	271.39M	273.80M	55.96M	207.61M
Operating Cash Flow	393.41M	484.66M	512.51M	105.90M	239.70M
Investing Cash Flow	-155.39M	-173.76M	-176.99M	-126.00M	-121.68M
Financing Cash Flow	-500.90M	-286.18M	-7.94M	-44.66M	-129.84M

Lion Rock Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.46
• 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:1127, the sentiment is Positive. The current price of 1.46 is above the 20-day moving average (MA) of 1.43, above the 50-day MA of 1.41, and above the 200-day MA of 1.30, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 56.06 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1127.

Lion Rock Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1127	78 Outperform	HK$1.08B	5.07	14.47%	7.02%	4.13%	14.42%
Sector *	64 Neutral	$10.95B	16.37	8.81%	1.96%	2.68%	-15.33%
HUV	―	€94.54M	16.98	-3.21%	―	―	―
1540	68 Neutral	HK$216.92M	6.19	12.14%	18.60%	-5.82%	2.69%
1975	63 Neutral	HK$189.60M	13.30	3.04%	8.86%	-26.49%	-16.57%
8448	43 Neutral	HK$20.46M	33.06	8.15%	―	134.32%	―
8385	41 Neutral	HK$8.87M	―	-363.24%	―	-65.76%	-84.78%

Lion Rock Group Corporate Events

Lion Rock Group Announces Leadership Transition

Lion Rock Group Limited announced the retirement of its executive director and chief financial officer, Ms. Lam Mei Lan, effective at the end of the year. Ms. Lam has played a crucial role in the company’s transformation into a major player in the printing and publishing industry. Mr. Wong Sai Yeung Colin will succeed her as the chief operating officer and chief financial officer, starting August 1, 2025, ensuring a smooth transition for the company.

Lion Rock Group Enhances Board Governance with New Nomination Committee Terms

Lion Rock Group Limited has announced the terms of reference for its Nomination Committee, which is responsible for ensuring a balanced and diverse board composition. The committee is composed of at least three members, primarily independent non-executive directors, and is empowered to seek independent advice and resources to fulfill its duties. This move aims to strengthen the company’s governance by ensuring that the board maintains a mix of skills and perspectives, thereby enhancing its ability to make independent judgments and manage changes effectively.

Lion Rock Group Appoints Independent Non-Executive Director

Lion Rock Group Limited, a company incorporated in Bermuda and listed on the Hong Kong Stock Exchange, has announced the appointment of Mr. Ng as an independent non-executive director. Mr. Ng has confirmed his independence according to the relevant rules and has no financial or other interests in the company’s business, ensuring his impartiality. This appointment is part of the company’s ongoing efforts to maintain a robust and independent board structure, which is crucial for its governance and strategic oversight.

Lion Rock Group Secures Shareholder Support at AGM

Lion Rock Group Limited announced the successful passing of all resolutions at its Annual General Meeting held on May 16, 2025. The resolutions included the adoption of audited financial statements, re-election of directors, and approval of remuneration packages for directors, all of which received overwhelming support from shareholders. This outcome reflects strong shareholder confidence in the company’s leadership and strategic direction.