Lion Rock Group (1127) AI Stock Analysis

• Market Cap: HK$1.01B
• Dividend Yield: 8.76%
• Average Volume (3M): 305.76K
• Price to Earnings (P/E): 4.8
• Beta (1Y): 0.14
• Revenue Growth: 4.13%
• EPS Growth: 14.42%
• Country: HK
• Employees: 1,817
• Sector: Services
• Sector Strength: N/A
• Industry: Specialty Business Services
• EPS (TTM): 0.28
• Shares Outstanding: 770,000,000
• 10 Day Avg. Volume: 297,285
• 30 Day Avg. Volume: 305,761
• PEG Ratio: 0.42
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.06
• 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: 78 Outperform
• Price Target: ―

Lion Rock Group's strong financial performance, characterized by robust revenue growth and profitability, is a significant strength. The company's low P/E ratio and high dividend yield offer an attractive valuation. Technical indicators suggest a positive trend, although not overly strong. Overall, the stock's strengths in financial health and valuation provide a solid investment case.

Lion Rock Group Business Overview & Revenue Model

Company Description

Lion Rock Group Limited, an investment holding company, provides printing services to international book publishers, trade, professional and educational publishing conglomerates, print media companies, and government departments. The company also provides graphic design services; and produces and distributes books and published content. It operates in the People's Republic of China, the United States, Australia, the United Kingdom, Spain, New Zealand, Germany, Canada, Singapore, Chile, Mexico, Malaysia, Hong Kong, and internationally. The company was formerly known as 1010 Printing Group Limited and changed its name to Lion Rock Group Limited in June 2017. Lion Rock Group Limited was founded in 2005 and is headquartered in Kowloon, Hong Kong.

How the Company Makes Money

Lion Rock Group makes money primarily through its comprehensive printing services. The company generates revenue by providing end-to-end printing solutions, including pre-press, printing, and post-press services to its clients. A significant portion of its income is derived from long-term contracts and partnerships with major publishers and educational institutions, ensuring a steady flow of projects and orders. Additionally, Lion Rock Group may leverage its extensive experience in the industry to offer specialized printing solutions that command premium pricing. The company's revenue streams are further supported by its investments in advanced printing technology and its ability to manage large-scale production efficiently, which enhances its competitive advantage and profitability.

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: 1.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1.38 is below the 20-day moving average (MA) of 1.38, above the 50-day MA of 1.36, and above the 200-day MA of 1.27, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.65 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 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$1.01B	4.79	14.47%	8.76%	4.13%	14.42%
Sector *	54 Neutral	$1.88B	-6.53	7.68%	2.82%	10.18%	-64.59%
HUV		€91.87M	16.98	-1.46%	17.02%	―	―
1540	68 Neutral	HK$209.44M	6.11	12.14%	9.52%	-5.82%	2.69%
1975	63 Neutral	HK$184.80M	12.96	3.04%	10.39%	-26.49%	-16.57%
8448	42 Neutral	HK$22.45M	―	-818.26%	―	93.85%	66.62%
8385	41 Neutral	HK$8.66M	―	-363.24%	―	-65.76%	-84.78%

Lion Rock Group Corporate Events

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.

Lion Rock Group Schedules Annual General Meeting with Key Resolutions

Lion Rock Group Limited has announced its upcoming annual general meeting scheduled for May 16, 2025, where key agenda items include the adoption of financial statements, re-election of directors, and approval of director remunerations for the year ending December 31, 2025. Additionally, the company seeks shareholder approval for a general mandate to allow directors to issue shares under specific conditions, which could impact the company’s capital structure and shareholder value.