Lion Rock Group (1127) AI Stock Analysis

• Market Cap: HK$1.04B
• Dividend Yield: 7.86%
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): 5.0
• Beta (1Y): 0.16
• Revenue Growth: -4.03%
• EPS Growth: 8.61%
• Country: HK
• Employees: 1,817
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.10
• Shares Outstanding: 770,000,000
• 10 Day Avg. Volume: 1,888,400
• 30 Day Avg. Volume: 1,127,071
• PEG Ratio: 0.28
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 4.38
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: HK$1.50 ▲(7.14% Upside)

Lion Rock Group's strong financial performance and attractive valuation are the primary drivers of its overall score. The company's solid profitability and prudent financial management position it well within the industry. While technical indicators suggest a neutral market sentiment, the low P/E ratio and high dividend yield make it appealing for value and income investors.

Positive Factors

Balance Sheet Health

A strong equity ratio indicates financial stability, providing a solid foundation for future growth and resilience against economic downturns.

Profitability Margins

Strong profitability margins reflect efficient operations and pricing power, enabling sustained earnings and competitive positioning.

Cash Flow Generation

Consistent cash flow generation supports operational needs and capital expenditures, ensuring long-term financial flexibility and growth potential.

Negative Factors

Revenue Growth Decline

A decline in revenue growth may indicate challenges in market expansion or competitive pressures, potentially impacting future profitability.

Incomplete Cash Flow Data

Incomplete cash flow data hinders a full assessment of financial health, raising concerns about transparency and future cash management.

Earnings Decline

A significant decline in earnings since the last filing suggests potential operational issues or market challenges affecting profitability.

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 generates revenue primarily through its real estate operations, including rental income from its retail and commercial properties. The company also profits from property sales and development projects, where it capitalizes on the appreciation of real estate values. Additionally, the firm may earn fees from property management services and potentially from financial services related to its investment activities. Key partnerships with developers, local governments, and financial institutions also enhance its revenue streams, enabling the company to leverage resources and expertise in various projects.

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.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.51B	2.67B	2.56B	2.50B	1.74B	1.37B
Gross Profit	835.07M	890.14M	852.34M	831.42M	447.08M	337.96M
EBITDA	423.34M	544.68M	553.59M	555.83M	230.92M	232.32M
Net Income	211.35M	214.41M	185.25M	219.91M	132.49M	104.32M
Balance Sheet
Total Assets	2.58B	2.59B	2.89B	2.80B	2.03B	1.87B
Cash, Cash Equivalents and Short-Term Investments	438.50M	500.49M	780.09M	770.22M	431.92M	502.29M
Total Debt	257.77M	299.42M	485.74M	551.97M	335.70M	290.33M
Total Liabilities	798.70M	848.09M	1.09B	1.14B	680.46M	589.40M
Stockholders Equity	1.54B	1.51B	1.45B	1.36B	1.23B	1.15B
Cash Flow
Free Cash Flow	451.24M	219.05M	271.39M	273.80M	55.96M	207.61M
Operating Cash Flow	509.77M	393.41M	484.66M	512.51M	105.90M	239.70M
Investing Cash Flow	-55.97M	-155.39M	-173.76M	-176.99M	-126.00M	-121.68M
Financing Cash Flow	-523.31M	-500.90M	-286.18M	-7.94M	-44.66M	-129.84M

Lion Rock Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.40
• 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 1.4 is above the 20-day moving average (MA) of 1.37, above the 50-day MA of 1.32, and above the 200-day MA of 1.32, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 62.83 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 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
1540	74 Outperform	HK$219.42M	6.18	12.81%	18.18%	-7.56%	-2.06%
1127	74 Outperform	HK$1.04B	4.98	14.20%	7.86%	-4.03%	8.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1975	63 Neutral	HK$177.60M	-1.98	-20.83%	8.60%	-26.30%	-617.37%
0450	50 Neutral	HK$828.79M	-9.42	-3.21%	13.04%	-11.14%	-280.56%
8385	46 Neutral	HK$22.86M	-0.53	―	―	-92.47%	14.17%
8448	41 Neutral	HK$43.41M	47.80	8.43%	―	-6.56%	―

Lion Rock Group Corporate Events

Lion Rock Group Revises Annual Caps Amid Changing Market Demands

Lion Rock Group Limited has announced a revision of its annual caps for the Books Transaction Fee and Printing Transaction Fee under its Framework Agreement with Giunti. This adjustment reflects an anticipated increase in demand for book transactions driven by Quarto’s expansion in European language books, while printing demand is expected to decrease temporarily due to the European Union Deforestation Regulation. The company has secured EUDR-compliant paper to meet future printing needs, and expects demand to return to previous levels by 2026. Internal control measures are in place to ensure compliance with the Framework Agreement and protect shareholder interests.

Lion Rock Group Appoints New Independent Non-Executive Director

Lion Rock Group Limited, a company listed on the Hong Kong Stock Exchange, has announced the appointment of Ms. Ng Cheuk Hei, Shirley as an independent non-executive director. Ms. Ng brings over 25 years of experience in the fintech digital economy and IT industry, and will also serve on the Audit, Remuneration, and Nomination Committees. This strategic appointment is expected to enhance the company’s governance and provide valuable insights due to Ms. Ng’s extensive background in business and marketing management.

Lion Rock Group Announces Board Restructuring

Lion Rock Group Limited has announced changes to its board of directors, effective from 15 October 2025. The board comprises executive, non-executive, and independent non-executive directors, with specific members assigned to the audit, remuneration, and nomination committees. This restructuring is likely to impact the company’s governance and operational oversight, potentially influencing its strategic direction and stakeholder relations.

Lion Rock Group Announces Director Re-designation

Lion Rock Group Limited has announced the re-designation of Mr. Chu Chun Wan from an executive Director to a non-executive Director, effective from September 13, 2025. Mr. Chu, who has over 40 years of experience in the printing industry, will continue to serve as emeritus chairman of Asia Pacific Offset Limited, a subsidiary of the Group. This move is part of a strategic transition within the company, allowing Mr. Chu to continue contributing to the Group’s operations while stepping back from day-to-day management. The Board expressed gratitude for Mr. Chu’s past contributions and looks forward to his ongoing involvement in a non-executive capacity.

Lion Rock Group Announces Board Restructuring

Lion Rock Group Limited, a company incorporated in Bermuda with limited liability, announced changes to its board of directors effective from September 13, 2025. The board comprises executive, non-executive, and independent non-executive directors, with specific roles in audit, remuneration, and nomination committees. This restructuring of the board may impact the company’s governance and strategic direction, potentially influencing its market positioning and stakeholder relations.