Labixiaoxin Snacks Group Ltd. (1262) AI Stock Analysis

• Market Cap: HK$436.83M
• Dividend Yield: N/A
• Average Volume (3M): 20.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: 4.72%
• EPS Growth: 79.88%
• Country: HK
• Employees: 860
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.01
• Shares Outstanding: 218,416,090
• 10 Day Avg. Volume: 39,050
• 30 Day Avg. Volume: 20,140
• PEG Ratio: -0.01
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 0.32
• P/FCF Ratio: -8.21
• 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: 38 Underperform
• Price Target: HK$1.50 ▼(-25.00% Downside)

The overall stock score is primarily driven by weak financial performance and valuation concerns. The company's high leverage, negative profitability, and liquidity issues are significant risks. Technical analysis indicates a bearish trend, with the stock being oversold, which could suggest potential for a rebound, but the fundamental weaknesses overshadow this possibility.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, contributing to long-term business sustainability.

Product Diversification

A diversified product portfolio allows the company to adapt to changing consumer preferences and mitigate risks associated with market fluctuations.

Market Expansion

International market expansion enhances revenue potential and reduces dependency on domestic markets, supporting long-term growth.

Negative Factors

High Leverage

High leverage can strain financial stability, limiting the company's ability to invest in growth opportunities and increasing financial risk.

Profitability Concerns

Negative profitability indicates operational inefficiencies and challenges in cost management, which can hinder long-term financial health.

Cash Flow Issues

Lack of positive cash flow suggests potential liquidity issues, affecting the company's ability to fund operations and growth initiatives.

Labixiaoxin Snacks Group Ltd. Business Overview & Revenue Model

Company Description

Labixiaoxin Snacks Group Limited, an investment holding company, manufactures and sells jelly, confectionary, beverage, and other snack products in the People's Republic of China. It offers jelly snacks, such as fruit-flavored, canned fruit, yogurt, and mousse jellies; jelly beverages; lollipops, milk and gummy candies, and chocolates; fruit and vegetable beverages; and powdered milk tea, dried bean curd, and baked and beverage products under the Labixiaoxin, Sunshine City, Humor, and Xiangdoufang brands. The company was formerly known as China Lifestyle Food and Beverages Group Limited and changed its name to Labixiaoxin Snacks Group Limited in June 2012. The company was founded in 2000 and is headquartered in Jinjiang, the People's Republic of China. Labixiaoxin Snacks Group Limited is a subsidiary of Alliance Food and Beverages (Holding) Company Limited.

How the Company Makes Money

Labixiaoxin Snacks Group Ltd. generates revenue through multiple key streams, primarily from the sale of its snack products to retailers, wholesalers, and directly to consumers. The company benefits from a diversified product portfolio, which allows it to target different market segments and adapt to changing consumer preferences. Significant revenue is derived from partnerships with major retailers and online platforms, enhancing its distribution reach. Additionally, Labixiaoxin invests in marketing and branding efforts to strengthen its market presence and foster customer loyalty, which further contributes to its earnings. The company also explores opportunities in international markets, expanding its customer base and enhancing revenue potential.

Labixiaoxin Snacks Group Ltd. Financial Statement Overview

Summary

Labixiaoxin Snacks Group Ltd. exhibits revenue growth but faces challenges in profitability and cash flow generation. High leverage and declining equity are key risks, while operational inefficiencies further pressure financial stability. Strategic improvements are necessary to enhance financial health.

Income Statement

The company shows some revenue growth with a 13.39% increase from 2023 to 2024, but profitability is a concern given the negative net profit margin of -10.79% for 2024. The gross profit margin is 27.06%, indicating some cost control, but negative EBIT and EBITDA margins suggest operational inefficiencies.

Balance Sheet

The high debt-to-equity ratio of 2.13 in 2024 indicates significant leverage, posing financial stability risks. The equity ratio is 27.02%, showing moderate asset financing by equity, but a declining trend in stockholders' equity suggests weakened financial health.

Cash Flow

The absence of positive operating cash flow and free cash flow in 2024 is concerning, highlighting potential liquidity issues. Previous periods showed improvement in free cash flow, but the lack of data for 2024 prevents a comprehensive analysis.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	888.87M	866.67M	764.38M	684.26M	648.07M	508.84M
Gross Profit	230.57M	234.62M	218.94M	244.19M	224.28M	166.54M
EBITDA	9.88M	-35.72M	-46.04M	658.00K	74.44M	108.73M
Net Income	-47.29M	-93.46M	-104.75M	-75.33M	-65.20M	-29.40M
Balance Sheet
Total Assets	837.13M	793.84M	810.91M	977.31M	1.29B	1.53B
Cash, Cash Equivalents and Short-Term Investments	47.48M	52.50M	44.32M	71.88M	80.57M	258.84M
Total Debt	461.94M	456.40M	451.27M	512.44M	565.59M	690.74M
Total Liabilities	620.09M	579.32M	588.35M	650.00M	887.41M	1.06B
Stockholders Equity	217.04M	214.52M	222.56M	327.31M	402.64M	467.84M
Cash Flow
Free Cash Flow	-16.58M	-34.23M	55.42M	-4.98M	-156.86M	-21.57M
Operating Cash Flow	37.98M	31.53M	88.64M	15.46M	-135.29M	-12.47M
Investing Cash Flow	-50.91M	-65.54M	-32.89M	55.94M	113.42M	300.93M
Financing Cash Flow	25.54M	42.19M	-83.31M	-80.09M	-156.41M	-54.46M

Labixiaoxin Snacks Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1262, the sentiment is Positive. The current price of 2 is above the 20-day moving average (MA) of 1.84, above the 50-day MA of 1.82, and above the 200-day MA of 1.81, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 65.26 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1262.

Labixiaoxin Snacks Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2317	72 Outperform	HK$989.78M	8.29	5.08%	10.44%	-1.19%	-9.05%
1767	71 Outperform	HK$295.00M	11.17	5.48%	0.78%	5.43%	-25.42%
1837	68 Neutral	HK$2.30B	10.33	13.72%	3.74%	11.89%	27.80%
1285	64 Neutral	HK$460.65M	9.63	4.62%	13.51%	2.82%	-22.62%
1583	63 Neutral	HK$981.63M	93.53	0.79%	0.00%	-1.70%	104.41%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1262	38 Underperform	HK$436.83M	-8.51	-23.87%	―	4.72%	79.88%

Labixiaoxin Snacks Group Ltd. Corporate Events

Labixiaoxin Snacks Group Enters Purchase Agreement with Jinjiang Longquan

Labixiaoxin Snacks Group Ltd. has entered into a Purchase Agreement with Jinjiang Longquan to buy products from 1 December 2025 to 31 December 2027. This agreement is classified as a continuing connected transaction under the Hong Kong Stock Exchange Listing Rules, requiring reporting and announcement but exempt from independent shareholders’ approval due to the applicable percentage ratios.