Luxxu Group Ltd. (1327) AI Stock Analysis

• Market Cap: HK$135.86M
• Dividend Yield: N/A
• Average Volume (3M): 194.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.30
• Revenue Growth: -10.60%
• EPS Growth: -29.16%
• Country: HK
• Employees: 56
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Luxury Goods
• EPS (TTM): -0.40
• Shares Outstanding: 215,654,400
• 10 Day Avg. Volume: 327,484
• 30 Day Avg. Volume: 194,370
• PEG Ratio: <0.01
• Price to Book (P/B): 1.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -502.81
• 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: 31 Underperform
• Price Target: ―

Luxxu Group Ltd.'s overall score of 31 reflects its serious financial instability, as demonstrated by negative income and cash flow indicators. Technical analysis highlights a weak price trend, and valuation metrics show challenges due to negative earnings. The absence of earnings call insights and corporate events leaves little to offset these concerns.

Luxxu Group Ltd. Business Overview & Revenue Model

Company Description

Luxxu Group Limited, an investment holding company, manufactures, trades in, retails, and sells watches and jewelries in the People's Republic of China, rest of Asia, and Europe. The company offers diamond watches, tourbillon, OEM, and third-party watches, as well as luxury jewelry accessories. It designs and sells prestige and high-end watches, and accessories; and designs, produces, and assembles watches for its OEM customers. The company sells its products under the Jonquet, Extreme, M.O.D., LUXXU, and Nordic Design brands. The company was formerly known as Time2u International Holding Limited and changed its name to Luxxu Group Limited in August 2019. Luxxu Group Limited was founded in 2010 and is based in Central, Hong Kong.

How the Company Makes Money

Luxxu Group Ltd. Financial Statement Overview

Summary

Luxxu Group Ltd. faces serious financial difficulties. The income statement reflects ongoing losses, the balance sheet shows increasing leverage and erosion of equity, and cash flow issues raise concerns about the company's ability to sustain operations without a strategic turnaround or capital infusion.

Income Statement

Luxxu Group Ltd. has experienced a significant decline in revenue and profitability. Gross profit margins are negative, indicating cost of goods sold exceeds sales. The company has consistently reported negative net income and EBIT margins over recent years, showing an inability to generate profit from operations. Revenue has also shown a downward trend, with significant declines year over year.

Balance Sheet

The company's financial leverage is moderate with a debt-to-equity ratio that has increased over time, indicating rising reliance on debt. The equity ratio has decreased, suggesting lower financial stability. Negative return on equity reflects continued losses, posing a risk to shareholders.

Cash Flow

Luxxu Group Ltd.'s cash flow situation is concerning, as operating cash flow is frequently negative, indicating cash outflows from core operations. Free cash flow is also negative, limiting the company's ability to invest in growth or repay debt. The lack of positive cash flow ratios highlights liquidity challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.36M	31.67M	64.41M	70.66M	62.87M
Gross Profit	-3.92M	2.47M	-10.47M	-22.80M	-34.15M
EBITDA	-41.30M	-25.86M	-35.55M	-43.24M	-100.41M
Net Income	-51.96M	-39.54M	-48.25M	-43.86M	-146.24M
Balance Sheet
Total Assets	73.75M	113.63M	155.18M	191.35M	206.44M
Cash, Cash Equivalents and Short-Term Investments	19.26M	20.69M	42.89M	77.76M	69.11M
Total Debt	37.85M	28.06M	29.98M	31.50M	15.40M
Total Liabilities	39.85M	31.44M	36.80M	36.98M	17.23M
Stockholders Equity	33.90M	82.19M	118.38M	154.37M	189.21M
Cash Flow
Free Cash Flow	3.19M	210.00K	4.40M	-9.43M	-17.31M
Operating Cash Flow	3.19M	210.00K	5.36M	-2.29M	-17.31M
Investing Cash Flow	0.00	-2.57M	-960.00K	-8.68M	0.00
Financing Cash Flow	-4.22M	-5.41M	-5.77M	16.00M	21.00M

Luxxu Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1327, the sentiment is Positive. The current price of 0.6 is above the 20-day moving average (MA) of 0.33, above the 50-day MA of 0.28, and above the 200-day MA of 0.26, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 90.87 is Negative, neither overbought nor oversold. The STOCH value of 95.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1327.

Luxxu Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	C$5.30B	8.88	20.23%	3.47%	3.08%	9.19%
0084	60 Neutral	HK$75.22M	0.15	-11.76%	―	-8.35%	―
8537	55 Neutral	HK$52.50M	51.18	0.59%	―	-12.99%	―
0442	52 Neutral	HK$120.89M	―	-10.70%	―	-19.99%	41.52%
1815	47 Neutral	HK$2.27B	―	0.28%	―	-69.05%	34.94%
0444	38 Underperform	HK$60.44M	―	-323.09%	―	-50.20%	23.50%
1327	31 Underperform	HK$135.86M	―	-89.06%	―	-10.60%	-29.16%

Luxxu Group Ltd. Corporate Events

Luxxu Group Announces 2025 Annual General Meeting Details

Luxxu Group Limited has announced the details of its upcoming Annual General Meeting, which will take place on June 20, 2025, in Hong Kong. The meeting will cover several key resolutions, including the adoption of financial statements for 2024, the re-election of certain directors, and the re-appointment of auditors. Additionally, the company seeks approval to allot and issue shares under specific conditions, which could impact its capital structure and shareholder value.

Luxxu Group Reaffirms Commitment to Corporate Governance in 2024 Results

Luxxu Group Limited has released a supplemental announcement regarding its annual results for the year ended 31 December 2024. The company emphasizes its commitment to high standards of corporate governance, with a board comprising two executive directors and three independent non-executive directors. The board has reviewed and confirmed compliance with the corporate governance code provisions throughout the year. This announcement reassures shareholders and potential investors of the company’s dedication to transparency and governance.

Luxxu Group Announces Rights Issue Results and Compensatory Arrangements

Luxxu Group Limited, a company listed on the Hong Kong Stock Exchange, announced the results of its Rights Issue, where shareholders were offered one Rights Share for every share held. The company received applications for approximately 36.94% of the Rights Shares, with the remaining shares subject to compensatory arrangements through a placing agreement. This move aims to benefit shareholders and manage the unsubscribed shares effectively. The outcome of these arrangements and any net gain will be announced on May 9, 2025.

Luxxu Group Reports 2024 Financial Results with Increased Losses

Luxxu Group Limited reported its annual financial results for the year ended December 31, 2024, showing a decrease in revenue by 7.3% to approximately RMB29.4 million compared to the previous year. Despite the revenue decline, the company achieved a significant increase in gross profit by 124% to RMB12.4 million. However, the company faced a net loss of approximately RMB52.0 million, an increase from the previous year’s loss of RMB39.5 million. The board did not propose any dividend for the year.

Luxxu Group Announces Effective Date for Capital Reorganization and Share Certificate Exchange

Luxxu Group Limited has announced the effective date of its capital reorganization, which includes the capital reduction and the commencement of dealings in adjusted shares. Shareholders are offered a free exchange of share certificates for a limited period, after which a fee will be charged for exchanges. This reorganization is expected to streamline the company’s capital structure and potentially enhance its market positioning.

Luxxu Group Schedules Board Meeting to Review Annual Results

Luxxu Group Limited has announced a board meeting scheduled for March 28, 2025, to discuss and potentially approve the company’s annual results for the year ending December 31, 2024. The meeting will also consider the payment of a final dividend, which could have implications for the company’s financial strategy and shareholder returns.

Luxxu Group Limited EGM Approves Rights Share Issuance

Luxxu Group Limited announced that all proposed resolutions at its Extraordinary General Meeting held on 7 February 2025 were approved by shareholders. The main resolution involved the issuance of up to 107,827,000 Rights Shares to qualifying shareholders at a subscription price of HK$0.15 per share. This approval allows the company to proceed with its planned capital reorganization, potentially impacting its financial structure and market operations.