LH Group Limited (HK:1978)
:1978
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LH Group Limited
(1978)
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Rating:49Neutral
Price Target:
HK$0.27
▼(-25.28% Downside)
Action:Reiterated
Date:05/04/26
The score is primarily constrained by weak profitability and higher leverage despite strong cash generation, alongside negative/weak technical momentum. Valuation is also a major headwind given the very high P/E and no available dividend yield support.
Positive Factors
Strong operating and free cash flow
Material improvement in operating cash flow and free cash flow reflects durable cash generation capacity. Consistent positive FCF across periods supports reinvestment, working capital needs and debt service even if reported earnings remain volatile, enhancing financial flexibility.
Negative Factors
Severe margin compression
Sharp, multi-year gross margin erosion signals structural pressures on cost base or pricing power. Such sustained margin compression undermines sustainable profitability and makes earnings volatile, reducing the likelihood of consistent returns and limiting ability to rebuild equity.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong operating and free cash flow
Material improvement in operating cash flow and free cash flow reflects durable cash generation capacity. Consistent positive FCF across periods supports reinvestment, working capital needs and debt service even if reported earnings remain volatile, enhancing financial flexibility.
Read all positive factors
LH Group Limited (1978) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$216.00M
Dividend Yield24.14%
Average Volume (3M)207.00K
Price to Earnings (P/E)127.2
Beta (1Y)0.51
Revenue Growth2.40%
EPS GrowthN/A
CountryHK
Employees952
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)<0.01
Shares Outstanding800,000,000
10 Day Avg. Volume106,200
30 Day Avg. Volume207,000
Financial Highlights & Ratios
PEG Ratio-1.61
Price to Book (P/B)1.21
Price to Sales (P/S)0.26
P/FCF Ratio2.07
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
LH Group Limited Business Overview & Revenue Model
Company Description
Operating out of Hong Kong, LH Group Limited serves as a multifaceted restaurant company, managing a portfolio of diverse brands. Its culinary focus is primarily on Asian flavors, featuring Japanese, Korean, Cantonese, and Shanghainese specialties...
LH Group Limited Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
45
Neutral
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.08B | 1.06B | 1.28B | 1.06B | 997.92M |
| Gross Profit | 358.80M | 331.74M | 505.16M | 293.92M | 391.29M |
| EBITDA | 64.96M | 43.31M | 269.26M | 239.49M | 237.86M |
| Net Income | 1.70M | -32.06M | 88.06M | 77.70M | 90.08M |
Balance Sheet | |||||
| Total Assets | 696.64M | 786.01M | 759.65M | 846.59M | 783.86M |
| Cash, Cash Equivalents and Short-Term Investments | 140.02M | 144.81M | 252.72M | 341.91M | 325.36M |
| Total Debt | 268.39M | 324.48M | 255.18M | 223.66M | 179.29M |
| Total Liabilities | 462.08M | 553.14M | 462.24M | 437.09M | 403.66M |
| Stockholders Equity | 234.56M | 232.87M | 297.41M | 409.50M | 380.20M |
Cash Flow | |||||
| Free Cash Flow | 137.29M | 54.68M | 231.97M | 170.47M | 208.94M |
| Operating Cash Flow | 171.71M | 120.56M | 252.02M | 207.44M | 251.71M |
| Investing Cash Flow | -35.09M | 43.01M | 29.03M | -96.51M | 34.20M |
| Financing Cash Flow | -141.41M | -166.41M | -329.85M | -156.41M | -223.12M |
LH Group Limited Technical Analysis
Negative
0.36
Price Trends
0.31
Negative
0.32
Negative
0.35
Negative
Market Momentum
-0.01
Positive
29.43
Positive
35.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1978, the sentiment is Negative. The current price of 0.36 is above the 20-day moving average (MA) of 0.29, above the 50-day MA of 0.31, and above the 200-day MA of 0.35, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 29.43 is Positive, neither overbought nor oversold. The STOCH value of 35.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1978.
LH Group Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
52 Neutral | HK$278.95M | -4.64 | -8.37% | 17.91% | -4.39% | -13.65% | |
50 Neutral | HK$183.35M | 16.38 | 2.32% | 21.88% | 1.02% | -71.48% | |
49 Neutral | HK$216.00M | 127.24 | 0.73% | 24.14% | 2.40% | ― | |
44 Neutral | HK$118.36M | -1.75 | -37.19% | 5.15% | -12.40% | -213.09% | |
43 Neutral | HK$330.01M | -0.93 | -51.41% | ― | -20.32% | 25.91% | |
42 Neutral | HK$69.78M | -4.81 | -37.45% | ― | 14.18% | 42.41% |
* Consumer Cyclical Sector Average
HK:1978
LH Group Limited
0.27
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81.25%
LH Group Limited Corporate Events
LH Group Wins Full Shareholder Backing for AGM Resolutions and Capital Mandates
Jun 10, 2026
Shareholders of LH Group Limited approved all resolutions at the annual general meeting held on 10 June 2026 in Hong Kong, with 614,092,001 shares voted and no restrictions on voting or abstentions required under the Listing Rules. The audited fin...
LH Group Sets June 2026 AGM to Approve Accounts and Renew Share Issue Mandate
May 19, 2026
LH Group Limited has called its annual general meeting for 10 June 2026 in Hong Kong, where shareholders will review the audited consolidated financial statements for the year ended 31 December 2025 and consider the re-election of an executive dir...
LH Group moves to modernise articles with electronic and hybrid meeting provisions
May 19, 2026
LH Group Limited plans to amend its amended and restated memorandum and articles of association to align with updated legal and regulatory standards, including changes to the Hong Kong Listing Rules effective from July 2025. The proposed changes w...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.