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LH Group Limited (HK:1978)
:1978
Hong Kong Market
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LH Group Limited (1978) AI Stock Analysis

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HK:1978

LH Group Limited

(1978)

Rating:54Neutral
Price Target:
HK$0.50
▲(25.00% Upside)
The overall stock score is primarily influenced by financial performance challenges, including declining profitability and increased leverage. Technical analysis provides some support with moderate bullish signals, but valuation concerns due to a negative P/E ratio and high dividend yield suggest caution. The absence of earnings call data and corporate events limits further insights.

LH Group Limited (1978) vs. iShares MSCI Hong Kong ETF (EWH)

LH Group Limited Business Overview & Revenue Model

Company DescriptionLH Group Limited, established in 1978, is a diversified corporate entity that operates across various sectors including logistics, manufacturing, and technology solutions. The company specializes in providing integrated services that encompass supply chain management, product development, and distribution. With a focus on innovation and efficiency, LH Group Limited delivers tailored solutions to its clients, ranging from small businesses to large enterprises, ensuring optimal operations in their respective industries.
How the Company Makes MoneyLH Group Limited generates revenue through multiple streams including logistics services, which involve transportation and warehousing solutions for a wide array of clients. The manufacturing division contributes significantly to earnings by producing high-quality products tailored to client specifications, often leveraging advanced technology for efficiency. Additionally, the company offers technology solutions that include software and systems integration services, which are vital for clients looking to enhance their operational capabilities. Strategic partnerships with key industry players further bolster revenue, allowing for expanded service offerings and access to new markets. Overall, the diverse portfolio and adaptability to market demands play a crucial role in the company's financial success.

LH Group Limited Financial Statement Overview

Summary
LH Group Limited faces challenges with declining revenue and profitability, resulting in negative net income. The balance sheet shows moderate leverage but low equity ratios, which may pose financial risks. Limited cash flow data restricts a full assessment, but historical data suggests some ability to generate free cash flow. The company needs to address revenue growth and profitability to improve financial stability.
Income Statement
60
Neutral
The company experienced a revenue decline from the previous year, with a negative revenue growth rate. Gross profit margin is moderate at 31.3%. However, the net profit margin is negative due to a net loss, indicating profitability challenges.
Balance Sheet
70
Positive
The debt-to-equity ratio is 1.39, showing moderate leverage. The equity ratio stands at 29.6%, which is relatively low and suggests a dependency on debt. The return on equity is negative, reflecting the net loss and impacting shareholder returns.
Cash Flow
50
Neutral
There is a lack of available cash flow data for the current year, making it difficult to assess cash flow performance. Historically, the company has managed positive free cash flow, but recent trends are unclear.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.06B1.28B1.06B997.92M802.85M
Gross Profit331.74M505.16M431.55M391.29M336.92M
EBITDA43.31M269.26M239.49M237.86M271.77M
Net Income-32.06M88.06M77.70M90.08M140.33M
Balance Sheet
Total Assets786.01M759.65M846.59M783.86M747.50M
Cash, Cash Equivalents and Short-Term Investments144.81M252.72M341.91M325.36M338.77M
Total Debt324.48M255.18M223.66M179.29M189.15M
Total Liabilities553.14M462.24M437.09M403.66M332.90M
Stockholders Equity232.87M297.41M409.50M380.20M414.60M
Cash Flow
Free Cash Flow54.68M231.97M170.47M208.94M159.73M
Operating Cash Flow120.56M252.02M207.44M251.71M178.09M
Investing Cash Flow43.01M29.03M-96.51M34.20M-42.83M
Financing Cash Flow-166.41M-329.85M-156.41M-223.12M-86.88M

LH Group Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.40
Price Trends
50DMA
0.37
Positive
100DMA
0.37
Positive
200DMA
0.41
Negative
Market Momentum
MACD
0.01
Negative
RSI
63.49
Neutral
STOCH
85.31
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1978, the sentiment is Positive. The current price of 0.4 is above the 20-day moving average (MA) of 0.38, above the 50-day MA of 0.37, and below the 200-day MA of 0.41, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 63.49 is Neutral, neither overbought nor oversold. The STOCH value of 85.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1978.

LH Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
HK$731.32M7.6337.72%7.33%19.11%5.40%
57
Neutral
HK$26.31B3.85-4.73%5.51%-1.07%-51.12%
54
Neutral
HK$320.00M23.14-12.09%22.30%-17.29%-136.42%
54
Neutral
€299.23M9.61-4.41%19.35%-17.76%-171.63%
51
Neutral
HK$272.96M21.522.54%17.68%-5.04%-67.83%
50
Neutral
HK$188.56M-4.46%-12.74%46.01%
46
Neutral
HK$81.90M10.67-41.01%4.76%-7.56%-231.11%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1978
LH Group Limited
0.40
-0.04
-9.09%
HK:8371
Taste Gourmet Group Ltd.
1.91
0.73
61.86%
HK:1443
Fulum Group Holdings Ltd.
0.06
-0.08
-57.14%
HK:1314
Tsui Wah Holdings Ltd.
0.20
0.00
0.00%
HK:0126
Carrianna Group Holdings Company Limited
0.12
-0.08
-40.00%
HK:0573
Tao Heung Holdings Limited
0.30
-0.29
-49.14%

LH Group Limited Corporate Events

LH Group Limited Announces Board Composition and Committee Roles
Jun 5, 2025

LH Group Limited has announced the composition of its Board of Directors, which includes both executive and independent non-executive directors. The Board has also established three committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee, with specific directors assigned as members or chairpersons of these committees. This announcement provides clarity on the governance structure of LH Group Limited, potentially impacting its strategic decision-making and operational oversight.

LH Group Limited Sets New Terms for Nomination Committee
Jun 5, 2025

LH Group Limited has announced the terms of reference for its Nomination Committee, effective from June 5, 2025. The committee, established by the board in 2017, will adhere to the Listing Rules of the Hong Kong Stock Exchange and other regulatory requirements. The committee will consist of at least three members, primarily independent non-executive directors, ensuring gender diversity. This move is expected to enhance governance and transparency, potentially impacting the company’s operational efficiency and stakeholder confidence.

LH Group Limited AGM Resolutions Passed
Jun 5, 2025

LH Group Limited recently held its Annual General Meeting (AGM) on June 5, 2025, where all proposed resolutions were passed by poll. The resolutions included the re-election of directors, re-appointment of auditors, and granting of mandates for share issuance and repurchase. These decisions reflect the company’s continued focus on maintaining strong governance and operational flexibility.

LH Group Limited Announces 2025 Annual General Meeting
May 8, 2025

LH Group Limited has announced its upcoming annual general meeting, set to take place on June 5, 2025, in Hong Kong. The meeting will cover the review of the company’s financial statements, re-election of directors, re-appointment of auditors, and consideration of resolutions regarding the issuance of shares. These resolutions, if approved, would empower the directors to manage share allotments and related financial maneuvers, potentially impacting shareholder value and company operations.

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.Date of analysis: Aug 08, 2025