Lygend Resources & Technology Co., Ltd. Class H (2245) AI Stock Analysis

• Market Cap: HK$29.72B
• Dividend Yield: 2.26%
• Average Volume (3M): 6.68M
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.74
• Revenue Growth: 60.77%
• EPS Growth: 100.45%
• Country: HK
• Employees: 11,969
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 1.01
• Shares Outstanding: 550,694,300
• 10 Day Avg. Volume: 4,458,984
• 30 Day Avg. Volume: 6,683,307
• PEG Ratio: 0.08
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.33
• P/FCF Ratio: -6.41
• 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: HK$27.56
• Price Target Upside: 65.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: HK$20.50 ▲(23.27% Upside)

Lygend Resources & Technology Co., Ltd. Class H's overall score is driven by strong financial performance in terms of revenue growth and profitability. However, high leverage and poor cash flow management are significant risks. The technical analysis indicates bearish momentum, and while the valuation is reasonable, it does not offer a compelling dividend yield. These factors collectively result in a moderate stock score.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates effective market expansion and increased demand for its products, supporting long-term financial health.

Profit Margins

Improved profit margins demonstrate operational efficiency and profitability, enhancing the company's ability to reinvest in growth and maintain competitive positioning.

Industry Position

By engaging in battery recycling, Lygend strengthens its position in the sustainable energy sector, aligning with industry trends and expanding its market reach.

Negative Factors

High Leverage

High leverage can increase financial risk, potentially limiting the company's ability to invest in growth and weather economic downturns.

Cash Flow Management

Poor cash flow management may constrain future growth investments and affect liquidity, posing a risk to long-term operational stability.

Reliance on Liabilities

A high reliance on liabilities could impact financial flexibility and increase vulnerability to interest rate changes, affecting long-term sustainability.

Lygend Resources & Technology Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Lygend Resources & Technology Co., Ltd. engages in the production and trading of nickel products in China and internationally. The company's products include laterite ore, ferro-nickel, mixed hydroxide precipitate, nickel sulfate, cobalt sulfate, and other products. It also manufactures and sells equipment. The company was founded in 2009 and is headquartered in Ningbo, China.

How the Company Makes Money

Lygend Resources & Technology generates revenue primarily through the extraction and sale of nickel and cobalt, which are sold to various industries, including the electric vehicle and battery manufacturing sectors. The company has established significant partnerships with leading battery manufacturers and electric vehicle producers, securing long-term contracts that ensure consistent demand for its products. Additionally, Lygend's involvement in the recycling of lithium-ion batteries provides an additional revenue stream, capitalizing on the increasing need for sustainable resource management in the technology and energy sectors. The company's focus on innovation and sustainable practices also enhances its competitive advantage, contributing positively to its overall earnings.

Lygend Resources & Technology Co., Ltd. Class H Financial Statement Overview

Summary

Lygend Resources & Technology Co., Ltd. Class H shows strong revenue growth and profitability, with improved gross and net profit margins. However, the balance sheet reveals high leverage, and cash flow management is a concern due to negative free cash flows and reliance on financing activities.

Income Statement

Lygend Resources & Technology Co., Ltd. Class H has demonstrated robust revenue growth with a significant increase from 21.06 billion in 2023 to 29.23 billion in 2024, marking a 38.74% growth rate. Gross profit margin improved to 18.3%, and net profit margin stands at 6.06%, reflecting both operational efficiency and profitability. EBIT and EBITDA margins also show healthy levels at 14.35% and 15.86%, respectively, indicating strong core earnings capability.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 1.29, suggesting a balanced approach to leveraging. However, the equity ratio is at 28.35%, signifying a heavier reliance on liabilities to fund assets. Return on equity (ROE) is reasonably strong at 16.48%, indicating effective use of shareholder funds to generate earnings. Despite these strengths, the relatively high debt level poses a potential risk if not managed carefully.

Cash Flow

Lygend Resources & Technology Co., Ltd. Class H shows challenges in cash flow management, with no free cash flow reported in 2024. Previous years indicate negative free cash flow, which could constrain future growth investments. The lack of operating cash flow in the latest year raises concerns about liquidity and operational cash generation. The company's reliance on financing activities for cash needs to be addressed for sustainable financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	36.50B	29.23B	21.06B	18.29B	12.45B	7.76B
Gross Profit	7.11B	5.35B	3.38B	4.49B	1.52B	952.66M
EBITDA	6.63B	4.81B	2.96B	3.91B	1.61B	795.99M
Net Income	2.61B	1.77B	1.05B	1.74B	1.10B	520.16M
Balance Sheet
Total Assets	43.54B	37.96B	30.68B	20.84B	12.28B	3.88B
Cash, Cash Equivalents and Short-Term Investments	6.37B	5.03B	4.62B	4.45B	1.41B	409.30M
Total Debt	16.40B	13.85B	11.53B	6.29B	4.76B	1.03B
Total Liabilities	24.24B	20.27B	17.19B	8.81B	7.11B	2.49B
Stockholders Equity	11.59B	10.76B	9.19B	8.48B	3.14B	1.39B
Cash Flow
Free Cash Flow	1.91B	-1.49B	-4.20B	-1.90B	427.80M	812.70M
Operating Cash Flow	4.33B	4.23B	2.57B	2.00B	811.32M	889.31M
Investing Cash Flow	-2.39B	-5.67B	-7.40B	-3.78B	-643.30M	-364.80M
Financing Cash Flow	-898.41M	1.85B	4.95B	4.58B	997.24M	-453.18M

Lygend Resources & Technology Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2245, the sentiment is Negative. The current price of 16.63 is below the 20-day moving average (MA) of 18.13, below the 50-day MA of 21.55, and above the 200-day MA of 14.03, indicating a neutral trend. The MACD of -0.96 indicates Positive momentum. The RSI at 38.66 is Neutral, neither overbought nor oversold. The STOCH value of 14.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2245.

Lygend Resources & Technology Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
2245	61 Neutral	HK$29.72B	10.54	24.57%	2.26%	60.77%	100.45%
1205	60 Neutral	HK$3.06B	8.26	4.82%	6.67%	160.79%	-28.92%
0769	55 Neutral	$1.95B	-15.63	―	―	10.29%	47.66%
1091	44 Neutral	€2.02B	―	-14.35%	―	-31.35%	-71.37%
1029	41 Neutral	$638.97M	―	-44.33%	―	2.05%	27.51%
0159	36 Underperform	HK$760.98M	―	-7.49%	―	―	-164.29%

Lygend Resources & Technology Co., Ltd. Class H Corporate Events

Lygend Resources & Technology Schedules EGM to Approve Related-Party Transactions

Lygend Resources & Technology Co., Ltd. has announced an Extraordinary General Meeting (EGM) scheduled for December 19, 2025, to discuss and approve related-party transactions for the years 2022 to 2025. The meeting will address transactions with Lygend Investment, an Indonesian partner, and other related parties, impacting the company’s operational transparency and stakeholder relations.

Lygend Resources Announces EGM and Share Register Closure

Lygend Resources & Technology Co., Ltd. has announced the closure of its register of members for an extraordinary general meeting (EGM) scheduled for 19 December 2025. This closure will take place from 16 December to 19 December 2025, during which no transfer of the company’s H shares will be registered. Shareholders must submit transfer documents by 15 December 2025 to be eligible to attend and vote at the EGM. This meeting is significant for stakeholders as it may influence future company decisions and strategies.

Lygend Resources & Technology Announces Proposed IPO on Shenzhen Stock Exchange

Lygend Resources & Technology Co., Ltd. has announced its proposed initial public offering (IPO) and listing of A shares on the main board of the Shenzhen Stock Exchange. The company has confirmed that its related-party transactions for the years 2022, 2023, 2024, and the first half of 2025 comply with relevant PRC laws and regulations. These transactions were conducted on an arm’s length basis and are deemed valid civil juristic acts. The IPO is subject to regulatory approvals, and there is no assurance of its successful completion. Shareholders and investors are advised to exercise caution, as further updates will be provided in accordance with applicable laws.

Lygend Resources Secures Framework Agreement for Engineering Services

Lygend Resources & Technology Co., Ltd. has entered into a framework agreement with Lygend Investment to ensure a stable supply of engineering construction services and materials. This agreement, effective from October 17, 2025, to December 31, 2027, aligns with the company’s strategy for continuous growth and flexibility, enhancing its market position by securing competitive terms. The transactions under this agreement are classified as continuing connected transactions, subject to specific reporting and review requirements under the Hong Kong Listing Rules.

Lygend Resources & Technology Announces Board Composition and Committee Structures

Lygend Resources & Technology Co., Ltd., a joint stock company incorporated in China, has announced the composition of its board of directors and their respective roles. The board consists of executive, non-executive, and independent non-executive directors, as well as an employee representative director. Additionally, the company has established four committees: Audit, Remuneration, Nomination, and ESG, each with defined terms of reference and specific members. This announcement highlights the company’s governance structure and the roles of its key personnel, which may impact its operational and strategic decisions.

Lygend Resources & Technology Co., Ltd. EGM Resolutions Passed with Strong Support

Lygend Resources & Technology Co., Ltd. held an Extraordinary General Meeting (EGM) on September 11, 2025, where all proposed resolutions were passed with overwhelming support. The resolutions included the approval and ratification of the HPL Deed of Guarantee and the NBSS Share Pledge, with nearly 100% of votes in favor. This outcome underscores strong shareholder support for the company’s strategic initiatives, potentially enhancing its operational capabilities and market positioning.