Lushang Life Services Co., Ltd. Class H (2376) AI Stock Analysis

• Market Cap: HK$266.68M
• Dividend Yield: 5.91%
• Average Volume (3M): 9.43K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 0.41
• Revenue Growth: -3.67%
• EPS Growth: N/A
• Country: HK
• Employees: 1,405
• Sector: Real Estate
• Sector Strength: 56
• Industry: Real Estate - Services
• EPS (TTM): 0.19
• Shares Outstanding: 33,340,000
• 10 Day Avg. Volume: 11,950
• 30 Day Avg. Volume: 9,433
• PEG Ratio: 0.19
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -23.20
• 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: 72 Outperform
• Price Target: ―

Lushang Life Services Co., Ltd. scores well due to its strong balance sheet and attractive valuation, indicating potential for appreciation. However, challenges in revenue growth and cash flow management, coupled with technical indicators suggesting overbought conditions, temper the outlook. Continued focus on improving cash flow and maintaining operational efficiency is essential for future growth.

Lushang Life Services Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Lushang Life Services Co., Ltd. Class H (2376) is a company operating in the service sector, offering a comprehensive range of lifestyle and property management services. The company focuses on delivering high-quality, customer-centric solutions including property management, community value-added services, and commercial operational services. Its core offerings cater to residential communities, commercial properties, and public facilities, ensuring a seamless living and operational environment for its clients.

How the Company Makes Money

Lushang Life Services Co., Ltd. generates revenue primarily through its diverse portfolio of services. The key revenue streams include property management fees collected from residential and commercial properties, which are based on the service agreements with property owners and developers. Additionally, the company earns income from community value-added services, such as maintenance, security, and lifestyle enhancement services, which are offered to enhance the living experience of residents in managed properties. Commercial operational services also contribute to the company's earnings by managing and optimizing the functionality of commercial spaces. Strategic partnerships with property developers and local government entities further bolster the company's revenue by expanding its service reach and client base.

Lushang Life Services Co., Ltd. Class H Financial Statement Overview

Summary

Lushang Life Services Co., Ltd. demonstrates strong balance sheet stability with low leverage, but faces challenges with declining revenue and cash flow issues. The company's profitability and operational efficiency are commendable, yet focus on revenue growth and cash flow improvement is crucial for long-term health.

Income Statement

Lushang Life Services Co., Ltd. shows stable profitability with a consistent Gross Profit Margin of around 19% and a solid Net Profit Margin of approximately 7.4% TTM. However, the revenue growth rate has been negative in recent years, indicating a potential slowdown in sales momentum. The company maintains reasonable EBIT and EBITDA margins at 8.4% and 8.9% TTM, respectively, suggesting efficient core operations.

Balance Sheet

The company exhibits strong financial stability with a low Debt-to-Equity Ratio of 0.02, reflecting minimal leverage. The Equity Ratio of 60.8% TTM indicates a robust capital structure primarily financed by equity. Return on Equity stands at 8% TTM, showing decent profitability for shareholders, albeit with potential for improvement.

Cash Flow

The cash flow position is concerning, with negative Free Cash Flow TTM and an unfavorable Operating Cash Flow to Net Income Ratio, indicating cash flow challenges. Despite these issues, the company's Free Cash Flow to Net Income Ratio is improving, suggesting potential future cash flow stabilization.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	609.00M	621.02M	627.73M	582.80M	402.84M	321.14M
Gross Profit	115.95M	116.93M	144.70M	147.85M	79.62M	56.02M
EBITDA	54.14M	58.60M	100.23M	105.48M	61.81M	41.25M
Net Income	45.10M	39.43M	76.88M	75.81M	45.30M	28.93M
Balance Sheet
Total Assets	929.09M	900.80M	856.63M	634.40M	862.35M	342.57M
Cash, Cash Equivalents and Short-Term Investments	426.56M	411.62M	428.81M	275.49M	164.43M	64.56M
Total Debt	10.63M	2.08M	5.10M	3.17M	110.25M	0.00
Total Liabilities	360.26M	377.10M	353.39M	333.95M	604.46M	225.69M
Stockholders Equity	564.85M	519.76M	500.11M	298.88M	257.83M	116.89M
Cash Flow
Free Cash Flow	-54.51M	―	-10.07M	-10.44M	15.40M	29.01M
Operating Cash Flow	-52.92M	―	-4.19M	29.00M	18.89M	43.76M
Investing Cash Flow	23.37M	―	1.91M	255.83M	-123.41M	-78.16M
Financing Cash Flow	1.23M	―	146.31M	-173.77M	204.38M	1.15M

Lushang Life Services Co., Ltd. Class H Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2376, the sentiment is Positive. The current price of 2 is above the 20-day moving average (MA) of 1.92, above the 50-day MA of 1.73, and above the 200-day MA of 1.40, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 68.16 is Neutral, neither overbought nor oversold. The STOCH value of 34.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2376.

Lushang Life Services Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2669	76 Outperform	HK$17.96B	10.97		3.47%	―	―
2869	73 Outperform	HK$13.65B	18.41	8.94%	3.00%	1.01%	12.45%
2376	72 Outperform	HK$266.68M	5.45	8.33%	5.91%	-3.67%	―
6098	68 Neutral	$22.03B	11.22	4.96%	0.36%	1.31%	379.84%
Sector *	53 Neutral	$1.19B	3.42	0.13%	7.14%	-2.13%	-128.06%
3319	46 Neutral	€4.10B	―	-29.17%	17.75%	-11.94%	-756.32%

Lushang Life Services Co., Ltd. Class H Corporate Events

Lushang Life Services Exceeds Annual Cap, Implements Enhanced Controls

Lushang Life Services Co., Ltd. announced that its actual transaction amount with Lushang Freda Associates for the year ended December 31, 2024, exceeded the annual cap due to active expansion and the introduction of new services. To address this, the company is implementing enhanced internal control measures, including regular training and improved communication between departments, to ensure compliance with listing rules and prevent future occurrences.

Lushang Life Services Delays Circular Dispatch for Capital Increase

Lushang Life Services Co., Ltd. has announced a delay in the dispatch of a circular related to a disclosable and connected transaction involving a capital increase agreement. The circular, which was initially expected by April 15, 2025, will now be dispatched by May 9, 2025, due to the need for additional time to finalize information and upcoming holidays in Hong Kong and the PRC.

Lushang Life Services Announces Capital Increase and Equity Restructuring

Lushang Life Services Co., Ltd., a joint stock company incorporated in China, has announced a capital increase agreement with an investor and a target company. This transaction involves the investor injecting RMB36,320,000 into the target company, resulting in the investor holding a 51% equity interest and the company holding 49%. Consequently, the target company will no longer be a subsidiary and will be accounted for as an associate, impacting the company’s financial consolidation. The transaction is classified as a disclosable and connected transaction under Hong Kong’s Listing Rules, requiring notification and approval from independent shareholders.

Lushang Life Services Reports Increased Profit Amid Revenue Dip

Lushang Life Services Co., Ltd. reported a slight decrease in revenue for the year ended December 31, 2024, with a total of RMB608.9 million, down 1.9% from the previous year. Despite this, the company saw a 12.1% increase in profit to RMB45.1 million, and an improved net profit margin of 7.4%. The acquisition of Daantong has shifted the company’s focus from real estate to new business areas, such as elevator maintenance and installation, enhancing its service offerings and potentially impacting its market positioning positively. The company also announced a proposed final dividend of RMB0.1080 per share.

Lushang Life Services Announces Final Dividend for 2024

Lushang Life Services Co., Ltd. has announced a final ordinary cash dividend of RMB 0.108 per share for the financial year ending December 31, 2024. The dividend will be approved by shareholders on June 27, 2025, with the payment date set for August 1, 2025. The ex-dividend date is July 2, 2025, and the record date is July 9, 2025. The announcement reflects the company’s commitment to returning value to its shareholders and may influence investor sentiment positively.

Lushang Life Services Announces Upcoming Board Meeting for Annual Results

Lushang Life Services Co., Ltd. has announced a board meeting scheduled for March 21, 2025, to discuss and approve the company’s annual results for the year ending December 31, 2024. The meeting will also consider the recommendation of a final dividend, highlighting the company’s ongoing financial assessments and potential shareholder returns.