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

• Market Cap: HK$394.69M
• Dividend Yield: 3.9%
• Average Volume (3M): 12.68K
• Price to Earnings (P/E): 4.0
• Beta (1Y): 0.30
• Revenue Growth: -3.62%
• EPS Growth: 26.66%
• Country: HK
• Employees: 1,405
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.13
• Shares Outstanding: 33,340,000
• 10 Day Avg. Volume: 2,200
• 30 Day Avg. Volume: 12,683
• PEG Ratio: 0.28
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.27
• P/FCF Ratio: -12.00
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: HK$3.50 ▲(23.67% Upside)
• Action: Downgraded Date: 12/30/25
• Date: Action: Downgraded 12/30/25

The score is primarily held back by weak cash-flow quality (negative operating cash flow over multiple years) and bearish technicals (below key moving averages with negative MACD). Offsetting factors include a very conservative balance sheet (low leverage) and supportive valuation (low P/E with a ~3.9% dividend yield).

Positive Factors

Very low leverage / strong balance sheet

Extremely low leverage and rising equity provide durable financial flexibility, reducing insolvency risk and supporting capital allocation. This allows the company to withstand cyclical real-estate service volatility, fund working capital or M&A, and maintain creditor confidence over months to years.

Consistent positive net income

Sustained positive net income despite headwinds signals underlying earning capacity and operational viability. This recurring profitability supports dividend payments and internal investment, giving management optionality to stabilize operations or reinvest to restore growth over the coming quarters.

Stable operating profitability for sector

Maintaining sector-level EBIT margins indicates operational efficiency and pricing/scale that can weather demand slumps. If revenue stabilizes, these margins enable faster recovery in operating profits versus lower-margin peers, helping preserve cash flow and competitiveness over the medium term.

Negative Factors

Negative operating cash flow

Persistent negative operating cash flow shows earnings are not converting to cash, signaling working-capital strain or recognition/timing gaps. Over months this limits the firm's ability to fund operations, capex, or dividends without external financing, raising liquidity and execution risk.

Extreme 2024 revenue decline flagged

A near-total revenue collapse in 2024 represents a material business disruption or accounting anomaly that undermines scale and demand visibility. Such a structural hit compresses fixed-cost absorption and cash generation capacity, creating prolonged recovery risk until root cause is resolved.

Margin deterioration since 2021–2022

Sustained margin compression reduces profitability and the financial buffer to absorb shocks. Lower gross and net margins constrain reinvestment, weaken return on capital, and make debt servicing or dividend maintenance more difficult absent structural cost reductions or pricing power restoration.

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

Company Description

Lushang Life Services Co., Ltd. provides property management services in China. The company provides property management services comprising cleaning, security, greening, repair and maintenance, public area maintenance, and other property management related services for residential properties, commercial complexes, office buildings, apartments, city roads, schools, theme towns, hospitals, banks, industrial parks, and airline base properties. It offers property management services to property developers, property owners, residents, and tenants The company also provides value-added services to property developers, such as design, construction site management, sales office management, consulting, landscaping, pre-delivery, and repair and maintenance services; and community value-added services to property owners and residents, including community space and resource management, parking space management, utility management, and customized waste cleaning and housekeeping services. Lushang Life Services Co., Ltd. was founded in 2006 and is headquartered in Jinan, China.

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

Strong balance sheet with very low leverage and growing equity supports stability, but operating performance has weakened (lower margins versus 2021–2022) and cash generation is a major concern with negative operating cash flow in 2022–2024 and generally negative free cash flow. The flagged extreme 2024 revenue decline signal adds uncertainty.

Income Statement

Revenue has been broadly flat since 2021, with a sharp decline flagged in 2024 (revenue growth rate -99.4%), which is a major concern and likely indicates a disruption or non-recurring factor. Profitability also weakened versus the 2021–2022 peak: gross margin fell from ~25% (2021) to ~19% (2023–2024), and net margin dropped from ~12–13% (2021–2022) to ~6–7% (2023–2024). Offsetting this, the company remains profitable, with positive net income each year and still-healthy operating profitability for the sector (EBIT margin ~7–8% in 2023–2024).

Balance Sheet

The balance sheet is a clear strength, with very low leverage in recent years (debt-to-equity ~0.4% in 2023 and ~1.9% in 2024). Equity has grown meaningfully from 2020 to 2024, supporting a solid capital base. Returns on equity are moderate recently (~7.6–8.0% in 2023–2024) versus much stronger levels in 2021–2022, suggesting profitability has cooled, but overall financial risk from debt appears limited.

Cash Flow

Cash flow quality is the primary weakness. Operating cash flow is negative in 2022–2024 (and positive in 2019–2021), indicating earnings are not consistently converting into cash and working-capital or timing effects may be pressuring liquidity. Free cash flow is also negative in most years shown (2021–2023), despite net income remaining positive. While free cash flow to net income is shown as high in 2022–2024, the persistence of negative operating cash flow reduces confidence in near-term cash generation stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	594.22M	608.92M	621.02M	627.73M	582.80M	402.84M
Gross Profit	117.54M	115.94M	116.93M	144.70M	147.85M	79.62M
EBITDA	47.99M	52.51M	58.60M	94.92M	105.48M	61.81M
Net Income	39.46M	45.09M	39.43M	76.88M	75.81M	45.30M
Balance Sheet
Total Assets	906.91M	929.09M	900.80M	856.63M	634.40M	862.35M
Cash, Cash Equivalents and Short-Term Investments	397.76M	426.56M	411.62M	428.81M	277.62M	164.43M
Total Debt	10.65M	10.63M	2.22M	4.96M	3.77M	110.25M
Total Liabilities	336.49M	360.26M	377.10M	353.39M	333.95M	604.46M
Stockholders Equity	566.48M	564.85M	519.76M	500.11M	298.88M	257.83M
Cash Flow
Free Cash Flow	40.63M	-13.87M	-11.53M	-10.07M	-10.44M	15.40M
Operating Cash Flow	47.40M	-5.50M	-5.93M	-4.19M	29.00M	18.89M
Investing Cash Flow	-6.77M	16.59M	-5.57M	1.91M	255.83M	-123.41M
Financing Cash Flow	-207.00K	2.25M	-6.25M	148.42M	-173.77M	204.38M

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

• Technical Analysis Sentiment: Negative
• Last Price: 2.83
• 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:2376, the sentiment is Negative. The current price of 2.83 is below the 20-day moving average (MA) of 3.08, below the 50-day MA of 3.02, and below the 200-day MA of 2.86, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 38.44 is Neutral, neither overbought nor oversold. The STOCH value of 13.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
1538	74 Outperform	HK$435.82M	1.31	8.72%	6.25%	2.42%	10.16%
1895	73 Outperform	HK$275.76M	1.06	15.85%	11.22%	11.13%	142.00%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2376	56 Neutral	HK$394.69M	3.99	7.09%	3.90%	-3.62%	26.66%
1153	50 Neutral	HK$244.68M	0.52	―	―	-2.44%	―
2168	50 Neutral	HK$171.06M	1.12	1.92%	―	-8.64%	―

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

Lushang Life Services Relocates Hong Kong Office and Appoints New Process Agent

Lushang Life Services Co., Ltd. has changed its principal place of business in Hong Kong to 17/F, Leighton Centre, 77 Leighton Road, Causeway Bay, effective 30 January 2026, signaling a relocation of its operational and corporate contact hub in the city. The company has also replaced its Hong Kong process agent following the expiry of its service agreement with SWCS Corporate Services Group (Hong Kong) Limited, with Mr. Wong Wai Chiu ceasing in that role and Ms. Chan Lok Tung appointed as the new authorized representative for accepting legal process and notices, ensuring continued compliance with Hong Kong listing and companies regulations for the benefit of shareholders and other stakeholders.

The most recent analyst rating on (HK:2376) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Lushang Life Services Co., Ltd. Class H stock, see the HK:2376 Stock Forecast page.

Lushang Life Services Reaffirms Use of IPO Proceeds and Sets 2025 Deployment Target

Lushang Life Services has reaffirmed its original allocation plan for the net proceeds from its 2022 global offering, confirming that funds remain earmarked primarily for strategic cooperation, acquisitions and investments to expand its property management scale and diversify its portfolio, alongside enhancements to service offerings, IT infrastructure and general working capital. As of the latest reporting date, the company has used approximately HK$19.05 million of the proceeds, with about HK$119.35 million still unutilised and targeted for full deployment by 31 December 2025, while interest and foreign exchange gains generated on the idle funds will be applied to working capital and general corporate purposes, signalling a cautious but committed approach to growth and operational improvement.