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

• Market Cap: HK$374.69M
• Dividend Yield: 3.9%
• Average Volume (3M): 12.68K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.33
• 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$3.00 ▲(6.01% Upside)

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

Balance Sheet Strength

A strong balance sheet with low leverage provides financial stability and flexibility, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Strategic Use of IPO Proceeds

Strategic allocation of IPO proceeds towards growth initiatives indicates a focused approach to scaling operations and enhancing service offerings, which can strengthen market position.

Profitability Maintenance

Maintaining profitability despite revenue challenges highlights operational resilience and effective cost management, supporting long-term sustainability.

Negative Factors

Negative Cash Flow

Persistent negative cash flow suggests potential liquidity issues, limiting the company's ability to fund operations and growth without external financing.

Revenue Decline

A significant revenue decline indicates potential market or operational disruptions, posing risks to future growth and profitability.

Margin Compression

Margin compression reflects increased costs or pricing pressures, which can erode profitability and reduce competitive advantage over time.

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

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 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	―	-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	―	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: Positive
• 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 2.95, below the 50-day MA of 3.03, and above the 200-day MA of 2.56, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 22.05 is Positive, neither overbought nor oversold. The STOCH value of 3.33 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
1895	73 Outperform	HK$278.73M	2.66	15.85%	11.22%	11.13%	142.00%
1538	69 Neutral	HK$350.37M	3.57	8.72%	6.25%	2.42%	10.16%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2376	56 Neutral	HK$374.69M	8.79	7.09%	3.90%	-3.62%	26.66%
2168	51 Neutral	HK$192.64M	10.02	1.92%	―	-8.64%	―
1153	50 Neutral	HK$272.21M	3.03	―	―	-2.44%	―

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

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.

Lushang Life Services Approves Key Resolutions at 2025 EGM

Lushang Life Services Co., Ltd. held its 2025 third extraordinary general meeting on 30 October 2025, where all proposed resolutions were passed by shareholders. The key resolution involved approving a supplemental agreement to revise annual caps for transactions under the 2023 Property Management and Related Services Master Agreement, indicating a strategic move to potentially enhance operational efficiency and financial performance.

Lushang Life Services to Hold EGM for Key Agreement Approval

Lushang Life Services Co., Ltd. has announced an extraordinary general meeting to discuss and approve the Supplemental Property Management and Related Services Master Agreement with Shandong Commercial Group Co., Ltd. The meeting aims to ratify the revised annual caps for transactions under this agreement, reflecting the company’s strategic efforts to enhance its service offerings and operational capabilities. This move is expected to strengthen Lushang Life Services’ market position and potentially benefit its stakeholders by aligning its operational goals with market demands.