LX Technology Group Limited (2436) AI Stock Analysis

• Market Cap: HK$918.47M
• Dividend Yield: N/A
• Average Volume (3M): 160.00
• Price to Earnings (P/E): ―
• Beta (1Y): -0.02
• Revenue Growth: 29.97%
• EPS Growth: 53.06%
• Country: HK
• Employees: 970
• Sector: Technology
• Sector Strength: 84
• Industry: Computer Hardware
• EPS (TTM): -0.06
• Shares Outstanding: 353,259,000
• 10 Day Avg. Volume: 270
• 30 Day Avg. Volume: 160
• PEG Ratio: -0.16
• Price to Book (P/B): 3.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 178.53
• 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: 40 Underperform
• Price Target: ―

LX Technology Group Limited's stock score is low due to significant financial challenges, including negative profitability and high leverage. Technical indicators suggest bearish momentum, and the lack of positive valuation metrics further weighs down the score. The company must address operational inefficiencies and improve its financial health to enhance investor confidence.

LX Technology Group Limited Business Overview & Revenue Model

Company Description

LX Technology Group Limited operates as a device lifecycle management solution provider in the People's Republic of China. The company operates through Recycling Business and Device Subscription Services segments. It is involved in the sale of refurbished de-commissioned information technology (IT) devices to resellers of IT devices through proprietary quotation platform and e-commerce platforms; and the provision of device and IT technical subscription services to SMEs. The company was founded in 2004 and is headquartered in Shenzhen, the People's Republic of China.

How the Company Makes Money

LX Technology Group Limited Financial Statement Overview

Summary

LX Technology Group Limited faces challenges in profitability and cash flows despite revenue growth. High leverage and negative profitability metrics indicate potential financial risks, necessitating operational improvements to enhance financial stability.

Income Statement

The company has shown positive revenue growth with a significant increase from 2023 to 2024. However, the gross profit margin remains relatively low at 8.28% for 2024, and the net profit margin is negative, indicating operational challenges. EBIT and EBITDA margins are also concerning, with negative EBIT indicating possible inefficiencies or high costs.

Balance Sheet

The company has a high debt-to-equity ratio, suggesting significant leverage which could pose risks in economic downturns. Return on equity is negative due to net losses, but the equity ratio of 41.47% in 2024 indicates a relatively stable asset base compared to liabilities.

Cash Flow

The cash flow statement reveals challenges with free cash flow, which remains negative, suggesting potential liquidity issues. The operating cash flow to net income ratio is not calculable due to zero operating cash flow in 2024, highlighting operational difficulties.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.37B	1.79B	1.66B	1.33B	1.02B
	Gross Profit
196.40M	147.63M	199.28M	193.14M	146.86M
	EBIT
-80.91M	-109.21M	138.12M	-408.00M	-153.79M
	EBITDA
179.72M	183.45M	374.82M	-216.63M	-24.65M
	Net Income Common Stockholders
-56.95M	-131.27M	99.95M	-448.70M	-177.13M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
402.37M	460.23M	457.08M	118.55M	80.38M
	Total Assets
1.72B	1.68B	1.56B	1.18B	941.08M
	Total Debt
821.63M	710.29M	563.83M	562.75M	327.66M
	Net Debt
544.69M	319.64M	407.56M	444.19M	247.28M
	Total Liabilities
1.01B	941.29M	753.55M	1.81B	1.11B
	Stockholders Equity
714.27M	736.57M	807.31M	-630.22M	-169.89M
Cash Flow		Free Cash Flow
0.00	-159.51M	14.19M	-162.53M	-202.99M
	Operating Cash Flow
0.00	164.49M	342.36M	278.78M	109.93M
	Investing Cash Flow
0.00	-28.84M	-597.92M	-450.97M	-319.98M
	Financing Cash Flow
0.00	96.70M	287.46M	210.37M	214.51M

LX Technology Group Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.58
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2436, the sentiment is Neutral. The current price of 2.58 is above the 20-day moving average (MA) of 2.29, above the 50-day MA of 2.29, and below the 200-day MA of 3.35, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 81.01 is Negative, neither overbought nor oversold. The STOCH value of 98.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2436.

LX Technology Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9901	75 Outperform	€61.65B	20.67	10.21%	―	18.31%	26.31%
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%
1617	59 Neutral	HK$157.75M	3.76	5.02%	―	1.01%	660.00%
2000	43 Neutral	$642.54M	2.57	-6.17%	―	-21.06%	-127.50%
2436	40 Underperform	HK$918.47M	―	-7.86%	―	29.97%	53.06%

LX Technology Group Limited Corporate Events

LX Technology Group Schedules 2025 Annual General Meeting

LX Technology Group Limited has announced that its annual general meeting will be held on June 6, 2025, in Shenzhen, China. The meeting will address several key resolutions, including the re-election of directors, re-appointment of the auditor, and authorization for the company to buy back its shares, which could impact the company’s stock market activities and governance structure.

LX Technology Group Reports Revenue Growth and Operational Enhancements

LX Technology Group Limited reported a 32.3% increase in revenue for the year ended December 31, 2024, reaching approximately RMB2,371.7 million. Despite a net loss of approximately RMB58.3 million, this marks a significant reduction from the previous year’s loss. The company has made substantial progress in its DLM business, particularly in device recycling, which has transitioned from a gross loss to a gross profit. Additionally, LX Technology introduced an AI tool to enhance internal processes and customer acquisition, aiming to improve operational efficiency and agility in response to market demands.

LX Technology Group Schedules Board Meeting for Annual Results

LX Technology Group Limited has announced that its Board of Directors will meet on 26 March 2025 to review and approve the company’s annual financial results for the year ending 31 December 2024. The meeting will also consider the recommendation of a final dividend payment and address any other business matters. This announcement signals the company’s ongoing commitment to transparency and shareholder engagement as it prepares to disclose its financial performance and potential dividend distribution.