LX Technology Group Limited (2436) AI Stock Analysis

• Market Cap: HK$4.15B
• Dividend Yield: N/A
• Average Volume (3M): 50.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.07
• Revenue Growth: 32.83%
• EPS Growth: 90.24%
• Country: HK
• Employees: 970
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 0.02
• Shares Outstanding: 353,259,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 50
• PEG Ratio: 0.33
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 0.44
• P/FCF Ratio: -4.19
• 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: 48 Neutral
• Price Target: HK$11.50 ▲(150.00% Upside)

The score is primarily weighed down by weak financial quality (ongoing losses, high leverage, and negative free cash flow) and limited valuation support due to negative earnings. Technicals are the main offset, showing strong momentum, but the extremely overbought RSI increases near-term reversal risk.

Positive Factors

Revenue Growth

Sustained ~32% revenue growth demonstrates expanding market traction and product adoption, which over 2–6 months supports stronger operational scale, potential improvement in unit economics, and the ability to reinvest in R&D and sales to deepen market penetration.

Diversified Revenue Streams

A mixed model of product sales, subscription cloud services, consulting and maintenance contracts creates recurring and transactional income. This diversification reduces revenue cyclicality, improves predictability, and supports margin stability and customer retention over the medium term.

Operating Cash Generation

Positive operating cash conversion despite accounting losses indicates underlying cash-generative operations. Over the next few months this provides liquidity to fund operations and selective investments, reducing immediate financing pressure while management works toward profitability.

Negative Factors

Ongoing Unprofitability

Persistent negative net profit and EBIT margins signal structural profitability challenges. Without clear margin expansion, losses will continue to erode equity and constrain reinvestment, making sustained funding or meaningful returns unlikely in the 2–6 month horizon.

High Leverage

Elevated debt-to-equity increases financial risk and reduces strategic flexibility. In a 2–6 month context higher leverage raises interest and covenant pressure, limits ability to fund growth organically, and heightens vulnerability to adverse cash flow swings or rate moves.

Negative Free Cash Flow

Sustained negative free cash flow implies the firm needs external financing to cover capex and growth. Over the medium term this can force equity issuance or additional debt, diluting holders or raising leverage, and constraining the company's ability to invest in strategic initiatives.

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 generates revenue through multiple streams, primarily by offering telecommunications infrastructure services and IT solutions. The company's main revenue sources include the sale of hardware and software products, subscription-based services for cloud solutions, and consulting fees for IT advisory services. Additionally, strategic partnerships with major telecommunications providers and technology firms enhance its market reach and provide access to new clients, contributing significantly to its earnings. The company also benefits from ongoing maintenance contracts and service agreements, ensuring a steady income flow from existing clients.

LX Technology Group Limited Financial Statement Overview

Summary

LX Technology Group Limited is experiencing revenue growth, yet it struggles with profitability and high leverage. The negative net income and free cash flow indicate potential financial instability. While there are improvements in revenue and equity ratios, the company needs to address its cost structure and leverage to enhance financial health.

Income Statement

The company has shown a consistent increase in revenue over the years, with a notable revenue growth rate of 32.3% from 2022 to 2023. However, profitability remains a concern as indicated by negative net profit margins and EBIT margins in recent years. The gross profit margin has been relatively stable but low, reflecting challenges in cost management or pricing strategy.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating significant leverage, which could pose financial risks. The equity ratio has improved over the years, but the company still faces challenges in maintaining a strong equity base. Return on equity is negative, reflecting ongoing profitability issues.

Cash Flow

The company has experienced negative free cash flow in recent years, indicating potential liquidity issues. The operating cash flow to net income ratio is positive, suggesting that the company can generate cash from operations despite net losses. However, the free cash flow to net income ratio is negative, highlighting challenges in covering capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.55B	2.37B	1.79B	1.66B	1.33B	1.02B
Gross Profit	205.41M	196.40M	147.63M	199.28M	193.14M	146.86M
EBITDA	211.16M	179.72M	183.45M	374.82M	-216.63M	-24.65M
Net Income	-11.51M	-56.95M	-131.27M	99.95M	-448.70M	-177.13M
Balance Sheet
Total Assets	1.81B	1.72B	1.68B	1.56B	1.18B	941.08M
Cash, Cash Equivalents and Short-Term Investments	578.62M	402.37M	460.23M	457.08M	118.55M	80.38M
Total Debt	871.81M	821.63M	710.29M	563.83M	1.68B	327.66M
Total Liabilities	1.06B	1.01B	941.29M	753.55M	1.81B	1.11B
Stockholders Equity	729.51M	714.27M	736.57M	807.31M	-630.22M	-169.89M
Cash Flow
Free Cash Flow	-148.15M	-247.24M	-159.51M	14.19M	-162.53M	-202.99M
Operating Cash Flow	1.17M	51.42M	164.49M	342.36M	278.78M	109.93M
Investing Cash Flow	-119.53M	-222.60M	-28.84M	-597.92M	-450.97M	-319.98M
Financing Cash Flow	-59.46M	59.13M	96.70M	287.46M	210.37M	214.51M

LX Technology Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2436, the sentiment is Positive. The current price of 4.6 is below the 20-day moving average (MA) of 4.86, above the 50-day MA of 4.38, and above the 200-day MA of 3.41, indicating a bullish trend. The MACD of 0.94 indicates Negative momentum. The RSI at 97.67 is Negative, neither overbought nor oversold. The STOCH value of 72.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
1263	68 Neutral	HK$2.16B	6.80	10.76%	7.62%	15.67%	35.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3336	55 Neutral	HK$1.73B	-3.19	-11.23%	―	-11.28%	-122.85%
2436	48 Neutral	HK$4.15B	-356.36	-1.60%	―	32.83%	90.24%
1079	43 Neutral	HK$470.81M	-25.58	-23.45%	―	29.21%	-137.50%
8159	42 Neutral	HK$57.02M	-1.32	-58.39%	―	2.76%	-141.34%
3638	40 Underperform	HK$474.42M	-13.56	-32.47%	―	-52.55%	-262.35%

LX Technology Group Limited Corporate Events

LX Technology Reshapes Board with Director Resignation and HR Chief’s Promotion

LX Technology Group Limited has announced board changes effective 31 December 2025, with non-executive director Li Jing resigning from the board and from a subsidiary directorship to focus on personal commitments, and confirming there is no disagreement with the board or other matters requiring shareholder attention. The company has simultaneously elevated Chen Shuang, currently head of the human resources centre and a long-serving HR and training specialist with experience at several major Chinese corporates, to the role of executive director under a three-year service agreement, a move that underscores the group’s emphasis on human resources management and suggests a continued strategic focus on talent development and internal leadership as it refines its governance structure.

The most recent analyst rating on (HK:2436) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on LX Technology Group Limited stock, see the HK:2436 Stock Forecast page.

LX Technology Group Announces Board and Committee Composition

LX Technology Group Limited has announced the current composition of its board of directors, listing four executive directors and three independent non-executive directors, underscoring a governance framework that separates management from oversight. The company has also detailed the structure and membership of its three key board committees—audit, remuneration and nomination—specifying which directors serve as chairpersons and members, thereby clarifying lines of responsibility and reinforcing transparency in its corporate governance arrangements for investors and other stakeholders.

The most recent analyst rating on (HK:2436) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on LX Technology Group Limited stock, see the HK:2436 Stock Forecast page.