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LX Technology Group Limited (HK:2436)
:2436
Hong Kong Market

LX Technology Group Limited (2436) AI Stock Analysis

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HK

LX Technology Group Limited

(2436)

Rating:45Neutral
Price Target:
HK$3.00
▲(6.01%Upside)
The overall stock score reflects significant financial challenges and negative valuation metrics. Although there is some short-term bullish technical momentum, the fundamental financial weaknesses and lack of profitability weigh heavily on the stock's outlook.

LX Technology Group Limited (2436) vs. iShares MSCI Hong Kong ETF (EWH)

LX Technology Group Limited Business Overview & Revenue Model

Company DescriptionLX 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
42
Neutral
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
50
Neutral
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
35
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.37B1.79B1.66B1.33B1.02B
Gross Profit196.40M147.63M199.28M193.14M146.86M
EBITDA179.72M183.45M374.82M-216.63M-24.65M
Net Income-56.95M-131.27M99.95M-448.70M-177.13M
Balance Sheet
Total Assets1.72B1.68B1.56B1.18B941.08M
Cash, Cash Equivalents and Short-Term Investments402.37M460.23M457.08M118.55M80.38M
Total Debt821.63M710.29M563.83M562.75M327.66M
Total Liabilities1.01B941.29M753.55M1.81B1.11B
Stockholders Equity714.27M736.57M807.31M-630.22M-169.89M
Cash Flow
Free Cash Flow-247.24M-159.51M14.19M-162.53M-202.99M
Operating Cash Flow51.42M164.49M342.36M278.78M109.93M
Investing Cash Flow-222.60M-28.84M-597.92M-450.97M-319.98M
Financing Cash Flow59.13M96.70M287.46M210.37M214.51M

LX Technology Group Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.83
Price Trends
50DMA
2.37
Positive
100DMA
2.52
Positive
200DMA
3.19
Negative
Market Momentum
MACD
0.10
Negative
RSI
62.16
Neutral
STOCH
87.90
Negative
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 2.83 is above the 20-day moving average (MA) of 2.52, above the 50-day MA of 2.37, and below the 200-day MA of 3.19, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 62.16 is Neutral, neither overbought nor oversold. The STOCH value of 87.90 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
S$582.70M14.08-0.76%6.36%4.26%-65.16%
45
Neutral
HK$999.72M-7.86%29.97%53.06%
$328.12M9.879.28%4.47%
DEPNY
€9.61M0.29-16.24%
DEJTI
€112.50M-10.39%
HK$63.36M-52.67%
63
Neutral
HK$325.99M15.28-31.98%-37.58%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2436
LX Technology Group Limited
2.83
-1.97
-41.04%
PCPPF
PC Partner Group
0.85
0.35
70.00%
DE:PNY
Pine Technology Holdings Limited
DE:JTI
Ju Teng International Holdings Limited
0.11
-0.02
-15.38%
HK:8159
Glory Mark Hi-Tech (Holdings) Ltd
0.09
0.00
0.00%
HK:3638
Huabang Technology Holdings Limited
9.40
2.56
37.43%

LX Technology Group Limited Corporate Events

LX Technology Group Forms Nomination Committee to Boost Governance
Jun 27, 2025

LX Technology Group Limited has established a Nomination Committee to enhance its governance structure. The committee, comprising a majority of independent non-executive directors, will oversee the nomination process for board members, ensuring diversity and proper representation. This move is expected to strengthen the company’s decision-making process and align with best practices in corporate governance.

LX Technology Group Secures Unanimous Approval at AGM
Jun 6, 2025

At the Annual General Meeting held on June 6, 2025, LX Technology Group Limited successfully passed all proposed resolutions by unanimous vote. These resolutions included the re-election of directors, reappointment of the auditor, and granting mandates to the board for share buybacks and issuance, reflecting strong shareholder support and stability in the company’s governance.

LX Technology Group Schedules 2025 Annual General Meeting
Apr 23, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 28, 2025