LX Technology Group Limited (2436) AI Stock Analysis

• Market Cap: HK$1.44B
• Dividend Yield: N/A
• Average Volume (3M): 5.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.16
• 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: 5,930
• 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

• Rating: 41 Neutral
• Price Target: HK$4.00 ▼(-1.96% Downside)

The overall stock score is primarily impacted by the company's weak financial performance and bearish technical indicators. The negative P/E ratio and lack of dividend yield further contribute to a low valuation score. The absence of earnings call data and corporate events means these factors do not influence the score.

LX Technology Group Limited Business Overview & Revenue Model

Company Description

LX Technology Group Limited (2436) is a diversified technology company based in Hong Kong, primarily focused on providing innovative solutions in the information technology sector. The company operates through various segments, including software development, system integration, and IT consulting services. LX Technology Group is known for its commitment to delivering cutting-edge technological solutions that enhance operational efficiency and drive digital transformation for businesses across different industries.

How the Company Makes Money

LX Technology Group Limited generates revenue through multiple key streams. The primary source of income comes from its software development and licensing, where the company creates proprietary software applications tailored to meet client needs. Additionally, the company earns revenue from system integration services, helping businesses implement and optimize IT systems effectively. IT consulting services also contribute to revenue, as clients seek expert advice on technology strategy and implementation. Strategic partnerships with other technology firms and industry players enhance LX Technology Group's market reach and capabilities, further bolstering its revenue potential.

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	562.75M	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: Negative
• Last Price: 4.08
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2436, the sentiment is Negative. The current price of 4.08 is below the 20-day moving average (MA) of 4.38, below the 50-day MA of 4.28, and above the 200-day MA of 3.12, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 34.15 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	―	$2.34B	7.35	10.76%	6.35%	15.67%	35.62%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1079	―	€444.45M	-25.97	-23.45%	―	29.21%	-137.50%
3336	―	€1.65B	―	-11.23%	―	-11.28%	-122.85%
8159	―	HK$65.47M	―	-52.67%	―	-1.15%	-10025.00%
2436	―	HK$1.44B	―	-1.60%	―	32.83%	90.24%
3638	―	HK$486.21M	-13.98	-31.98%	―	-33.08%	-2532.02%

LX Technology Group Limited Corporate Events

LX Technology Group Expands Device Purchase Agreement with Beijing JD

LX Technology Group Limited has announced a revision of the annual caps under its 2024 Purchase Framework Agreement with Beijing JD due to the expansion of its device recycling and subscription businesses. The revised caps reflect a significant increase in the purchase of both new and second-hand devices, indicating the company’s growth and increased demand in these sectors.

The most recent analyst rating on (HK:2436) stock is a Hold with a HK$3.00 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 Reports Strong Financial Turnaround and Industry Recognition

LX Technology Group Limited reported a significant financial turnaround for the first half of 2025, achieving a net profit of RMB4.9 million compared to a net loss in the same period last year. This improvement was driven by service expansion, refined expense management, and digitalization efforts. The company gained industry recognition and policy support, being selected as a National Service Standardisation Pilot Enterprise and a National Pilot Enterprise for Second-hand Goods Circulation, reflecting its leadership in sustainability and innovation.

The most recent analyst rating on (HK:2436) stock is a Hold with a HK$3.00 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 Limited Announces Positive Profit Turnaround

LX Technology Group Limited has announced a significant financial turnaround, expecting to report a net profit of up to RMB5.0 million for the first half of 2025, compared to a net loss of approximately RMB40.6 million in the same period of 2024. This improvement is attributed to increased revenue from expanded services and reduced operating expenses through refined management and digitalization efforts, positioning the company for sustainable growth and value delivery to stakeholders.