LX Technology Group Limited (2436) AI Stock Analysis

• Market Cap: HK$999.72M
• Dividend Yield: N/A
• Average Volume (3M): 970.00
• 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: 87
• Industry: Computer Hardware
• EPS (TTM): -0.06
• Shares Outstanding: 353,259,000
• 10 Day Avg. Volume: 2,640
• 30 Day Avg. Volume: 970
• PEG Ratio: -0.15
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.30
• 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: 45 Neutral
• 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 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
EBITDA	179.72M	183.45M	374.82M	-216.63M	-24.65M
Net Income	-56.95M	-131.27M	99.95M	-448.70M	-177.13M
Balance Sheet
Total Assets	1.72B	1.68B	1.56B	1.18B	941.08M
Cash, Cash Equivalents and Short-Term Investments	402.37M	460.23M	457.08M	118.55M	80.38M
Total Debt	821.63M	710.29M	563.83M	562.75M	327.66M
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	-247.24M	-159.51M	14.19M	-162.53M	-202.99M
Operating Cash Flow	51.42M	164.49M	342.36M	278.78M	109.93M
Investing Cash Flow	-222.60M	-28.84M	-597.92M	-450.97M	-319.98M
Financing Cash Flow	59.13M	96.70M	287.46M	210.37M	214.51M

LX Technology Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	S$582.70M	14.08	-0.76%	6.36%	4.26%	-65.16%
2436	45 Neutral	HK$999.72M	―	-7.86%	―	29.97%	53.06%
PCPPF		$328.12M	9.87	9.28%	4.47%	―	―
PNY		€9.61M	0.29	-16.24%	―	―	―
JTI		€112.50M	―	-10.39%	―	―	―
8159		HK$63.36M	―	-52.67%	―	―	―
3638	63 Neutral	HK$325.99M	15.28	-31.98%	―	-37.58%	―

LX Technology Group Limited Corporate Events

LX Technology Group Forms Nomination Committee to Boost Governance

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

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

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.