LX Technology Group Limited (2436) AI Stock Analysis

• Market Cap: HK$1.35B
• Dividend Yield: N/A
• Average Volume (3M): 990.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.03
• Revenue Growth: 32.83%
• EPS Growth: 90.24%
• Country: HK
• Employees: 970
• Sector: Technology
• Sector Strength: 84
• Industry: Computer Hardware
• EPS (TTM): 0.02
• Shares Outstanding: 353,259,000
• 10 Day Avg. Volume: 1,410
• 30 Day Avg. Volume: 990
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$3.00
• Price Target Upside: -30.23% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: HK$3.00 ▼(-30.23% Downside)

The overall stock score is primarily influenced by the company's financial performance, which shows revenue growth but significant profitability and leverage issues. Technical analysis suggests some positive momentum, but valuation concerns due to negative earnings and lack of dividends weigh down 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	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: 4.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 4.3 is above the 20-day moving average (MA) of 3.37, above the 50-day MA of 3.06, and above the 200-day MA of 2.95, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 90.62 is Negative, neither overbought nor oversold. The STOCH value of 88.58 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 *	61 Neutral	$35.83B	9.00	-10.39%	1.87%	8.46%	-7.85%
2436	51 Neutral	HK$1.35B	―	-1.60%	―	32.83%	90.24%
PCPPF	―	$315.28M	7.71	10.76%	6.98%	―	―
PNY	―	€47.73M	0.29	-16.24%	―	―	―
JTI	―	€108.79M	―	-11.23%	―	―	―
3638	51 Neutral	HK$560.77M	15.28	-31.98%	―	-33.08%	-2532.02%
8159	47 Neutral	HK$72.51M	―	-52.67%	―	-1.15%	-10025.00%

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.