LC Logistics, Inc (2490) AI Stock Analysis

• Market Cap: HK$2.99B
• Dividend Yield: 8.25%
• Average Volume (3M): 264.41K
• Price to Earnings (P/E): 5.6
• Beta (1Y): -0.05
• Revenue Growth: 56.58%
• EPS Growth: 1963.38%
• Country: HK
• Employees: 337
• Sector: Industrials
• Sector Strength: 72
• Industry: Integrated Freight & Logistics
• EPS (TTM): 0.21
• Shares Outstanding: 572,538,300
• 10 Day Avg. Volume: 256,610
• 30 Day Avg. Volume: 264,410
• PEG Ratio: 0.09
• Price to Book (P/B): 4.70
• Price to Sales (P/S): 3.63
• P/FCF Ratio: -18.51
• 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: 66 Neutral
• Price Target: HK$6.00 ▲(37.93% Upside)

LC Logistics, Inc. has a solid financial performance with strong revenue growth and profitability, but faces challenges with negative free cash flow. The stock is undervalued with a low P/E ratio and high dividend yield, offering potential for income. However, technical indicators suggest bearish momentum, which could pose short-term risks.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates a successful expansion in market reach and service adoption, enhancing its competitive position.

Balance Sheet Health

A robust balance sheet with low leverage provides financial stability and flexibility for future investments and growth opportunities.

Operational Efficiency

Sustained operational efficiency through resilient margins indicates effective management and cost control, supporting long-term profitability.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow could strain financial resources, limiting the company's ability to invest in growth or weather economic downturns.

Cost Pressures

Decreasing gross margins suggest rising costs, which could erode profitability if not managed effectively, impacting long-term financial health.

Capital Expenditure Concerns

Significant capital expenditures, if not yielding expected returns, could impact cash flow and financial flexibility, posing risks to future operations.

LC Logistics, Inc Business Overview & Revenue Model

Company Description

LC Logistics, Inc., a freight forwarding company, provides integrated cross-border seaborne logistics and time charter services worldwide. The company offers cross-border logistics services, including logistics solutions consultancy, shipping arrangement, ground transportation, warehousing before departure, customs clearance before departure, cross-border seaborne transportation, customs clearance after arrival, warehousing, and other value-added services after arrival and last-mile delivery. It also hires out company owned container vessels or chartered in from third parties under time charter services. The company was founded in 2004 and is based in Qingdao, the People's Republic of China.

How the Company Makes Money

LC Logistics, Inc. generates revenue primarily through its diverse range of logistics services. Key revenue streams include transportation fees from freight services, which account for a significant portion of its earnings, as well as storage fees from its warehousing solutions. The company also earns revenue from value-added services such as packaging, inventory management, and consulting for supply chain optimization. Strategic partnerships with major shipping carriers and technology providers enhance its service offerings and operational efficiency, contributing to its overall profitability. Additionally, LC Logistics benefits from long-term contracts with clients, providing a steady income flow.

LC Logistics, Inc Financial Statement Overview

Summary

LC Logistics, Inc. shows strong revenue growth and profitability improvements, supported by a robust balance sheet with low leverage. However, negative free cash flow due to high capital expenditures requires attention.

Income Statement

LC Logistics, Inc. has demonstrated strong revenue growth from 2023 to 2024, with a significant increase in total revenue. The gross profit margin has slightly decreased, indicating increased cost pressures. However, the net profit margin has improved significantly, reflecting better cost management and efficiency. The EBIT and EBITDA margins have shown resilience, suggesting operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a high equity ratio, indicating financial stability. The debt-to-equity ratio is low, reflecting conservative leverage. Return on equity has improved, showcasing effective use of shareholders' capital. Overall, the balance sheet suggests a solid financial position with low risk.

Cash Flow

The operating cash flow has increased, indicating improved cash generation from operations. However, the free cash flow remains negative due to high capital expenditures, which could be a concern if not managed properly. The operating cash flow to net income ratio is healthy, suggesting good cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.10B	1.95B	1.24B	4.61B	4.20B	781.52M
Gross Profit	224.38M	210.09M	226.62M	545.30M	456.84M	63.79M
EBITDA	136.48M	112.53M	172.82M	434.78M	442.74M	42.93M
Net Income	497.70M	395.79M	118.88M	380.94M	384.08M	25.52M
Balance Sheet
Total Assets	2.01B	1.92B	1.45B	1.44B	1.13B	326.56M
Cash, Cash Equivalents and Short-Term Investments	633.67M	838.01M	217.86M	346.36M	193.31M	50.67M
Total Debt	138.66M	166.47M	58.04M	74.92M	95.07M	48.58M
Total Liabilities	451.33M	371.93M	281.08M	549.33M	651.62M	219.85M
Stockholders Equity	1.49B	1.50B	1.13B	878.91M	475.97M	99.02M
Cash Flow
Free Cash Flow	-504.26M	-381.41M	-270.79M	-35.43M	-191.06M	5.55M
Operating Cash Flow	112.42M	79.28M	41.02M	585.35M	504.94M	50.91M
Investing Cash Flow	252.29M	472.76M	-295.50M	-346.99M	-395.21M	-31.58M
Financing Cash Flow	43.63M	6.59M	111.57M	-109.12M	32.40M	-3.28M

LC Logistics, Inc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.35
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2490, the sentiment is Neutral. The current price of 4.35 is below the 20-day moving average (MA) of 4.81, below the 50-day MA of 5.13, and below the 200-day MA of 7.73, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 56.54 is Neutral, neither overbought nor oversold. The STOCH value of 58.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2490.

LC Logistics, Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2490	66 Neutral	HK$2.99B	5.56	37.50%	8.25%	56.58%	1963.38%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1442	60 Neutral	HK$660.48M	13.97	7.59%	―	13.85%	37.13%
0636	54 Neutral	HK$12.85B	9.43	8.51%	3.55%	26.36%	-18.67%
2130	52 Neutral	HK$991.61M	33.92	5.39%	0.60%	29.11%	-49.03%
6123	45 Neutral	HK$455.61M	-7.71	-4.97%	2.25%	-35.13%	-11.52%
8292	39 Underperform	HK$388.20M	-61.02	-7.88%	―	9.79%	89.05%

LC Logistics, Inc Corporate Events

LC Logistics to Dispose of Vessel Under US$170 Million Novation Deal

LC Logistics’ subsidiary Lehang Boundless has agreed to dispose of a vessel under construction by novating all its rights and obligations in a 2024 shipbuilding contract to Blue Anchor, in exchange for part of a total US$170 million consideration, of which US$68.64 million will be paid to Lehang Boundless. The disposal, classified as a major transaction under Hong Kong listing rules due to its size, has already received written approval from controlling shareholders, and the group will issue a circular detailing the deal, which effectively transfers the purchase obligations for the ship to Blue Anchor and may rebalance LC Logistics’ capital allocation and fleet strategy.

The most recent analyst rating on (HK:2490) stock is a Hold with a HK$6.00 price target. To see the full list of analyst forecasts on LC Logistics, Inc stock, see the HK:2490 Stock Forecast page.