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Lesi Group Limited
(2540)
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Rating:53Neutral
Price Target:
HK$0.71
▼(-42.66% Downside)
Action:Downgraded
Date:06/15/26
The score is held back primarily by weak financial quality—sharp margin compression and especially large negative operating/free cash flow—despite strong revenue growth and a still-manageable balance sheet. Technically, the stock remains in a downtrend with negative momentum signals. A relatively low P/E provides some valuation support but does not fully offset the cash-flow and trend risks.
Positive Factors
Revenue Growth
Sustained, high single-year revenue acceleration demonstrates durable demand or successful business expansion. Strong top-line momentum supports scale benefits, gives management room to invest in operations or marketing, and provides optionality to restore margins if cost structure and cash conversion are addressed.
Negative Factors
Cash-Flow Deterioration
Deep and persistent negative operating cash flow is a structural red flag: accounting profits are not converting to cash, increasing reliance on external funding. Over months this constrains investments, heightens refinancing risk, and makes sustainable execution of growth plans vulnerable.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained, high single-year revenue acceleration demonstrates durable demand or successful business expansion. Strong top-line momentum supports scale benefits, gives management room to invest in operations or marketing, and provides optionality to restore margins if cost structure and cash conversion are addressed.
Read all positive factors
Lesi Group Limited (2540) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$420.00M
Dividend YieldN/A
Average Volume (3M)100.92K
Price to Earnings (P/E)7.6
Beta (1Y)-0.14
Revenue Growth127.58%
EPS Growth-47.16%
CountryHK
Employees281
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)0.08
Shares Outstanding600,000,000
10 Day Avg. Volume50,250
30 Day Avg. Volume100,916
Financial Highlights & Ratios
PEG Ratio-0.30
Price to Book (P/B)0.86
Price to Sales (P/S)0.36
P/FCF Ratio-1.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Lesi Group Limited Business Overview & Revenue Model
Company Description
Operating within the People's Republic of China, Lesi Group Limited specializes as a provider of mobile advertising services. The company offers a comprehensive array of solutions to help clients market their brands, products, and services. These ...
How the Company Makes Money
null...
Lesi Group Limited Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
24
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.55B | 681.51M | 628.03M | 492.57M | 470.18M |
| Gross Profit | 84.25M | 101.44M | 104.00M | 119.24M | 112.45M |
| EBITDA | 44.60M | 75.99M | 72.81M | 74.53M | 64.75M |
| Net Income | 39.68M | 72.49M | 65.23M | 67.29M | 57.49M |
Balance Sheet | |||||
| Total Assets | 1.01B | 815.66M | 585.37M | 564.32M | 568.63M |
| Cash, Cash Equivalents and Short-Term Investments | 43.58M | 149.42M | 76.85M | 59.20M | 55.91M |
| Total Debt | 168.18M | 39.96M | 58.08M | 36.03M | 43.55M |
| Total Liabilities | 364.41M | 203.65M | 159.68M | 158.14M | 209.54M |
| Stockholders Equity | 649.36M | 612.02M | 423.76M | 360.52M | 359.08M |
Cash Flow | |||||
| Free Cash Flow | -300.51M | -14.54M | 103.00K | 15.47M | 48.95M |
| Operating Cash Flow | -298.17M | -14.24M | 269.00K | 15.52M | 49.42M |
| Investing Cash Flow | -1.34M | -290.00K | -166.00K | -24.00K | -155.00K |
| Financing Cash Flow | 187.18M | 87.33M | 17.55M | -11.21M | -13.08M |
Lesi Group Limited Technical Analysis
Negative
1.24
Price Trends
0.89
Negative
0.98
Negative
1.16
Negative
Market Momentum
-0.05
Positive
30.55
Neutral
15.81
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2540, the sentiment is Negative. The current price of 1.24 is above the 20-day moving average (MA) of 0.83, above the 50-day MA of 0.89, and above the 200-day MA of 1.16, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 30.55 is Neutral, neither overbought nor oversold. The STOCH value of 15.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2540.
Lesi Group Limited Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | HK$163.12M | 25.28 | 2.67% | ― | 14.32% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
53 Neutral | HK$420.00M | 7.63 | 6.33% | ― | 127.58% | -47.16% | |
47 Neutral | HK$601.30M | -110.92 | -33.85% | ― | 157.23% | 56.57% | |
47 Neutral | HK$838.31M | -124.07 | -2.57% | ― | 9.84% | 86.09% | |
44 Neutral | HK$282.11M | 159.58 | ― | ― | -14.23% | ― | |
44 Neutral | HK$178.61M | -3.44 | -64.17% | ― | -3.60% | -77.98% |
* Communication Services Sector Average
HK:2540
Lesi Group Limited
0.70
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Lesi Group Limited Corporate Events
Lesi Group Raises Capital Through HK$70 Million Share Placing
Jun 4, 2026
Lesi Group Limited has completed a placing of 100,000,000 new shares under its general mandate, representing 20% of its issued share capital before the deal and about 16.7% after enlargement. The shares were placed at HK$0.70 each to at least six ...
Lesi Group Wins Unanimous Shareholder Support at AGM, Securing Fresh Capital Mandates
May 28, 2026
Lesi Group Limited secured full shareholder backing at its 28 May 2026 annual general meeting, where all resolutions were approved by poll with 100% of the 363.75 million votes cast in favour and no opposing votes recorded. Shareholders re-elected...
Lesi Group Plans Discounted Share Placement to Fund AI and Growth Push
May 22, 2026
Lesi Group Limited has entered into an agreement with Uzen Securities to place up to 100 million new shares, equivalent to 20% of its existing share capital, to at least six independent investors under its general mandate. The new shares will be i...
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.