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Lesi Group Limited (HK:2540)
:2540
Hong Kong Market
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Lesi Group Limited (2540) AI Stock Analysis

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HK:2540

Lesi Group Limited

(2540)

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Neutral 53 (OpenAI - 5.2)
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)

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
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Lesi Group Limited Financial Statement Overview

Summary
Strong 2025 revenue growth (+45.6%) is offset by sharply weaker profitability (gross margin down to 5.4% from 14.9%; net margin down to 2.6% from 10.6%) and very weak cash conversion with deeply negative operating and free cash flow in 2024–2025. Balance sheet leverage is still manageable (debt-to-equity 0.26), but rising debt and declining ROE (6.1% vs 11.8%) add risk.
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
24
Negative
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.55B681.51M628.03M492.57M470.18M
Gross Profit84.25M101.44M104.00M119.24M112.45M
EBITDA44.60M75.99M72.81M74.53M64.75M
Net Income39.68M72.49M65.23M67.29M57.49M
Balance Sheet
Total Assets1.01B815.66M585.37M564.32M568.63M
Cash, Cash Equivalents and Short-Term Investments43.58M149.42M76.85M59.20M55.91M
Total Debt168.18M39.96M58.08M36.03M43.55M
Total Liabilities364.41M203.65M159.68M158.14M209.54M
Stockholders Equity649.36M612.02M423.76M360.52M359.08M
Cash Flow
Free Cash Flow-300.51M-14.54M103.00K15.47M48.95M
Operating Cash Flow-298.17M-14.24M269.00K15.52M49.42M
Investing Cash Flow-1.34M-290.00K-166.00K-24.00K-155.00K
Financing Cash Flow187.18M87.33M17.55M-11.21M-13.08M

Lesi Group Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.24
Price Trends
50DMA
0.89
Negative
100DMA
0.98
Negative
200DMA
1.16
Negative
Market Momentum
MACD
-0.05
Positive
RSI
30.55
Neutral
STOCH
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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
HK$163.12M25.282.67%14.32%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
53
Neutral
HK$420.00M7.636.33%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$282.11M159.58-14.23%
44
Neutral
HK$178.61M-3.44-64.17%-3.60%-77.98%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2540
Lesi Group Limited
0.70
-0.87
-55.41%
HK:0550
Kingkey Intelligence Culture Holdings Limited
1.32
1.19
885.07%
HK:1163
Adtiger Corporations Limited
0.18
0.04
25.34%
HK:1993
Asiaray Media Group Ltd.
0.59
-0.11
-15.71%
HK:0205
SEEC Media Group Limited
0.67
0.37
123.33%
HK:0343
Culturecom Holdings Limited
0.10
-0.02
-17.60%

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.Date of analysis: Jun 15, 2026