Lesi Group Limited (2540) AI Stock Analysis

• Market Cap: HK$545.00M
• Dividend Yield: N/A
• Average Volume (3M): 100.92K
• Price to Earnings (P/E): 14.4
• Beta (1Y): -0.31
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 150
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.06
• Shares Outstanding: 500,000,000
• 10 Day Avg. Volume: 50,250
• 30 Day Avg. Volume: 100,916
• PEG Ratio: -0.86
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 1.07
• P/FCF Ratio: -50.27
• 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: 70 Outperform
• Price Target: HK$1.00 ▼(-19.35% Downside)
• Action: Upgraded Date: 01/16/26
• Date: Action: Upgraded 01/16/26

The score is primarily supported by strong profitability trends and a low-leverage balance sheet, partially offset by weak cash flow conversion. Technicals are a headwind with the stock trading below major moving averages and negative MACD, while the low P/E provides a valuation cushion.

Positive Factors

Balance sheet strength

Very low leverage and a high equity ratio provide durable financial resilience, reducing default risk and preserving capacity to fund projects or absorb losses. Strong ROE indicates capital is used effectively, supporting sustained investment and strategic flexibility over months.

Negative Factors

Weak cash conversion

Negative operating cash flow despite reported profits signals difficulty turning earnings into spendable cash. That constrains the company's ability to fund capex, service obligations or pursue new projects without external financing, a material medium-term operational risk.

Lesi Group Limited Business Overview & Revenue Model

Company Description

Lesi Group Limited operates as a mobile advertising service provider in the People's Republic of China. It offers mobile advertising services, such as mobile marketing planning, traffic acquisition, production of ad creatives, ad placements, ad op...

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Lesi Group Limited operates as a mobile advertising service provider in the People's Republic of China. It offers mobile advertising services, such as mobile marketing planning, traffic acquisition, production of ad creatives, ad placements, ad op...

How the Company Makes Money

Lesi Group Limited generates revenue through multiple streams, primarily from its construction contracts and property development projects. The company undertakes large-scale construction projects, earning income from contract fees and project man...

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Lesi Group Limited generates revenue through multiple streams, primarily from its construction contracts and property development projects. The company undertakes large-scale construction projects, earning income from contract fees and project man...

Lesi Group Limited Financial Statement Overview

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.06B	681.51M	628.03M	492.57M	470.18M	424.38M
Gross Profit	91.69M	101.44M	104.00M	119.24M	112.45M	86.07M
EBITDA	59.71M	75.99M	72.81M	74.53M	64.75M	56.31M
Net Income	54.87M	72.49M	65.23M	67.29M	57.49M	49.77M
Balance Sheet
Total Assets	976.98M	815.66M	585.37M	564.32M	568.63M	454.18M
Cash, Cash Equivalents and Short-Term Investments	106.35M	149.42M	76.85M	59.20M	55.91M	25.90M
Total Debt	126.66M	39.96M	58.08M	36.03M	43.55M	48.39M
Total Liabilities	354.60M	203.65M	159.68M	158.14M	209.54M	174.30M
Stockholders Equity	622.38M	612.02M	423.76M	360.52M	359.08M	279.88M
Cash Flow
Free Cash Flow	77.61M	-14.54M	103.00K	15.47M	48.95M	-18.22M
Operating Cash Flow	77.88M	-14.24M	269.00K	15.52M	49.42M	-18.02M
Investing Cash Flow	-266.00K	-290.00K	-166.00K	-24.00K	-155.00K	388.00K
Financing Cash Flow	0.00	87.33M	17.55M	-11.21M	-13.08M	3.80M

Lesi Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.24
• 50DMA: Negative
• 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:2540, the sentiment is Negative. The current price of 1.24 is above the 20-day moving average (MA) of 1.11, above the 50-day MA of 1.10, and below the 200-day MA of 1.35, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 48.15 is Neutral, neither overbought nor oversold. The STOCH value of 52.94 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2540	70 Outperform	HK$545.00M	14.41	5.29%	―	―	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
1163	50 Neutral	HK$149.75M	23.39	2.67%	―	26.96%	―
0550	47 Neutral	HK$373.54M	-10.06	-33.85%	―	31.88%	53.04%
0205	47 Neutral	HK$838.31M	-34.90	-5.88%	―	-4.13%	76.38%
0343	44 Neutral	HK$211.92M	-3.15	-64.17%	―	-0.57%	-159.63%
1993	39 Underperform	HK$282.11M	-21.81	―	―	-38.24%	-31.99%

Lesi Group Limited Corporate Events