LFG Investment Holdings Limited (3938) AI Stock Analysis

• Market Cap: HK$448.55M
• Dividend Yield: N/A
• Average Volume (3M): 295.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: -54.24%
• EPS Growth: -779.59%
• Country: HK
• Employees: 41
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): -0.04
• Shares Outstanding: 487,555,570
• 10 Day Avg. Volume: 223,000
• 30 Day Avg. Volume: 295,400
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 2.92
• P/FCF Ratio: 2.30
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: HK$1.00 ▲(13.64% Upside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenues and negative profit margins. While technical indicators show some potential for upward momentum, the negative valuation metrics further weigh down the score. The absence of earnings call data and corporate events means these factors do not influence the score.

LFG Investment Holdings Limited Business Overview & Revenue Model

Company Description

LFG Investment Holdings Limited (3938) is an investment holding company based in Hong Kong, primarily engaged in the sectors of financial services, asset management, and investment advisory. The company focuses on identifying and capitalizing on investment opportunities across various asset classes, including equities, fixed income, and alternative investments, while also providing strategic advisory services to its clients.

How the Company Makes Money

LFG Investment Holdings Limited generates revenue through several key streams, including management fees from its asset management services, performance fees based on the success of its investment strategies, and advisory fees from its financial services. The company may also earn income from investments in securities and other financial instruments. Significant partnerships with institutional investors and financial institutions enhance its capital base and provide access to a wider range of investment opportunities, contributing to its overall earnings.

LFG Investment Holdings Limited Financial Statement Overview

Summary

LFG Investment Holdings Limited is facing significant financial challenges, with declining revenues, negative profit margins, and weak cash flow generation. While the company maintains a low level of debt, its inability to generate positive returns and cash flow poses risks to its financial stability and future growth prospects.

Income Statement

The income statement shows a concerning trend with declining revenues and negative profit margins. The revenue has decreased significantly by 31.74% in the latest year, and the company is experiencing negative gross, EBIT, and net profit margins, indicating operational inefficiencies and potential challenges in generating profits.

Balance Sheet

The balance sheet reflects a relatively low debt-to-equity ratio of 0.09, suggesting conservative leverage. However, the negative return on equity indicates that the company is not generating returns for its shareholders, which is a significant concern. The equity ratio is stable, but the overall financial health is weakened by poor profitability.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth and a low operating cash flow to net income ratio, indicating challenges in converting income into cash. The free cash flow to net income ratio is close to 1, suggesting that most of the net income is being converted into free cash flow, but the overall cash generation is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.17M	25.17M	94.17M	42.83M	78.14M	108.15M
Gross Profit	-9.10M	-9.10M	40.20M	42.83M	29.85M	59.91M
EBITDA	-28.37M	-28.37M	4.98M	0.00	6.44M	26.38M
Net Income	-35.00M	-35.00M	-3.99M	-22.68M	-3.29M	16.12M
Balance Sheet
Total Assets	254.05M	254.05M	231.37M	261.58M	314.02M	343.87M
Cash, Cash Equivalents and Short-Term Investments	73.05M	73.05M	81.14M	61.20M	127.60M	132.94M
Total Debt	8.65M	8.65M	26.03M	31.31M	41.64M	15.37M
Total Liabilities	155.63M	155.63M	97.61M	113.45M	143.50M	170.22M
Stockholders Equity	98.42M	98.42M	132.94M	147.08M	169.36M	172.25M
Cash Flow
Free Cash Flow	31.97M	31.97M	40.98M	-12.57M	-7.44M	-85.23M
Operating Cash Flow	33.14M	33.14M	42.33M	-12.57M	-7.10M	-85.14M
Investing Cash Flow	-2.59M	-2.59M	-1.35M	0.00	-3.73M	2.61M
Financing Cash Flow	-27.41M	-27.41M	-20.75M	-13.42M	19.76M	-7.24M

LFG Investment Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3938, the sentiment is Neutral. The current price of 0.88 is below the 20-day moving average (MA) of 0.92, above the 50-day MA of 0.81, and above the 200-day MA of 0.40, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 47.10 is Neutral, neither overbought nor oversold. The STOCH value of 43.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:3938.

LFG Investment Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8168	56 Neutral	HK$151.79M	―	-34.27%	―	-30.21%	-305.00%
8439	51 Neutral	HK$46.95M	-3.40	-19.60%	6.25%	-22.98%	-285.25%
0804	49 Neutral	HK$274.10M	-4.50	-21.71%	―	50.60%	-12.96%
8226	49 Neutral	HK$50.10M	48.00	0.28%	―	―	―
3938	48 Neutral	HK$448.55M	-10.67	-30.25%	―	-54.24%	-779.59%
8193	46 Neutral	HK$47.57M	―	-34.21%	―	8.53%	86.05%

LFG Investment Holdings Limited Corporate Events

LFG Investment Holdings to Review Interim Results and Dividend

LFG Investment Holdings Limited has announced that its board of directors will hold a meeting on November 25, 2025, to approve the unaudited interim results for the six months ending September 30, 2025, and to consider the payment of an interim dividend. This meeting is significant as it will determine the company’s financial performance and potential shareholder returns for the specified period.

The most recent analyst rating on (HK:3938) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on LFG Investment Holdings Limited stock, see the HK:3938 Stock Forecast page.

LFG Investment Holdings Limited Successfully Passes All Resolutions at AGM

LFG Investment Holdings Limited, incorporated in the Cayman Islands, held its Annual General Meeting on 20 August 2025, where all proposed resolutions were passed. The resolutions included the adoption of financial statements, re-election of directors, re-appointment of auditors, and granting mandates for share issuance and repurchase. This successful AGM indicates strong shareholder support and positions the company for continued operational and strategic activities.

The most recent analyst rating on (HK:3938) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on LFG Investment Holdings Limited stock, see the HK:3938 Stock Forecast page.