LFG Investment Holdings Limited (3938) AI Stock Analysis

• Market Cap: HK$721.58M
• Dividend Yield: N/A
• Average Volume (3M): 295.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.43
• Revenue Growth: 8.17%
• EPS Growth: 54.75%
• Country: HK
• Employees: 41
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): <0.01
• 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: 55 Neutral
• Price Target: HK$1.50 ▲(1.35% Upside)

The overall stock score of 55 reflects significant financial challenges, including declining revenues and negative profit margins, which weigh heavily on the company's prospects. Despite strong technical indicators suggesting bullish momentum, the stock's poor valuation due to negative earnings and lack of dividends further dampens its attractiveness.

Positive Factors

Revenue Growth

The company has shown strong revenue growth of 35.44%, indicating successful expansion in its market and effective business strategies.

Low Debt Levels

A low debt-to-equity ratio suggests conservative leverage, which enhances financial stability and reduces risk in volatile markets.

EPS Growth

Significant EPS growth of 54.75% reflects improved profitability and operational efficiency, supporting potential future earnings expansion.

Negative Factors

Declining Revenues

A significant decline in revenues by 31.74% indicates challenges in maintaining sales and market share, which could impact long-term growth.

Negative Profit Margins

Negative profit margins highlight operational inefficiencies and difficulties in cost management, threatening long-term profitability.

Weak Cash Flow Generation

Weak cash flow generation limits the company's ability to reinvest in growth opportunities and manage financial obligations effectively.

LFG Investment Holdings Limited Business Overview & Revenue Model

Company Description

LFG Investment Holdings Limited operates as a financial services provider in Hong Kong. It offers corporate finance advisory, placing and underwriting, securities dealing and brokerage, margin financing, and asset management services. The company was founded in 2015 and is headquartered in Central, Hong Kong. LFG Investment Holdings Limited is a subsidiary of Lego Financial Group Limited.

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: Positive
• Last Price: 1.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3938, the sentiment is Positive. The current price of 1.48 is above the 20-day moving average (MA) of 1.46, above the 50-day MA of 1.14, and above the 200-day MA of 0.56, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 62.77 is Neutral, neither overbought nor oversold. The STOCH value of 14.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$132.52M	-13.58	-34.27%	―	-30.21%	-305.00%
3938	55 Neutral	HK$721.58M	-40.88	-11.63%	―	8.17%	54.75%
8439	51 Neutral	HK$47.68M	-25.00	-3.06%	6.45%	-10.35%	86.76%
0804	49 Neutral	HK$222.93M	-3.66	-21.71%	―	50.60%	-12.96%
8226	49 Neutral	HK$45.51M	43.60	0.28%	―	―	―
8193	41 Neutral	HK$32.18M	1.64	47.82%	―	34.66%	―

LFG Investment Holdings Limited Corporate Events

LFG Investment Holdings Reports Strong Interim Financial Results

LFG Investment Holdings Limited announced a significant increase in its financial performance for the six months ended 30 September 2025, with total revenue rising by approximately 293.7% to HK$33.8 million compared to the same period in 2024. The company reported a profit of HK$3.0 million, a substantial turnaround from a loss of HK$17.6 million in the previous year, driven by increased revenue from corporate finance advisory services and securities and financing services, as well as positive returns from investment funds.

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.