LFG Investment Holdings Limited (3938) AI Stock Analysis

• Market Cap: HK$148.18M
• Dividend Yield: 17.86%
• Average Volume (3M): 654.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.38
• Revenue Growth: -68.59%
• EPS Growth: -2524.24%
• Country: HK
• Employees: 41
• Sector: Financial
• Sector Strength: 72
• Industry: Financial - Capital Markets
• EPS (TTM): -0.04
• Shares Outstanding: 405,962,980
• 10 Day Avg. Volume: 1,803,000
• 30 Day Avg. Volume: 654,866
• PEG Ratio: 0.02
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.72
• 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

• Rating: 53 Neutral
• Price Target: ―

The overall score is driven by mixed financial performance, with strong revenue growth but profitability challenges. Technical analysis indicates bearish trends, and valuation is hampered by a negative P/E ratio despite a high dividend yield. These factors result in a cautious outlook for the stock.

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 multiple streams, primarily from fees and commissions earned on its financial services. The company's investment banking division earns fees from underwriting and advisory services related to mergers and acquisitions, capital raising, and restructuring activities. The asset management segment generates income through management fees based on the assets under management (AUM) and performance fees linked to the investment performance of client portfolios. Additionally, the financial advisory services division contributes to revenue by providing strategic guidance and financial planning for clients. Strategic partnerships with financial institutions and a diverse client base further enhance the company's earnings.

LFG Investment Holdings Limited Financial Statement Overview

Summary

LFG Investment Holdings Limited shows a mixed financial performance with strong revenue growth of 96.8% and cash flow improvements; however, profitability challenges persist with a negative net profit margin and return on equity. The balance sheet is relatively stable with moderate leverage.

Income Statement

The company has shown a strong revenue growth rate of 96.8% from 2023 to 2024, indicating a significant rebound. However, margins remain a concern with a negative net profit margin of -4.3% and an EBIT margin of 29.4%. The gross profit margin improved to 41.5%, suggesting better cost management.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.19. The equity ratio stands at 57.4%, indicating a relatively stable financial position. However, the return on equity remains negative at -3.0%, highlighting challenges in generating profits for shareholders.

Cash Flow

The company has a strong free cash flow growth, turning from negative to positive with a free cash flow of $40.98 million in 2024. The operating cash flow to net income ratio is favorable, indicating efficient cash flow generation relative to net income. The free cash flow to net income ratio is also strong, reflecting good cash flow management.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	36.87M	94.17M	46.87M	78.14M	108.15M	105.68M
Gross Profit	32.44M	40.20M	4.59M	29.85M	59.91M	57.87M
EBITDA	4.71M	5.15M	-11.34M	6.44M	26.38M	38.88M
Net Income	-32.48M	-3.99M	-22.68M	-3.29M	16.12M	14.15M
Balance Sheet
Total Assets	207.62M	231.37M	261.58M	314.02M	343.87M	347.58M
Cash, Cash Equivalents and Short-Term Investments	33.72M	81.14M	61.20M	127.60M	132.94M	178.58M
Total Debt	0.00	25.78M	31.31M	41.64M	15.37M	8.76M
Total Liabilities	91.29M	97.61M	113.45M	143.50M	170.22M	172.95M
Stockholders Equity	115.66M	132.94M	147.08M	169.36M	172.25M	174.63M
Cash Flow
Free Cash Flow	36.25M	40.98M	-12.57M	-7.44M	-85.23M	-26.83M
Operating Cash Flow	38.53M	42.33M	-12.57M	-7.10M	-85.14M	-26.08M
Investing Cash Flow	-2.27M	-1.35M	0.00	-3.73M	2.61M	1.04M
Financing Cash Flow	-45.45M	-20.75M	-13.42M	19.76M	-7.24M	100.71M

LFG Investment Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 0.36 is above the 20-day moving average (MA) of 0.19, above the 50-day MA of 0.16, and above the 200-day MA of 0.17, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 96.40 is Negative, neither overbought nor oversold. The STOCH value of 97.21 is Negative, 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	$17.10B	11.44	9.70%	3.58%	11.11%	-4.78%
3938	53 Neutral	HK$148.18M	―	-30.25%	17.86%	-68.59%	-2524.24%
8439	50 Neutral	HK$54.28M	―	-19.60%	6.76%	-22.98%	-285.25%
8226	45 Neutral	HK$55.53M	―	-6.37%	―	-144.19%	-414.59%
0804	45 Neutral	HK$108.66M	―	-20.54%	―	27.32%	-6.78%
8168	44 Neutral	HK$62.64M	―	-34.27%	―	-30.21%	-305.00%
8193	41 Neutral	HK$74.15M	―	-34.21%	―	-1.68%	49.77%

LFG Investment Holdings Limited Corporate Events

LFG Investment Holdings Limited’s Subsidiary Reduces Short Position with Strategic Share Acquisition

LFG Investment Holdings Limited announced that its subsidiary, Lego Vision Fund SP, executed multiple trade orders to reduce its short position by acquiring Listed Shares A on the open market. The acquisition, totaling approximately US$596,373, was made at market price and is considered a discloseable transaction under the Hong Kong Stock Exchange Listing Rules. The transaction is deemed to be in the ordinary course of business and in the interests of the company and its shareholders.