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LFG Investment Holdings Limited (HK:3938)
:3938
Hong Kong Market

LFG Investment Holdings Limited (3938) AI Stock Analysis

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HK

LFG Investment Holdings Limited

(3938)

Rating:53Neutral
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 (3938) vs. iShares MSCI Hong Kong ETF (EWH)

LFG Investment Holdings Limited Business Overview & Revenue Model

Company DescriptionLFG 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 MoneyLFG 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
55
Neutral
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
65
Positive
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
70
Positive
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.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue36.87M94.17M46.87M78.14M108.15M105.68M
Gross Profit32.44M40.20M4.59M29.85M59.91M57.87M
EBITDA4.71M5.15M-11.34M6.44M26.38M38.88M
Net Income-32.48M-3.99M-22.68M-3.29M16.12M14.15M
Balance Sheet
Total Assets207.62M231.37M261.58M314.02M343.87M347.58M
Cash, Cash Equivalents and Short-Term Investments33.72M81.14M61.20M127.60M132.94M178.58M
Total Debt0.0025.78M31.31M41.64M15.37M8.76M
Total Liabilities91.29M97.61M113.45M143.50M170.22M172.95M
Stockholders Equity115.66M132.94M147.08M169.36M172.25M174.63M
Cash Flow
Free Cash Flow36.25M40.98M-12.57M-7.44M-85.23M-26.83M
Operating Cash Flow38.53M42.33M-12.57M-7.10M-85.14M-26.08M
Investing Cash Flow-2.27M-1.35M0.00-3.73M2.61M1.04M
Financing Cash Flow-45.45M-20.75M-13.42M19.76M-7.24M100.71M

LFG Investment Holdings Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.14
Price Trends
50DMA
0.15
Negative
100DMA
0.16
Negative
200DMA
0.17
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
43.85
Neutral
STOCH
42.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3938, the sentiment is Negative. The current price of 0.14 is below the 20-day moving average (MA) of 0.14, below the 50-day MA of 0.15, and below the 200-day MA of 0.17, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 43.85 is Neutral, neither overbought nor oversold. The STOCH value of 42.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3938.

LFG Investment Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$16.67B11.449.71%3.91%11.61%-9.60%
54
Neutral
HK$54.30M-19.60%6.76%-13.53%-953.91%
53
Neutral
HK$56.83M-30.25%17.86%-68.59%-2524.24%
52
Neutral
HK$62.21M-6.37%-144.19%-414.59%
48
Neutral
HK$66.26M-34.27%-30.21%-305.00%
45
Neutral
HK$70.66M-20.54%27.32%-6.78%
41
Neutral
HK$75.55M-34.21%-1.68%49.77%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3938
LFG Investment Holdings Limited
0.14
-0.06
-30.00%
HK:8226
KOALA Financial Group
0.15
0.03
25.00%
HK:0804
Pinestone Capital Ltd
0.14
-0.16
-53.33%
HK:8168
Amasse Capital Holdings Limited
0.06
0.00
0.00%
HK:8193
Asia-Pac Financial Investment Company Limited
0.27
0.07
35.00%
HK:8439
Somerley Capital Holdings Ltd
0.37
-0.03
-7.50%

LFG Investment Holdings Limited Corporate Events

LFG Investment Holdings Limited’s Subsidiary Reduces Short Position with Strategic Share Acquisition
Apr 10, 2025

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.

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: Apr 21, 2025