LFG Investment Holdings Limited (3938) AI Stock Analysis

• Market Cap: HK$341.01M
• Dividend Yield: 17.86%
• Average Volume (3M): 2.97M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.28
• Revenue Growth: -54.24%
• EPS Growth: -779.59%
• Country: HK
• Employees: 41
• Sector: Financial
• Sector Strength: 72
• Industry: Financial - Capital Markets
• EPS (TTM): -0.04
• Shares Outstanding: 487,155,550
• 10 Day Avg. Volume: 1,206,373
• 30 Day Avg. Volume: 2,967,951
• 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: HK$0.50
• Price Target Upside: -28.57% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: HK$0.50 ▼(-28.57% Downside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by declining revenues and negative profit margins. While technical analysis shows positive momentum, the overbought condition suggests caution. The valuation is unattractive due to a negative P/E ratio and lack of dividend yield.

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 channels. Primarily, the company earns money by managing a portfolio of investments, which includes equity stakes in various companies and real estate projects. The revenue model is supported by fees from asset management services, rental income from owned properties, and capital gains from the sale of investments. Additionally, the company may engage in strategic partnerships with other firms to co-invest in projects, thereby enhancing its revenue potential. The performance of its investments and the overall market conditions significantly impact its earnings, making strategic decision-making crucial for sustained profitability.

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	36.87M	25.17M	94.17M	46.87M	78.14M	108.15M
Gross Profit	32.44M	-9.10M	40.20M	4.59M	29.85M	59.91M
EBITDA	4.71M	-28.37M	5.15M	-11.34M	6.44M	26.38M
Net Income	-32.48M	-35.00M	-3.99M	-22.68M	-3.29M	16.12M
Balance Sheet
Total Assets	207.62M	254.05M	231.37M	261.58M	314.02M	343.87M
Cash, Cash Equivalents and Short-Term Investments	33.72M	73.05M	81.14M	61.20M	127.60M	132.94M
Total Debt	23.91M	8.65M	25.78M	31.31M	41.64M	15.37M
Total Liabilities	91.29M	155.63M	97.61M	113.45M	143.50M	170.22M
Stockholders Equity	115.66M	98.42M	132.94M	147.08M	169.36M	172.25M
Cash Flow
Free Cash Flow	36.25M	31.97M	40.98M	-12.57M	-7.44M	-85.23M
Operating Cash Flow	38.53M	33.14M	42.33M	-12.57M	-7.10M	-85.14M
Investing Cash Flow	-2.27M	-2.59M	-1.35M	0.00	-3.73M	2.61M
Financing Cash Flow	-45.45M	-27.41M	-20.75M	-13.42M	19.76M	-7.24M

LFG Investment Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 0.7 is above the 20-day moving average (MA) of 0.54, above the 50-day MA of 0.30, and above the 200-day MA of 0.21, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 72.18 is Negative, neither overbought nor oversold. The STOCH value of 61.94 is Neutral, 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	$17.53B	11.77	10.43%	3.83%	9.84%	1.31%
3938	48 Neutral	HK$341.01M	―	-30.25%	17.86%	-54.24%	-779.59%
8439	47 Neutral	HK$52.08M	―	-19.60%	7.04%	-22.98%	-285.25%
8226	45 Neutral	HK$51.77M	―	-6.37%	―	-144.19%	-414.59%
0804	45 Neutral	HK$138.87M	―	-20.54%	―	27.32%	-10.17%
8168	44 Neutral	HK$60.23M	―	-34.27%	―	-30.21%	-305.00%
8193	41 Neutral	HK$55.96M	―	-34.21%	―	8.53%	86.05%

LFG Investment Holdings Limited Corporate Events

LFG Completes Share Placement to Boost Securities Financing

LFG Investment Holdings Limited has successfully completed the placement of 81,192,593 new shares, representing approximately 16.67% of its enlarged issued share capital, at a price of HK$0.40 per share. The net proceeds of approximately HK$32.3 million will primarily be used to expand the company’s securities financing business and for general working capital, potentially enhancing its market position and operational capabilities.

LFG Investment Holdings Announces New Share Placement to Raise HK$32.3 Million

LFG Investment Holdings Limited has announced a placement of new shares under a general mandate. The company plans to issue up to 81,192,593 shares at HK$0.40 each, representing 20% of existing shares, to raise approximately HK$32.3 million net. The proceeds will be used to expand its securities financing business and for general working capital. The placement is subject to conditions, and stakeholders are advised to exercise caution.

LFG Investment Holdings Schedules Annual General Meeting for August 2025

LFG Investment Holdings Limited has announced its upcoming annual general meeting scheduled for August 20, 2025, in Hong Kong. Key agenda items include the adoption of the company’s audited financial statements for the year ending March 31, 2025, the re-election of certain directors, and the re-appointment of BDO Limited as the company’s auditor. Additionally, the meeting will consider resolutions to authorize the board to issue additional shares and fix directors’ and auditors’ remuneration. These decisions are crucial for maintaining corporate governance and ensuring the company’s strategic direction aligns with shareholder interests.

LFG Investment Holdings Reports Significant Revenue Decline and Increased Loss for Fiscal Year 2025

LFG Investment Holdings Limited announced its audited consolidated annual results for the fiscal year ending March 31, 2025, revealing a significant decline in revenue and an increased loss compared to the previous year. The company’s total revenue dropped from HK$94,173,000 in 2024 to HK$25,171,000 in 2025, with a loss for the year amounting to HK$35,140,000, highlighting challenges in its financial performance and potential implications for stakeholders.

LFG Investment Holdings Issues Profit Warning with Expected HK$30 Million Loss

LFG Investment Holdings Limited has issued a profit warning, indicating an expected net loss of not less than HK$30.0 million for the year ending 31 March 2025. This anticipated loss is attributed to negative revenue from an investment fund, decreased revenue from its core financial services, and expected credit losses on accounts receivable. The company advises shareholders and potential investors to exercise caution when dealing with its shares, as the results are still being finalized.

LFG Investment Holdings to Approve Annual Results and Consider Dividend

LFG Investment Holdings Limited has announced that its board of directors will meet on June 25, 2025, to approve the company’s annual results for the year ending March 31, 2025, and to consider the payment of a final dividend. This meeting is significant as it will determine the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.