Lotus Horizon Holdings Limited (6063) AI Stock Analysis

• Market Cap: HK$356.00M
• Dividend Yield: N/A
• Average Volume (3M): 30.93K
• Price to Earnings (P/E): 84.8
• Beta (1Y): 0.22
• Revenue Growth: 36.77%
• EPS Growth: N/A
• Country: HK
• Employees: 59
• Sector: Industrials
• Sector Strength: 84
• Industry: Engineering & Construction
• EPS (TTM): <0.01
• Shares Outstanding: 2,000,000,000
• 10 Day Avg. Volume: 39,200
• 30 Day Avg. Volume: 30,933
• PEG Ratio: 0.30
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -49.29
• 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: 72 Outperform
• Price Target: ―

Lotus Horizon Holdings Limited's stock is bolstered by strong financial performance, characterized by robust revenue growth and improved cash flow. However, the high P/E ratio indicates a potential overvaluation, and the technical analysis presents a mixed picture with no strong momentum signals. These factors combine to produce a moderate overall score.

Lotus Horizon Holdings Limited Business Overview & Revenue Model

Company Description

Lotus Horizon Holdings Limited (6063) is a Hong Kong-based company primarily engaged in the provision of design, supply, and installation services for façade and curtain wall systems. The company operates in the construction and engineering sectors, focusing on high-quality façade solutions for residential, commercial, and public infrastructure projects. Lotus Horizon is known for its expertise in delivering innovative designs and engineering excellence, contributing to the aesthetic and functional enhancement of modern architectural projects.

How the Company Makes Money

Lotus Horizon Holdings Limited generates revenue through its core business of designing, supplying, and installing façade and curtain wall systems. The company earns money by securing contracts from developers and construction companies for both new projects and renovation works. Its revenue streams include fees for design services, the sale of materials and components, and installation services. Significant partnerships with construction firms and property developers enhance its market presence, while its reputation for quality and reliability attracts ongoing business. Factors such as urban development trends and government infrastructure initiatives in Hong Kong and the surrounding region also contribute to the company's earnings.

Lotus Horizon Holdings Limited Financial Statement Overview

Summary

Lotus Horizon Holdings Limited has demonstrated significant financial improvements, transitioning from losses to profitability. The income statement shows strong revenue growth of 27.26% and improved profit margins. The balance sheet is robust with minimal leverage, and cash flow performance is strong with substantial positive free cash flow. These factors contribute to an overall strong financial performance.

Income Statement

Lotus Horizon Holdings Limited has shown a strong recovery in its profitability with a significant increase in both gross and net profit margins compared to previous years. The gross profit margin for the latest period is 10.88%, and the net profit margin stands at 1.37%. This marks a positive turnaround from previous losses. Revenue grew by 27.26% from the previous year, demonstrating strong top-line growth. The EBIT and EBITDA margins have also improved, indicating better operational efficiency.

Balance Sheet

The company's balance sheet is quite robust with a low debt-to-equity ratio of 0.03, reflecting minimal leverage and financial risk. The equity ratio is also strong at 73.04%, indicating that a significant portion of assets is financed by equity rather than debt. Return on equity is modest at 2.64%, but this is a marked improvement from previous negative figures, showing a recovery in profitability.

Cash Flow

Lotus Horizon Holdings Limited demonstrates strong cash flow performance with substantial positive free cash flow of HKD 47.14 million, a significant turnaround from negative cash flow in prior years. The operating cash flow to net income ratio is robust at 14.21, indicating effective conversion of profits into cash. The free cash flow to net income ratio is also strong at 14.19, highlighting efficient cash management and potential for future investments or debt reduction.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
265.52M	242.64M	190.62M	223.99M	220.79M	243.45M
	Gross Profit
27.62M	26.39M	12.82M	2.47M	50.37M	69.09M
	EBIT
2.96M	3.69M	-8.38M	-26.38M	26.50M	58.43M
	EBITDA
4.17M	8.88M	-3.21M	-22.17M	29.75M	60.29M
	Net Income Common Stockholders
4.20M	3.32M	-8.10M	-22.66M	21.74M	34.16M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
70.26M	75.45M	59.25M	56.90M	91.40M	19.08M
	Total Assets
171.00M	172.20M	171.84M	175.69M	210.24M	125.03M
	Total Debt
7.24M	3.68M	34.73M	29.03M	14.99M	37.45M
	Net Debt
-51.81M	-71.77M	-24.52M	-27.86M	-76.41M	18.36M
	Total Liabilities
43.20M	46.42M	49.38M	45.13M	37.02M	62.77M
	Stockholders Equity
127.80M	125.78M	122.46M	130.56M	173.22M	62.26M
Cash Flow		Free Cash Flow
15.64M	47.14M	-3.17M	-28.31M	11.17M	24.38M
	Operating Cash Flow
15.65M	47.18M	-2.70M	-27.82M	17.77M	25.01M
	Investing Cash Flow
-1.99M	4.63M	-447.00K	-510.00K	-6.89M	-691.00K
	Financing Cash Flow
-23.91M	-32.61M	5.51M	-6.17M	61.43M	-18.70M

Lotus Horizon Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.18
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6063, the sentiment is Neutral. The current price of 0.18 is above the 20-day moving average (MA) of 0.18, above the 50-day MA of 0.18, and below the 200-day MA of 0.20, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.63 is Neutral, neither overbought nor oversold. The STOCH value of 88.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:6063.

Lotus Horizon Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2020	81 Outperform	$253.57B	15.11	28.11%	20.36%	11.51%	47.88%
1109	76 Outperform	HK$189.68B	6.84	9.66%	9.18%	9.97%	-19.80%
6063	72 Outperform	HK$356.00M	84.76	3.34%	―	36.77%	―
Sector *	57 Neutral	$1.32B	4.07	-2.93%	11.10%	3.37%	-51.35%
1960	44 Neutral	HK$123.00M	―	-23.85%	―	99.25%	-32.33%
1813	40 Neutral	HK$1.06B	―	-95.62%	―	-31.29%	57.76%