Life Concepts Holdings Limited (8056) AI Stock Analysis

• Market Cap: HK$29.49M
• Dividend Yield: N/A
• Average Volume (3M): 860.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: -68.00%
• EPS Growth: 25.80%
• Country: HK
• Employees: 17
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Restaurants
• EPS (TTM): -0.02
• Shares Outstanding: 113,414,540
• 10 Day Avg. Volume: 879,775
• 30 Day Avg. Volume: 860,233
• PEG Ratio: 7.03
• Price to Book (P/B): -100.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.66K
• 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: 34 Underperform
• Price Target: ―

Life Concepts Holdings Limited faces significant challenges with its financial performance, marked by declining revenues, negative equity, and operational inefficiencies. The technical analysis indicates limited momentum, and the valuation metrics reflect unattractiveness due to negative earnings. These factors contribute to a low overall stock score.

Life Concepts Holdings Limited Business Overview & Revenue Model

Company Description

Life Concepts Holdings Limited, an investment holding company, operates restaurants in Italian, Western, and Asian style in Hong Kong and Mainland China. It also provides catering management and design, and interior design and fitting-out services; and consulting services for organic vegetables research and development, plantation, and sales. In addition, the company organizes promotional events for restaurants; operates a cricket club; and provides financial institution intermediation services for resources allocation. The company was formerly known as Dining Concepts Holdings Limited and changed its name to Life Concepts Holdings Limited in June 2019. The company was incorporated in 2014 and is headquartered in Central, Hong Kong. Life Concepts Holdings Limited is a subsidiary of Strong Day Holdings Limited.

How the Company Makes Money

Life Concepts Holdings Limited generates revenue through its chain of restaurants. The company earns money primarily by serving food and beverages to customers, which includes dine-in, delivery, and takeaway services. Key revenue streams include sales from its restaurant operations and catering services. By maintaining a diverse portfolio of restaurant brands, Life Concepts Holdings Limited can attract a broad customer base, thus enhancing its revenue potential. Significant partnerships with suppliers and a strong focus on customer satisfaction contribute to the company's earnings by ensuring consistent quality and operational efficiency.

Life Concepts Holdings Limited Financial Statement Overview

Summary

Life Concepts Holdings Limited presents a challenging financial picture with consistent declines in revenue and profitability, negative equity, and high financial leverage. While the company shows some ability to generate operating cash flow, the overall financial health is weak, posing significant risks.

Income Statement

Life Concepts Holdings Limited has experienced significant revenue decline, with revenue falling consistently over the past 5 years. The gross profit margin has turned negative, indicating the company is selling below cost. The net profit margin is also deeply negative, reflecting substantial losses, and EBIT and EBITDA margins are both negative, highlighting operational inefficiencies.

Balance Sheet

The company has a negative stockholders' equity, indicating liabilities exceed assets, which is a significant financial risk. The debt-to-equity ratio is not calculable due to negative equity, and this financial instability is concerning. There is a high level of total liabilities compared to the total assets, suggesting financial leverage is unsustainable.

Cash Flow

The operating cash flow is positive and has increased significantly in the latest period, which is a positive indicator. However, free cash flow is volatile, and while it is positive in the most recent year, historical performance shows inconsistency. The operating cash flow to net income ratio is positive, reflecting better cash management.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
13.32M	16.09M	61.36M	162.83M	214.32M	452.15M
	Gross Profit
4.90M	557.00K	10.85M	70.58M	101.95M	159.92M
	EBIT
2.42M	-5.36M	-25.16M	-1.15M	-16.69M	-91.13M
	EBITDA
-2.57M	-18.49M	-20.34M	-12.22M	3.79M	1.20M
	Net Income Common Stockholders
-17.67M	-19.56M	-28.88M	-40.85M	-64.43M	-130.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
368.00K	1.34M	2.21M	2.52M	12.19M	26.88M
	Total Assets
117.15M	122.24M	139.25M	150.81M	251.13M	198.65M
	Total Debt
84.85M	820.00K	17.73M	22.74M	60.60M	119.57M
	Net Debt
84.48M	-523.00K	15.51M	20.22M	48.41M	92.69M
	Total Liabilities
232.00M	239.97M	239.07M	261.22M	311.09M	200.29M
	Stockholders Equity
-119.96M	-122.70M	-104.97M	-119.92M	-74.91M	-12.81M
Cash Flow		Free Cash Flow
77.20M	12.21M	6.38M	-51.00K	-23.08M	43.73M
	Operating Cash Flow
77.20M	12.21M	6.38M	1.86M	-14.35M	48.57M
	Investing Cash Flow
1.05M	834.00K	-17.06M	13.16M	-72.56M	-2.24M
	Financing Cash Flow
-79.93M	-13.83M	10.39M	-17.72M	68.52M	-51.67M

Life Concepts Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8056, the sentiment is Positive. The current price of 0.26 is below the 20-day moving average (MA) of 0.26, above the 50-day MA of 0.20, and above the 200-day MA of 0.16, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 63.58 is Neutral, neither overbought nor oversold. The STOCH value of 37.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8056.

Life Concepts Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$6.76B	11.07	2.80%	6.34%	2.68%	-24.87%
8160	52 Neutral	HK$39.95M	―	-16.58%	―	-6.40%	-333.90%
8430	47 Neutral	HK$19.85M	―	-2.91%	―	10.22%	92.89%
8206	42 Neutral	HK$138.39M	―		―	-51.85%	-50.00%
8203	40 Underperform	HK$153.85M	18.27		―	272.07%	―
8056	34 Underperform	HK$29.49M	―		―	-68.00%	25.80%
9893		HK$1.55B	12.05	13.56%	2.27%	―	―