Cash GenerationSustained free cash flow growth and a positive operating cash flow to net income ratio indicate the business converts trading profits into cash. This durable cash generation supports working capital, funds operations and deleveraging, and provides flexibility for strategic investments over months.

Turnaround In Financial PerformanceA documented financial turnaround implies management has improved execution in sourcing, pricing or operations. If structural (better supplier access, logistics, client relationships), the improvements can persist, enhancing resilience and capacity to scale trading volumes across the regional commodities market.

Manageable Leverage And Positive ROEModerate leverage combined with positive ROE suggests the company is earning returns above its financing costs while avoiding excessive debt. This balance supports sustainable operations, reduces solvency risk, and preserves capacity to raise funds for growth without overburdening the balance sheet.

Bears Say

Negative Revenue TrendA reported negative revenue growth rate signals top-line contraction that can undermine operating leverage in a trading business. Sustained declines reduce negotiating scale with suppliers and customers, compress margins, and limit cash available for reinvestment absent corrective strategy.

Low Equity FinancingA low equity ratio increases reliance on debt and short-term funding, raising refinancing and liquidity risks in volatile commodity markets. Structurally, this can constrain growth initiatives, limit buffer against price swings, and pressure capital allocation decisions over the medium term.

Commodity Price ExposureAs a metals and minerals trader, earnings and margins are inherently sensitive to commodity price volatility. This structural exposure can produce earnings variability and cash flow swings unless mitigated by hedging, long-term contracts, or diversified service offerings, affecting predictability.

8162 FAQ

What was Loco Hong Kong Holdings Ltd’s price range in the past 12 months?

Loco Hong Kong Holdings Ltd lowest stock price was HK$0.38 and its highest was HK$0.75 in the past 12 months.

What is Loco Hong Kong Holdings Ltd’s market cap?

Loco Hong Kong Holdings Ltd’s market cap is HK$472.76M.

When is Loco Hong Kong Holdings Ltd’s upcoming earnings report date?

Loco Hong Kong Holdings Ltd’s upcoming earnings report date is Mar 20, 2026 which is in 24 days.

How were Loco Hong Kong Holdings Ltd’s earnings last quarter?

Currently, no data Available

Is Loco Hong Kong Holdings Ltd overvalued?

According to Wall Street analysts Loco Hong Kong Holdings Ltd’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Loco Hong Kong Holdings Ltd pay dividends?

Loco Hong Kong Holdings Ltd does not currently pay dividends.

What is Loco Hong Kong Holdings Ltd’s EPS estimate?

Loco Hong Kong Holdings Ltd’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Loco Hong Kong Holdings Ltd have?

Loco Hong Kong Holdings Ltd has 995,284,800 shares outstanding.

What happened to Loco Hong Kong Holdings Ltd’s price movement after its last earnings report?

Currently, no data Available

Which hedge fund is a major shareholder of Loco Hong Kong Holdings Ltd?

Currently, no hedge funds are holding shares in HK:8162

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Loco Hong Kong Holdings Ltd Stock Smart Score

Neutral

Technicals

Fundamentals

Return on Equity

42.14%

Trailing 12-Months

Asset Growth

489.67%

Trailing 12-Months

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Company Description

Loco Hong Kong Holdings Ltd

Loco Hong Kong Holdings Limited, an investment holding company, trades in metal and commodity forward contracts in Hong Kong and the People's Republic of China. The company operates through Trading of Metal, Money Lending Services, and Education Management Services segments. It primarily trades in silver and gold metals, as well as processes silver products. The company also provides money lending and education management services. Loco Hong Kong Holdings Limited was incorporated in 2009 and is headquartered in Admiralty, Hong Kong.