Loco Hong Kong Holdings Ltd (8162) AI Stock Analysis

• Market Cap: HK$427.97M
• Dividend Yield: N/A
• Average Volume (3M): 633.67K
• Price to Earnings (P/E): 8.5
• Beta (1Y): -0.10
• Revenue Growth: -11.49%
• EPS Growth: 85.40%
• Country: HK
• Employees: 23
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): N/A
• Shares Outstanding: 995,284,800
• 10 Day Avg. Volume: 859,000
• 30 Day Avg. Volume: 633,666
• PEG Ratio: 0.15
• Price to Book (P/B): 6.01
• Price to Sales (P/S): 0.03
• P/FCF Ratio: 77.89
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: HK$0.59 ▲(1.90% Upside)

The overall stock score of 65 reflects a balanced view of Loco Hong Kong Holdings Ltd. The company's financial performance shows strong growth potential, but technical indicators suggest a neutral market sentiment. Valuation is reasonable, though the lack of a dividend yield may deter some investors.

Positive Factors

Cash Flow Growth

Strong free cash flow growth enhances financial flexibility, allowing the company to reinvest in operations, reduce debt, or pursue strategic opportunities.

Profitability

Positive profit margins indicate effective cost management and pricing strategies, supporting sustainable profitability and competitive positioning.

Revenue Model

A robust revenue model focused on competitive sourcing and distribution of commodities positions the company well in the resource trading industry.

Negative Factors

Revenue Decline

A decline in revenue growth could indicate challenges in market demand or competitive pressures, potentially impacting future earnings.

Equity Financing

A need for improved equity financing suggests potential challenges in accessing capital markets, which could limit growth and investment capacity.

Margin Improvement

Low margins indicate potential inefficiencies or cost pressures, necessitating better cost management to enhance profitability and competitiveness.

Loco Hong Kong Holdings Ltd Business Overview & Revenue Model

Company Description

Loco Hong Kong Holdings Ltd (8162) is a company engaged in the trading of metals and minerals, with a particular focus on the sourcing and distribution of iron ore, copper, and other industrial commodities. The company operates within the broader sectors of resource trading and supply chain management, facilitating the movement of raw materials to various industries. Loco Hong Kong aims to leverage its strategic location in Hong Kong, a vital trading hub, to optimize its operations and expand its market reach in Asia and beyond.

How the Company Makes Money

Loco Hong Kong Holdings Ltd generates revenue primarily through the trading of metals and minerals. The company's revenue model is built around sourcing commodities at competitive prices and selling them to manufacturers and other end-users in various industries. Key revenue streams include direct sales of iron ore, copper, and other metals, as well as potential revenue from logistics services associated with transportation and distribution. The company may also benefit from partnerships with suppliers and clients that enhance its trading capabilities and market access. Additionally, fluctuations in commodity prices can significantly impact earnings, making market analysis and strategic sourcing vital components of its revenue strategy.

Loco Hong Kong Holdings Ltd Financial Statement Overview

Summary

Loco Hong Kong Holdings Ltd has demonstrated a strong turnaround in financial performance with notable revenue and cash flow growth. Profitability and leverage are under control, but there is a need for continued focus on improving margins and equity financing.

Income Statement

The company has shown a significant improvement in revenue, with a strong revenue growth rate from the previous year. Gross Profit Margin and Net Profit Margin are positive, indicating profitability. However, margins remain relatively low, suggesting room for improvement in cost management.

Balance Sheet

The balance sheet reflects a moderate Debt-to-Equity Ratio, indicating manageable leverage. The Equity Ratio is fairly low, suggesting a need for improved equity financing. Return on Equity is positive, which is a positive indicator of the company's ability to generate returns on shareholder investments.

Cash Flow

The company has shown strong growth in Free Cash Flow, with a significant increase compared to the previous year. Operating Cash Flow to Net Income Ratio is positive, indicating efficient cash generation from operations. However, Free Cash Flow to Net Income Ratio suggests some fluctuations that need monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.87B	15.15B	10.74B	48.40M	13.97M	10.46M
Gross Profit	95.33M	70.94M	53.84M	1.17M	-13.97M	-15.21M
EBITDA	64.62M	52.94M	28.08M	-19.07M	-27.04M	-42.04M
Net Income	44.76M	32.15M	17.38M	-22.07M	-29.16M	-46.74M
Balance Sheet
Total Assets	3.15B	966.43M	387.98M	48.65M	55.01M	55.66M
Cash, Cash Equivalents and Short-Term Investments	333.93M	21.26M	16.33M	4.18M	20.88M	28.96M
Total Debt	4.76M	30.93M	28.91M	18.69M	5.26M	2.38M
Total Liabilities	2.98B	896.05M	347.98M	25.37M	7.29M	4.44M
Stockholders Equity	168.73M	70.38M	39.96M	23.28M	46.72M	47.57M
Cash Flow
Free Cash Flow	270.69M	5.43M	1.19M	-27.77M	-31.89M	-8.48M
Operating Cash Flow	270.73M	5.43M	1.25M	-27.77M	-30.71M	-7.69M
Investing Cash Flow	785.00K	69.00K	4.28M	1.06M	-2.25M	-742.00K
Financing Cash Flow	23.59M	-648.00K	6.37M	9.78M	24.86M	7.83M

Loco Hong Kong Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8162, the sentiment is Negative. The current price of 0.58 is above the 20-day moving average (MA) of 0.53, above the 50-day MA of 0.55, and above the 200-day MA of 0.54, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 33.14 is Neutral, neither overbought nor oversold. The STOCH value of 14.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8162.

Loco Hong Kong Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8162	65 Neutral	HK$427.97M	8.46	42.14%	―	-11.49%	85.40%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2700	50 Neutral	HK$356.34M	-125.58	-7.37%	―	11.32%	62.61%
1282	47 Neutral	€420.76M	-2.16	-4.03%	―	55.27%	68.84%
0132	47 Neutral	HK$462.33M	166.67	-4.32%	2.15%	-1.50%	-96.83%
1468	45 Neutral	HK$248.36M	―	-18.50%	―	-19.10%	83.61%
0202	42 Neutral	HK$1.02B	280.00	0.60%	―	―	―