Loco Hong Kong Holdings Ltd (8162) AI Stock Analysis

• Market Cap: HK$477.74M
• Dividend Yield: N/A
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): 9.5
• Beta (1Y): -0.09
• 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: 1,406,000
• 30 Day Avg. Volume: 1,356,000
• 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: 60 Neutral
• Price Target: HK$0.52 ▼(-10.34% Downside)

The overall stock score reflects a strong financial performance with significant revenue and cash flow growth, balanced by weak technical indicators suggesting bearish momentum. The valuation is reasonable, but the lack of a dividend yield is a drawback for income investors. Continued focus on improving margins and equity financing is needed for long-term growth.

Positive Factors

Cash generation

Sustained 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 performance

A 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 ROE

Moderate 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.

Negative Factors

Negative revenue trend

A 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 financing

A 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 exposure

As 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.

Loco Hong Kong Holdings Ltd Business Overview & Revenue Model

Company Description

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.

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. While profitability and leverage are under control, there is a need for continued focus on improving margins and equity financing to ensure long-term stability and growth.

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: Neutral
• Last Price: 0.58
• 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:8162, the sentiment is Neutral. The current price of 0.58 is above the 20-day moving average (MA) of 0.47, above the 50-day MA of 0.46, and above the 200-day MA of 0.52, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.33 is Neutral, neither overbought nor oversold. The STOCH value of 80.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8162	60 Neutral	HK$477.74M	9.55	42.14%	―	-11.49%	85.40%
2700	51 Neutral	HK$382.74M	-134.88	-7.37%	―	11.32%	62.61%
0132	50 Neutral	HK$340.75M	132.67	-4.32%	2.45%	-1.50%	-96.83%
1468	45 Neutral	HK$187.57M	-0.88	-18.50%	―	-19.10%	83.61%
1282	41 Neutral	HK$490.00M	-1.32	-4.03%	―	55.27%	68.84%
0202	39 Underperform	HK$736.73M	200.00	0.60%	―	―	―