Loto Interactive Limited (8198) AI Stock Analysis

• Market Cap: HK$1.38B
• Dividend Yield: N/A
• Average Volume (3M): 487.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.45
• Revenue Growth: 130.71%
• EPS Growth: 51.92%
• Country: HK
• Employees: 36
• Sector: Technology
• Sector Strength: 82
• Industry: Information Technology Services
• EPS (TTM): -0.02
• Shares Outstanding: 658,190,600
• 10 Day Avg. Volume: 323,904
• 30 Day Avg. Volume: 487,916
• PEG Ratio: -1.50
• Price to Book (P/B): 29.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 476.22
• 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: 53 Neutral
• Price Target: ―

Loto Interactive Limited's overall stock score is driven primarily by its financial challenges, including persistent losses and negative cash flows. While technical analysis suggests short-term positive momentum, the valuation remains unattractive due to negative earnings. The stock's risk profile is high, tempered somewhat by recent upward price trends.

Loto Interactive Limited Business Overview & Revenue Model

Company Description

Loto Interactive Limited (8198) is a company primarily involved in the data center operations and cloud computing sectors. The company provides data processing and storage services, catering to clients who require robust and reliable infrastructure for their IT operations. Loto Interactive Limited aims to deliver high-performance and sustainable data solutions to businesses across various industries.

How the Company Makes Money

Loto Interactive Limited generates revenue through its data center services. The company rents out data processing and storage capacity to businesses that need secure and efficient infrastructure to host their digital operations. The revenue model is primarily based on service contracts with clients, which may include recurring subscription fees or usage-based charges, depending on the services rendered. Additionally, strategic partnerships with technology providers and energy-efficient solutions contribute to the company's ability to offer competitive pricing and maintain profitability.

Loto Interactive Limited Financial Statement Overview

Summary

Loto Interactive Limited shows significant financial challenges with persistent losses, negative cash flows, and increasing liabilities. While revenue growth is evident, the inability to convert this into profitability and positive cash flow presents a high-risk financial profile.

Income Statement

Loto Interactive Limited's revenue increased significantly in the latest year. However, the company continued to operate at a loss, with negative EBIT and net income margins indicating ongoing profitability challenges. The gross profit margin has decreased over time, and the net profit margin remains deeply negative, indicating inefficiencies and potentially high operational costs.

Balance Sheet

The company's balance sheet shows a high level of debt relative to equity, leading to a moderate debt-to-equity ratio. However, the company's equity ratio is relatively strong, indicating that a significant portion of assets is financed by equity. Despite this, the negative net debt position in previous years has not been maintained, and the growth in liabilities poses a risk.

Cash Flow

Loto Interactive Limited's cash flow statement reveals a negative operating cash flow, reflecting challenges in generating cash from core operations. The company also shows negative free cash flow, highlighting potential liquidity concerns. The free cash flow to net income ratio is unfavorable, indicating a potential inability to cover net losses with cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
58.11M	25.19M	29.55M	180.72M	382.95M
	Gross Profit
11.56M	15.75M	11.53M	-13.77M	40.74M
	EBIT
-13.11M	-24.67M	-8.67M	-80.87M	-38.00M
	EBITDA
-504.00K	-18.43M	2.95M	-19.56M	12.70M
	Net Income Common Stockholders
-13.05M	-30.55M	-62.09M	-292.34M	-43.26M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.09M	3.25M	9.52M	35.84M	44.25M
	Total Assets
69.42M	70.14M	109.72M	165.52M	454.54M
	Total Debt
10.15M	5.69M	3.39M	8.61M	6.60M
	Net Debt
8.06M	2.44M	-6.13M	-27.23M	-37.66M
	Total Liabilities
32.59M	20.26M	32.76M	28.52M	44.83M
	Stockholders Equity
36.83M	49.88M	77.19M	137.23M	318.67M
Cash Flow		Free Cash Flow
-7.89M	-37.28M	4.25M	-24.04M	-162.93M
	Operating Cash Flow
-6.26M	-16.77M	4.32M	-2.72M	-37.47M
	Investing Cash Flow
12.57M	-9.46M	1.09M	-102.06M	-94.14M
	Financing Cash Flow
-7.47M	-4.85M	-5.67M	95.85M	79.73M

Loto Interactive Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.12
• 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:8198, the sentiment is Positive. The current price of 2.12 is above the 20-day moving average (MA) of 2.09, above the 50-day MA of 2.05, and above the 200-day MA of 0.82, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 52.83 is Neutral, neither overbought nor oversold. The STOCH value of 46.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8198.

Loto Interactive Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$11.90B	10.64	-7.50%	2.90%	7.41%	-8.19%
8198	53 Neutral	HK$1.38B	―	-30.10%	―	130.71%	51.92%
8018	40 Underperform	HK$14.12M	―	-27.10%	―	-6.25%	84.71%