Loto Interactive Limited (8198) AI Stock Analysis

• Market Cap: HK$2.63B
• Dividend Yield: N/A
• Average Volume (3M): 2.11M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: 24.57%
• EPS Growth: -59.60%
• Country: HK
• Employees: 36
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.05
• Shares Outstanding: 685,562,560
• 10 Day Avg. Volume: 1,541,882
• 30 Day Avg. Volume: 2,111,898
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$3.50
• Price Target Upside: -6.91% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: HK$3.50 ▼(-6.91% Downside)

Loto Interactive Limited's overall stock score is primarily impacted by its poor financial performance, characterized by persistent losses and negative cash flows. While technical analysis shows some positive momentum, the valuation remains unattractive due to a negative P/E ratio and lack of dividend yield.

Loto Interactive Limited Business Overview & Revenue Model

Company Description

Loto Interactive Limited (8198) is a company engaged in the business sectors of data center operations and digital asset management. The company primarily focuses on providing infrastructure services that support cryptocurrency mining activities, leveraging its data centers to host, manage, and optimize mining hardware for its clients. Loto Interactive aims to deliver highly efficient and cost-effective solutions to meet the growing demands of the digital asset market.

How the Company Makes Money

Loto Interactive Limited generates revenue primarily through its data center operations, which are designed to host and manage cryptocurrency mining equipment. The company earns money by charging its clients for the provision of space, electricity, and maintenance services required to keep mining hardware operational. Additionally, Loto Interactive may engage in its own cryptocurrency mining activities, potentially earning revenue from the cryptocurrencies mined. Key revenue streams include hosting fees from clients, direct mining income, and possibly any strategic partnerships that enhance operational efficiencies or expand service offerings in the digital asset sector.

Loto Interactive Limited Financial Statement Overview

Summary

Loto Interactive Limited faces significant financial challenges with persistent losses, negative cash flows, and increasing liabilities. Despite revenue growth, the company's ability to achieve profitability and positive cash flow is uncertain, presenting 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
EBITDA	-504.00K	-18.43M	2.95M	-19.56M	12.70M
Net Income	-13.05M	-30.55M	-62.09M	-292.34M	-43.26M
Balance Sheet
Total Assets	69.42M	70.14M	109.72M	165.52M	454.54M
Cash, Cash Equivalents and Short-Term Investments	2.09M	3.25M	9.52M	35.84M	44.25M
Total Debt	10.15M	5.69M	3.39M	8.61M	6.60M
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: 3.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 3.76 is above the 20-day moving average (MA) of 3.63, above the 50-day MA of 3.63, and above the 200-day MA of 1.98, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 60.64 is Neutral, neither overbought nor oversold. The STOCH value of 73.65 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
1522	65 Neutral	HK$723.52M	3.96	6.04%	6.96%	7.39%	2.23%
0771	61 Neutral	HK$800.35M	5.24	―	3.13%	5.84%	94.89%
1985	57 Neutral	HK$444.00M	49.17	3.66%	6.76%	20.83%	-75.45%
8198	49 Neutral	HK$2.63B	―	-85.00%	―	24.57%	-59.60%
1204	49 Neutral	HK$850.00M	1,214.29	0.28%	―	1.52%	-83.72%
3680	48 Neutral	HK$1.75B	631.43	-366.58%	―	-25.92%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%