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Loto Interactive Limited (HK:8198)
:8198
Hong Kong Market

Loto Interactive Limited (8198) AI Stock Analysis

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HK

Loto Interactive Limited

(8198)

Rating:53Neutral
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 (8198) vs. iShares MSCI Hong Kong ETF (EWH)

Loto Interactive Limited Business Overview & Revenue Model

Company DescriptionLoto 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 MoneyLoto 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
40
Negative
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
45
Neutral
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
30
Negative
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
58.11M25.19M29.55M180.72M382.95M
Gross Profit
11.56M15.75M11.53M-13.77M40.74M
EBIT
-13.11M-24.67M-8.67M-80.87M-38.00M
EBITDA
-504.00K-18.43M2.95M-19.56M12.70M
Net Income Common Stockholders
-13.05M-30.55M-62.09M-292.34M-43.26M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.09M3.25M9.52M35.84M44.25M
Total Assets
69.42M70.14M109.72M165.52M454.54M
Total Debt
10.15M5.69M3.39M8.61M6.60M
Net Debt
8.06M2.44M-6.13M-27.23M-37.66M
Total Liabilities
32.59M20.26M32.76M28.52M44.83M
Stockholders Equity
36.83M49.88M77.19M137.23M318.67M
Cash FlowFree Cash Flow
-7.89M-37.28M4.25M-24.04M-162.93M
Operating Cash Flow
-6.26M-16.77M4.32M-2.72M-37.47M
Investing Cash Flow
12.57M-9.46M1.09M-102.06M-94.14M
Financing Cash Flow
-7.47M-4.85M-5.67M95.85M79.73M

Loto Interactive Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.12
Price Trends
50DMA
2.05
Positive
100DMA
1.40
Positive
200DMA
0.82
Positive
Market Momentum
MACD
0.03
Positive
RSI
52.83
Neutral
STOCH
46.15
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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$11.90B10.64-7.50%2.90%7.41%-8.19%
53
Neutral
HK$1.38B-30.10%130.71%51.92%
40
Underperform
HK$14.12M-27.10%-6.25%84.71%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:8198
Loto Interactive Limited
2.10
1.89
900.00%
HK:8018
Finsoft Financial Investment Holdings Ltd.
0.03
-0.05
-64.10%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.