Loto Interactive Limited (8198) AI Stock Analysis

• Market Cap: HK$2.29B
• Dividend Yield: N/A
• Average Volume (3M): 1.79M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.52
• 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: 1,643,371
• 30 Day Avg. Volume: 1,790,486
• PEG Ratio: 0.18
• Price to Book (P/B): 3.72
• Price to Sales (P/S): 2.36
• P/FCF Ratio: -17.38
• 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: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: HK$2.50 ▼(-11.03% Downside)

Loto Interactive Limited's overall stock score is primarily impacted by its poor financial performance and unattractive valuation. The technical analysis also indicates bearish trends, further contributing to the low score. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

The company's significant revenue growth indicates strong market demand and potential for further expansion in the online gaming sector.

Equity Financing

A strong equity ratio suggests that the company is less reliant on debt, providing more financial stability and flexibility for future investments.

Market Position

Specializing in interactive lottery products positions the company well in a niche market, potentially leading to competitive advantages and customer loyalty.

Negative Factors

Profitability Challenges

Ongoing losses and negative margins indicate operational inefficiencies and challenge the company's ability to achieve sustainable profitability.

Cash Flow Issues

Negative cash flows highlight liquidity concerns, limiting the company's ability to invest in growth initiatives and cover operational expenses.

Liabilities Growth

Increasing liabilities can strain financial resources and increase risk, potentially impacting the company's long-term financial health.

Loto Interactive Limited Business Overview & Revenue Model

Company Description

Loto Interactive Limited (8198) is a Hong Kong-based company that operates within the online gaming and lottery sectors. The company specializes in providing innovative gaming solutions and platforms, focusing on developing and distributing interactive lottery products and services. Loto Interactive aims to leverage technology to enhance user experience and streamline operations in the gaming industry.

How the Company Makes Money

Loto Interactive Limited generates revenue primarily through its online gaming platforms, where it offers a variety of lottery games and interactive betting services. The company earns money by taking a percentage of the wagers placed by users, as well as through transaction fees associated with game play. Additionally, Loto Interactive may engage in partnerships with other gaming operators and technology providers, allowing it to expand its reach and enhance its product offerings. These strategic collaborations can lead to increased user engagement and higher revenue generation through shared marketing efforts and improved service delivery.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	53.74M	58.11M	25.19M	29.55M	8.65M	382.95M
Gross Profit	9.20M	11.56M	15.75M	11.53M	3.93M	40.74M
EBITDA	-38.39M	-504.00K	-18.43M	-3.72M	-19.56M	12.70M
Net Income	-42.97M	-13.05M	-30.55M	-56.89M	-286.69M	-46.77M
Balance Sheet
Total Assets	80.22M	69.42M	70.14M	109.72M	165.52M	454.54M
Cash, Cash Equivalents and Short-Term Investments	3.54M	2.09M	3.25M	9.52M	35.84M	44.25M
Total Debt	8.24M	10.15M	5.69M	3.39M	8.61M	7.06M
Total Liabilities	26.08M	32.59M	20.26M	32.76M	28.52M	44.83M
Stockholders Equity	54.14M	36.83M	49.88M	77.19M	137.23M	318.67M
Cash Flow
Free Cash Flow	-45.45M	-7.89M	-37.28M	4.25M	-24.04M	-162.93M
Operating Cash Flow	-42.31M	-6.26M	-16.77M	4.32M	-2.72M	-37.47M
Investing Cash Flow	18.47M	12.57M	-9.46M	1.09M	-102.06M	-94.14M
Financing Cash Flow	26.58M	-7.47M	-4.85M	-5.67M	95.85M	79.73M

Loto Interactive Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 2.81 is below the 20-day moving average (MA) of 2.99, below the 50-day MA of 3.36, and above the 200-day MA of 2.76, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 35.85 is Neutral, neither overbought nor oversold. The STOCH value of 29.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	71 Outperform	HK$702.54M	3.84	6.75%	7.16%	7.39%	2.23%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0771	61 Neutral	HK$750.33M	4.91	6.77%	3.61%	5.84%	94.89%
1985	55 Neutral	HK$390.00M	43.19	-0.83%	8.33%	-1.86%	-105.19%
1204	54 Neutral	HK$1.00B	1,428.57	0.21%	―	1.52%	-83.72%
8198	38 Underperform	HK$2.29B	-46.71	-85.00%	―	24.57%	-59.60%
3680	38 Underperform	HK$1.68B	608.57	4.78%	―	-25.92%	―