Lai Group Holding Co Ltd (8455) AI Stock Analysis

• Market Cap: HK$52.80M
• Dividend Yield: N/A
• Average Volume (3M): 754.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: -8.22%
• EPS Growth: -7.28%
• Country: HK
• Employees: 21
• Sector: Industrials
• Sector Strength: 79
• Industry: Consulting Services
• EPS (TTM): >-0.01
• Shares Outstanding: 960,000,000
• 10 Day Avg. Volume: 1,001,000
• 30 Day Avg. Volume: 754,000
• PEG Ratio: -0.52
• Price to Book (P/B): -11.29
• Price to Sales (P/S): 0.53
• P/FCF Ratio: -4.21
• 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: Hold
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

Lai Group Holding Co Ltd's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, persistent losses, and a weak balance sheet. Technical analysis suggests a bearish trend, and valuation metrics are unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively result in a low overall stock score.

Lai Group Holding Co Ltd Business Overview & Revenue Model

Company Description

Lai Group Holding Company Limited, an investment holding company, engages in the provision of residential and commercial interior design and fit-out services in Hong Kong. It also holds properties. The company was founded in 1996 and is headquartered in Sha Tin, Hong Kong. Lai Group Holding Company Limited is a subsidiary of Chun Wah Limited.

How the Company Makes Money

Lai Group Holding Co Ltd generates revenue through several key streams, primarily from the sale of its consumer products in textiles and home furnishings. The company leverages its manufacturing capabilities to produce a wide array of goods, which are then sold through both wholesale and retail channels. A significant portion of its revenue comes from long-term partnerships with major retailers and distributors, enabling steady demand for its products. Additionally, Lai Group focuses on expanding its market presence internationally, which contributes to its earnings through exports. The company's commitment to innovation allows it to introduce new product lines, tapping into emerging consumer trends and enhancing its competitive edge.

Lai Group Holding Co Ltd Financial Statement Overview

Summary

Lai Group Holding Co Ltd is facing significant financial challenges, with declining revenues, persistent losses, and negative cash flows. Margins are under pressure, and equity levels are diminishing, reducing financial flexibility. The company needs strategic actions to improve operational efficiency and financial health to ensure long-term sustainability.

Income Statement

The company has experienced a significant decline in revenue over the last few years, with a negative revenue growth rate of approximately -8.2% from 2023 to 2024. Additionally, the net profit margin remains negative due to consistent net losses, which indicates poor profitability. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. The gross profit margin is modest at 20.56%, showing some ability to cover the cost of goods sold, but overall profitability is concerning.

Balance Sheet

The company's debt-to-equity ratio is 0.66, indicating a moderate level of leverage. However, the equity ratio has declined over the years to 23.37%, suggesting a decreasing proportion of equity financing. Return on equity is negative, reflecting net losses and poor returns to shareholders. The balance sheet shows a shrinking equity base and increasing liabilities, which raises concerns about financial stability.

Cash Flow

Operating cash flow is negative, indicating challenges in generating cash from core business operations. The free cash flow is also negative, showing an inability to cover capital expenditures. The free cash flow to net income ratio is not meaningful due to negative figures. Overall, the cash flow position highlights liquidity issues and potential difficulties in sustaining operations without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	100.27M	93.69M	102.08M	111.26M	138.33M	140.62M
Gross Profit	20.44M	14.93M	20.98M	19.15M	30.20M	29.44M
EBITDA	-13.32M	-12.49M	-11.46M	-15.08M	-557.00K	1.56M
Net Income	-11.18M	-13.00M	-12.09M	-17.91M	-3.57M	-1.45M
Balance Sheet
Total Assets	32.51M	23.57M	36.81M	52.63M	74.86M	75.65M
Cash, Cash Equivalents and Short-Term Investments	20.78M	12.12M	24.33M	34.52M	57.73M	58.91M
Total Debt	6.51M	7.75M	5.72M	9.61M	5.14M	5.33M
Total Liabilities	29.39M	27.97M	28.21M	31.93M	36.26M	32.78M
Stockholders Equity	3.11M	-4.39M	8.60M	20.70M	38.60M	42.11M
Cash Flow
Free Cash Flow	-10.38M	-11.79M	-13.26M	-17.36M	2.97M	15.02M
Operating Cash Flow	-10.38M	-11.79M	-13.20M	-16.66M	3.36M	15.17M
Investing Cash Flow	11.34M	4.00K	11.23M	-12.82M	-387.00K	-149.00K
Financing Cash Flow	2.15M	-415.00K	2.24M	-3.95M	-4.14M	2.15M

Lai Group Holding Co Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8455, the sentiment is Negative. The current price of 0.05 is below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.06, and above the 200-day MA of 0.05, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 41.73 is Neutral, neither overbought nor oversold. The STOCH value of 96.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8455.

Lai Group Holding Co Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$10.96B	16.35	8.89%	1.96%	2.68%	-15.17%
8173	56 Neutral	HK$43.72M	―	-22.97%	―	-41.70%	12.59%
8501	49 Neutral	HK$89.07M	―	-2.95%	―	-2.17%	-188.41%
3893	46 Neutral	HK$83.98M	―		―	151.24%	46.43%
8040	46 Neutral	HK$102.00M	―	-48.06%	―	-10.74%	-81.54%
8341	46 Neutral	HK$12.72M	2.13	12.10%	―	-12.30%	-27.22%
8455	41 Neutral	HK$52.80M	―	-617.73%	―	-8.22%	-7.28%