Lai Group Holding Co Ltd (8455) AI Stock Analysis

• Market Cap: HK$64.32M
• Dividend Yield: N/A
• Average Volume (3M): 729.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: -4.49%
• EPS Growth: 51.39%
• Country: HK
• Employees: 21
• Sector: Industrials
• Sector Strength: 89
• Industry: Consulting Services
• EPS (TTM): >-0.01
• Shares Outstanding: 960,000,000
• 10 Day Avg. Volume: 355,000
• 30 Day Avg. Volume: 729,666
• PEG Ratio: 0.79
• Price to Book (P/B): 17.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.19
• 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: 39 Underperform
• Price Target: ―

The stock of Lai Group Holding Co Ltd scores low due to severe financial challenges, including declining revenues, negative profitability, and weak cash flow. Technical indicators suggest bearish momentum, and valuation metrics highlight significant risks with a negative P/E ratio. The lack of earnings call and corporate event insights further limits potential positive factors. Immediate strategic initiatives are needed for financial recovery and to enhance investor confidence.

Lai Group Holding Co Ltd Business Overview & Revenue Model

Company Description

Lai Group Holding Co Ltd (8455) is primarily engaged in the provision of interior design and fit-out services. The company is based in Hong Kong and operates within the construction and renovation sectors, offering a comprehensive range of services for residential, commercial, and industrial spaces. Its core services include interior design consultancy, project management, and the execution of fit-out projects, which involve the customization and furnishing of interior spaces according to client specifications.

How the Company Makes Money

Lai Group Holding Co Ltd generates revenue primarily through its interior design and fit-out services. The company earns money by providing consultancy and project management services, charging fees for design and planning stages. Additionally, significant revenue is derived from the execution phase, where the company undertakes the physical fit-out of spaces, including construction, installation, and furnishing, for which it charges clients based on the scope and scale of each project. The company may also enter into partnerships or collaborations with suppliers and subcontractors to manage costs and enhance service delivery, contributing to its overall profitability.

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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	102.08M	111.26M	138.33M	140.62M	108.66M
Gross Profit	20.98M	19.15M	30.20M	29.44M	27.97M
EBITDA	-11.46M	-15.08M	-557.00K	1.56M	-428.00K
Net Income	-12.09M	-17.91M	-3.57M	-1.45M	-3.75M
Balance Sheet
Total Assets	36.81M	52.63M	74.86M	75.65M	65.80M
Cash, Cash Equivalents and Short-Term Investments	24.33M	34.52M	57.73M	58.91M	41.74M
Total Debt	5.72M	9.61M	5.14M	5.33M	2.03M
Total Liabilities	28.21M	31.93M	36.26M	32.78M	21.59M
Stockholders Equity	8.60M	20.70M	38.60M	42.11M	43.56M
Cash Flow
Free Cash Flow	-13.26M	-17.36M	2.97M	15.02M	-8.84M
Operating Cash Flow	-13.20M	-16.66M	3.36M	15.17M	-8.84M
Investing Cash Flow	11.23M	-12.82M	-387.00K	-149.00K	306.00K
Financing Cash Flow	2.24M	-3.95M	-4.14M	2.15M	-2.84M

Lai Group Holding Co Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.06
• 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:8455, the sentiment is Positive. The current price of 0.06 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 0.04, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 63.47 is Neutral, neither overbought nor oversold. The STOCH value of 48.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
1168	78 Outperform	HK$2.70B	0.68	49.31%	―	-3.99%	―
3839	71 Outperform	HK$1.34B	9.58	7.60%	―	124.78%	889.01%
6868	65 Neutral	HK$3.42B	22.86	7.83%	3.79%	-11.58%	-35.85%
Sector *	58 Neutral	HK$14.16B	4.53	-3.01%	6.82%	3.67%	-54.16%
8203	49 Neutral	HK$156.70M	18.91		―	272.07%	―
1738	40 Underperform	$140.82M	―		―	-69.69%	-9.41%
8455	39 Underperform	HK$64.32M	―	-617.73%	―	-4.49%	51.39%