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Lai Group Holding Co Ltd (HK:8455)
:8455
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Lai Group Holding Co Ltd
(8455)
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Rating:48Neutral
Price Target:
HK$0.11
▲(21.11% Upside)
The score is held down primarily by weak financial performance (declining revenue, ongoing losses, and negative equity). Technicals are comparatively stronger with an uptrend and positive momentum signals, but valuation remains constrained by negative earnings and no provided dividend yield.
Positive Factors
Asset-backed business model
Lai Group’s core activity—property development, sales and leasing—is asset-backed and historically durable. Ownership of physical real estate and leasing/management income provide recurring cash flow potential and collateral value, supporting stability across cycles if projects are executed prudently.
Improving free cash flow
A +13.58% free cash flow growth rate indicates improving cash conversion on an operational level. Sustained FCF growth can fund development, reduce reliance on external financing, and provide a buffer for cyclical downturns, improving long-term financial resilience if maintained.
Access via strategic partnerships
Partnerships with developers and financial institutions expand deal sourcing, share project risk, and improve access to capital—critical in capital-intensive real estate. Durable partner relationships can accelerate pipeline execution and lower funding costs, strengthening growth capacity over months to years.
Negative Factors
Negative equity / weak balance sheet
Liabilities exceeding equity signals structural balance-sheet weakness, limiting the company’s ability to raise debt or equity without dilution. Persistent negative equity raises covenant, refinancing and solvency risks, constraining strategic flexibility and increasing financing costs over the medium term.
Declining revenue and losses
A trending revenue decline combined with negative EBIT and net margins undermines internal funding capacity. Continued losses erode reserves, hinder reinvestment in projects, and necessitate external capital to sustain operations, making long-term execution and growth harder without margin restoration.
Negative operating cash flow
Negative operating cash flow means core property operations are not generating sufficient cash, forcing dependence on financing or asset disposals. Over time this weakens liquidity, increases refinancing risk for developments, and can limit capital expenditures and maintenance of income-generating assets.
Lai Group Holding Co Ltd (8455) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$100.80M
Dividend YieldN/A
Average Volume (3M)404.67K
Price to Earnings (P/E)―
Beta (1Y)0.91
Revenue Growth4.00%
EPS Growth13.57%
CountryHK
Employees21
SectorIndustrials
Sector Strength72
IndustryConsulting Services
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding960,000,000
10 Day Avg. Volume198,000
30 Day Avg. Volume404,666
Financial Highlights & Ratios
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 CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Lai Group Holding Co Ltd Business Overview & Revenue Model
Company DescriptionLai Group Holding Co Ltd (8455) is a diversified investment holding company based in Hong Kong, primarily engaged in the sectors of property development, investment, and management. The company focuses on leveraging its expertise in real estate to create value through various projects, including residential and commercial properties. In addition, Lai Group is involved in other strategic investments that complement its core operations, aiming to enhance its portfolio and drive sustainable growth.
How the Company Makes MoneyLai Group Holding Co Ltd generates revenue primarily through the sale and leasing of real estate properties, which includes both residential and commercial spaces. The company profits from property development by acquiring land, developing it into marketable properties, and then selling or leasing these properties to tenants and buyers. Additionally, the company may engage in property management services, generating recurring income from managing its assets. Strategic partnerships with other real estate developers and financial institutions can also enhance its revenue potential, providing access to capital and new projects. The company's financial performance is influenced by market demand for real estate, economic conditions, and its ability to execute development projects efficiently.
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 a weak balance sheet. The company struggles with profitability and cash flow generation, and its high leverage poses a risk to financial stability. While there is some improvement in free cash flow, the overall financial health remains concerning.Income Statement
The company has experienced declining revenue over the past few years, with a negative revenue growth rate of -6.56% in the most recent year. Profitability metrics are weak, with negative net profit margins and EBIT margins indicating ongoing losses. The gross profit margin has also decreased, reflecting challenges in maintaining cost efficiency.Balance Sheet
The balance sheet shows significant financial instability, with a negative stockholders' equity and a high debt-to-equity ratio of -1.76, indicating that liabilities exceed equity. The return on equity is positive due to negative equity, but this is not a sign of financial health. The equity ratio is also negative, highlighting a precarious financial position.Cash Flow
Cash flow metrics reveal some improvement, with a positive free cash flow growth rate of 13.58%. However, operating cash flow remains negative, and the operating cash flow to net income ratio is unfavorable, indicating cash flow challenges. The free cash flow to net income ratio is stable at 1.0, suggesting that free cash flow is aligned with net income.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 125.52M | 93.69M | 102.08M | 111.26M | 138.33M | 140.62M |
| Gross Profit | 21.49M | 14.93M | 20.98M | 19.15M | 30.20M | 29.44M |
| EBITDA | -12.71M | -12.49M | -10.84M | -15.08M | -557.00K | 1.56M |
| Net Income | -13.67M | -13.00M | -12.09M | -17.91M | -3.57M | -1.45M |
Balance Sheet | ||||||
| Total Assets | 35.43M | 23.57M | 36.81M | 52.63M | 74.86M | 75.65M |
| Cash, Cash Equivalents and Short-Term Investments | 23.18M | 12.12M | 24.33M | 34.52M | 57.73M | 58.91M |
| Total Debt | 4.96M | 7.75M | 7.40M | 9.61M | 5.14M | 8.19M |
| Total Liabilities | 35.25M | 27.97M | 28.21M | 31.93M | 36.26M | 32.78M |
| Stockholders Equity | 182.00K | -4.39M | 8.60M | 20.70M | 38.60M | 42.11M |
Cash Flow | ||||||
| Free Cash Flow | -4.29M | -11.79M | -13.26M | -17.36M | 2.97M | 15.02M |
| Operating Cash Flow | -4.29M | -11.79M | -13.20M | -16.66M | 3.36M | 15.17M |
| Investing Cash Flow | -176.00K | 4.00K | 11.23M | -12.82M | -387.00K | -149.00K |
| Financing Cash Flow | 6.87M | -415.00K | 2.24M | -3.95M | -4.14M | 2.15M |
Lai Group Holding Co Ltd Technical Analysis
Positive
0.09
Price Trends
0.07
Positive
0.06
Positive
0.06
Positive
Market Momentum
<0.01
Positive
57.70
Neutral
78.31
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 0.09 is below the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.07, and above the 200-day MA of 0.06, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 57.70 is Neutral, neither overbought nor oversold. The STOCH value of 78.31 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
48 Neutral | HK$100.80M | -8.68 | -601.82% | ― | 4.00% | 13.57% | |
47 Neutral | HK$62.40M | 4.79 | 10.44% | ― | -26.94% | -38.23% | |
46 Neutral | HK$142.80M | -5.15 | -57.83% | ― | -3.47% | -57.53% | |
46 Neutral | HK$102.93M | -13.40 | -5.93% | ― | 50.50% | 27.48% | |
46 Neutral | HK$233.42M | -6.12 | ― | ― | -24.93% | -72.69% | |
41 Neutral | HK$24.55M | -4.54 | -19.25% | ― | 46.11% | 54.20% |
* Industrials Sector Average
HK:8455
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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.