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Lapco Holdings Limited (HK:8472)
:8472
Hong Kong Market
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Lapco Holdings Limited (8472) AI Stock Analysis

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HK:8472

Lapco Holdings Limited

(8472)

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Neutral 52 (OpenAI - 4o)
Rating:52Neutral
Price Target:
HK$0.50
▲(21.95% Upside)
Lapco Holdings Limited's overall stock score reflects significant financial challenges, particularly in revenue growth and cash flow management. The technical analysis shows mixed signals, with no strong directional bias. Valuation metrics indicate concerns about profitability and financial health. Strategic improvements are crucial for enhancing financial performance and investor confidence.

Lapco Holdings Limited (8472) vs. iShares MSCI Hong Kong ETF (EWH)

Lapco Holdings Limited Business Overview & Revenue Model

Company DescriptionLapco Holdings Limited, an investment holding company, provides environmental hygiene services in Hong Kong. The company offers cleaning, pest management, waste management and recycling, and landscaping services to a range of venues, including commercial buildings, restaurants, markets, and academic institutions, as well as streets, cultural, leisure, recreational, and residential premises. It serves government departments, property management companies, and other corporations in the private sector. The company was founded in 1990 and is headquartered in Kowloon Bay, Hong Kong.
How the Company Makes MoneyLapco Holdings generates revenue through multiple streams, primarily from the sale of industrial products and services to various sectors, including construction and energy. Key revenue sources include direct sales of their manufactured goods, contracts for large-scale infrastructure projects, and ongoing service agreements for technology solutions. The company also benefits from strategic partnerships with key industry players that enhance its market reach and product offerings. Additionally, recurring revenue is generated from after-sales services and maintenance contracts, which provide a stable income base. Factors contributing to its earnings include a strong demand for construction materials, government contracts, and a focus on sustainability that attracts environmentally conscious clients.

Lapco Holdings Limited Financial Statement Overview

Summary
Lapco Holdings Limited faces significant financial challenges, particularly in revenue growth and cash flow management. The income statement shows a decline in revenue and profitability, while the cash flow statement highlights negative operating cash flow. The balance sheet is stable with low leverage, but overall, strategic improvements are needed.
Income Statement
45
Neutral
The income statement reflects a challenging period for Lapco Holdings Limited. The company experienced a significant decline in revenue from 2023 to 2024, with a revenue growth rate of -39.55%. The gross profit margin for 2024 was 6.25%, which is relatively low, indicating potential issues with cost management or pricing strategy. The net profit margin also decreased to 0.59%, showing a decline in profitability. EBIT and EBITDA margins were 0.02% and 1.99%, respectively, highlighting operational challenges. Overall, the income statement suggests a need for strategic improvements to enhance revenue and profitability.
Balance Sheet
60
Neutral
The balance sheet shows a relatively stable financial position with a debt-to-equity ratio of 0.19 in 2024, indicating low leverage and reduced financial risk. The equity ratio improved to 70.65%, suggesting a strong equity base relative to total assets. However, the return on equity (ROE) was only 2.31%, reflecting limited returns on shareholder investments. The company's cash position improved, with cash and equivalents increasing to 58.99 million, providing liquidity support. Overall, the balance sheet is stable but highlights the need for improved returns on equity.
Cash Flow
50
Neutral
The cash flow statement reveals significant challenges in cash management. Operating cash flow turned negative in 2024, dropping to -30.99 million, indicating potential operational inefficiencies. Free cash flow also declined sharply, resulting in -31.97 million, reflecting the company's inability to generate positive cash flow after capital expenditures. The operating cash flow to net income ratio was negative, suggesting difficulties in converting earnings into cash. Overall, the cash flow statement highlights the need for improved cash management and operational efficiency.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue573.39M948.68M966.29M765.92M665.76M
Gross Profit35.85M58.02M47.83M44.59M41.31M
EBITDA11.45M44.36M49.64M37.48M55.68M
Net Income3.38M14.06M20.33M5.36M18.39M
Balance Sheet
Total Assets207.18M330.32M321.98M250.81M254.42M
Cash, Cash Equivalents and Short-Term Investments58.99M72.28M21.08M40.48M35.58M
Total Debt27.93M88.36M112.89M119.50M113.20M
Total Liabilities60.80M229.04M242.67M191.83M200.80M
Stockholders Equity146.38M101.28M79.31M58.98M53.62M
Cash Flow
Free Cash Flow-31.97M77.09M24.14M-5.49M104.85M
Operating Cash Flow-30.99M80.87M47.39M8.44M109.51M
Investing Cash Flow-1.26M3.02M-27.05M16.09M-25.63M
Financing Cash Flow18.97M-36.33M-39.74M-19.63M-69.33M

Lapco Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.41
Price Trends
50DMA
0.40
Positive
100DMA
0.37
Positive
200DMA
0.50
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
56.62
Neutral
STOCH
56.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8472, the sentiment is Positive. The current price of 0.41 is above the 20-day moving average (MA) of 0.39, above the 50-day MA of 0.40, and below the 200-day MA of 0.50, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 56.62 is Neutral, neither overbought nor oversold. The STOCH value of 56.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8472.

Lapco Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
38.88M-3.090.00%14.00%-366.00%
56
Neutral
102.60M-9.40-5.50%4.25%1.68%-200.00%
52
Neutral
HK$42.62M9.61-4.22%-72.66%-127.43%
48
Neutral
35.40M-4.92-5.48%-33.92%-144.78%
44
Neutral
72.45M-6.64-14.84%-8.52%-1812.50%
30
Underperform
61.00M-1.100.00%4.13%-5.11%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:8472
Lapco Holdings Limited
0.41
-0.50
-54.95%
HK:0646
China Environmental Technology Holdings Limited
0.18
-0.05
-21.74%
HK:6812
Winson Holdings Hong Kong Ltd
0.17
-0.03
-15.00%
HK:8201
PPS International (Holdings) Ltd.
0.06
0.02
50.00%
HK:8309
Man Shing Global Holdings Limited
0.06
0.00
0.00%
HK:8320
Allied Sustainability and Environmental Consultants Group Limited
0.09
-0.02
-18.18%
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.Date of analysis: Sep 19, 2025