Lapco Holdings Limited (8472) AI Stock Analysis

• Market Cap: HK$44.93M
• Dividend Yield: N/A
• Average Volume (3M): 697.49K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.49
• Revenue Growth: -39.56%
• EPS Growth: -89.35%
• Country: HK
• Employees: 645
• Sector: Industrials
• Sector Strength: 79
• Industry: Waste Management
• EPS (TTM): N/A
• Shares Outstanding: 115,200,000
• 10 Day Avg. Volume: 1,137,125
• 30 Day Avg. Volume: 697,491
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: HK$0.50
• Price Target Upside: 28.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: HK$0.50 ▲(28.21% Upside)

Lapco Holdings Limited's overall stock score reflects significant financial challenges, particularly in revenue growth and cash flow management. While the balance sheet is stable, the technical analysis shows mixed momentum, and the valuation indicates reasonable pricing. The absence of earnings call data and corporate events limits additional insights.

Lapco Holdings Limited Business Overview & Revenue Model

Company Description

Lapco 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 Money

Lapco 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 is facing financial challenges with declining revenues and low profitability margins. Although the balance sheet is strong with a high equity ratio and low leverage, the absence of operating and free cash flow is concerning.

Income Statement

Lapco Holdings Limited shows a significant decline in total revenue from 2023 to 2024, with a negative revenue growth rate of -39.56%. The gross profit margin in 2024 is relatively low at 6.25%, indicating limited profitability from core operations. Additionally, the net profit margin of 0.59% reflects a minimal return on revenue. The declining EBIT and EBITDA margins further highlight operational challenges.

Balance Sheet

The company's balance sheet reveals a strong equity base with an equity ratio of 70.65% in 2024, indicating financial stability and low leverage risk. The debt-to-equity ratio is conservative at 0.19, underscoring prudent financial management. However, the return on equity has decreased significantly to 2.31%, suggesting challenges in generating profit from equity investments.

Cash Flow

The cash flow statement is concerning, with no reported operating cash flow or free cash flow in 2024. This lack of cash generation could pose liquidity challenges. Historically, there is a significant decline in free cash flow from positive levels in 2023, indicating potential difficulties in maintaining free cash flow.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	573.39M	948.68M	966.29M	765.92M	665.76M
Gross Profit	35.85M	58.02M	47.83M	44.59M	41.31M
EBITDA	11.45M	44.36M	49.64M	37.48M	55.68M
Net Income	3.38M	14.06M	20.33M	5.36M	18.39M
Balance Sheet
Total Assets	207.18M	330.32M	321.98M	250.81M	254.42M
Cash, Cash Equivalents and Short-Term Investments	58.99M	72.28M	21.08M	40.48M	35.58M
Total Debt	27.93M	88.36M	112.89M	119.50M	113.20M
Total Liabilities	60.80M	229.04M	242.67M	191.83M	200.80M
Stockholders Equity	146.38M	101.28M	79.31M	58.98M	53.62M
Cash Flow
Free Cash Flow	-31.97M	77.09M	24.14M	-5.49M	104.85M
Operating Cash Flow	-30.99M	80.87M	47.39M	8.44M	109.51M
Investing Cash Flow	-1.26M	3.02M	-27.05M	16.09M	-25.63M
Financing Cash Flow	18.97M	-36.33M	-39.74M	-19.63M	-69.33M

Lapco Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.39
• 50DMA: Positive
• 100DMA: Positive
• 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:8472, the sentiment is Negative. The current price of 0.39 is below the 20-day moving average (MA) of 0.42, above the 50-day MA of 0.38, and below the 200-day MA of 0.54, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.68 is Neutral, neither overbought nor oversold. The STOCH value of 38.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8472.

Lapco Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$10.85B	16.20	8.89%	1.97%	2.67%	-15.04%
8201	60 Neutral	HK$41.04M	―	-6.39%	―	14.00%	-366.00%
8472	56 Neutral	HK$44.93M	9.61	2.73%	―	-39.56%	-89.35%
8309	48 Neutral	HK$36.00M	2.67	-5.33%	―	-33.92%	-144.78%
6812	46 Neutral	HK$85.20M	―	-5.33%	5.12%	1.68%	-200.00%
8320	43 Neutral	HK$68.10M	―	-14.20%	―	-8.52%	-1812.50%
0646	30 Underperform	HK$54.49M	―		―	79.56%	43.36%