Lapco Holdings Limited (8472) AI Stock Analysis

• Market Cap: HK$61.06M
• Dividend Yield: N/A
• Average Volume (3M): 2.46M
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.48
• Revenue Growth: -72.66%
• EPS Growth: -127.43%
• Country: HK
• Employees: 645
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): -0.03
• Shares Outstanding: 115,200,000
• 10 Day Avg. Volume: 4,048,568
• 30 Day Avg. Volume: 2,459,989
• PEG Ratio: -0.25
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.13
• P/FCF Ratio: -2.37
• 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: -5.66% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: HK$0.50 ▼(-5.66% Downside)

The overall stock score reflects significant financial challenges and a weak valuation, which are partially offset by some positive technical indicators. The company's financial performance is the most significant factor, highlighting the need for strategic improvements in revenue growth and cash flow management. Technical analysis provides a slightly positive outlook, but the negative P/E ratio and lack of dividend yield weigh heavily on the valuation.

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 faces significant financial challenges, particularly in revenue growth and cash flow management. The income statement shows declining profitability with a revenue growth rate of -39.55% and low margins. The balance sheet is stable with low leverage, but the cash flow statement reveals operational inefficiencies with negative operating cash flow. Strategic improvements are needed to enhance revenue and optimize cash flow.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	252.77M	573.39M	948.68M	966.29M	765.92M	665.76M
Gross Profit	16.97M	35.85M	58.02M	47.83M	44.59M	41.31M
EBITDA	1.17M	11.45M	44.36M	53.19M	39.04M	54.83M
Net Income	-6.30M	3.38M	14.06M	20.33M	5.36M	18.39M
Balance Sheet
Total Assets	199.97M	207.18M	330.32M	321.98M	250.81M	254.42M
Cash, Cash Equivalents and Short-Term Investments	44.73M	58.99M	72.28M	21.08M	40.48M	35.58M
Total Debt	15.23M	27.93M	88.36M	112.89M	119.50M	113.20M
Total Liabilities	51.35M	60.80M	229.04M	242.67M	191.83M	200.80M
Stockholders Equity	148.62M	146.38M	101.28M	79.31M	58.98M	53.62M
Cash Flow
Free Cash Flow	-47.86M	-31.97M	77.09M	24.14M	-5.49M	104.85M
Operating Cash Flow	-48.84M	-30.99M	80.87M	47.39M	8.44M	109.51M
Investing Cash Flow	21.48M	-1.26M	3.02M	-27.05M	16.09M	-25.63M
Financing Cash Flow	-10.06M	18.97M	-36.33M	-39.74M	-19.63M	-69.33M

Lapco Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8472, the sentiment is Neutral. The current price of 0.53 is below the 20-day moving average (MA) of 0.61, above the 50-day MA of 0.48, and above the 200-day MA of 0.48, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 46.03 is Neutral, neither overbought nor oversold. The STOCH value of 4.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8201	60 Neutral	HK$37.26M	―	-3.59%	―	2.94%	-56.79%
6812	56 Neutral	HK$108.60M	―	-5.33%	4.02%	1.68%	-200.00%
8472	52 Neutral	HK$61.06M	9.61	-4.22%	―	-72.66%	-127.43%
8320	49 Neutral	HK$72.45M	―	-14.20%	―	-8.52%	-1812.50%
8309	48 Neutral	HK$36.00M	2.67	-5.33%	―	-33.92%	-144.78%
0646	46 Neutral	HK$58.26M	―	―	―	4.13%	-5.11%