Lapco Holdings Limited (8472) AI Stock Analysis

• Market Cap: HK$65.66M
• Dividend Yield: N/A
• Average Volume (3M): 2.46M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: HK$0.64 ▲(1.11% Upside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenue and cash flow issues. Technical analysis provides some support with positive price trends, but valuation concerns due to a negative P/E ratio weigh heavily on the score. Strategic improvements are necessary to enhance financial health and investor confidence.

Positive Factors

Low Leverage

A low leverage ratio reduces financial risk and provides stability, allowing the company to better weather economic fluctuations.

Strong Equity Base

A strong equity base enhances financial stability and provides a solid foundation for potential future investments and growth.

Cash Position

Improved cash reserves enhance liquidity, ensuring the company can meet short-term obligations and invest in growth opportunities.

Negative Factors

Negative Cash Flow

Negative operating cash flow indicates potential inefficiencies and challenges in sustaining operations without external financing.

Declining Revenue

A significant decline in revenue suggests challenges in market demand or competitive positioning, impacting long-term growth prospects.

Low Profit Margins

Low profit margins indicate potential issues with cost management or pricing strategy, affecting profitability and financial health.

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 Limited generates revenue through multiple streams, primarily by investing in and managing a portfolio of companies across its focus sectors. The company earns income from dividends and capital gains on its investments, as well as from service fees associated with its financial advisory and asset management services. Strategic partnerships with other firms in technology and real estate provide additional revenue opportunities through joint ventures and collaborative projects. The company's ability to leverage market trends and invest in emerging sectors contributes significantly to its earnings.

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 remains relatively stable with low leverage, but overall financial performance indicates a need for strategic improvements.

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: Positive
• Last Price: 0.63
• 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 Positive. The current price of 0.63 is above the 20-day moving average (MA) of 0.63, above the 50-day MA of 0.59, and above the 200-day MA of 0.46, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 52.35 is Neutral, neither overbought nor oversold. The STOCH value of 15.56 is Positive, 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

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$34.56M	―	-3.59%	―	2.94%	-56.79%
8472	52 Neutral	HK$65.66M	-8.86	-4.22%	―	-72.66%	-127.43%
6812	51 Neutral	HK$108.00M	―	-3.94%	4.04%	0.25%	18.87%
8320	49 Neutral	HK$76.80M	―	-4.04%	―	12.29%	51.28%
8309	48 Neutral	HK$37.20M	-5.17	-9.31%	―	-57.27%	-190.00%
0646	46 Neutral	HK$58.94M	―	―	―	4.13%	-5.11%