Lucas GC Limited (LGCL) AI Stock Analysis

• Market Cap: $9.35M
• Dividend Yield: N/A
• Average Volume (3M): 179.49K
• Price to Earnings (P/E): 2.3
• Beta (1Y): 0.72
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 319
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 58.16
• Shares Outstanding: 2,790,426
• 10 Day Avg. Volume: 137,251
• 30 Day Avg. Volume: 179,486
• PEG Ratio: -0.18
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 0.32
• P/FCF Ratio: -6.01
• Enterprise Value/Market Cap: 17.68
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 0.46
• Enterprise Value/Ebitda: 4.49
• 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: 61 Neutral
• Price Target: $3.00 ▲(26.05% Upside)

Lucas GC Limited's overall stock score is primarily influenced by its mixed financial performance and bearish technical indicators. The low P/E ratio suggests potential undervaluation, but weak profitability and cash flow, along with negative market momentum, weigh heavily on the score.

Positive Factors

Strategic Shift to Higher-Margin Products

The shift towards higher-margin products indicates a strategic focus on profitability, which can enhance long-term financial health and competitiveness.

Strong R&D Investment

Continued investment in R&D, including securing a new AI patent, positions the company for innovation and future growth in the green energy sector.

Regained Nasdaq Compliance

Regaining compliance with Nasdaq's listing requirements ensures continued access to capital markets, supporting long-term growth and stability.

Negative Factors

Revenue Decline

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

Net Profit Margin Decline

A declining net profit margin suggests pressure on profitability, which could affect the company's ability to reinvest in growth and innovation.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity issues, limiting the company's ability to fund operations and invest in future growth.

Lucas GC Limited Business Overview & Revenue Model

Company Description

Lucas GC Limited, through its subsidiaries, provides online agent-centric human capital management services based on platform-as-a-service (PaaS) in the People's Republic of China. Its Star Career and Columbus platforms enables registered users to receive customized job recommendations and work as talent scouts to source suitable candidates for its corporate customers through their social network, as well as receive trainings and other value-added services. The company's platform provides permanent and flexible employment recruitment services; outsourcing services primarily for technology-related projects to design, develop, and deliver the projects within budget and on time with acceptable quality; information technology services to generate sales leads for its corporate customers; and training services comprising career-related certification programs. In addition, it engages in the media and entertainment business; and provides management consulting services. The company was founded in 2011 and is based in Beijing, China. Lucas GC Limited operates as a subsidiary of HTL Lucky Holding Limited.

How the Company Makes Money

Lucas GC Limited generates revenue through multiple streams, primarily by selling and installing renewable energy systems such as solar panels and wind turbines. Additionally, the company offers consulting services that help organizations optimize their energy use and reduce costs, which further contributes to its earnings. LGCL also engages in partnerships with local governments and private enterprises to deliver large-scale energy projects, often funded through grants or incentives that enhance profitability. Furthermore, recurring revenue is generated through maintenance contracts for installed systems, ensuring a steady income over time.

Lucas GC Limited Financial Statement Overview

Summary

Lucas GC Limited exhibits a mixed financial performance. The balance sheet is relatively strong with a moderate debt-to-equity ratio and positive return on equity. However, the income statement and cash flow statement highlight concerns, particularly in terms of declining profitability and negative free cash flow.

Income Statement

Lucas GC Limited shows a mixed performance in its income statement. The gross profit margin has been relatively stable, but the net profit margin has declined in the latest year, indicating pressure on profitability. Revenue growth has been inconsistent, with a notable decline from 2023 to 2024. EBIT and EBITDA margins have also decreased, reflecting operational challenges.

Balance Sheet

The balance sheet of Lucas GC Limited is relatively strong with a moderate debt-to-equity ratio, suggesting manageable leverage. The return on equity has been positive, indicating efficient use of equity. However, the equity ratio shows a slight decline, which could indicate increasing liabilities relative to assets.

Cash Flow

Cash flow analysis reveals some concerns for Lucas GC Limited. The company has experienced negative free cash flow, and the operating cash flow to net income ratio indicates challenges in converting profits into cash. Despite these issues, there has been some improvement in free cash flow growth in recent years.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.06B	1.47B	766.57M	652.25M	230.21M
Gross Profit	357.40M	418.55M	31.96M	27.77M	8.38M
EBITDA	36.86M	72.02M	34.97M	38.64M	3.23M
Net Income	39.79M	77.67M	36.14M	39.51M	4.60M
Balance Sheet
Total Assets	403.25M	291.82M	34.70M	35.48M	9.86M
Cash, Cash Equivalents and Short-Term Investments	33.18M	30.12M	48.48M	74.10M	11.06M
Total Debt	68.03M	39.47M	6.75M	0.00	0.00
Total Liabilities	137.67M	95.23M	17.76M	22.74M	7.26M
Stockholders Equity	262.83M	194.14M	115.86M	12.70M	2.60M
Cash Flow
Free Cash Flow	-56.98M	-48.51M	-4.28M	5.66M	-766.71K
Operating Cash Flow	20.19M	-36.41M	-2.25M	9.40M	352.20K
Investing Cash Flow	-79.95M	-12.10M	16.82M	-47.85M	-12.29M
Financing Cash Flow	60.75M	29.42M	3.42M	26.50M	12.70M

Lucas GC Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LGCL, the sentiment is Negative. The current price of 2.38 is below the 20-day moving average (MA) of 2.57, below the 50-day MA of 3.91, and below the 200-day MA of 18.64, indicating a bearish trend. The MACD of -0.61 indicates Negative momentum. The RSI at 36.10 is Neutral, neither overbought nor oversold. The STOCH value of 62.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LGCL.

Lucas GC Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTWK	62 Neutral	$35.51M	73.96	1.40%	―	7.70%	-36.01%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LGCL	61 Neutral	$9.35M	2.34	2.46%	―	―	―
MTC	55 Neutral	$7.66M	-0.07	-291.75%	―	―	―
AWRE	48 Neutral	$47.45M	-8.41	-18.98%	―	2.73%	25.65%
HKIT	45 Neutral	$46.29M	―	-6.17%	―	-47.44%	-318.95%

Lucas GC Limited Corporate Events

Lucas GC Limited Announces CFO Transition Effective December 1, 2025

Lucas GC Limited, a company based in Beijing, announced a change in its executive team with the resignation of Chief Financial Officer Brian Lin, effective December 1, 2025. He will be succeeded by Wallace Wang Leong Lee, whose extensive experience includes leadership roles at various companies such as BON Natural Life Limited and China SXT Pharmaceuticals, Inc. This transition is expected to bring new strategic insights to the company’s financial management, potentially impacting its market operations positively.

Lucas GC Limited Announces Extraordinary General Meeting for Share Capital Changes

Lucas GC Limited has announced an extraordinary general meeting (EGM) scheduled for December 5, 2025, to discuss significant changes to its share capital structure. The meeting will be held virtually, allowing shareholders to participate via a live webcast. Key proposals include increasing the authorized share capital from $50,000 to $500,000, implementing a share consolidation with a potential ratio of up to 5000:1, and amending the company’s memorandum and articles of association. These changes aim to enhance the company’s capital structure and provide flexibility for future corporate actions. The board of directors recommends shareholders vote in favor of all proposals.

Lucas GC Limited Regains Nasdaq Compliance

Lucas GC Limited announced on November 5, 2025, that it has regained compliance with Nasdaq’s minimum bid price requirement. The company received a Compliance Notice from Nasdaq on November 3, 2025, confirming that its shares maintained a closing bid price of at least $1.00 for 15 consecutive business days, from October 13 to October 31, 2025, thus resolving the issue raised on September 5, 2025.

Lucas GC Limited Reports 1H 2025 Financial Results Amid Strategic Shift

Lucas GC Limited announced its financial results for the first half of 2025, reporting a revenue of $54.01 million, a 36.11% decrease from the previous year. Despite the revenue drop, the company improved its gross margin by 200 basis points to 33.74%, attributed to its strategic shift towards higher-margin products and expansion efforts outside China. The net income margin decreased to 5.56% from 8.91% in the same period last year. The company continues to invest heavily in research and development, maintaining R&D expenses above industry averages, and has recently secured an additional patent in AI technology.

Lucas GC Limited Announces Share Consolidation and Dual-Class Structure

Lucas GC Limited announced on October 9, 2025, that it will implement a forty-for-one share consolidation and adopt a dual-class share structure effective October 13, 2025. This move, approved by shareholders in May 2025, is expected to increase the market price per share and will not alter any shareholder’s percentage interest in the company’s equity. The company’s Class A Ordinary Shares will trade on the Nasdaq Capital Market on a consolidation-adjusted basis, and a new CUSIP number has been assigned as a result of these changes.

Lucas GC Limited Receives Nasdaq Non-Compliance Notification

On September 11, 2025, Lucas GC Limited announced it received a notification from Nasdaq regarding non-compliance with the minimum bid price requirement, as its shares closed below $1.00 for 30 consecutive business days. The company has until March 4, 2026, to regain compliance, during which time its shares will continue to trade on Nasdaq. Lucas GC Limited is considering options such as a reverse stock split to address the issue.