Lippo Limited (0226) AI Stock Analysis

• Market Cap: €62.14M
• Dividend Yield: 81.74%
• Average Volume (3M): 421.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• Revenue Growth: 2.80%
• EPS Growth: -113.31%
• Country: HK
• Employees: 861
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): N/A
• Shares Outstanding: 493,154,050
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 421,528
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: ―

The overall stock score reflects significant financial and operational challenges, alongside bearish technical indicators and unattractive valuation metrics. Financial performance is notably weak due to declining profitability and cash flow issues. Technical analysis indicates downward momentum with the stock trading below key moving averages. The negative P/E ratio and lack of dividend yield further diminish the stock's appeal.

Lippo Limited Business Overview & Revenue Model

Company Description

Lippo Limited (0226) is a diversified investment holding company primarily engaged in property development and investment, hospitality and leisure, financial services, and food businesses. The company operates across various sectors, leveraging its subsidiaries and joint ventures to manage a broad portfolio of assets and investments. Lippo Limited focuses on creating value through strategic investments and operational excellence in its core business areas.

How the Company Makes Money

Lippo Limited generates revenue through multiple streams. In property development and investment, the company earns income from selling residential and commercial properties, as well as generating rental income from its investment properties. In the hospitality and leisure sector, revenue is derived from operating hotels and leisure facilities, catering to both domestic and international clients. The financial services division contributes to earnings through its investment management and insurance services. Additionally, the company's food business segment generates revenue from the production and distribution of food products. Strategic partnerships and investments in associated companies and ventures also play a significant role in Lippo Limited's revenue generation, enhancing its financial performance and market position.

Lippo Limited Financial Statement Overview

Summary

Lippo Limited faces significant challenges with declining profitability and cash flow issues, despite stable revenue and a manageable balance sheet. The company's financial position indicates operational inefficiencies and cash flow management concerns, requiring strategic improvements to stabilize and grow.

Income Statement

The income statement shows a volatile performance with declining net income into significant losses in the latest year. Gross profit margin remains strong, but net profit margin has deteriorated due to rising costs or inefficiencies. Revenue growth is present, but the negative trend in EBIT and EBITDA margins indicates operational challenges.

Balance Sheet

The balance sheet is relatively stable, with a moderate debt-to-equity ratio and decent equity ratio suggesting financial stability. However, the decline in stockholders' equity over recent years is a concern. The company's ability to manage its liabilities effectively supports its financial health.

Cash Flow

The cash flow statement indicates struggles with negative free cash flow and operating cash flow in recent periods, pointing to liquidity challenges. The company's ability to generate cash from operations is weak, posing risks to its ongoing operations without external financing.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	848.84M	813.52M	677.77M	728.17M	764.81M
Gross Profit	545.99M	502.21M	385.09M	407.27M	440.10M
EBITDA	-2.54M	26.66M	454.80M	607.40M	-154.44M
Net Income	-1.41B	-35.38M	125.28M	675.87M	-214.36M
Balance Sheet
Total Assets	13.26B	15.13B	15.59B	16.60B	16.32B
Cash, Cash Equivalents and Short-Term Investments	527.25M	758.91M	1.18B	1.52B	1.91B
Total Debt	1.87B	1.81B	1.96B	1.99B	2.10B
Total Liabilities	3.08B	2.22B	2.37B	2.46B	2.68B
Stockholders Equity	6.98B	9.08B	9.30B	9.95B	9.60B
Cash Flow
Free Cash Flow	0.00	-148.94M	-77.76M	56.39M	-98.21M
Operating Cash Flow	179.90M	-100.53M	-39.57M	96.67M	-47.03M
Investing Cash Flow	-479.13M	-12.66M	147.01M	-121.02M	195.60M
Financing Cash Flow	0.00	-300.53M	-182.36M	-223.37M	-100.39M

Lippo Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.12
• 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:0226, the sentiment is Positive. The current price of 0.12 is below the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.12, and above the 200-day MA of 0.09, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 62.29 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0226.

Lippo Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0012	69 Neutral	HK$132.85B	22.03	1.95%	6.56%	-19.91%	-6.92%
0113	67 Neutral	HK$2.02B	10.36	5.60%	8.62%	-19.93%	-43.35%
0083	67 Neutral	HK$90.13B	21.78	2.37%	5.89%	-0.48%	-13.78%
0097	54 Neutral	HK$883.72M	-9.12	-11.87%	―	-1.43%	21.29%
0017	48 Neutral	HK$19.68B	-1.21	-9.96%	―	-40.92%	-42.67%
0226	45 Neutral	€62.14M	―	-22.25%	81.74%	2.80%	-113.31%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Lippo Limited Corporate Events

Lippo Limited Issues Profit Warning Amidst Significant Financial Losses

Lippo Limited has issued a profit warning, indicating a significant financial downturn for the year ending December 31, 2024. The company anticipates a consolidated loss attributable to shareholders of approximately HK$1,400 million, a stark increase from the HK$35 million loss in the previous year. This downturn is primarily due to substantial losses from joint ventures, a net fair value loss on financial instruments, impairment losses on fixed assets due to declining commercial property prices, and litigation settlement payments. Despite these challenges, the company has offset some losses with profits from its associates.

Lippo Limited Announces Upcoming Board Meeting for Financial Results

Lippo Limited has scheduled a board meeting on March 28, 2025, to approve the consolidated final results for the year ending December 31, 2024, and to consider recommending a final dividend. This announcement may impact stakeholders by providing insights into the company’s financial performance and potential dividend payouts, which could influence investor decisions.

Lippo Limited Projects Significant Losses from Joint Ventures Amid Market Challenges

Lippo Limited has announced a projected share of loss from its joint ventures of approximately HK$1.1 billion to HK$1.3 billion for the year ending December 2024, contrasting with a profit of HK$170 million in 2023. This loss is primarily due to the performance of OUE Limited, which is expected to record a significant loss attributed to a slowdown in the property market and economic challenges in mainland China. While these losses are predominantly non-cash and do not affect operational cashflows, they signal a challenging period for Lippo’s ventures and necessitate caution among investors.