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LH Group Limited
(1978)
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Rating:49Neutral
Price Target:
HK$0.23
▼(-35.00% Downside)
Action:Reiterated
Date:08/21/26
The score is held back primarily by very thin/unstable profitability and balance-sheet pressure (higher leverage), alongside a clear downtrend in the share price versus key moving averages. Strong and improving free cash flow is a meaningful offset, but valuation is stretched with a very high P/E given the weak earnings base.
Positive Factors
Revenue Rebound
The strong 2025 revenue rebound indicates renewed operating demand and improved business activity. Sustaining this recovery could expand the company’s scale and provide a broader base for restoring profitability over the next several quarters.
Negative Factors
Elevated Leverage
Rising leverage increases fixed financial obligations and reduces the balance-sheet cushion available during weaker trading periods. This can constrain investment flexibility and make the company more sensitive to cash-flow or earnings setbacks.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Rebound
The strong 2025 revenue rebound indicates renewed operating demand and improved business activity. Sustaining this recovery could expand the company’s scale and provide a broader base for restoring profitability over the next several quarters.
Read all positive factors
LH Group Limited (1978) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$176.80M
Dividend Yield27.32%
Average Volume (3M)225.67K
Price to Earnings (P/E)―
Beta (1Y)0.47
Revenue Growth-2.46%
EPS Growth-145.45%
CountryHK
Employees1,605
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)<0.01
Shares Outstanding800,000,000
10 Day Avg. Volume97,600
30 Day Avg. Volume225,666
Financial Highlights & Ratios
PEG Ratio-1.61
Price to Book (P/B)1.21
Price to Sales (P/S)0.26
P/FCF Ratio2.07
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
LH Group Limited Business Overview & Revenue Model
Company Description
Operating out of Hong Kong, LH Group Limited serves as a multifaceted restaurant company, managing a portfolio of diverse brands. Its culinary focus is primarily on Asian flavors, featuring Japanese, Korean, Cantonese, and Shanghainese specialties...
How the Company Makes Money
null...
LH Group Limited Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
45
Neutral
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.08B | 1.06B | 1.28B | 1.06B | 997.92M |
| Gross Profit | 358.80M | 331.74M | 505.16M | 293.92M | 391.29M |
| EBITDA | 64.96M | 43.31M | 269.26M | 239.49M | 237.86M |
| Net Income | 1.70M | -32.06M | 88.06M | 77.70M | 90.08M |
Balance Sheet | |||||
| Total Assets | 696.64M | 786.01M | 759.65M | 846.59M | 783.86M |
| Cash, Cash Equivalents and Short-Term Investments | 140.02M | 144.81M | 252.72M | 341.91M | 325.36M |
| Total Debt | 268.39M | 324.48M | 255.18M | 223.66M | 179.29M |
| Total Liabilities | 462.08M | 553.14M | 462.24M | 437.09M | 403.66M |
| Stockholders Equity | 234.56M | 232.87M | 297.41M | 409.50M | 380.20M |
Cash Flow | |||||
| Free Cash Flow | 137.29M | 54.68M | 231.97M | 170.47M | 208.94M |
| Operating Cash Flow | 171.71M | 120.56M | 252.02M | 207.44M | 251.71M |
| Investing Cash Flow | -35.09M | 43.01M | 29.03M | -96.51M | 34.20M |
| Financing Cash Flow | -141.41M | -166.41M | -329.85M | -156.41M | -223.12M |
LH Group Limited Technical Analysis
Negative
0.36
Price Trends
0.26
Negative
0.28
Negative
0.32
Negative
Market Momentum
-0.01
Positive
30.86
Neutral
26.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1978, the sentiment is Negative. The current price of 0.36 is above the 20-day moving average (MA) of 0.25, above the 50-day MA of 0.26, and above the 200-day MA of 0.32, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 30.86 is Neutral, neither overbought nor oversold. The STOCH value of 26.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1978.
LH Group Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | HK$250.91M | 26.00 | 1.95% | 14.52% | -2.56% | -23.91% | |
53 Neutral | HK$263.73M | -5.44 | -4.47% | 8.22% | 3.29% | 48.16% | |
49 Neutral | HK$176.80M | -11.69 | -6.68% | 27.32% | -2.46% | -145.45% | |
46 Neutral | HK$104.37M | -1.88 | -38.69% | 10.31% | -8.13% | -21.92% | |
43 Neutral | HK$281.32M | -0.95 | -55.81% | 3.21% | -19.88% | -20.64% | |
37 Underperform | HK$54.86M | -1.82 | -112.50% | ― | 1.93% | -27.49% |
* Consumer Cyclical Sector Average
HK:1978
LH Group Limited
0.22
-0.18
-44.75%
HK:0573
Tao Heung Holdings Limited
0.26
-0.06
-18.75%
HK:1181
Tang Palace (China) Holdings Limited
0.10
-0.09
-48.95%
HK:1314
Tsui Wah Holdings Ltd.
0.18
>-0.01
-3.70%
HK:0520
Xiabuxiabu Catering Management (China) Holdings Co., Ltd.
0.26
-0.58
-69.05%
HK:8096
Tasty Concepts Holding Limited
0.11
0.02
20.00%
LH Group Limited Corporate Events
LH Group warns of wider interim loss amid restaurant restructuring and weak demand
Aug 19, 2026
LH Group Limited has issued a profit warning, indicating it expects to post a loss of up to HK$18 million for the six months ended 30 June 2026, substantially higher than the HK$0.6 million loss recorded a year earlier. The deterioration in result...
LH Group Schedules Board Meeting to Approve 2026 Interim Results and Consider Dividend
Aug 17, 2026
LH Group Limited has announced that its board of directors will convene on 27 August 2026 to review and approve the interim results for the six months ended 30 June 2026. The board will also consider the declaration of an interim dividend, which c...
LH Group Wins Full Shareholder Backing for AGM Resolutions and Capital Mandates
Jun 10, 2026
Shareholders of LH Group Limited approved all resolutions at the annual general meeting held on 10 June 2026 in Hong Kong, with 614,092,001 shares voted and no restrictions on voting or abstentions required under the Listing Rules. The audited fin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.