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LH Group Limited (1978) AI Stock Analysis
LH Group Limited
(HKEX:1978)
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.
LH Group Limited (1978) vs. iShares MSCI Hong Kong ETF (EWH)
- Market Cap
- HKD 152.00M
- Dividend Yield
- ―
- Average Volume (3M)
- 190.41K
- Price to Earnings (P/E)
- -10.1
- Beta (1Y)
- 0.24
- Revenue Growth
- -2.46%
- EPS Growth
- -145.45%
- Country
- Hong Kong
- Employees
- 1,605
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Restaurants
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 ac...
LH Group Limited Financial Statement Overview
Summary
Cash flow is strong and improving (operating cash flow and free cash flow both up meaningfully in 2025), but profitability is very weak and volatile. Gross margin fell sharply and net margin is near breakeven in 2025, while leverage is elevated (debt-to-equity above 1) and ROE is under 1%.
Income Statement
52NeutralBalance Sheet
45NeutralCash Flow
72Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.05B | 1.08B | 1.06B | 1.28B | 1.06B | 997.92M |
| Gross Profit | 283.14M | 358.80M | 331.74M | 505.16M | 293.92M | 391.29M |
| EBITDA | 155.16M | 179.85M | 153.42M | 269.26M | 239.46M | 238.62M |
| Net Income | -15.08M | 1.70M | -32.06M | 88.06M | 77.70M | 90.08M |
Balance Sheet | ||||||
| Total Assets | 716.03M | 696.64M | 786.01M | 759.65M | 846.59M | 783.86M |
| Cash, Cash Equivalents and Short-Term Investments | 114.20M | 140.02M | 144.81M | 252.72M | 341.91M | 325.36M |
| Total Debt | 313.24M | 268.39M | 324.48M | 255.18M | 223.66M | 179.29M |
| Total Liabilities | 499.04M | 462.08M | 553.14M | 462.24M | 437.09M | 403.66M |
| Stockholders Equity | 217.11M | 234.56M | 232.87M | 297.41M | 409.50M | 380.20M |
Cash Flow | ||||||
| Free Cash Flow | 147.88M | 137.29M | 54.68M | 231.97M | 170.47M | 208.94M |
| Operating Cash Flow | 177.87M | 171.71M | 120.56M | 252.02M | 207.44M | 251.71M |
| Investing Cash Flow | -35.46M | -35.09M | 43.01M | 29.03M | -96.51M | 34.20M |
| Financing Cash Flow | -128.47M | -141.41M | -166.41M | -329.85M | -156.41M | -223.12M |
LH Group Limited Technical Analysis
Price Trends
Market Momentum
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 0.19 is below the 20-day moving average (MA) of 0.20, below the 50-day MA of 0.21, and below the 200-day MA of 0.29, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 32.27 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 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
Overall Rating
HK:057353Neutral
HK:131451Neutral- HK:197849Neutral
HK:118146Neutral
HK:052037Underperform
HK:809637Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| HK:0573 | 53Neutral | HKD 284.02M | -5.86 | -4.47% | ― | 3.29% | 48.16% |
| HK:1314 | 51Neutral | HKD 223.33M | 23.14 | 1.95% | ― | -2.56% | -23.91% |
| HK:1978 | 49Neutral | HKD 152.00M | -10.05 | -6.68% | ― | -2.46% | -145.45% |
| HK:1181 | 46Neutral | HKD 100.07M | -1.78 | -38.69% | 10.75% | -8.13% | -21.92% |
| HK:0520 | 37Underperform | HKD 213.15M | -0.71 | -55.81% | ― | -19.88% | -20.64% |
| HK:8096 | 37Underperform | HKD 51.98M | -1.96 | -102.38% | ― | 1.93% | -27.49% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HK:1978 | LH Group Limited | 0.19 | -0.19 | -50.00% | |
| HK:0573 | Tao Heung Holdings Limited | 0.28 | -0.06 | -17.65% | |
| HK:1181 | Tang Palace (China) Holdings Limited | 0.09 | -0.12 | -55.71% | |
| HK:1314 | Tsui Wah Holdings Ltd. | 0.16 | -0.02 | -10.50% | |
| HK:0520 | Xiabuxiabu Catering Management (China) Holdings Co., Ltd. | 0.20 | -0.80 | -80.30% | |
| HK:8096 | Tasty Concepts Holding Limited | 0.11 | -0.01 | -12.20% |
LH Group Limited Corporate Events
LH Group Posts Wider Interim Loss as Revenue Declines
LH Group Limited reported a decline in revenue to HK$506.5 million for the six months ended 30 June 2026, down from HK$540.5 million a year earlier, as well as a wider loss attributable to shareholders of HK$17.4 million compared with HK$0.6 million...
LH Group warns of wider interim loss amid restaurant restructuring and weak demand
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 results r...
LH Group Schedules Board Meeting to Approve 2026 Interim Results and Consider Dividend
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 coul...
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.
Date of analysis: Aug 21, 2026