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Lesi Group Limited (HK:2540)
:2540
Hong Kong Market
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Lesi Group Limited (2540) AI Stock Analysis

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HK:2540

Lesi Group Limited

(2540)

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Neutral 53 (OpenAI - Gpt-5.6Sol)
Rating:53Neutral
Price Target:
HK$0.76
▼(-3.67% Downside)
Action:Downgraded
Date:06/15/26
The score is held back primarily by weak financial quality—sharp margin compression and especially large negative operating/free cash flow—despite strong revenue growth and a still-manageable balance sheet. Technically, the stock remains in a downtrend with negative momentum signals. A relatively low P/E provides some valuation support but does not fully offset the cash-flow and trend risks.
Positive Factors
Strong Revenue Growth
The sharp acceleration in revenue indicates stronger business activity and market demand. Sustaining this scale of top-line expansion could improve operating leverage over time, provided the company can control costs and preserve adequate margins.
Negative Factors
Deeply Negative Cash Flow
Severely negative operating and free cash flow shows that reported profits are not converting into liquidity. If persistent, this can increase reliance on external funding, constrain investment capacity and raise execution risk even with manageable leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
The sharp acceleration in revenue indicates stronger business activity and market demand. Sustaining this scale of top-line expansion could improve operating leverage over time, provided the company can control costs and preserve adequate margins.
Read all positive factors

Lesi Group Limited (2540) vs. iShares MSCI Hong Kong ETF (EWH)

Lesi Group Limited Business Overview & Revenue Model

Company Description
Operating within the People's Republic of China, Lesi Group Limited specializes as a provider of mobile advertising services. The company offers a comprehensive array of solutions to help clients market their brands, products, and services. These ...

Lesi Group Limited Financial Statement Overview

Summary
Strong 2025 revenue growth (+45.6%) is offset by sharply weaker profitability (gross margin down to 5.4% from 14.9%; net margin down to 2.6% from 10.6%) and very weak cash conversion with deeply negative operating and free cash flow in 2024–2025. Balance sheet leverage is still manageable (debt-to-equity 0.26), but rising debt and declining ROE (6.1% vs 11.8%) add risk.
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
24
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.66B1.55B681.51M628.03M492.57M470.18M
Gross Profit94.22M84.25M101.44M104.00M119.24M112.45M
EBITDA45.67M44.60M75.99M72.81M74.53M64.75M
Net Income38.99M39.68M72.49M65.23M67.29M57.49M
Balance Sheet
Total Assets1.02B1.01B815.66M585.37M564.32M568.63M
Cash, Cash Equivalents and Short-Term Investments60.18M43.58M149.42M76.85M59.20M55.91M
Total Debt149.84M168.18M39.96M58.08M36.03M43.55M
Total Liabilities304.21M364.41M203.65M159.68M158.14M209.54M
Stockholders Equity715.56M649.36M612.02M423.76M360.52M359.08M
Cash Flow
Free Cash Flow-209.25M-300.51M-14.54M103.00K15.47M48.95M
Operating Cash Flow-208.93M-298.17M-14.24M269.00K15.52M49.42M
Investing Cash Flow949.00K-1.34M-290.00K-166.00K-24.00K-155.00K
Financing Cash Flow139.00M187.18M87.33M17.55M-11.21M-13.08M

Lesi Group Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.79
Price Trends
50DMA
0.79
Positive
100DMA
0.87
Negative
200DMA
1.04
Negative
Market Momentum
MACD
<0.01
Negative
RSI
53.24
Neutral
STOCH
73.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2540, the sentiment is Positive. The current price of 0.79 is above the 20-day moving average (MA) of 0.78, above the 50-day MA of 0.79, and below the 200-day MA of 1.04, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.24 is Neutral, neither overbought nor oversold. The STOCH value of 73.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2540.

Lesi Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
59
Neutral
HK$139.05M22.632.61%17.40%175.00%
53
Neutral
HK$483.00M8.835.71%61.99%-27.95%
46
Neutral
HK$234.30M22.42-47.52%23.70%1.67%
44
Neutral
HK$713.19M147.501.73%885.14%
44
Neutral
HK$185.55M-3.55-96.45%-3.60%-77.98%
43
Neutral
HK$435.03M42.4720.19%5.78%221.44%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2540
Lesi Group Limited
0.81
-0.67
-45.61%
HK:0550
Kingkey Intelligence Culture Holdings Limited
0.93
0.80
594.03%
HK:1163
Adtiger Corporations Limited
0.16
0.02
13.87%
HK:1993
Asiaray Media Group Ltd.
0.47
-0.22
-31.88%
HK:0205
SEEC Media Group Limited
0.55
0.26
87.93%
HK:0343
Culturecom Holdings Limited
0.10
-0.06
-36.97%

Lesi Group Limited Corporate Events

Lesi Group Lifts Revenue but Faces Profit Pressure as It Bets on AI-Driven Ad Growth
Aug 28, 2026
Lesi Group Limited reported interim results for the six months ended 30 June 2026 showing revenue rising 16.8% year on year to RMB798.0 million, driven by a 44.7% jump in total gross billing as the company deepened its focus on high-quality custom...
Lesi Group Sets August Board Meeting to Approve Interim Results and Consider Dividend
Aug 18, 2026
Lesi Group Limited has scheduled a board meeting for 28 August 2026 to review and approve the group&#8217;s interim results for the six months ended 30 June 2026. The board will also consider whether to recommend an interim dividend and handle oth...
Lesi Group Raises Capital Through HK$70 Million Share Placing
Jun 4, 2026
Lesi Group Limited has completed a placing of 100,000,000 new shares under its general mandate, representing 20% of its issued share capital before the deal and about 16.7% after enlargement. The shares were placed at HK$0.70 each to at least six ...
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.Date of analysis: Jun 15, 2026