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Lesi Group Limited (2540) AI Stock Analysis

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HK:2540

Lesi Group Limited

(HKEX:2540)

Select Model
Rating:58Neutral
Price Target:HKD 0.83â–²(13.20% Upside)
Action:reiterated
Date:09/15/26

The score is held back mainly by weak financial quality—sharp margin compression and deeply negative operating/free cash flow—despite strong revenue growth and a still-manageable balance sheet. Technicals are neutral with only modest near-term improvement, while the relatively low P/E provides some valuation support.

Positive Factors
Strong Revenue GrowthAccelerating revenue growth indicates stronger market activity and expanding top-line scale. If the company can retain customers and improve conversion of sales into profit, this enlarged revenue base could support operating leverage and more durable earnings growth over the next several quarters.
Negative Factors
Deeply Negative Cash FlowDeeply negative operating and free cash flow show that reported earnings are not currently converting into cash. Persistent weak conversion can increase reliance on external funding, restrict investment flexibility, and raise execution risk if revenue growth continues without better working-capital and cost discipline.

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

-60%-50%-40%-30%-20%-10%0%10%20%HK:2540-51.96%EWH+7.37%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 367.50M
Dividend Yield
―
Average Volume (3M)
75.97K
Price to Earnings (P/E)
8.0
Beta (1Y)
-0.04
Revenue Growth
61.99%
EPS Growth
-27.95%
Country
Hong Kong
Employees
281
Sector
Communication Services
Sector Strength
60
Industry
Advertising Agencies

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 ser...

Lesi Group Limited Financial Statement Overview

Summary

Strong 2025 revenue growth (+45.6%) is outweighed by a sharp deterioration in quality: gross and net margins compressed materially and operating/free cash flow were deeply negative in 2024–2025, reducing financial flexibility despite a still-manageable balance sheet.

Income Statement

62Positive

Balance Sheet

78Positive

Cash Flow

24Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.66B1.55B681.51M628.03M492.57M470.18M
Gross Profit94.22M84.25M101.44M104.00M103.05M93.69M
EBITDA51.03M51.24M78.63M72.81M77.56M64.75M
Net Income38.99M39.68M72.49M65.23M67.29M57.49M
Balance Sheet
Total Assets1.02B1.01B815.66M585.37M502.63M464.84M
Cash, Cash Equivalents and Short-Term Investments60.18M43.58M149.42M76.85M59.20M55.91M
Total Debt149.84M168.18M39.96M58.08M36.03M43.55M
Total Liabilities304.21M364.41M203.65M159.68M140.85M171.30M
Stockholders Equity715.56M649.36M612.02M423.76M360.52M359.08M
Cash Flow
Free Cash Flow-257.31M-300.51M-14.54M103.00K15.47M48.95M
Operating Cash Flow-256.87M-298.17M-14.24M269.00K14.52M43.24M
Investing Cash Flow992.00K-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 SentimentNegative
Last Price0.73

Price Trends

50DMA0.79Negative
100DMA0.80Negative
200DMA0.94Negative

Market Momentum

MACD-0.01Positive
RSI27.50Positive
STOCH-0.63Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2540, the sentiment is Negative. The current price of 0.73 is below the 20-day moving average (MA) of 0.79, below the 50-day MA of 0.79, and below the 200-day MA of 0.94, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 27.50 is Positive, neither overbought nor oversold. The STOCH value of -0.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2540.

Lesi Group Limited Peers Comparison

Overall Rating

UnderperformOutperform
Sector (60)

Financial Indicators

HK:2540 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:1163HK:116371OutperformHKD 151.53M24.402.61%―17.40%175.00%
Sector *60Neutral$48.67B4.58-11.27%4.14%2.83%-41.78%
HK:2540HK:254058NeutralHKD 441.00M7.985.71%―61.99%-27.95%
HK:0343HK:034352NeutralHKD 249.71M-4.82-96.45%―-3.60%-77.98%
HK:1993HK:199349NeutralHKD 205.61M19.51-47.52%―1.67%―
HK:0550HK:055045NeutralHKD 113.88M11.4120.19%―221.44%―
HK:0205HK:020544NeutralHKD 500.49M100.001.73%―885.14%―

* Communication Services Sector Average

Performance Comparison

0%250%500%750%1000%HK:2540HK:0550HK:1163HK:1993HK:0205HK:0343Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:2540 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:2540Lesi Group Limited0.73-0.71-49.31%
HK:0550Kingkey Intelligence Culture Holdings Limited0.250.1286.57%
HK:1163Adtiger Corporations Limited0.170.0325.00%
HK:1993Asiaray Media Group Ltd.0.43-0.27-38.57%
HK:0205SEEC Media Group Limited0.400.0825.00%
HK:0343Culturecom Holdings Limited0.14-0.09-37.66%

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 customers...

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’s interim results for the six months ended 30 June 2026. The board will also consider whether to recommend an interim dividend and handle other...

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: Sep 15, 2026