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LFG Investment Holdings Limited
(3938)
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Rating:55Neutral
Price Target:
HK$3.00
▲(102.70% Upside)
Action:Reiterated
Date:08/07/26
The score is primarily supported by improved 2026 operating results and a relatively conservative balance sheet, but is held back by weak technical momentum (below key moving averages with negative MACD and very low RSI/Stoch) and an expensive valuation (P/E ~181.7) alongside historically volatile earnings and cash flow.
Positive Factors
Conservative balance sheet / low leverage
A persistently low debt-to-equity ratio provides structural financial resilience, giving the company capacity to absorb shocks, access credit on reasonable terms, and avoid distressed capital raises. This supports durable operational continuity and strategic optionality over 2–6 months.
Negative Factors
High earnings volatility and inconsistent profitability
Recurrent swings between large losses and profits reduce predictability of future earnings and undermine confidence in sustainable operating performance. This makes planning, capital allocation, and reliable cash-flow forecasting difficult for management and long-term investors.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / low leverage
A persistently low debt-to-equity ratio provides structural financial resilience, giving the company capacity to absorb shocks, access credit on reasonable terms, and avoid distressed capital raises. This supports durable operational continuity and strategic optionality over 2–6 months.
Read all positive factors
LFG Investment Holdings Limited (3938) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$1.49B
Dividend Yield14.2%
Average Volume (3M)109.06K
Price to Earnings (P/E)173.7
Beta (1Y)0.52
Revenue Growth78.73%
EPS GrowthN/A
CountryHK
Employees44
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.02
Shares Outstanding490,470,400
10 Day Avg. Volume13,200
30 Day Avg. Volume109,058
Financial Highlights & Ratios
PEG Ratio-1.64
Price to Book (P/B)11.36
Price to Sales (P/S)23.61
P/FCF Ratio143.51
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
LFG Investment Holdings Limited Business Overview & Revenue Model
Company Description
LFG Investment Holdings Limited, an investment holding company, operates as a financial services provider primarily in Hong Kong. The company offers corporate finance advisory services, including IPO sponsorship, financial and independent financia...
How the Company Makes Money
null...
LFG Investment Holdings Limited Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
72
Positive
Cash Flow
61
Positive
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 67.37M | 25.17M | 94.17M | 42.83M | 78.14M |
| Gross Profit | 56.76M | -9.10M | 40.20M | 42.83M | 29.85M |
| EBITDA | 14.82M | -28.37M | 4.98M | -11.54M | 6.44M |
| Net Income | 8.06M | -35.00M | -3.99M | -22.68M | -3.29M |
Balance Sheet | |||||
| Total Assets | 419.37M | 254.05M | 231.37M | 261.58M | 314.02M |
| Cash, Cash Equivalents and Short-Term Investments | 123.34M | 73.05M | 81.14M | 61.20M | 127.60M |
| Total Debt | 18.51M | 8.65M | 26.03M | 31.31M | 41.64M |
| Total Liabilities | 279.34M | 155.63M | 97.61M | 113.45M | 143.50M |
| Stockholders Equity | 140.03M | 98.42M | 132.94M | 147.08M | 169.36M |
Cash Flow | |||||
| Free Cash Flow | 11.09M | 31.97M | 40.98M | -12.57M | -7.44M |
| Operating Cash Flow | 12.68M | 33.14M | 42.33M | -12.57M | -7.10M |
| Investing Cash Flow | -1.59M | -2.59M | -1.35M | 0.00 | -3.73M |
| Financing Cash Flow | 24.97M | -27.41M | -20.75M | -13.42M | 19.76M |
LFG Investment Holdings Limited Technical Analysis
Negative
1.48
Price Trends
3.25
Negative
3.43
Negative
3.02
Positive
Market Momentum
-0.04
Negative
39.31
Neutral
16.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3938, the sentiment is Negative. The current price of 1.48 is below the 20-day moving average (MA) of 3.08, below the 50-day MA of 3.25, and below the 200-day MA of 3.02, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 39.31 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3938.
LFG Investment Holdings Limited Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | HK$2.35B | 44.04 | 0.80% | 2.63% | -30.15% | 1.41% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | HK$1.77B | 19.70 | 3.13% | 3.03% | -6.66% | 29.34% | |
59 Neutral | HK$2.19B | 18.42 | 1.56% | 4.70% | 16.75% | ― | |
55 Neutral | HK$1.49B | 173.71 | 5.89% | 14.20% | 78.73% | ― | |
52 Neutral | HK$718.51M | 4.08 | 10.19% | 3.96% | 21.19% | 94.57% | |
49 Neutral | HK$1.44B | 11.83 | 4.36% | 4.04% | 200.24% | ― |
* Financial Sector Average
HK:3938
LFG Investment Holdings Limited
3.04
2.37
353.73%
HK:1911
China Renaissance Holdings
3.82
-3.85
-50.20%
HK:0335
Upbest Group Limited
0.66
0.03
4.76%
HK:1141
CMBC Capital Holdings Limited
0.66
-0.31
-32.47%
HK:0218
Shenwan Hongyuan (H.K.) Limited
0.92
-0.96
-51.06%
HK:0064
Get Nice Holdings Limited
3.81
1.05
37.86%
LFG Investment Holdings Limited Corporate Events
LFG Investment Holdings Faces Further Delay in Mandatory Cash Offer Completion
Jul 30, 2026
Fortune Origin International Capital (Holdings) Limited has announced a possible mandatory unconditional cash offer to acquire all issued shares of LFG Investment Holdings Limited not already owned by the offeror and its concert parties, alongside...
LFG Sets August AGM to Approve Results, Board and Share Issuance Mandate
Jul 15, 2026
LFG Investment Holdings Limited has called its annual general meeting for 25 August 2026 in Hong Kong, where shareholders will be asked to adopt the audited financial statements for the year ended 31 March 2026 and approve the related directors...
LFG Extends Deadline for Share Purchase Deal Amid Regulatory Delays
Jun 30, 2026
LFG Investment Holdings Limited and Fortune Origin International Capital (Holdings) Limited have announced an extension of the long stop date for their share purchase agreement, pushing the deadline from 30 June 2026 to 31 July 2026. The extension...
LFG Swings Back to Profit as Revenue Surges and Balance Sheet Strengthens
Jun 28, 2026
LFG Investment Holdings Limited reported a sharp rebound in performance for the year ended 31 March 2026, with total revenue more than tripling to HK$79.7 million, driven mainly by growth in corporate finance advisory and securities and underwriti...
LFG Appoints Independent Financial Adviser for Share Offers Review
Jun 17, 2026
LFG Investment Holdings Limited has appointed Vinco Financial Limited as independent financial adviser to its independent board committee, independent shareholders and optionholders in connection with the proposed share offers referenced in a prev...
LFG Investment Sets June Board Meeting to Approve Annual Results and Consider Dividend
Jun 15, 2026
LFG Investment Holdings Limited has scheduled a board meeting for 26 June 2026 to review and approve the annual results of the company and its subsidiaries for the financial year ended 31 March 2026. The board will also consider the declaration of...
LFG warns of uncertainty as regulatory approval delays proposed takeover offers
Jun 15, 2026
LFG Investment Holdings Limited and Fortune Origin International Capital (Holdings) Limited issued an update on the proposed mandatory unconditional cash offers for all issued shares and the cancellation of all outstanding options of LFG not alrea...
LFG Updates Market on Conditional Takeover Offer and Regulatory Delays
May 15, 2026
LFG Investment Holdings Limited and Fortune Origin International Capital (Holdings) Limited issued a joint update on the progress of a possible mandatory unconditional cash offer for all issued shares in LFG, excluding those already held by the of...
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.