Luk Hing Entertainment Group Holdings Limited (8052) AI Stock Analysis

• Market Cap: HK$40.02M
• Dividend Yield: N/A
• Average Volume (3M): 779.80K
• Price to Earnings (P/E): 48.7
• Beta (1Y): 0.35
• Revenue Growth: 22.45%
• EPS Growth: -94.85%
• Country: HK
• Employees: 87
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): N/A
• Shares Outstanding: 548,256,000
• 10 Day Avg. Volume: 9,200
• 30 Day Avg. Volume: 779,800
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The stock's overall score is primarily influenced by strong technical momentum, despite significant financial challenges. The company's financial instability, with negative profitability and equity, is a major concern, but the upward price trend provides some optimism. Valuation remains a challenge due to negative earnings.

Luk Hing Entertainment Group Holdings Limited Business Overview & Revenue Model

Company Description

Luk Hing Entertainment Group Holdings Limited (8052) is a company that primarily engages in the operation and management of entertainment and leisure venues. The company is known for its involvement in the nightlife industry, particularly through its portfolio of high-end bars, clubs, and lounges. These venues are strategically located in vibrant urban areas, attracting a diverse clientele seeking premium entertainment experiences.

How the Company Makes Money

Luk Hing Entertainment Group Holdings Limited generates revenue through multiple streams primarily centered around its entertainment venues. A significant portion of its income is derived from the sale of beverages, including alcoholic drinks, at its bars and clubs. Additionally, the company earns through cover charges or entrance fees at its venues, which are often charged during special events or peak times. The company also benefits from hosting private events, corporate gatherings, and themed parties, which provide lucrative opportunities for venue rentals and customized service offerings. Furthermore, Luk Hing collaborates with well-known DJs, artists, and entertainment brands to draw larger crowds, thereby enhancing its revenue potential. Strategic partnerships and marketing initiatives also play a crucial role in maintaining high foot traffic and attracting premium clientele, directly impacting the company's earnings.

Luk Hing Entertainment Group Holdings Limited Financial Statement Overview

Summary

The company shows strong revenue growth and improved cash flow, but faces significant financial challenges with negative profitability and equity, indicating potential solvency issues.

Income Statement

The company has shown a positive revenue growth rate from 2023 to 2024, with revenue increasing from HKD 95.75 million to HKD 123.29 million, indicating a growth rate of approximately 28.8%. However, profitability metrics are concerning, with negative net income for the latest period. The gross profit margin is strong at 70.3%, but the net profit margin is negative due to significant operating losses. The negative EBIT and EBITDA margins suggest challenges in operational efficiency.

Balance Sheet

The balance sheet reflects financial instability with negative stockholders' equity of HKD -16.27 million, indicating potential solvency issues. The debt-to-equity ratio is not applicable due to negative equity, and the equity ratio is also negative, highlighting reliance on debt financing. These factors suggest financial risk and potential difficulty in meeting long-term obligations.

Cash Flow

Cash flow from operations improved significantly to HKD 16.76 million in 2024 from a negative position in 2023, indicating a positive turnaround in cash generation. The free cash flow is robust at HKD 16.46 million, suggesting improved cash management. However, the free cash flow to net income ratio is skewed due to negative net income, which limits an accurate assessment of cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	113.86M	123.29M	95.75M	58.59M	160.41M	158.37M
Gross Profit	54.11M	86.69M	61.49M	31.31M	106.64M	101.60M
EBITDA	-1.23M	3.05M	33.20M	-17.34M	-40.11M	11.11M
Net Income	15.97M	-9.37M	14.90M	-37.41M	-81.53M	-38.34M
Balance Sheet
Total Assets	33.20M	25.55M	22.95M	41.60M	111.48M	225.42M
Cash, Cash Equivalents and Short-Term Investments	2.43M	3.97M	846.00K	626.00K	2.03M	11.85M
Total Debt	39.84M	24.15M	23.92M	42.71M	85.36M	135.01M
Total Liabilities	58.72M	58.08M	44.99M	149.32M	172.15M	221.21M
Stockholders Equity	-10.31M	-16.27M	-7.58M	-71.60M	-38.77M	16.46M
Cash Flow
Free Cash Flow	-4.22M	16.46M	-6.08M	-1.18M	5.28M	6.37M
Operating Cash Flow	-4.22M	16.76M	-4.96M	-42.00K	9.18M	21.36M
Investing Cash Flow	-1.23M	6.71M	-1.22M	-2.50M	-5.97M	-22.88M
Financing Cash Flow	4.22M	-20.35M	4.04M	1.12M	-10.73M	-11.91M

Luk Hing Entertainment Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8052, the sentiment is Neutral. The current price of 0.07 is below the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.07, and above the 200-day MA of 0.05, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.41 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:8052.

Luk Hing Entertainment Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1655	67 Neutral	94.80M	―	0.00%	―	0.00%	0.00%
8400	63 Neutral	44.00M	10.00	18.71%	―	28.47%	-4.35%
8052	56 Neutral	HK$40.02M	48.67		―	22.45%	-94.85%
0070	47 Neutral	133.78M	-1.47	0.00%	―	12.77%	-223.45%
8308	44 Neutral	95.61M	-1.42	-29.12%	―	-0.31%	34.83%
0959	20 Underperform	92.34M	-2.02	0.00%	―	0.00%	-88.93%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%