Loco Hong Kong Holdings Ltd (8162) AI Stock Analysis

Loco Hong Kong Holdings Ltd

(HKEX:8162)

Select Model

Rating:69Neutral

Price Target:HKD 0.62▲(9.47% Upside)

Action:downgraded

Date:08/19/26

The score is driven mainly by financial quality: a low-debt balance sheet and improved profitability/revenue growth are positives, but they are materially offset by very thin margins and a large negative swing in TTM operating/free cash flow. Technicals are supportive with price above major moving averages and positive MACD, and valuation is attractive on a low P/E, helping lift the overall score.

Positive Factors

Revenue GrowthStrong TTM revenue growth indicates improving commercial momentum and expanding activity in the distribution business. If sustained, the larger revenue base can support operating scale and reinforce the recent earnings recovery, although the benefit depends on preserving profitability.

Negative Factors

Very Thin MarginsExtremely narrow gross and net margins leave little room for pricing pressure, cost increases, or weaker demand before earnings are materially affected. This makes profitability fragile and limits the amount of revenue growth that can translate into durable bottom-line cash generation.

Loco Hong Kong Holdings Ltd (8162) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 567.31M
Dividend Yield: ―
Average Volume (3M): 8.05M
Price to Earnings (P/E): 5.4
Beta (1Y): 0.24
Revenue Growth: 18.31%
EPS Growth: 37.80%
Country: Hong Kong
Employees: 23
Sector: Industrials
Sector Strength: 63
Industry: Industrial - Distribution

Loco Hong Kong Holdings Ltd Business Overview & Revenue Model

Company Description

Loco Hong Kong Holdings Limited operates as an investment holding company, with its main business involving the trading of forward contracts for various metals and commodities within Hong Kong and mainland China. The company's operations are structur...

Loco Hong Kong Holdings Ltd Financial Statement Overview

Summary

Income statement shows a meaningful turnaround with ~21% TTM revenue growth and positive net income, supported by a very conservative balance sheet (low debt, ~0.01 debt-to-equity). However, margins are extremely thin (gross ~0.55%, net ~0.35%) and TTM operating/free cash flow is deeply negative (~-313.3M), indicating weak cash conversion and higher near-term execution risk.

Income Statement

66Positive

Balance Sheet

84Very Positive

Cash Flow

38Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	29.93B	19.84B	15.15B	10.74B	48.40M	13.97M
Gross Profit	164.35M	100.67M	82.79M	53.84M	1.17M	-13.97M
EBITDA	144.94M	95.38M	52.94M	30.96M	-19.07M	-27.04M
Net Income	104.44M	64.91M	32.15M	17.38M	-22.07M	-29.16M
Balance Sheet
Total Assets	799.06M	775.15M	966.43M	387.98M	48.65M	55.01M
Cash, Cash Equivalents and Short-Term Investments	123.52M	425.03M	21.26M	16.33M	4.18M	20.88M
Total Debt	1.53M	2.66M	30.93M	28.91M	18.69M	5.26M
Total Liabilities	556.34M	557.57M	896.05M	347.98M	25.37M	7.29M
Stockholders Equity	242.73M	217.58M	70.38M	39.96M	23.28M	46.72M
Cash Flow
Free Cash Flow	-313.27M	352.86M	5.43M	1.19M	-27.77M	-31.89M
Operating Cash Flow	-313.27M	352.90M	5.43M	1.25M	-27.77M	-30.71M
Investing Cash Flow	4.64M	-359.62M	69.00K	4.28M	1.06M	-2.25M
Financing Cash Flow	-7.81M	50.23M	-648.00K	6.37M	9.78M	24.86M

Loco Hong Kong Holdings Ltd Technical Analysis

Technical Analysis SentimentNegative

Last Price0.57

Price Trends

50DMA0.59Negative

100DMA0.61Negative

200DMA0.56Positive

Market Momentum

MACD-0.00Negative

RSI41.70Neutral

STOCH41.03Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8162, the sentiment is Negative. The current price of 0.57 is below the 20-day moving average (MA) of 0.58, below the 50-day MA of 0.59, and above the 200-day MA of 0.56, indicating a neutral trend. The MACD of -0.00 indicates Negative momentum. The RSI at 41.70 is Neutral, neither overbought nor oversold. The STOCH value of 41.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8162.

Loco Hong Kong Holdings Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

HK:8162 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:8162	69Neutral	HKD 567.31M	5.43	45.38%	―	18.31%	37.80%
HK:8149	67Neutral	HKD 107.11M	11.74	2.48%	1.41%	5.87%	―
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HK:1063	57Neutral	HKD 70.46M	2.89	10.30%	―	24.22%	64.66%
HK:0426	47Neutral	HKD 58.53M	-2.03	31.80%	―	-16.14%	-11.16%
HK:8227	45Neutral	HKD 468.71M	-43.55	15.38%	―	―	―
HK:1222	39Underperform	HKD 224.62M	-0.33	-21.05%	―	-3.98%	12.75%

* Industrials Sector Average

Performance Comparison

HK:8162 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:8162	Loco Hong Kong Holdings Ltd	0.57	-0.01	-1.72%
HK:1063	Suncorp Technologies	0.23	-0.35	-60.17%
HK:8227	Xi'an Haitiantian Holdings Co Class H	0.25	0.13	105.83%
HK:1222	Wang On Group Limited	0.02	-0.01	-29.63%
HK:0426	One Media Group Limited	0.15	0.08	121.21%
HK:8149	Altus Holdings Limited	0.13	0.03	24.27%

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: Aug 19, 2026

Loco Hong Kong Holdings Ltd AI Stock Analysis