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Loto Interactive Limited
(8198)
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Rating:42Neutral
Price Target:
HK$1.00
▼(-60.78% Downside)
Action:Reiterated
Date:09/06/26
The score is primarily held down by weak financial fundamentals—severe margin compression, very large losses, and continued cash burn—despite improved revenue growth and modest leverage. Technicals add pressure with the stock trading below all key moving averages and negative MACD. Valuation is difficult to support due to a negative P/E and no dividend yield data.
Positive Factors
TTM revenue rebound
The TTM revenue rebound shows the company can still generate top-line growth despite recent operating pressure. If sustained, expanding revenue can improve scale, support investment in the business, and provide a foundation for eventual margin recovery over the coming quarters.
Negative Factors
Severe margin compression
The sharp gross-margin decline indicates that revenue growth is currently producing little economic value and that the cost structure is under significant pressure. Unless margins recover, additional sales may not translate into durable earnings, limiting operating leverage and reinvestment capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
TTM revenue rebound
The TTM revenue rebound shows the company can still generate top-line growth despite recent operating pressure. If sustained, expanding revenue can improve scale, support investment in the business, and provide a foundation for eventual margin recovery over the coming quarters.
Read all positive factors
Loto Interactive Limited (8198) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$909.71M
Dividend YieldN/A
Average Volume (3M)219.36K
Price to Earnings (P/E)―
Beta (1Y)0.53
Revenue Growth-20.80%
EPS Growth-121.68%
CountryHK
Employees45
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-0.23
Shares Outstanding784,229,250
10 Day Avg. Volume256,476
30 Day Avg. Volume219,358
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)9.67
Price to Sales (P/S)36.33
P/FCF Ratio-40.21
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
Loto Interactive Limited Business Overview & Revenue Model
Company Description
Operating as an investment holding company, Loto Interactive Limited delivers big data center solutions across China, Hong Kong, and Kazakhstan. Its business is structured into three main divisions: Big Data Centre Services within the People's Rep...
How the Company Makes Money
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Loto Interactive Limited Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
54
Neutral
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 63.85M | 47.24M | 58.11M | 25.19M | 29.55M | 8.65M |
| Gross Profit | 3.16M | 3.07M | 11.56M | 15.75M | 11.53M | 3.93M |
| EBITDA | -126.68M | -77.56M | -504.00K | -18.43M | -3.72M | -19.56M |
| Net Income | -165.64M | -89.23M | -13.05M | -30.55M | -56.89M | -286.69M |
Balance Sheet | ||||||
| Total Assets | 162.98M | 205.76M | 69.42M | 70.14M | 109.72M | 165.52M |
| Cash, Cash Equivalents and Short-Term Investments | 16.88M | 84.95M | 2.09M | 3.25M | 9.52M | 35.84M |
| Total Debt | 7.86M | 7.25M | 10.15M | 5.69M | 3.39M | 8.61M |
| Total Liabilities | 26.99M | 28.36M | 32.59M | 20.26M | 32.76M | 28.52M |
| Stockholders Equity | 135.99M | 177.40M | 36.83M | 49.88M | 77.19M | 137.23M |
Cash Flow | ||||||
| Free Cash Flow | -76.60M | -42.67M | -7.89M | -37.28M | 4.25M | -24.04M |
| Operating Cash Flow | -73.14M | -37.68M | -6.26M | -16.77M | 4.32M | -2.72M |
| Investing Cash Flow | -125.58M | -61.88M | 12.57M | -9.46M | 1.09M | -102.06M |
| Financing Cash Flow | 218.43M | 178.83M | -7.47M | -4.85M | -5.67M | 95.85M |
Loto Interactive Limited Technical Analysis
Neutral
2.55
Price Trends
1.41
Negative
1.38
Negative
1.81
Negative
Market Momentum
-0.06
Negative
44.47
Neutral
27.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8198, the sentiment is Neutral. The current price of 2.55 is above the 20-day moving average (MA) of 1.19, above the 50-day MA of 1.41, and above the 200-day MA of 1.81, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 44.47 is Neutral, neither overbought nor oversold. The STOCH value of 27.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:8198.
Loto Interactive Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
48 Neutral | HK$1.40B | 50.88 | 4.47% | ― | 74.82% | 57.99% | |
46 Neutral | HK$189.13M | -14.28 | -15.72% | ― | 160.21% | 58.42% | |
45 Neutral | HK$920.00M | 108.72 | 2.49% | ― | 11.85% | 1128.57% | |
44 Neutral | HK$1.21B | -15.15 | -42.58% | 1.60% | -20.17% | 2.68% | |
42 Neutral | HK$909.71M | -5.12 | -105.71% | ― | -20.80% | -121.68% |
* Technology Sector Average
HK:8198
Loto Interactive Limited
1.19
-2.45
-67.31%
HK:1204
BoardWare Intelligence Technology Limited
1.84
0.39
26.90%
HK:0465
Futong Technology Development Holdings Ltd.
3.90
3.56
1045.59%
HK:8645
Michong Metaverse (China) Holdings Group Limited
0.24
-0.29
-54.34%
HK:2512
Cloud Factory Technology Holdings Limited
2.77
-0.94
-25.34%
HK:2605
MetaLight Inc.
1.12
-3.65
-76.52%
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.