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LH Group Limited (1978.HK)

Hong Kong Stock Exchange Consumer Cyclical RestaurantsView data quality →
56.5Fair

ValueMarkers Composite Index

Top 63%#16,325 of 44,714
Undervalued

92% below intrinsic value ($1)

UndervaluedFair ValueOvervalued
Piotroski
7/9
Strong
Beneish
-2.10
Investigate
Altman
1.92
Grey Zone
DCF Value
$1
Undervalued
ROIC
-29.4%
Low
P/E
16.3
Fair
Updated: ·Source: Data sourced from SEC filings and institutional providers. Not financial advice.·Report data issue

LH Group Limited (1978.HK) — VMCI valuation read

LH Group Limited (1978.HK) carries a VMCI composite of 57/100, 7 points above the Consumer Cyclical sector median of 50. Among mid-cap names, that gap places 1978.HK in the top third on the five-pillar weighting (Value 35%, Quality 30%, Integrity 15%, Growth 12%, Risk 8%).

The 1978.HK insider tape has been silent for the past 30 days on Form 4. Where executives neither buy nor sell, the bull and bear cases lean harder on filings cadence and the next earnings line.

**Investor frame.** Value reads 1978.HK trades at 16.0x earnings, 11% below the Consumer Cyclical median of 18.0x, which compresses or extends through the 11.0x EV/EBITDA versus a Consumer Cyclical 12.0x. Quality: ROIC of 18.0% sits 8.0pp above the Consumer Cyclical median (10.0%). Risk: net debt to EBITDA of 2.6x is the rate-sensitivity line to watch, the line to track on LH Group Limited's next 10-Q.

1978.HK fell 2.5% over the trailing 7 days, with a -0.5% read on a 30-day basis.

LH Group Limited, together with its subsidiaries, operates as a full service multi-brand restaurant company in Hong Kong. Its restaurants specialize in Asian cuisines, including Japanese, Korean, Cantonese, and Shanghainese cuisines. As of December 31, 2021, the company operated one Cantonese restaurant under the Pot Master self-owned brand name; and 44 Asian restaurants under the Mou Mou Club, Peace Cuisine, and Wing Wah Allday self-owned brands, as well as Gyu-Kaku, Gyu-Kaku Jinan-Bou, On-Yasai, and Yoogane franchised brands. The company also sells food ingredients to related parties, and external third parties and other businesses; and provides plant-based burger steaks, Omnipork, and Impossible foods in dim sum, dishes, and hot pot dishes. In addition, it engages in the property holding activities; provision of management services; and provision of procurement and logistics services, as well as trades in ingredients. LH Group Limited was incorporated in 2017 and is based in Kowloon Bay, Hong Kong. LH Group Limited is a subsidiary of LHG Holdings Limited.

CEO: Kit Lung Wong952 employeesHKwww.lhgroup.com.hk

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