| Valuation method | Value, HK$ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 26.21 | 60853 |
| Intrinsic value (DCF) | 0.05 | 16 |
| Graham-Dodd Method | 0.53 | 1135 |
| Graham Formula | 0.16 | 263 |
LET Group Holdings Limited is a diversified real estate and integrated resort developer with a complex international footprint across Asia and Eastern Europe. Formerly known as Suncity Group Holdings, the company rebranded in 2022 and operates through multiple business segments including property investment, development, and management across China, Russia, Macau, Japan, Cambodia, Vietnam, the Philippines, and Turkey. The company's core strategy involves developing integrated resorts with gaming components, notably at Entertainment City in the Philippines and the IEZ Primorye in Russia. Additionally, LET Group engages in travel-related services, aircraft chartering, and mall operations in China. Headquartered in Shenzhen but listed on the Hong Kong Stock Exchange, the company represents a unique play on Asian leisure and entertainment real estate, though its diversified geographic exposure creates both opportunity and significant operational complexity. The company's subsidiary structure under Fame Select Limited adds another layer to its corporate governance profile.
LET Group presents a high-risk, speculative investment proposition characterized by substantial operational complexity and financial strain. While the company reported net income of HKD 54.7 million on revenue of HKD 414.5 million, concerning indicators include negative operating cash flow of HKD -109.7 million, significant capital expenditures of HKD -618 million, and high total debt of HKD 2.52 billion against cash reserves of HKD 905 million. The company's beta of 1.44 indicates high volatility relative to the market, and the absence of dividends suggests capital retention for ongoing projects. The geographic diversification across emerging markets and regulated gaming jurisdictions introduces political, regulatory, and currency risks. Investment attractiveness is limited to investors with high risk tolerance and conviction in the company's ability to successfully execute its integrated resort development strategy amid challenging financial conditions.
LET Group's competitive positioning is highly fragmented across multiple business segments and geographies, lacking a clear dominant market position in any single operation. The company's attempt to compete in integrated resort development places it against well-capitalized competitors with stronger balance sheets and established operational expertise. Its property development activities in China face intense competition from larger, more focused domestic developers with greater scale and local market knowledge. The travel and charter services segment operates in a highly competitive market with low barriers to entry. The company's primary competitive challenges include its relatively small market capitalization (HKD 298 million), negative cash flow, and high debt burden, which limit its ability to invest competitively in new projects or weather industry downturns. The 2022 rebranding from Suncity Group suggests an attempt to distance itself from previous associations, but this may not sufficiently address underlying operational and financial challenges. The company's subsidiary structure and diverse geographic footprint create management complexity that may hinder focused competitive execution in any single market.