LH Group (HKSE:01978) OCF Margin %: 22.38% (As of Dec. 2025) — 27% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

HKSE:01978 LH Group Ltd HKSE:01978
61 GF Score
Price HK$0.26
GF Value HK$0.49
Valuation Significantly Undervalued
! 6 Warning Signs
View Full Analysis

What is LH Group OCF Margin %?

LH Group HKSE:01978 61 OCF Margin % is 22.38% as of Dec. 2025, which is 27% above its 10-year median of 17.67. GuruFocus rates HKSE:01978 with a GF Score™ of 61/100 and a GF Value™ of HK$0.49 (Significantly Undervalued). The stock has 6 warning signs investors should review. Among 361 Restaurants companies, LH Group ranks better than 72.3% on this metric.

OCF Margin % is calculated as Cash Flow from Operations divided by its Revenue. LH Group's Cash Flow from Operations for the six months ended in Dec. 2025 was HK$121 Mil. LH Group's Revenue for the six months ended in Dec. 2025 was HK$541 Mil. Therefore, LH Group's OCF Margin % for the quarter that ended in Dec. 2025 was 22.38%.

As of today, LH Group's current OCF Yield % is 82.25%.

The historical rank and industry rank for LH Group's OCF Margin % or its related term are showing as below:

HKSE:01978' s OCF Margin % Range Over the Past 10 Years
Min: 6.59   Med: 17.67   Max: 25.22
Current: 15.82


During the past 11 years, the highest OCF Margin % of LH Group was 25.22%. The lowest was 6.59%. And the median was 17.67%.

HKSE:01978's OCF Margin % is ranked better than
72.3% of 361 companies
in the Restaurants industry
Industry Median: 10.27 vs HKSE:01978: 15.82


LH Group OCF Margin % Related Terms


LH Group OCF Margin % Historical Data

* Premium members only.

The historical data trend for LH Group's OCF Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

LH Group OCF Margin % Chart

LH Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
OCF Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.22 19.51 19.74 11.42 15.82

LH Group Semi-Annual Data
Dec15 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
OCF Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.89 11.48 11.35 9.25 22.38

HKSE:01978 vs MCD, SBUX, YUM: OCF Margin % Comparison

For the Restaurants subindustry, LH Group's OCF Margin %, along with its competitors' market caps and OCF Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


LH Group OCF Margin % vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, LH Group's OCF Margin % distribution charts can be found below:

* The bar in red indicates where LH Group's OCF Margin % falls into.


HKSE:01978
61GF Score
LH Group Ltd HKSE:01978
OCF Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

LH Group OCF Margin % Calculation

OCF Margin % is the ratio of Cash Flow from Operations divided by net sales or Revenue, usually presented in percent.

LH Group's OCF Margin for the fiscal year that ended in Dec. 2025 is calculated as

OCF Margin=Cash Flow from Operations (A: Dec. 2025 )/Revenue (A: Dec. 2025 )
=171.085/1081.378
=15.82 %

LH Group's OCF Margin for the quarter that ended in Dec. 2025 is calculated as

OCF Margin=Cash Flow from Operations (Q: Dec. 2025 )/Revenue (Q: Dec. 2025 )
=121.07/540.918
=22.38 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about OCF Margin % →
What does a OCF Margin % of 22.38% mean?
LH Group (HKSE:01978) has a OCF Margin % of 22.38% as of Dec. 2025. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on LH Group and its competitors. This is 27% above median its historical median of 17.67. Over the past decade, LH Group's OCF Margin % has ranged from 6.59 to 25.22. According to the industry distribution chart, LH Group ranks #100 out of 361 companies in the Restaurants industry, placing it in the top 27.7%.
Is LH Group's OCF Margin % too high?
LH Group's current OCF Margin % of 22.38% is 27% above median its 10-year median of 17.67. Over the past 10 years, this metric has ranged from a low of 6.59 to a high of 25.22. The Restaurants industry median OCF Margin % is 10.27. LH Group's value of 22.38% is 117.9% above this industry median. Based on the distribution chart, LH Group ranks #100 out of 361 companies in the Restaurants industry, which is above the industry midpoint. Overall, LH Group has a GF Score™ of 61/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LH Group's OCF Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, LH Group ranks #100 out of 361 companies for OCF Margin %. This puts LH Group in the upper half of its industry. The industry median OCF Margin % is 10.27. LH Group's value of 22.38% is 117.9% above this benchmark. Historically, LH Group's own OCF Margin % has ranged from 6.59 to 25.22 over the past decade. While the company's 10-year median is 17.67 vs. the industry median of 10.27, LH Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good OCF Margin % for a Restaurants company?
The median OCF Margin % among Restaurants companies is 10.27, based on 361 companies in the industry. Companies in the top quartile (top 25%) have a OCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, OCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LH Group's current OCF Margin % of 22.38% is 117.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high OCF Margin % mean?
A high OCF Margin % can signal that a stock is expensive relative to its fundamentals. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on LH Group and its competitors. For the Restaurants industry, the median OCF Margin % is 10.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LH Group's current OCF Margin % is 22.38%, which is 27% above median its own 10-year median of 17.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LH Group stock overvalued right now?
Based on GuruFocus' analysis, LH Group (HKSE:01978) is currently considered Significantly Undervalued. The stock's GF Value™ is HK$0.49, compared to a current price of HK$0.26 — trading 46.9% below its estimated fair value. The current OCF Margin % is 22.38%, which is 27% above median its 10-year median of 17.67 and 117.9% above the Restaurants industry median of 10.27. LH Group's overall GF Score™ is 61/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is OCF Margin % calculated?
OCF Margin % is calculated from a company's financial statements. For LH Group (HKSE:01978), the current OCF Margin % is 22.38% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is LH Group (HKSE:01978) Overvalued in 2026?

Based on GuruFocus' analysis, LH Group stock appears to be undervalued. The current stock price of HK$0.26 is trading 46.9% below its estimated GF Value™ of HK$0.49. GuruFocus considers LH Group to be Significantly Undervalued.

Key valuation signals for HKSE:01978:

  • OCF Margin %: 22.38% (27% above median its 10-year median of 17.67)
  • GF Value™: HK$0.49 vs. price of HK$0.26 (46.9% below fair value)
  • GF Score™: 61/100 with 6 warning signs
  • Industry Position: 117.9% above the Restaurants median (#100 of 361)

No single metric tells the full story. See the HKSE:01978 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


LH Group Business Description

Address 38 Wang Chiu Road, Unit 03, L22, Tower 1, Enterprise Square Five, Kowloon Bay, Kowloon, Hong Kong, HKG
LH Group Ltd is engaged as a full-service restaurant operator serving Asian cuisine, including Japanese, Korean, Cantonese and Shanghainese cuisine in Hong Kong. Its segments include Self-owned brands, Franchised brands, and the Sale of food ingredients and others. The majority of its revenue comes from the Self-owned brands.
61GF Score

Get the complete analysis for HKSE:01978

OCF Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$0.26
Price
HK$0.49
GF Value