Lygend Resources & Technology (SEHK:2245) Valuation Check as Investors Weigh Extraordinary General Meeting on Related-Party Deals

Lygend Resources & Technology (SEHK:2245) has called an Extraordinary General Meeting for December 19, 2025, to seek approval for related party transactions, a move that puts governance and transparency squarely in focus for shareholders.

See our latest analysis for Lygend Resources & Technology.

The governance spotlight from this Extraordinary General Meeting comes after a sharp run up, with the 188.52% year to date share price return and 147.95% one year total shareholder return suggesting momentum is still strong despite a recent pullback.

If this kind of volatility has your attention, it could be a smart moment to broaden your watchlist and explore fast growing stocks with high insider ownership.

With earnings growing faster than revenue and the shares still trading at a sizeable discount to some intrinsic estimates, but only slightly below analyst targets, is there still a genuine buying opportunity here, or is the market already pricing in future growth?

Price-to-Earnings of 10.3x: Is it justified?

On a price-to-earnings ratio of 10.3x, Lygend Resources & Technology screens as materially undervalued versus both its own fair value estimate and sector benchmarks at the current HK$19.10 share price.

The price-to-earnings multiple compares what investors are paying today for each dollar of the company’s earnings and is widely used for capital intensive materials and mining businesses like Lygend. A lower multiple can suggest the market is skeptical about the durability of recent profits or is discounting potential cyclicality in commodity linked earnings.

In Lygend’s case, our DCF work implies an intrinsic value of HK$40.83 per share and a fair price to earnings ratio of 17.7x, meaning the current 10.3x multiple sits well below the level the market could move towards if earnings growth and returns on equity develop as forecast. Compared with the Hong Kong metals and mining industry average multiple of 16.8x and an even higher 29.1x for peers, the discount is striking and points to investors assigning a sizeable margin of safety despite strong historic and projected profit expansion.

Explore the SWS fair ratio for Lygend Resources & Technology

Result: Price-to-Earnings of 10.3x (UNDERVALUED)

However, risks remain, including nickel price swings compressing margins and regulatory scrutiny of related party transactions, which could undermine confidence in the valuation case.

Find out about the key risks to this Lygend Resources & Technology narrative.

Another View on Value

Our SWS DCF model also points to upside, with a fair value estimate of HK$40.83 per share versus the current HK$19.10 price, suggesting Lygend could be deeply undervalued. However, with analyst targets only slightly higher than today, the market may be doubting those long term cash flow assumptions.

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Lygend Resources & Technology for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 907 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Lygend Resources & Technology Narrative

If you would rather trust your own analysis than ours, you can quickly test your thesis and build a tailored view in under three minutes, Do it your way.

A great starting point for your Lygend Resources & Technology research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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