Valuation Analysis of Lygend Resources & Technology Post Related-Party Deal Approvals

Lygend Resources & Technology (SEHK:2245) has called an Extraordinary General Meeting for December 19, 2025, asking shareholders to sign off on a series of related party deals spanning 2022 to 2025.

These proposed transactions with its Indonesian partner and other affiliates sit at the intersection of growth strategy and governance. The meeting outcome could reshape how investors view Lygend’s transparency and long term alignment with minority shareholders.

See our latest analysis for Lygend Resources & Technology.

Despite the governance questions now in focus, the stock has been on a strong run, with a 90 day share price return of 29.76 percent and year to date share price return of 188.52 percent. The 1 year total shareholder return of 147.95 percent suggests momentum has been powerful rather than fading.

If this kind of governance driven story has your attention, it could be a good moment to explore fast growing stocks with high insider ownership for other fast moving opportunities.

With earnings growing far faster than revenue and shares still trading at a steep intrinsic discount, investors now face a pivotal question: Is Lygend still mispriced, or are markets already baking in years of nickel fueled growth?

On a price to earnings multiple of 10.3 times, Lygend looks modestly valued versus its rapid share price gains and strong operating performance.

The price to earnings ratio compares the company’s share price to its earnings per share, making it a direct snapshot of what investors pay for today’s profits. For a fast growing, capital intensive metals and mining business, it is a useful shorthand for how much of that earnings power the market is willing to capitalise.

In Lygend’s case, the market is paying far less for each dollar of profit than for peers, despite earnings having grown 101 percent over the past year and being forecast to rise almost 29 percent annually. Against an estimated fair price to earnings ratio of 17.7 times based on fundamentals, the current 10.3 times level implies the market is still discounting Lygend’s growth and returns and leaves scope for the multiple to migrate closer to that fair level if execution continues.

On top of the peer comparison, 10.3 times earnings also looks lean when set against the Hong Kong metals and mining sector average of 16.2 times, underscoring that investors are assigning Lygend a clear valuation discount rather than a premium.

Explore the SWS fair ratio for Lygend Resources & Technology

Result: Price to Earnings of 10.3x (UNDERVALUED)

However, persistent related party concerns and any slowdown in nickel demand or project execution could compress Lygend’s valuation and challenge the growth thesis.

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

Our DCF model paints an even stronger picture, suggesting Lygend is trading well below its estimated fair value. This reinforces the idea that today’s earnings multiple may understate long term cash generation. The challenge for investors is whether those cash flow assumptions can really hold up.

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 906 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.

If you prefer to dig into the numbers yourself or reach different conclusions, you can build a personalised view in just a few 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.

Before markets shift again, consider your next watchlist upgrades with targeted stock ideas from our screeners built to surface opportunities others may overlook.

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.

Companies discussed in this article include 2245.HK.

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