Lung Kee (Bermuda) Holdings Limited (0255) AI Stock Analysis

• Market Cap: HK$846.45M
• Dividend Yield: 14.92%
• Average Volume (3M): 121.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.37
• Revenue Growth: 7.17%
• EPS Growth: 81.17%
• Country: HK
• Employees: 3,000
• Sector: Industrials
• Sector Strength: 84
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): -0.02
• Shares Outstanding: 631,677,300
• 10 Day Avg. Volume: 107,800
• 30 Day Avg. Volume: 121,027
• PEG Ratio: -0.99
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: HK$1.50 ▲(11.94%Upside)

Lung Kee (Bermuda) Holdings Limited's strong balance sheet and improving cash flow position are significant positives, offsetting challenges in revenue and profitability. Technical analysis suggests potential for a positive trend, while high dividend yield supports valuation despite profitability concerns.

Lung Kee (Bermuda) Holdings Limited Business Overview & Revenue Model

Company Description

Lung Kee (Bermuda) Holdings Limited, an investment holding company, manufactures and markets mold bases and related products in the People's Republic of China and internationally. The company was founded in 1975 and is headquartered in Sha Tin, Hong Kong. Lung Kee (Bermuda) Holdings Limited is a subsidiary of Pan Island Investments Limited.

How the Company Makes Money

Lung Kee (Bermuda) Holdings Limited generates revenue predominantly through the manufacturing and sale of high-quality mold bases, which are crucial components in the molding and tooling industry. The company earns income by supplying these products to a wide range of manufacturers who use them to produce finished goods. Additionally, Lung Kee's revenue model is supported by its ability to leverage economies of scale through its expansive manufacturing operations and strategic partnerships with key industry players, ensuring a steady demand for its products. The company also benefits from its strong distribution network, which facilitates efficient product delivery to its global client base, further enhancing its revenue streams.

Lung Kee (Bermuda) Holdings Limited Financial Statement Overview

Summary

The company faces challenges with declining revenues and profitability, evidenced by negative net income and EBIT. However, it maintains a robust balance sheet with strong equity and manageable debt levels. The cash flow position has improved, indicating potential for recovery if operational inefficiencies are addressed.

Income Statement

The company experienced a decline in revenue over the past years, with a noticeable drop from 2020 to 2023. The gross profit margin improved significantly in 2024 due to a substantial increase in gross profit, despite a decrease in revenue. However, the negative EBIT and net income in recent years indicate operational challenges affecting profitability. The net profit margin is negative, highlighting profitability issues.

Balance Sheet

The company maintains a strong equity base, with a high equity ratio and low debt-to-equity ratio, indicating financial stability. Despite a decrease in total assets, the decrease in liabilities suggests improved leverage management. The return on equity has turned negative due to recent net losses, which warrants attention.

Cash Flow

The cash flow statements show a positive trend in free cash flow, recovering from negative figures in previous years. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to earnings. The company shows improvement in managing capital expenditures, contributing to a positive free cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.55B	1.45B	1.60B	2.27B	2.06B
	Gross Profit
951.69M	263.90M	398.00M	777.07M	653.19M
	EBIT
-26.00M	-124.07M	3.87M	289.20M	190.18M
	EBITDA
148.58M	56.87M	180.74M	472.05M	367.38M
	Net Income Common Stockholders
-13.67M	-72.43M	15.81M	227.84M	181.08M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
546.65M	428.76M	536.64M	833.59M	918.62M
	Total Assets
1.97B	2.09B	2.30B	2.75B	2.75B
	Total Debt
7.83M	6.57M	9.56M	9.02M	14.29M
	Net Debt
-538.82M	-422.19M	-527.08M	-824.56M	-904.33M
	Total Liabilities
298.08M	294.22M	314.90M	474.46M	471.25M
	Stockholders Equity
1.67B	1.80B	1.99B	2.27B	2.27B
Cash Flow		Free Cash Flow
190.82M	-35.72M	-93.17M	168.61M	255.22M
	Operating Cash Flow
226.34M	77.21M	89.17M	369.94M	368.26M
	Investing Cash Flow
-24.35M	-98.07M	-170.05M	-193.03M	-107.73M
	Financing Cash Flow
-67.33M	-73.86M	-168.90M	-277.76M	-139.41M

Lung Kee (Bermuda) Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0255, the sentiment is Positive. The current price of 1.34 is above the 20-day moving average (MA) of 1.31, above the 50-day MA of 1.26, and above the 200-day MA of 1.09, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 57.84 is Neutral, neither overbought nor oversold. The STOCH value of 51.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0255.

Lung Kee (Bermuda) Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	CHF6.91B	25.10	16.28%	2.90%	-2.63%	-20.30%
0255	61 Neutral	HK$846.45M	―	-0.79%	14.92%	7.17%	81.17%
CKISF		$15.76B	15.96	6.62%	5.03%	―	―
CUGCF		$540.61M	33.93	0.67%	26.31%	―	―
1036	51 Neutral	HK$560.92M	―	-1.19%	4.17%	111.64%	-282.42%
1020		HK$253.05M	―	-35.27%	―	―	―
0237	50 Neutral	HK$773.55M	―	-1.81%	6.28%	8.19%	32.85%

Lung Kee (Bermuda) Holdings Limited Corporate Events

Lung Kee Holdings Announces Successful AGM Resolutions

Lung Kee (Bermuda) Holdings Limited announced that all resolutions were passed at its annual general meeting held on May 19, 2025. These resolutions included the approval of financial statements, the declaration of dividends, re-election of directors, and granting mandates for share issuance and buyback. The successful passing of these resolutions indicates strong shareholder support and positions the company for continued operational and strategic initiatives.

Lung Kee Group Holdings Announces 2025 AGM and Key Resolutions

Lung Kee Group Holdings Limited has announced its upcoming annual general meeting scheduled for May 19, 2025, in Hong Kong. Key agenda items include the approval of the company’s audited financial statements for 2024, the declaration of a final and special dividend, and the re-election of directors. Additionally, the meeting will address the authorization for the board to appoint directors and fix their remuneration, as well as the re-appointment of the company’s auditor. A special resolution will also be considered to allow the directors to issue additional shares, subject to certain conditions, which could impact the company’s capital structure and shareholder value.