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

• Market Cap: HK$1.13B
• Dividend Yield: 13.9%
• Average Volume (3M): 497.45K
• Price to Earnings (P/E): 168.9
• Beta (1Y): 0.34
• Revenue Growth: -4.52%
• EPS Growth: N/A
• Country: HK
• Employees: 3,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): >-0.01
• Shares Outstanding: 631,677,300
• 10 Day Avg. Volume: 60,400
• 30 Day Avg. Volume: 497,454
• PEG Ratio: 0.62
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 3.54
• 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: 62 Neutral
• Price Target: HK$1.50 ▼(-16.67% Downside)

Lung Kee (Bermuda) Holdings Limited's overall stock score is driven by its strong technical indicators and robust dividend yield, despite facing significant challenges in financial performance and potential overvaluation concerns. The company's improved cash flow position and strong balance sheet provide a foundation for potential recovery, but operational inefficiencies need to be addressed to enhance profitability.

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

Company Description

Lung Kee (Bermuda) Holdings Limited, listed on the Hong Kong Stock Exchange under the symbol 0255, is a leading manufacturer and distributor specializing in the production of mold bases and related products. The company primarily serves the manufacturing and industrial sectors, offering a wide range of high-quality mold bases essential for producing various plastic and metal products. These products are critical components in industries such as automotive, electronics, and consumer goods, where precision and reliability are paramount.

How the Company Makes Money

Lung Kee (Bermuda) Holdings Limited generates its revenue through the sale of its mold bases and related products. The company operates manufacturing facilities that produce a diverse array of mold bases, catering to the needs of different industries. Revenue is primarily derived from direct sales to manufacturers that require these components for their production processes. The company maintains a broad customer base across various sectors, ensuring a steady demand for its products. Additionally, Lung Kee leverages its extensive distribution network to reach clients globally, enhancing its market presence and sales volume. The company's focus on quality and precision in manufacturing also contributes to its ability to command competitive pricing, further supporting its revenue streams.

Lung Kee (Bermuda) Holdings Limited Financial Statement Overview

Summary

The company faces challenges with declining revenues and negative profitability, as evidenced by negative net income and EBIT. However, it maintains a robust balance sheet with strong equity and low debt levels. The cash flow position has improved, suggesting better cash management, but operational inefficiencies need to be addressed to enhance profitability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.46B	1.55B	1.45B	1.60B	2.27B	2.06B
Gross Profit	884.46M	951.69M	263.90M	398.00M	777.07M	653.19M
EBITDA	154.25M	148.58M	56.87M	180.74M	472.05M	367.38M
Net Income	6.69M	-13.67M	-72.43M	15.81M	227.84M	181.08M
Balance Sheet
Total Assets	1.89B	1.97B	2.09B	2.30B	2.75B	2.75B
Cash, Cash Equivalents and Short-Term Investments	518.08M	546.65M	428.76M	536.64M	833.59M	918.62M
Total Debt	6.18M	7.83M	6.57M	9.56M	9.02M	14.29M
Total Liabilities	284.60M	298.08M	294.22M	314.90M	474.46M	471.25M
Stockholders Equity	1.60B	1.67B	1.80B	1.99B	2.27B	2.27B
Cash Flow
Free Cash Flow	179.43M	190.82M	-35.72M	-93.17M	168.61M	255.22M
Operating Cash Flow	222.65M	226.34M	77.21M	89.17M	369.94M	368.26M
Investing Cash Flow	-39.56M	-24.35M	-98.07M	-170.05M	-193.03M	-107.73M
Financing Cash Flow	-149.50M	-67.33M	-73.86M	-168.90M	-277.76M	-139.41M

Lung Kee (Bermuda) Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1.8 is above the 20-day moving average (MA) of 1.77, above the 50-day MA of 1.66, and above the 200-day MA of 1.29, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 68.90 is Neutral, neither overbought nor oversold. The STOCH value of 63.64 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
0838	76 Outperform	HK$2.09B	8.10	8.13%	3.55%	0.51%	3.74%
3816	71 Outperform	HK$306.00M	8.43	6.70%	2.65%	28.42%	56.33%
1050	64 Neutral	HK$4.67B	22.83	19.74%	2.02%	10.81%	20.38%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0255	62 Neutral	HK$1.13B	168.87	0.40%	13.90%	-4.52%	―
0929	59 Neutral	HK$852.33M	81.82	0.57%	―	1.48%	12.50%
0822	51 Neutral	€321.75M	―	-4.46%	―	10.91%	11.01%

Lung Kee (Bermuda) Holdings Limited Corporate Events

Lung Kee Reports Improved Interim Financial Performance Despite Revenue Decline

Lung Kee (Bermuda) Holdings Limited announced its interim financial results for the six months ending June 30, 2025, revealing a decrease in revenue to HK$688,654,000 from HK$785,212,000 in the previous year. Despite the revenue drop, the company reported a reduced loss before taxation of HK$1,865,000 compared to HK$27,757,000 in 2024, indicating improved operational efficiency. The total comprehensive income for the period was HK$40,380,000, a significant recovery from the previous year’s comprehensive expense of HK$63,300,000, largely due to favorable exchange differences.

The most recent analyst rating on (HK:0255) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Lung Kee (Bermuda) Holdings Limited stock, see the HK:0255 Stock Forecast page.

Lung Kee Group Declares Interim Dividend for 2025

Lung Kee Group Holdings Limited announced an interim cash dividend of HKD 0.08 per share for the six months ending June 30, 2025. Shareholders can expect the payment on September 23, 2025, with the record date set for September 10, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders.

The most recent analyst rating on (HK:0255) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Lung Kee (Bermuda) Holdings Limited stock, see the HK:0255 Stock Forecast page.

Lung Kee Group Schedules Board Meeting for Interim Results and Dividend Decision

Lung Kee (Bermuda) Holdings Limited has announced a board meeting scheduled for August 22, 2025, to approve the interim results for the first half of the year and consider an interim dividend. This meeting is significant as it will address the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.