L.K. Technology Holdings Limited (0558) AI Stock Analysis

• Market Cap: HK$4.95B
• Dividend Yield: 2.07%
• Average Volume (3M): 3.12M
• Price to Earnings (P/E): 14.4
• Beta (1Y): 1.55
• Revenue Growth: 14.32%
• EPS Growth: -19.44%
• Country: HK
• Employees: 5,294
• Sector: Technology
• Sector Strength: 88
• Industry: Industrial - Machinery
• EPS (TTM): 0.10
• Shares Outstanding: 1,364,391,500
• 10 Day Avg. Volume: 2,742,964
• 30 Day Avg. Volume: 3,117,667
• PEG Ratio: -0.45
• Price to Book (P/B): 2.04
• Price to Sales (P/S): 0.70
• P/FCF Ratio: -4.45
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: HK$3.50 ▼(-3.58% Downside)

The overall stock score of 60 reflects a combination of stable financial performance with some profitability and liquidity challenges, bearish technical indicators, and reasonable valuation. The most significant factor is the financial performance, which highlights the need for improved cash flow management. Technical analysis indicates bearish momentum, while valuation metrics suggest the stock is fairly priced.

Positive Factors

Business Model Strength

The company's focus on high-quality manufacturing and innovation in injection molding machines ensures a robust business model with a steady revenue stream.

Market Position

As a leader in precision engineering, the company holds a strong market position, which supports its competitive advantage and long-term growth potential.

Revenue Streams

Diverse revenue streams from machinery sales and service contracts enhance financial stability and foster long-term customer relationships.

Negative Factors

Profitability Pressures

Declining net profit margins suggest operational challenges that could impact long-term profitability if not addressed.

Rising Debt Levels

Increasing debt levels may strain financial resources and limit the company's ability to invest in growth opportunities.

Cash Flow Challenges

Negative free cash flow and inefficiencies in cash generation could pose liquidity risks, affecting the company's financial health and operational flexibility.

L.K. Technology Holdings Limited Business Overview & Revenue Model

Company Description

L.K. Technology Holdings Limited, an investment holding company, engages in the design, manufacture, and sale of die-casting machines in Mainland China, Europe, Central America and South America, North America, and internationally. It offers hot chamber and cold chamber die-casting machines; and plastic injection molding machines, computerized numerical controlled machining centers, and related accessories. The company is also involved in the steel casting activities. Its products are used in automotive, household products, fashion accessories, technical components, motorcycle, electronics, and container applications. L.K. Technology Holdings Limited was founded in 1979 and is headquartered in Kwai Chung, Hong Kong.

How the Company Makes Money

L.K. Technology Holdings Limited generates revenue primarily through the sale of its injection molding machines and related equipment. The company's revenue model is based on direct sales to manufacturers, complemented by after-sales services, including maintenance, training, and spare parts supply. Key revenue streams include the sale of new machinery, which contributes significantly to overall earnings, as well as ongoing service contracts and replacement parts that ensure long-term customer relationships. Additionally, L.K. Technology may engage in strategic partnerships with other technology firms to enhance its product offerings, thus creating additional avenues for revenue generation. The company's focus on innovation and high-quality manufacturing positions it favorably within the competitive landscape, further contributing to its financial performance.

L.K. Technology Holdings Limited Financial Statement Overview

Summary

L.K. Technology Holdings Limited demonstrates stable revenue growth but faces profitability pressures. The balance sheet shows manageable leverage, though increasing, and cash flow metrics indicate potential liquidity challenges. Improvement in operational efficiency and cash flow management is needed.

Income Statement

L.K. Technology Holdings Limited shows a stable revenue growth with a slight increase in gross profit margin over the years. However, the net profit margin has decreased recently, indicating some pressure on profitability. The EBIT and EBITDA margins have also seen a decline, suggesting operational challenges. Overall, the company maintains a solid revenue base with room for improvement in profitability.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio, which has increased over time, indicating rising leverage. The return on equity has been relatively strong, though it has shown some volatility. The equity ratio remains healthy, suggesting a stable asset base. However, the increasing debt levels could pose a risk if not managed carefully.

Cash Flow

Cash flow analysis reveals challenges, with negative free cash flow and a declining operating cash flow to net income ratio. The free cash flow growth rate has been inconsistent, and the free cash flow to net income ratio indicates inefficiencies in cash generation relative to earnings. These factors highlight potential liquidity concerns that need addressing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.68B	5.82B	5.84B	5.90B	5.36B	4.02B
Gross Profit	1.61B	1.60B	1.59B	1.55B	1.55B	1.10B
EBITDA	799.66M	798.86M	902.67M	869.72M	945.11M	656.43M
Net Income	427.30M	350.09M	484.12M	532.24M	625.51M	343.67M
Balance Sheet
Total Assets	11.15B	11.91B	10.91B	8.54B	7.60B	5.48B
Cash, Cash Equivalents and Short-Term Investments	1.80B	1.67B	2.38B	823.00M	735.54M	665.16M
Total Debt	1.78B	2.22B	1.87B	1.65B	1.11B	1.20B
Total Liabilities	7.10B	7.80B	6.89B	4.68B	3.90B	3.02B
Stockholders Equity	1.93B	1.99B	1.92B	3.86B	3.70B	2.46B
Cash Flow
Free Cash Flow	-831.15M	-913.15M	-424.63M	-377.10M	-388.91M	473.42M
Operating Cash Flow	-276.59M	-224.81M	65.94M	176.38M	280.95M	761.81M
Investing Cash Flow	-616.82M	-828.22M	-505.10M	-547.39M	-608.64M	-240.78M
Financing Cash Flow	1.95B	250.98M	2.23B	502.53M	396.24M	-706.03M

L.K. Technology Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.63
• 50DMA: Negative
• 100DMA: Negative
• 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:0558, the sentiment is Positive. The current price of 3.63 is above the 20-day moving average (MA) of 3.37, below the 50-day MA of 3.77, and above the 200-day MA of 3.62, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 54.78 is Neutral, neither overbought nor oversold. The STOCH value of 73.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0558.

L.K. Technology Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1286	76 Outperform	HK$9.53B	13.89	14.15%	3.17%	2.87%	17.03%
0057	69 Neutral	HK$1.03B	6.90	4.79%	7.07%	17.21%	29.75%
2722	65 Neutral	HK$7.48B	12.03	7.29%	2.42%	11.18%	46.57%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0558	60 Neutral	HK$4.95B	14.43	17.97%	2.07%	14.32%	-19.44%
0187	56 Neutral	HK$6.71B	-526.25	-0.43%	―	7.11%	77.53%
0658	45 Neutral	HK$2.52B	-0.38	-69.18%	―	-4.88%	-860.80%

L.K. Technology Holdings Limited Corporate Events

L.K. Technology Holdings Sees Revenue Growth Amidst Margin Pressures

L.K. Technology Holdings Limited reported a 25.7% increase in revenue for the six months ending September 30, 2025, reaching HK$3,260,464,000. Despite the revenue growth, the company experienced a decline in gross profit margin by 5.2% and a slight decrease in net profit margin by 1.3%. The financial results indicate a mixed performance with an increase in total borrowings by 13.6%, while cash and cash equivalents decreased by 9.8%. These results suggest challenges in maintaining profitability margins despite revenue growth, impacting the company’s financial stability and market positioning.

L.K. Technology Holdings Limited Declares Interim Dividend

L.K. Technology Holdings Limited has announced an interim cash dividend of HKD 0.03 per share for the six months ending on September 30, 2025. The ex-dividend date is set for December 17, 2025, with the record date on December 23, 2025, and payment scheduled for January 9, 2026. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may impact investor sentiment positively.

L.K. Technology Holdings Schedules Board Meeting for Interim Results

L.K. Technology Holdings Limited has announced a board meeting scheduled for November 27, 2025, to approve the interim results for the six months ending September 30, 2025, and to consider the payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.