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

• Market Cap: €6.44B
• Dividend Yield: 1.58%
• Average Volume (3M): 59.97M
• Price to Earnings (P/E): 18.4
• Beta (1Y): 1.50
• Revenue Growth: -0.21%
• EPS Growth: -27.21%
• Country: HK
• Employees: 5,294
• Sector: Technology
• Sector Strength: 88
• Industry: Industrial - Machinery
• EPS (TTM): 0.15
• Shares Outstanding: 1,364,391,500
• 10 Day Avg. Volume: 15,461,893
• 30 Day Avg. Volume: 59,965,480
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €3.49
• Price Target Upside: -32.07% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: HK$3.50 ▼(-31.91% Downside)

The overall stock score reflects stable financial performance with some profitability and liquidity challenges. The technical indicators suggest a neutral trend with potential for upward movement. Valuation metrics indicate the stock is reasonably priced with a moderate dividend yield, making it attractive for income-focused investors.

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

Company Description

L.K. Technology Holdings Limited (0558) is a Hong Kong-based investment holding company primarily engaged in the manufacturing and sale of high-precision machinery and equipment. The company operates in various sectors, including the development of advanced manufacturing solutions and the production of die-casting machines, which are vital in the automotive and consumer electronics industries. L.K. Technology focuses on delivering innovative technology solutions that enhance production efficiency and product quality for its clients.

How the Company Makes Money

L.K. Technology Holdings Limited generates revenue primarily through the sale of its machinery and equipment, particularly die-casting machines, which are utilized in multiple industries such as automotive and electronics. The company's revenue model is driven by both direct sales to manufacturers and potential ongoing service contracts for maintenance and parts. Additionally, L.K. Technology may benefit from strategic partnerships with other firms that enhance its product offerings or expand its market reach, particularly in emerging markets. Factors contributing to its earnings include the growing demand for high-precision machinery, advancements in manufacturing technologies, and the company's ability to innovate and adapt to industry changes.

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 increasing leverage, and cash flow metrics indicate potential liquidity challenges. Focus on improving 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	907.39M	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: 5.14
• 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:0558, the sentiment is Positive. The current price of 5.14 is below the 20-day moving average (MA) of 5.25, above the 50-day MA of 4.47, and above the 200-day MA of 3.29, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.37 is Neutral, neither overbought nor oversold. The STOCH value of 22.04 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	74 Outperform	7.42B	10.64	13.65%	4.07%	2.87%	17.03%
0057	74 Outperform	1.17B	7.48	5.01%	6.38%	29.12%	53.10%
2722	68 Neutral	6.93B	11.26	0.00%	2.03%	11.18%	46.57%
0558	65 Neutral	€6.44B	18.39	18.09%	1.58%	-0.21%	-27.21%
0187	56 Neutral	6.67B	-525.00	0.00%	―	3.13%	80.99%
0658	51 Neutral	2.42B	-0.36	-78.06%	―	-4.88%	-860.80%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

L.K. Technology Holdings Limited Corporate Events

L.K. Technology Holdings Announces 2025 AGM Details

L.K. Technology Holdings Limited has announced the details of its upcoming Annual General Meeting (AGM), which will take place on September 5, 2025, in Hong Kong. The meeting will address several key business items, including the adoption of the audited financial statements for the year ending March 31, 2025, the declaration of a final dividend, the re-election of directors, and the re-appointment of auditors. Additionally, the AGM will consider resolutions to authorize the board to issue additional shares, subject to certain conditions.

L.K. Technology Holdings Limited Announces Final Dividend for 2025

L.K. Technology Holdings Limited has announced a final cash dividend of HKD 0.045 per share for the financial year ending 31 March 2025. The dividend will be paid on 2 October 2025, with the ex-dividend date set for 11 September 2025 and the record date on 15 September 2025. This announcement updates the record date for shareholders’ entitlement to the dividend.

L.K. Technology Holdings Reports 2025 Financial Results with Decline in Profits

L.K. Technology Holdings Limited reported its financial results for the year ended March 31, 2025, showing a slight decrease in revenue by 0.2% to HK$5.82 billion. The company experienced a significant decline in operating profit by 18.7% and net profit by 22.2%, attributed to increased expenses and financial costs. Despite these challenges, the company’s total assets grew by 9.2%, though cash reserves decreased by 34.3%, indicating a potential shift in financial strategy or operational adjustments.

L.K. Technology Holdings Declares Final Dividend for FY2025

L.K. Technology Holdings Limited has announced a final cash dividend of HKD 0.045 per share for the financial year ending March 31, 2025. This announcement, dated June 27, 2025, outlines the key dates for shareholders, including the ex-dividend date on September 11, 2025, and the payment date on October 2, 2025. This dividend declaration reflects the company’s financial health and commitment to providing returns to its shareholders, potentially impacting its market positioning and investor relations positively.

L.K. Technology Holdings Schedules Board Meeting for Year-End Results

L.K. Technology Holdings Limited announced that its board of directors will meet on June 27, 2025, to approve the final results for the fiscal year ending March 31, 2025, and to consider the payment of a final dividend. This meeting is significant as it will determine the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.