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

• Market Cap: €4.46B
• Dividend Yield: 3.67%
• Average Volume (3M): 12.37M
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.37
• Revenue Growth: -1.93%
• EPS Growth: -7.82%
• Country: HK
• Employees: 5,294
• Sector: Technology
• Sector Strength: 87
• Industry: Industrial - Machinery
• EPS (TTM): 0.15
• Shares Outstanding: 1,364,391,500
• 10 Day Avg. Volume: 25,919,920
• 30 Day Avg. Volume: 12,373,740
• PEG Ratio: -0.81
• Price to Book (P/B): 2.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.74
• 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: €3.02
• Price Target Upside: -7.71% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: ―

L.K. Technology Holdings Limited has a solid financial foundation, but challenges such as declining revenue growth and cash flow issues need addressing. The stock's technical indicators show potential bearish trends, though its valuation remains attractive with a low P/E ratio and a decent dividend yield. These mixed signals result in a moderate overall stock score, indicating cautious optimism.

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 through the sale of its machinery products, including die-casting machines, plastic injection molding machines, and CNC machining centers. The company benefits from a diversified customer base across different industrial sectors, which ensures a steady demand for its products. Key revenue streams include direct sales to manufacturers and industrial companies, as well as after-sales services and spare parts. Additionally, L.K. Technology's strategic partnerships and collaborations with industry players help expand its market reach and enhance its product offerings, contributing to its overall earnings.

L.K. Technology Holdings Limited Financial Statement Overview

Summary

L.K. Technology Holdings Limited shows a robust financial position with healthy profit margins and a balanced capital structure. However, declining revenue growth and cash flow challenges highlight areas for improvement. Strategic initiatives to boost revenue and enhance cash conversion could strengthen the company's financial health.

Income Statement

L.K. Technology Holdings Limited has demonstrated a stable revenue base with a slight decrease from the previous year, indicating a need for growth stimulation. Gross profit margins are healthy, indicating efficient cost management. However, the net profit margin has decreased slightly, pointing to increased expenses or reduced operational efficiency. EBITDA and EBIT margins are solid, reflecting strong earnings before interest and taxes.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, indicating a balanced approach to leveraging debt for growth. Return on equity has decreased, emphasizing the need for improved profitability or asset utilization. The equity ratio is reasonable, showing a fair level of financial stability and reliance on shareholder equity.

Cash Flow

Operating cash flow has declined significantly, highlighting potential challenges in cash generation from operations. Free cash flow is negative, indicating a need for careful cash management and potential reliance on financing activities. The operating cash flow to net income ratio suggests operational efficiency in converting earnings to cash, though improvements are necessary.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	5.68B	5.84B	5.90B	5.36B	4.02B	2.75B
Gross Profit	1.61B	1.59B	1.55B	1.55B	1.10B	698.03M
EBITDA	799.66M	907.39M	869.72M	945.11M	656.43M	274.10M
Net Income	427.30M	484.12M	532.24M	625.51M	343.67M	3.28M
Balance Sheet
Total Assets	4.56B	10.91B	8.54B	7.60B	5.48B	5.00B
Cash, Cash Equivalents and Short-Term Investments	470.52M	2.38B	823.00M	735.54M	665.16M	793.66M
Total Debt	1.42B	1.87B	1.65B	1.11B	1.20B	1.80B
Total Liabilities	2.82B	6.89B	4.68B	3.90B	3.02B	3.01B
Stockholders Equity	1.74B	1.92B	3.86B	3.70B	2.46B	1.99B
Cash Flow
Free Cash Flow	-831.15M	-424.63M	-377.10M	-388.91M	473.42M	116.17M
Operating Cash Flow	-276.59M	65.94M	176.38M	280.95M	761.81M	213.89M
Investing Cash Flow	-605.12M	-505.10M	-547.39M	-608.64M	-240.78M	-82.68M
Financing Cash Flow	1.95B	2.23B	502.53M	396.24M	-706.03M	10.94M

L.K. Technology Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.27
• 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:0558, the sentiment is Positive. The current price of 3.27 is above the 20-day moving average (MA) of 2.93, above the 50-day MA of 2.90, and above the 200-day MA of 2.96, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 65.40 is Neutral, neither overbought nor oversold. The STOCH value of 67.72 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
0558	64 Neutral	€4.46B	12.74	18.09%	3.67%	-1.93%	-7.82%
Sector *	63 Neutral	$34.07B	6.13	-11.73%	1.80%	5.33%	-18.31%
CHHGF		$128.53M	4.01	5.04%	15.51%	―	―
CHSTF		$258.32M	―	-70.25%	―	―	―
CE3		€462.27M	7.47	5.40%	3.29%	―	―
0187	56 Neutral	HK$6.08B	1,109.52	0.20%	―	12.45%	―
7IP		€610.32M	7.82	13.24%	5.35%	―	―

L.K. Technology Holdings Limited Corporate Events

L.K. Technology Holdings Updates Share Option Scheme Details

L.K. Technology Holdings Limited has released a supplemental announcement regarding its annual report for the financial year ended 31 March 2024. The announcement provides additional details on the company’s share option scheme, indicating an increase in the number of options available for grant from 85,786,500 shares to 88,226,500 shares over the year. This update does not affect any other information in the annual report and reflects the company’s ongoing commitment to transparency and shareholder engagement.