Leoch International Technology Limited (0842) AI Stock Analysis

• Market Cap: HK$2.58B
• Dividend Yield: 6.11%
• Average Volume (3M): 1.88M
• Price to Earnings (P/E): 5.6
• Beta (1Y): 0.62
• Revenue Growth: 13.14%
• EPS Growth: -28.26%
• Country: HK
• Employees: 16,732
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.07
• Shares Outstanding: 1,434,197,900
• 10 Day Avg. Volume: 1,713,200
• 30 Day Avg. Volume: 1,880,639
• PEG Ratio: 0.45
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.12
• P/FCF Ratio: -1.65
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: HK$2.00 ▲(11.11% Upside)

Leoch International Technology Limited is well-positioned with strong financial performance and attractive valuation metrics. The stock's technical indicators suggest positive momentum, although it remains below the 200-day moving average. The company's increasing debt levels and cash flow management require careful monitoring.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust market demand and effective sales strategies, supporting long-term business expansion and stability.

Product Diversification

Diverse product offerings across multiple sectors reduce dependency on a single market, enhancing resilience against sector-specific downturns.

Global Client Relationships

Strong global client relationships ensure consistent demand and revenue streams, supporting long-term growth and market presence.

Negative Factors

Increasing Debt Levels

Rising debt levels can strain financial resources, potentially impacting the company's ability to invest in growth opportunities and maintain financial flexibility.

Cash Flow Management

Inconsistent cash flow management and high capital expenditures may hinder liquidity, affecting the company's ability to fund operations and growth initiatives.

EBIT Margin Decline

Decreasing EBIT margins indicate rising operational costs, which could pressure profitability and require strategic cost management to maintain margins.

Leoch International Technology Limited Business Overview & Revenue Model

Company Description

Leoch International Technology Limited (0842) is a leading manufacturer and supplier of batteries and energy storage solutions, specializing in the production of lead-acid and lithium batteries for various applications. The company operates in sectors such as telecommunications, renewable energy, electric vehicles, and uninterruptible power supplies (UPS). Leoch's core products include sealed lead-acid batteries, lithium-ion batteries, and advanced energy storage systems, catering to both industrial and consumer markets.

How the Company Makes Money

Leoch International Technology Limited generates revenue primarily through the sale of its battery products to a diverse range of industries, including telecommunications, renewable energy, and automotive sectors. The company's revenue model is anchored on producing high-quality batteries that meet the growing demand for energy storage solutions. Key revenue streams include direct sales to manufacturers and distributors, long-term contracts with large clients, and partnerships with companies in the renewable energy sector. Additionally, Leoch benefits from economies of scale in production and has established significant relationships with global clients, contributing to its steady earnings growth.

Leoch International Technology Limited Financial Statement Overview

Summary

Leoch International Technology Limited exhibits strong financial health with consistent revenue growth and profitability. The balance sheet is stable, but increasing debt levels require monitoring. Cash flow management needs improvement, especially in maintaining positive free cash flow amid high capital expenditures.

Income Statement

Leoch International Technology Limited has shown strong revenue growth over the years, with a notable increase from 2023 to 2024. The gross profit margin has remained stable, reflecting good cost management. The company has maintained a healthy net profit margin, indicating effective control over expenses. EBITDA margin shows efficient operational performance. However, a slight decline in EBIT margin suggests potential rising operational costs or expenses.

Balance Sheet

The balance sheet reflects a solid equity base with a consistent increase in stockholders' equity over the years. The debt-to-equity ratio is manageable, showing a balanced approach to leveraging. However, there is a noticeable increase in total debt from 2023 to 2024, which may indicate increased financial leverage risk. The equity ratio remains stable, underscoring the company's financial stability.

Cash Flow

The cash flow statement shows fluctuating free cash flow, with significant capital expenditures potentially impacting liquidity. The operating cash flow to net income ratio indicates strong cash generation capabilities. However, in 2024, operating cash flow data is unavailable, which raises concerns about cash flow consistency and reliability of cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.02B	16.13B	13.47B	12.85B	11.30B	9.63B
Gross Profit	2.07B	2.27B	1.94B	1.59B	1.51B	1.19B
EBITDA	950.42M	1.16B	1.45B	1.30B	884.28M	774.61M
Net Income	415.31M	566.39M	535.37M	481.07M	136.13M	123.73M
Balance Sheet
Total Assets	15.43B	14.52B	14.10B	10.49B	9.60B	9.07B
Cash, Cash Equivalents and Short-Term Investments	776.85M	929.12M	1.78B	649.55M	523.38M	716.74M
Total Debt	5.59B	5.31B	4.57B	2.74B	2.39B	2.31B
Total Liabilities	10.38B	9.51B	9.51B	6.46B	6.02B	5.67B
Stockholders Equity	4.65B	4.60B	4.20B	3.82B	3.39B	3.24B
Cash Flow
Free Cash Flow	139.36M	-1.21B	59.13M	126.65M	183.03M	117.89M
Operating Cash Flow	1.10B	1.67M	963.70M	788.16M	718.74M	763.05M
Investing Cash Flow	-1.35B	-1.01B	-964.28M	-811.26M	-689.43M	-490.84M
Financing Cash Flow	31.91M	184.56M	1.14B	80.93M	-41.23M	-111.86M

Leoch International Technology Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0842, the sentiment is Neutral. The current price of 1.8 is below the 20-day moving average (MA) of 1.81, above the 50-day MA of 1.67, and below the 200-day MA of 2.02, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 53.83 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0842.

Leoch International Technology Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0842	76 Outperform	HK$2.58B	5.55	9.11%	6.11%	13.14%	-28.26%
1979	76 Outperform	HK$2.13B	5.08	22.34%	5.89%	18.32%	14.06%
3393	69 Neutral	HK$16.09B	18.38	15.02%	2.33%	20.33%	27.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1710	63 Neutral	HK$246.00M	12.49	5.04%	7.32%	4.01%	―
1729	57 Neutral	HK$32.29B	56.50	32.21%	0.18%	―	―
2188	40 Underperform	HK$279.01M	-5.67	-8.16%	―	-0.84%	42.31%

Leoch International Technology Limited Corporate Events

Leoch International Updates Executive Compensation Details for FY2023 and FY2024

Leoch International Technology Limited has released supplemental information regarding the emoluments of its chief executive officers for the fiscal years 2023 and 2024. The announcement highlights changes in leadership, with Mr. Chang Jianwei serving as CEO until December 2024, after which Mr. Wu Kouyue took over. This update does not affect other information in the annual reports, maintaining the company’s transparency and stability in its executive compensation practices.