Leoch International Technology Limited (0842) AI Stock Analysis

• Market Cap: HK$2.91B
• Dividend Yield: 2.15%
• Average Volume (3M): 5.52M
• Price to Earnings (P/E): 4.5
• Beta (1Y): 0.75
• Revenue Growth: 17.69%
• EPS Growth: 3.08%
• Country: HK
• Employees: 16,732
• Sector: Industrials
• Sector Strength: 93
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.25
• Shares Outstanding: 1,432,319,300
• 10 Day Avg. Volume: 12,223,418
• 30 Day Avg. Volume: 5,522,384
• PEG Ratio: N/A
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.59
• 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: HK$3.00
• Price Target Upside: 42.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: HK$2.00 ▼(-4.76%Downside)

Leoch International Technology Limited presents a compelling valuation with strong dividend yield and low P/E ratio, but technical indicators reflect bearish trends. Financial performance is robust, though debt management and cash flow consistency require monitoring.

Leoch International Technology Limited Business Overview & Revenue Model

Company Description

Leoch International Technology Limited is a leading global manufacturer and distributor of lead-acid batteries and related products. The company operates within the energy storage sector, providing a comprehensive range of battery solutions for various applications including telecommunications, uninterruptible power supply (UPS) systems, renewable energy storage, and automotive industries. Leoch's core products include lead-acid batteries, lithium-ion batteries, and other high-performance energy storage systems designed to meet diverse customer needs.

How the Company Makes Money

Leoch International Technology Limited generates revenue primarily through the manufacturing and sale of its battery products. The company's key revenue streams include sales to telecommunications providers, UPS manufacturers, and automotive companies, as well as to renewable energy projects that require reliable energy storage solutions. Leoch's strong distribution network and strategic partnerships with industry leaders enhance its market presence and sales opportunities. Additionally, the company invests in research and development to innovate and improve its product offerings, thereby maintaining a competitive edge and driving sales growth.

Leoch International Technology Limited Financial Statement Overview

Summary

Leoch International Technology Limited demonstrates strong financial health with consistent revenue growth and profitability. The balance sheet is stable, though increasing debt levels require monitoring. Cash flow management needs improvement, particularly 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.13B	13.47B	12.85B	11.30B	9.63B
Gross Profit	2.27B	1.94B	1.59B	1.51B	1.19B
EBITDA	1.16B	1.45B	1.30B	884.28M	774.61M
Net Income	566.39M	535.37M	481.07M	136.13M	123.73M
Balance Sheet
Total Assets	14.52B	14.10B	10.49B	9.60B	9.07B
Cash, Cash Equivalents and Short-Term Investments	1.23B	2.06B	649.55M	523.38M	660.19M
Total Debt	5.31B	4.57B	2.74B	2.39B	2.31B
Total Liabilities	9.51B	9.51B	6.46B	6.02B	5.67B
Stockholders Equity	4.60B	4.20B	3.82B	3.39B	3.24B
Cash Flow
Free Cash Flow	-1.21B	59.13M	126.65M	183.03M	117.89M
Operating Cash Flow	1.67M	963.70M	788.16M	718.74M	763.05M
Investing Cash Flow	-1.01B	-964.28M	-811.26M	-689.43M	-490.84M
Financing Cash Flow	184.56M	1.14B	80.93M	-41.23M	-111.86M

Leoch International Technology Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.10
• 50DMA: Negative
• 100DMA: Negative
• 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:0842, the sentiment is Negative. The current price of 2.1 is below the 20-day moving average (MA) of 2.33, below the 50-day MA of 2.37, and above the 200-day MA of 1.95, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 38.29 is Neutral, neither overbought nor oversold. The STOCH value of 39.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
3393	72 Outperform	HK$9.14B	11.99	13.34%	0.52%	18.17%	33.08%
0842	67 Neutral	HK$2.91B	4.54	12.91%	2.15%	17.69%	3.08%
1979	67 Neutral	HK$2.04B	5.31	21.87%	5.66%	11.66%	16.73%
1729	66 Neutral	HK$17.70B	39.12		0.25%	―	―
1710	60 Neutral	HK$143.00M	16.63	2.07%	8.45%	-13.16%	-81.74%
Sector *	58 Neutral	HK$14.94B	4.73	-2.78%	5.01%	3.80%	-54.55%
2188	47 Neutral	HK$417.77M	―	-7.76%	―	4.07%	-9.63%

Leoch International Technology Limited Corporate Events

Leoch International Issues Profit Warning Amid Tariff and Production Challenges

Leoch International Technology Limited has issued a profit warning for the first half of 2025, despite anticipating a 10% to 20% increase in revenue compared to the same period in 2024. The company expects a significant decrease in profit, ranging from 60% to 80%, due to increased costs from US import tariffs and delays in the commencement of production at their new factory in Mexico. These factors are expected to impact the company’s financial performance and stakeholder interests.

Leoch International Announces Nomination Committee Changes

Leoch International Technology Limited announced changes to its Nomination Committee, effective June 25, 2025, with the appointment of Ms. Hong Yu and Mr. Cao Yixiong Alan as new members. These changes align with upcoming amendments to the Hong Kong Stock Exchange’s Listing Rules and the Corporate Governance Code, aiming to enhance the company’s corporate governance practices and improve the committee’s effectiveness and diversity.

Leoch International Forms Nomination Committee to Boost Board Diversity

Leoch International Technology Limited has established a nomination committee to enhance its board’s effectiveness and diversity. The committee, comprising a majority of independent non-executive directors, is tasked with reviewing the board’s structure and composition and recommending qualified candidates for directorships, emphasizing diversity and merit.

Leoch International Secures Significant Loan Facilities with Key Shareholding Conditions

Leoch International Technology Limited announced that two of its subsidiaries have entered into a loan facility agreement for a revolving loan of up to RMB428 million and a term loan of up to RMB172 million. The company has guaranteed these loans, and the total commitment may increase to RMB1 billion with new lenders. The agreement requires Dr. Dong Li, the controlling shareholder, to maintain at least 51% equity interest in the company, with any breach potentially leading to loan cancellation and immediate repayment obligations.

Leoch International Technology Limited Secures Shareholder Approval for Key Resolutions at AGM

Leoch International Technology Limited announced that all resolutions proposed at its Annual General Meeting held on 16 May 2025 were approved by shareholders. Key resolutions included the approval of a final dividend, re-election of directors, and granting mandates for share issuance and repurchase. This successful AGM reflects strong shareholder support and positions the company for continued strategic initiatives.