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Leoch International Technology Limited (HK:0842)
:0842
Hong Kong Market

Leoch International Technology Limited (0842) AI Stock Analysis

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HK

Leoch International Technology Limited

(0842)

Rating:80Outperform
Price Target:
HK$3.00
▲(19.52%Upside)
Leoch International Technology Limited scores highly due to its attractive valuation, with a low P/E ratio and strong dividend yield. This is supported by strong financial performance, particularly in revenue growth and profitability, despite some concerns about increasing debt and cash flow management. Positive technical indicators further bolster the stock's outlook, indicating bullish trends.

Leoch International Technology Limited (0842) vs. iShares MSCI Hong Kong ETF (EWH)

Leoch International Technology Limited Business Overview & Revenue Model

Company DescriptionLeoch International Technology Limited, an investment holding company, researches and develops, manufactures, and sells lead acid batteries under the LEOCH brand name in the People's Republic of China, Europe, the Middle East, Africa, the Americas, and Asia-Pacific region. The company primarily offers reserve power, SLI, and motive power batteries, such as AGM VRLA, VRLA-GEL, pure lead, UPS high rate, marine, railway, start-stop, automotive, motorcycle, golf cart, scrubber sweeper, and electric vehicle batteries, as well as OPzV, OPzS, PzS, PzV, and PzB tubular plate batteries. Its products are used in various areas, such as telecommunication, power system, radio and television system, railway, solar energy, UPS, emergency lights, security, alarm, gardening tool, car, motorcycle, golf cart, forklift truck, electric vehicle and baby carrier, etc. The company also leases properties. In addition, it engages in the sale of lead-acid batteries, and recycle and remanufacture of lead from disposed batteries. The company was founded in 1999 and is headquartered in Shenzhen, the People's Republic of China. Leoch International Technology Limited is a subsidiary of Master Alliance Investment Limited.
How the Company Makes MoneyLeoch International Technology Limited generates revenue primarily through the manufacturing and sale of its lead-acid batteries and related products. The company's key revenue streams include the sale of batteries for telecommunications, renewable energy systems, and automotive applications, among others. Leoch International also makes money by providing battery-related services, such as maintenance and technical support. The company's earnings are further supported by strategic partnerships and contracts with major international clients in diverse industries. By leveraging its expertise in battery technology and its global distribution network, Leoch International maintains a strong market presence and drives its revenue 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
85
Very Positive
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
78
Positive
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
65
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue16.13B13.47B12.85B11.30B9.63B
Gross Profit2.27B1.94B1.59B1.51B1.19B
EBITDA1.16B1.45B1.30B884.28M774.61M
Net Income566.39M535.37M481.07M136.13M123.73M
Balance Sheet
Total Assets14.52B14.10B10.49B9.60B9.07B
Cash, Cash Equivalents and Short-Term Investments1.23B2.06B649.55M523.38M660.19M
Total Debt5.31B4.57B2.74B2.39B2.31B
Total Liabilities9.51B9.51B6.46B6.02B5.67B
Stockholders Equity4.60B4.20B3.82B3.39B3.24B
Cash Flow
Free Cash Flow-1.21B59.13M126.65M183.03M117.89M
Operating Cash Flow1.67M963.70M788.16M718.74M763.05M
Investing Cash Flow-1.01B-964.28M-811.26M-689.43M-490.84M
Financing Cash Flow184.56M1.14B80.93M-41.23M-111.86M

Leoch International Technology Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.51
Price Trends
50DMA
2.37
Positive
100DMA
2.26
Positive
200DMA
1.89
Positive
Market Momentum
MACD
0.04
Negative
RSI
58.13
Neutral
STOCH
67.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0842, the sentiment is Positive. The current price of 2.51 is above the 20-day moving average (MA) of 2.43, above the 50-day MA of 2.37, and above the 200-day MA of 1.89, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 58.13 is Neutral, neither overbought nor oversold. The STOCH value of 67.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0842.

Leoch International Technology Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
HK$3.58B5.5912.91%5.58%17.69%3.08%
77
Outperform
HK$8.57B11.2413.34%4.37%18.17%33.08%
70
Outperform
HK$1.71B4.4621.87%7.23%11.66%16.73%
63
Neutral
HK$15.29B33.81
0.51%
60
Neutral
HK$145.00M16.862.07%8.28%-13.16%-81.74%
59
Neutral
AU$1.63B9.6011.29%3.70%6.59%5.93%
46
Neutral
HK$410.31M-7.76%4.07%-9.63%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0842
Leoch International Technology Limited
2.51
0.91
56.87%
HK:2188
China Titans Energy Technology Group Co., Ltd.
0.28
-0.02
-6.67%
HK:1710
Trio Industrial Electronics Group Limited
0.14
-0.08
-36.36%
HK:1729
Time Interconnect Technology Limited
7.83
4.36
125.65%
HK:1979
Ten Pao Group Holdings Limited
1.66
0.64
62.75%
HK:3393
Wasion Holdings Limited
8.70
2.64
43.56%

Leoch International Technology Limited Corporate Events

Leoch International Announces Nomination Committee Changes
Jun 25, 2025

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
Jun 25, 2025

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
Jun 12, 2025

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
May 16, 2025

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.

Leoch International Technology Limited Announces 2025 AGM Agenda
Apr 23, 2025

Leoch International Technology Limited has announced its upcoming Annual General Meeting (AGM) scheduled for May 16, 2025, in Hong Kong. Key agenda items include the approval of the audited financial statements for 2024, a final dividend of HK7 cents per share, re-election of directors, and authorization for the board to fix directors’ and auditors’ remuneration. Additionally, shareholders will consider resolutions to empower directors to issue additional shares or securities, enhancing the company’s flexibility in capital management.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 10, 2025