Leoch International Technology Limited (0842) AI Stock Analysis

• Market Cap: HK$1.22B
• Dividend Yield: 6.4%
• Average Volume (3M): 1.88M
• Price to Earnings (P/E): 2.6
• Beta (1Y): 0.64
• 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: 1,437,970,300
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: HK$0.95 ▼(-54.67% Downside)

The score is driven primarily by strong financial performance (profitability and growth) and attractive valuation (low P/E and solid yield). These positives are tempered by weaker cash flow quality/visibility and a mixed technical picture with the stock below key short- and long-term moving averages.

Positive Factors

Revenue Growth

Sustained ~13% revenue growth indicates durable demand across telecom, renewable energy and EV end markets. This trend supports scale benefits, strengthens customer relationships and underpins long-term capacity utilization, enabling reinvestment and margin preservation if markets remain supportive.

Stable Margins & Operational Efficiency

Consistently stable gross and healthy net/EBITDA margins reflect effective cost control and operational execution across product lines. Durable margin profiles support internal cash generation, fund R&D/capex, and provide resilience against cyclical input cost swings over the medium term.

Solid Equity Base

A growing equity base and stable equity ratio provide financial resilience, enhancing capacity to fund expansion and absorb shocks without excessive dilution. This structural balance-sheet strength supports creditworthiness and strategic investments in capacity or technology over multiple years.

Negative Factors

Rising Debt Levels

An observable uptick in total debt raises leverage risk and increases fixed finance costs, potentially constraining financial flexibility. If higher leverage funds capex or expansion without commensurate earnings increases, interest burden could pressure margins and impede strategic optionality over the medium term.

Cash Flow Visibility & Volatility

Volatile free cash flow and absence of 2024 operating cash flow data reduce confidence in cash conversion consistency. Weak visibility complicates capital allocation decisions, heightens execution risk for capex/dividend policies, and may limit the firm's ability to sustain investments during downturns.

EPS Contraction

A near 30% decline in EPS signals pressure on per-share profitability, which may reflect one-offs, margin compression or higher costs. If persistent, EPS deterioration can erode retained earnings, reduce reinvestment capacity and limit financial flexibility for long-term strategic initiatives.

Leoch International Technology Limited Business Overview & Revenue Model

Company Description

Leoch 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 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: Negative
• Last Price: 2.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 above the 20-day moving average (MA) of 0.89, above the 50-day MA of 0.82, and above the 200-day MA of 0.93, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 46.93 is Neutral, neither overbought nor oversold. The STOCH value of -61.55 is Positive, 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
1979	76 Outperform	HK$2.34B	5.57	22.34%	5.75%	18.32%	14.06%
0842	74 Outperform	HK$1.22B	2.62	9.11%	6.40%	13.14%	-28.26%
3393	69 Neutral	HK$18.44B	21.05	15.02%	2.24%	20.33%	27.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1710	63 Neutral	HK$236.00M	11.98	5.04%	7.47%	4.01%	―
1729	57 Neutral	HK$31.16B	54.49	32.21%	0.17%	―	―
2188	40 Underperform	HK$264.09M	-5.36	-8.16%	―	-0.84%	42.31%

Leoch International Technology Limited Corporate Events

Leoch Elevates CEO Wu Kouyue to Executive Director Role

Leoch International Technology Limited has appointed its chief executive officer, Wu Kouyue, as an executive director of the board with effect from 8 January 2026, formalizing the leadership role of a long-serving senior manager who has held multiple key positions in the group since joining in 2014. Wu, who brings around three decades of experience in production operations and supply chain management and has overseen supply chain, quality, China sales and group operations, will serve a three-year term under a service agreement, receiving no additional director’s fee beyond his existing CEO package of RMB1.6 million per year plus discretionary bonuses and benefits, a structure that underscores the board’s emphasis on performance-based remuneration and continuity in operational leadership for stakeholders.

The most recent analyst rating on (HK:0842) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on Leoch International Technology Limited stock, see the HK:0842 Stock Forecast page.

Leoch International Details Board Composition and Committee Roles

Leoch International Technology Limited has announced the current composition of its board of directors, listing three executive directors, led by chairman Dr. Dong Li, and three independent non-executive directors. The company also specified the membership and chairmanship of its audit, remuneration and nomination committees, clarifying the allocation of oversight responsibilities among board members, a move that underscores its corporate governance structure and provides transparency for shareholders and other stakeholders.

The most recent analyst rating on (HK:0842) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on Leoch International Technology Limited stock, see the HK:0842 Stock Forecast page.

Leoch Shareholders Approve Spin-Off Plan and Procurement Framework

Leoch International Technology Limited has received shareholder approval at its 7 January 2026 extraordinary general meeting for a proposed spin-off and associated distribution, signalling a strategic restructuring that may sharpen the company’s business focus and unlock value in its operations. Shareholders also approved a Product Procurement Framework Agreement and its related continuing connected transactions, which are expected to formalise and support ongoing supply arrangements within the group and with connected parties, potentially enhancing operational stability and transparency for stakeholders.

The most recent analyst rating on (HK:0842) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on Leoch International Technology Limited stock, see the HK:0842 Stock Forecast page.

Leoch International Advances U.S. Spin-Off of Leoch Energy With SEC Filing

Leoch International Technology Limited has provided an update on the proposed spin-off and separate U.S. listing of its wholly owned subsidiary, Leoch Energy Inc. The spin-off advanced with Leoch Energy filing a Form 20-F registration statement with the U.S. Securities and Exchange Commission on 30 December 2025, disclosing strong revenue growth from US$694.98 million in 2023 to US$870.34 million in 2024 and solid profitability over the same period. Upon completion of the listing, Leoch International will cease to hold any shares in Leoch Energy, which will be fully demerged and deconsolidated, leading the group to derecognise the spin-off entity’s assets and liabilities—totaling between roughly US$665 million and US$745 million in recent periods—from its consolidated financial statements. This restructuring is set to materially change Leoch International’s balance sheet composition and may reshape its operational and financial profile as Leoch Energy becomes an independently listed U.S. company.

The most recent analyst rating on (HK:0842) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on Leoch International Technology Limited stock, see the HK:0842 Stock Forecast page.

Leoch International Announces EGM for Strategic Spin-Off and Distribution

Leoch International Technology Limited has announced an Extraordinary General Meeting (EGM) to be held on January 7, 2026, to approve a proposed spin-off and distribution. The spin-off involves a new entity, SpinCo, which will enter into a Product Procurement Framework Agreement with the Retained Group for the procurement of finished power solutions. This strategic move is expected to streamline operations and potentially enhance market positioning, impacting stakeholders by possibly increasing operational efficiency and market reach.

The most recent analyst rating on (HK:0842) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on Leoch International Technology Limited stock, see the HK:0842 Stock Forecast page.

Leoch International Enters Product Procurement Agreement with SpinCo

Leoch International Technology Limited has announced its decision to enter into a Product Procurement Framework Agreement with its SpinCo Group, which will become a separately listed entity on a U.S. Exchange. This agreement, effective upon the SpinCo’s listing, allows the Retained Group to manufacture and sell finished power solutions to the SpinCo Group for overseas sales. The agreement is subject to certain regulatory approvals and is considered a connected transaction under Hong Kong’s Listing Rules due to the significant shareholding of Dr. Dong, the company’s Chairman, in the SpinCo Group. The company has established an Independent Board Committee and appointed an Independent Financial Adviser to ensure compliance and provide guidance to shareholders.

The most recent analyst rating on (HK:0842) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on Leoch International Technology Limited stock, see the HK:0842 Stock Forecast page.