Leoch International Technology Limited (0842) AI Stock Analysis

• Market Cap: HK$3.44B
• Dividend Yield: 5.83%
• Average Volume (3M): 3.36M
• Price to Earnings (P/E): 5.4
• Beta (1Y): 0.76
• Revenue Growth: 17.69%
• EPS Growth: 3.08%
• Country: HK
• Employees: 16,732
• Sector: Industrials
• Sector Strength: 85
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.45
• Shares Outstanding: 1,431,794,300
• 10 Day Avg. Volume: 1,918,600
• 30 Day Avg. Volume: 3,356,913
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: HK$3.00 ▲(25.00%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 Business Overview & Revenue Model

Company Description

Leoch International Technology Limited (0842) is a leading manufacturer and developer of lead-acid batteries and related products. The company operates in the energy storage solutions sector, focusing on the production of a wide range of batteries used in various applications such as telecommunications, renewable energy systems, uninterruptible power supplies (UPS), and automotive industries. Additionally, Leoch International provides battery-related services and solutions to its global clientele.

How the Company Makes Money

Leoch 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

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
	EBIT
570.65M	724.36M	689.60M	373.64M	335.68M
	EBITDA
1.16B	1.45B	1.30B	884.28M	774.61M
	Net Income Common Stockholders
566.39M	535.37M	481.07M	136.13M	123.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.23B	2.06B	649.55M	523.38M	660.19M
	Total Assets
14.52B	14.10B	10.49B	9.60B	9.07B
	Total Debt
5.31B	4.57B	2.74B	2.39B	2.31B
	Net Debt
4.56B	3.00B	2.30B	2.04B	1.92B
	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: Positive
• Last Price: 2.40
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 2.4 is above the 20-day moving average (MA) of 2.39, above the 50-day MA of 2.27, and above the 200-day MA of 1.82, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 54.04 is Neutral, neither overbought nor oversold. The STOCH value of 34.42 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0842	80 Outperform	HK$3.44B	5.37	12.91%	5.83%	17.69%	3.08%
1299	78 Outperform	$732.90B	14.34	16.75%	4.07%	7.04%	88.41%
1398	78 Outperform	$2.62T	5.56		5.15%	-3.41%	-0.73%
2388	78 Outperform	$367.40B	9.61	11.58%	3.35%	8.61%	16.84%
3988	77 Outperform	$1.61T	5.27	9.57%	11.45%	6.59%	-0.89%
2318	72 Outperform	$991.98B	6.84		7.49%	11.71%	37.04%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%

Leoch International Technology Limited Corporate Events

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.

Leoch International Technology Limited Announces 2025 AGM Agenda

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.

Leoch International Reports 19.7% Revenue Growth Amidst Profit Margin Challenges

Leoch International Technology Limited announced its annual results for the year ending December 31, 2024, reporting a 19.7% increase in turnover to RMB 16,126.5 million and a 16.6% rise in gross profit to RMB 2,266.8 million. Despite these gains, the profit for the year slightly decreased by 0.8% to RMB 563.5 million, with earnings per share increasing to RMB 0.41. The company maintained its final dividend per share at 7.0 HK cents, reflecting stable shareholder returns. The results indicate a strong revenue growth but highlight challenges in maintaining profit margins, impacting the company’s financial positioning and stakeholder expectations.

Leoch International Technology Limited Announces Final Dividend for 2024

Leoch International Technology Limited has announced a final ordinary cash dividend of HKD 0.07 per share for the financial year ending December 31, 2024. The dividend will be paid on July 11, 2025, following shareholder approval on May 16, 2025, with the ex-dividend date set for May 29, 2025. This announcement reflects the company’s financial performance and commitment to returning value to its shareholders.

Leoch International Schedules Board Meeting for Financial Results Approval

Leoch International Technology Limited has announced a board meeting scheduled for March 27, 2025, to discuss and approve the consolidated financial results for the year ending December 31, 2024. The meeting will also consider the publication of the final results announcement and the potential payment of a final dividend, highlighting the company’s ongoing financial management and shareholder engagement.