Tak Lee Machinery Holdings Limited (2102) AI Stock Analysis

• Market Cap: HK$300.00M
• Dividend Yield: 12.96%
• Average Volume (3M): 448.67K
• Price to Earnings (P/E): 7.4
• Beta (1Y): -0.48
• Revenue Growth: 18.37%
• EPS Growth: 297.18%
• Country: HK
• Employees: 118
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 0.01
• Shares Outstanding: 1,000,000,000
• 10 Day Avg. Volume: 97,000
• 30 Day Avg. Volume: 448,666
• PEG Ratio: 0.02
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.63
• P/FCF Ratio: 2.75
• 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: 77 Outperform
• Price Target: HK$0.38 ▲(33.93% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by strong financial health (very low leverage and strong cash generation) and supportive valuation (modest P/E and very high dividend yield). Technicals are also constructive with the price above major moving averages and positive MACD, though momentum indicators are elevated.

Positive Factors

Very low leverage

Extremely low leverage and a 90% equity ratio provide durable financial flexibility. This reduces solvency and interest-rate risk, allowing the company to fund capex, inventory and after-sales support through cycles, pursue opportunistic investments, and sustain operations in downturns.

Strong cash conversion

High cash conversion ratios indicate the business turns accounting profits into real cash efficiently. Consistent operating and free cash flow relative to net income supports reinvestment in parts/maintenance, funds dividends or buybacks, and lowers refinancing needs over the medium term.

Recovering revenue growth

Top-line growth near 11% shows the company is regaining sales momentum after prior declines. Given its product breadth and after-sales services, sustained revenue growth can drive scale, increase spare-parts recurring revenue, and improve absorption of fixed costs over several quarters.

Negative Factors

Moderate profitability margins

Margins are modest for a capital-goods distributor, indicating limited pricing power or cost inefficiencies. Sustained margin compression would reduce cash available for reinvestment and dividends; improving operational efficiency is required to lift long-term profitability.

Modest returns on equity

A ~6% ROE implies the firm generates only modest returns on shareholder capital. Even with low leverage, this level may constrain long-term value creation unless management improves asset productivity, margin structure, or pursues higher-return initiatives.

Exposure to construction cyclicality

Concentration in construction machinery ties revenue to capital expenditure cycles and macro activity. While after-sales services temper volatility, the core equipment business remains cyclical, risking revenue swings and inventory/working-capital stress during sector downturns.

Tak Lee Machinery Holdings Limited Business Overview & Revenue Model

Company Description

Tak Lee Machinery Holdings Limited (2102) is a Hong Kong-based company primarily engaged in the trading and distribution of construction machinery and equipment. The company operates within the construction and industrial machinery sector, providing a wide range of products including excavators, cranes, and other heavy machinery. Tak Lee also offers maintenance services and spare parts, catering to the needs of various construction projects and industries.

How the Company Makes Money

The company generates revenue through the sale of construction machinery and equipment to contractors and businesses in the construction sector. Its primary revenue streams include direct sales of new and used machinery, as well as revenue from after-sales services such as maintenance, repairs, and the sale of spare parts. Additionally, Tak Lee may benefit from strategic partnerships with machinery manufacturers, allowing it to offer a diverse range of products while also enhancing its market reach. The company's earnings are further supported by its established reputation and customer loyalty in the construction industry, which can lead to repeat business and long-term contracts.

Tak Lee Machinery Holdings Limited Financial Statement Overview

Summary

Solid overall fundamentals: revenue growth of 10.88%, stable profitability (net margin 8.52%), very low leverage (debt-to-equity 0.0055, equity ratio 90.01%), and strong cash conversion (operating cash flow to net income 2.78; free cash flow to net income 2.68). Margins suggest some room for operating efficiency improvement.

Income Statement

Tak Lee Machinery Holdings Limited has demonstrated a solid revenue growth rate of 10.88% in the latest year, indicating a positive trajectory after previous declines. The gross profit margin stands at 17.95%, and the net profit margin is 8.52%, reflecting stable profitability. However, the EBIT and EBITDA margins are moderate at 8.54% and 21.13%, respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.0055, indicating minimal leverage and financial risk. The return on equity is 6.37%, showing a reasonable return on shareholders' investments. The equity ratio of 90.01% highlights a robust capital structure with significant equity financing.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate of 1.39%, indicating effective cash management. The operating cash flow to net income ratio is 2.78, and the free cash flow to net income ratio is 2.68, both suggesting strong cash generation relative to net income. This positions the company well for future investments and debt servicing.

Breakdown	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	330.65M	279.33M	272.00M	395.18M	485.80M
Gross Profit	59.36M	57.32M	53.49M	87.03M	90.58M
EBITDA	69.87M	50.00M	51.33M	98.53M	102.06M
Net Income	28.16M	7.09M	7.08M	45.06M	52.58M
Balance Sheet
Total Assets	490.86M	491.70M	499.20M	530.38M	510.40M
Cash, Cash Equivalents and Short-Term Investments	118.52M	73.77M	47.02M	87.24M	109.21M
Total Debt	2.43M	5.76M	11.46M	32.92M	38.15M
Total Liabilities	48.92M	47.97M	57.56M	85.82M	80.90M
Stockholders Equity	441.94M	443.73M	441.64M	444.56M	429.50M
Cash Flow
Free Cash Flow	75.58M	41.34M	-4.09M	36.26M	112.74M
Operating Cash Flow	78.35M	46.54M	-3.57M	43.10M	116.50M
Investing Cash Flow	-238.00K	-3.89M	1.77M	-28.60M	-4.25M
Financing Cash Flow	-33.54M	-15.22M	-37.62M	-35.51M	-72.31M

Tak Lee Machinery Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2102, the sentiment is Neutral. The current price of 0.28 is below the 20-day moving average (MA) of 0.30, below the 50-day MA of 0.28, and above the 200-day MA of 0.24, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 51.38 is Neutral, neither overbought nor oversold. The STOCH value of 48.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2102.

Tak Lee Machinery Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3339	78 Outperform	HK$13.87B	3.26	11.37%	4.26%	2.60%	49.21%
2102	77 Outperform	HK$300.00M	7.39	6.36%	12.96%	18.37%	297.18%
0038	76 Outperform	HK$15.62B	8.06	10.40%	4.49%	-9.90%	-20.25%
0631	68 Neutral	HK$47.07B	4.40	11.02%	3.41%	15.52%	-23.76%
2499	67 Neutral	HK$2.01B	8.68	9.37%	0.53%	19.37%	75.13%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2153	44 Neutral	HK$1.11B	-5.14	-10.88%	―	-10.78%	-25.12%