Tak Lee Machinery Holdings Limited (2102) AI Stock Analysis

• Market Cap: HK$214.00M
• Dividend Yield: 6.52%
• Average Volume (3M): 109.00K
• Price to Earnings (P/E): 17.0
• Beta (1Y): -0.17
• Revenue Growth: 9.25%
• EPS Growth: 23.53%
• Country: HK
• Employees: 118
• Sector: Industrials
• Sector Strength: 78
• Industry: Agricultural - Machinery
• EPS (TTM): 0.01
• Shares Outstanding: 1,000,000,000
• 10 Day Avg. Volume: 69,000
• 30 Day Avg. Volume: 109,000
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The company's strong balance sheet and improved cash flow are significant positives, but these are offset by declining revenues and low profitability margins. Technical indicators suggest neutral momentum, and while the valuation is reasonable with a high dividend yield, profitability concerns remain.

Tak Lee Machinery Holdings Limited Business Overview & Revenue Model

Company Description

Tak Lee Machinery Holdings Limited, an investment holding company, engages in the sale and leasing of new and used earthmoving equipment in Hong Kong. It operates through Sales of Heavy Equipment and Spare Parts, Lease of Heavy Equipment, and Maintenance and Ancillary Services segments. The company sells and leases heavy equipment, such as excavators, bulldozers, lifting cranes, hydraulic breakers, and others; and sells spare parts. It also provides maintenance and ancillary services; and motor vehicles services. The company was founded in 2001 and is headquartered in Yuen Long, Hong Kong. Tak Lee Machinery Holdings Limited is a subsidiary of Generous Way Limited.

How the Company Makes Money

Tak Lee Machinery Holdings Limited generates revenue primarily through the sale and leasing of construction machinery. The company sells new and used heavy equipment to construction companies and contractors. Additionally, it offers machinery leasing services, providing clients with flexible options to rent equipment for short-term or long-term projects. This allows the company to maintain a steady cash flow from lease agreements. Key revenue streams include sales of machinery, leasing fees, and maintenance services. Tak Lee Machinery Holdings Limited may also engage in strategic partnerships with construction firms and equipment manufacturers to enhance its product offerings and market reach, contributing to its overall earnings.

Tak Lee Machinery Holdings Limited Financial Statement Overview

Summary

Tak Lee Machinery Holdings Limited demonstrates strong balance sheet stability with minimal debt and robust equity ratio. However, declining revenues and low net profit margins pose challenges, despite recent improvements in cash flow.

Income Statement

The company shows a declining revenue trend over the years. Gross Profit Margin is stable at 16.95% for the latest year, but the Net Profit Margin is relatively low at 2.54%. The revenue growth from 2023 to 2024 was 2.70%, indicating a slight recovery. EBIT and EBITDA Margins are healthy, but the decreasing trend in revenue and gross profit is a concern.

Balance Sheet

The Balance Sheet is strong with a low Debt-to-Equity Ratio of 0.01, indicating minimal leverage. The Return on Equity for 2024 is low at 1.60% due to reduced profitability. The Equity Ratio is robust at 90.26%, showcasing financial stability and low reliance on external debt.

Cash Flow

The company has improved its Free Cash Flow significantly from negative in 2023 to a positive 41.38 million in 2024, showing a strong recovery. Operating Cash Flow is positive and covers net income well, but historical fluctuations in cash flows highlight potential volatility.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	279.33M	272.00M	395.18M	485.80M	628.80M
Gross Profit	57.32M	53.10M	87.03M	90.58M	107.09M
EBITDA	50.00M	51.33M	98.53M	102.06M	105.42M
Net Income	7.09M	7.08M	45.06M	52.58M	51.28M
Balance Sheet
Total Assets	491.70M	499.20M	530.38M	510.40M	540.35M
Cash, Cash Equivalents and Short-Term Investments	73.77M	47.02M	87.24M	109.21M	69.27M
Total Debt	5.76M	11.46M	32.92M	38.15M	76.79M
Total Liabilities	47.97M	57.56M	85.82M	80.90M	138.44M
Stockholders Equity	443.73M	441.64M	444.56M	429.50M	401.92M
Cash Flow
Free Cash Flow	41.34M	-4.09M	36.26M	112.74M	78.77M
Operating Cash Flow	46.54M	-3.57M	43.10M	116.50M	84.30M
Investing Cash Flow	-3.89M	1.77M	-28.60M	-4.25M	-3.06M
Financing Cash Flow	-15.22M	-37.62M	-35.51M	-72.31M	-77.62M

Tak Lee Machinery Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.21
• 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:2102, the sentiment is Positive. The current price of 0.21 is above the 20-day moving average (MA) of 0.21, above the 50-day MA of 0.21, and above the 200-day MA of 0.17, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 51.94 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
2102	64 Neutral	HK$214.00M	16.98	2.83%	6.52%	9.25%	23.53%
Sector *	63 Neutral	$10.78B	16.39	6.80%	2.08%	2.65%	-16.28%
FIRRF	―	$1.74B	8.96	11.27%	5.29%	―	―
LONKF	―	$1.56B	11.34	9.85%	4.45%	―	―
SNYYF	―	$2.97B	19.08	9.23%	4.40%	―	―
1Q2	―	€141.53M	―	-8.98%	―	―	―
2499	60 Neutral	HK$1.76B	15.90	9.06%	0.65%	15.31%	222.54%

Tak Lee Machinery Holdings Limited Corporate Events

Tak Lee Machinery Holdings Reports Strong Interim Results with Increased Revenue and Profit

Tak Lee Machinery Holdings Limited reported a 14.3% increase in revenue to approximately HK$151.5 million for the six months ended January 31, 2025, compared to the same period in 2024. The company’s profit and total comprehensive income rose by 64.7% to approximately HK$14.0 million, and an interim dividend of HK1.5 cents per share was declared, reflecting strong financial performance and shareholder returns.

Tak Lee Machinery Announces Interim Dividend for 2025

Tak Lee Machinery Holdings Limited announced an interim cash dividend of HKD 0.015 per share for the six months ended 31 January 2025. This dividend reflects the company’s financial performance and commitment to returning value to shareholders. The ex-dividend date is set for 3 April 2025, with the payment date scheduled for 24 April 2025, indicating a structured approach to shareholder returns.

Tak Lee Machinery Updates Nomination Committee Terms to Enhance Board Diversity and Strategy

Tak Lee Machinery Holdings Limited has updated the terms of reference for its Nomination Committee, emphasizing the importance of board diversity and strategic alignment. The committee is tasked with reviewing board composition, assessing director independence, and recommending appointments to ensure the board’s skills and diversity align with the company’s strategic goals, impacting its governance and stakeholder relations positively.

Tak Lee Machinery Holdings Limited Announces Board Composition and Committee Roles

Tak Lee Machinery Holdings Limited has announced the composition of its board of directors and the roles within its established committees. The board comprises executive, non-executive, and independent non-executive directors, with specific individuals assigned to the audit, remuneration, and nomination committees. This organizational structure is crucial for the company’s governance and operational oversight, potentially impacting its strategic decisions and stakeholder relations.