Launch Tech Co. Ltd. Class H (2488) AI Stock Analysis

• Market Cap: HK$3.52B
• Dividend Yield: 9.63%
• Average Volume (3M): 859.69K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.19
• Revenue Growth: -0.98%
• EPS Growth: 50.26%
• Country: HK
• Employees: 1,070
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.50
• Shares Outstanding: 156,595,600
• 10 Day Avg. Volume: 975,348
• 30 Day Avg. Volume: 859,694
• PEG Ratio: 0.10
• Price to Book (P/B): 2.88
• Price to Sales (P/S): 1.89
• P/FCF Ratio: 11.27
• 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: 65 Neutral
• Price Target: HK$9.00 ▼(-9.91% Downside)

Launch Tech Co. Ltd. Class H has a strong financial foundation with robust revenue growth and profitability, contributing positively to the score. However, the technical analysis indicates bearish momentum, which negatively impacts the overall score. The valuation is attractive with a low P/E ratio and high dividend yield, providing some support to the stock's attractiveness.

Launch Tech Co. Ltd. Class H Business Overview & Revenue Model

Company Description

Launch Tech Co. Ltd. Class H (2488) is a technology company focused on the development and provision of innovative solutions in the fields of automation, software development, and digital transformation. The company specializes in creating cutting-edge products and services that enhance operational efficiencies for businesses across various sectors, including manufacturing, logistics, and retail. With a strong emphasis on research and development, Launch Tech Co. aims to deliver high-quality, scalable technology solutions that cater to the evolving needs of its clients.

How the Company Makes Money

Launch Tech Co. Ltd. generates revenue primarily through the sale of its software and automation solutions, which are designed to improve business processes and increase productivity for its clients. Key revenue streams include direct sales of proprietary software licenses, subscription-based access to cloud services, and consulting services that help organizations implement and optimize technology solutions. Additionally, the company may engage in strategic partnerships with other technology firms and service providers to expand its market reach and enhance its service offerings, further contributing to its earnings. Maintenance and support contracts also provide a steady source of recurring revenue, ensuring ongoing client engagement and satisfaction.

Launch Tech Co. Ltd. Class H Financial Statement Overview

Summary

Launch Tech Co. Ltd. Class H demonstrates solid financial health with strong growth in revenue and profitability. The balance sheet is well-managed with low leverage and high returns on equity. Cash flow performance is robust, supporting operational sustainability.

Income Statement

The company exhibits strong revenue growth with a 17.75% increase from the previous year. Gross profit margin remains robust at 47.54%, indicating effective cost management. Net profit margin has improved significantly to 18.04%, showcasing enhanced profitability. EBIT and EBITDA margins are healthy at 18.71% and 21.79% respectively, reflecting efficient operations and strong earnings before interest and taxes.

Balance Sheet

The balance sheet is stable with a manageable debt-to-equity ratio of 0.22, indicating low leverage. Return on equity is impressive at 27.42%, revealing strong returns for shareholders. The equity ratio stands at 61.99%, demonstrating a solid foundation of equity to support assets.

Cash Flow

The company has shown strong cash flow performance with a free cash flow growth rate of 310.50%. The operating cash flow to net income ratio is 1.15, indicating efficient conversion of income to cash. The free cash flow to net income ratio is 0.93, reflecting healthy free cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.86B	1.88B	1.60B	1.18B	1.34B	1.07B
Gross Profit	942.15M	895.08M	686.50M	433.16M	527.62M	478.55M
EBITDA	451.09M	410.22M	235.28M	119.83M	179.45M	-1.02M
Net Income	381.79M	339.51M	168.90M	328.03M	92.39M	-120.46M
Balance Sheet
Total Assets	2.18B	2.00B	1.86B	1.99B	1.56B	1.40B
Cash, Cash Equivalents and Short-Term Investments	559.11M	557.39M	625.58M	546.51M	415.39M	396.94M
Total Debt	305.74M	267.57M	414.35M	560.38M	425.18M	455.48M
Total Liabilities	938.91M	752.84M	780.38M	914.66M	810.02M	747.36M
Stockholders Equity	1.23B	1.24B	1.07B	1.07B	745.32M	653.40M
Cash Flow
Free Cash Flow	434.04M	315.94M	76.97M	9.24M	-63.23M	158.45M
Operating Cash Flow	509.52M	391.42M	163.61M	71.35M	-14.17M	203.84M
Investing Cash Flow	-118.79M	-114.87M	173.01M	-29.84M	-71.37M	-42.78M
Financing Cash Flow	-385.54M	-342.21M	-212.88M	26.07M	125.48M	-249.13M

Launch Tech Co. Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2488, the sentiment is Negative. The current price of 9.99 is above the 20-day moving average (MA) of 9.49, below the 50-day MA of 10.39, and below the 200-day MA of 10.80, indicating a bearish trend. The MACD of -0.57 indicates Positive momentum. The RSI at 26.28 is Positive, neither overbought nor oversold. The STOCH value of 8.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2488.

Launch Tech Co. Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1809	78 Outperform	HK$4.53B	4.16	15.64%	9.05%	2.85%	-33.83%
1571	76 Outperform	HK$3.97B	7.62	13.59%	12.72%	-3.80%	-27.62%
2025	67 Neutral	HK$7.98B	328.29	2.26%	0.20%	32.92%	67.96%
2488	65 Neutral	HK$3.52B	8.67	33.52%	9.63%	-0.98%	50.26%
1057	65 Neutral	HK$10.29B	19.39	9.59%	1.36%	35.32%	24.24%
1760	64 Neutral	HK$2.14B	12.33	6.62%	3.21%	13.35%	-38.32%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Launch Tech Co. Ltd. Class H Corporate Events

Launch Tech Co. Ltd. Adjusts Book Closure Date for Shareholder Meeting

Launch Tech Company Limited announced a change in the commencement date for the closure of its Register of Members, which determines shareholders’ eligibility to attend and vote at the upcoming special general meeting. The new date for the closure is set for 18 November 2025, with all relevant documents to be submitted by 17 November 2025. This adjustment ensures clarity for shareholders and maintains the integrity of the voting process.

The most recent analyst rating on (HK:2488) stock is a Hold with a HK$10.50 price target. To see the full list of analyst forecasts on Launch Tech Co. Ltd. Class H stock, see the HK:2488 Stock Forecast page.

Launch Tech Co. Ltd. Announces Special General Meeting for Strategic Changes

Launch Tech Company Limited has announced a Special General Meeting to be held on November 19, 2025, to discuss significant changes including proposed amendments to the Articles of Association and the abolition of the Supervisory Committee. Additionally, the meeting will address the reduction of registered capital, which could impact the company’s governance structure and financial framework.

The most recent analyst rating on (HK:2488) stock is a Hold with a HK$10.50 price target. To see the full list of analyst forecasts on Launch Tech Co. Ltd. Class H stock, see the HK:2488 Stock Forecast page.

Launch Tech Co. Ltd. Announces Strategic Assetization Initiative

Launch Tech Company Limited has announced a strategic initiative to assetize its equipment and explore real-world asset (RWA) applications. Leveraging its extensive experience in blockchain and automotive data, the company plans to develop technical solutions and hire additional R&D personnel to explore the feasibility of RWA applications for high-end product series. This move could potentially enhance the company’s market positioning and offer new opportunities for stakeholders, although the project is still in its preparatory stage.