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

• Market Cap: €4.51B
• Dividend Yield: 7.52%
• Average Volume (3M): 1.94M
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.23
• Revenue Growth: -0.98%
• EPS Growth: N/A
• Country: HK
• Employees: 1,070
• Sector: Technology
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.50
• Shares Outstanding: 159,170,600
• 10 Day Avg. Volume: 1,189,420
• 30 Day Avg. Volume: 1,939,992
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: ―

Launch Tech Co. Ltd. Class H is exhibiting strong financial performance with robust revenue growth and profitability, a stable balance sheet, and solid cash flow. The technical indicators show a moderate upward price trend, indicating potential for further growth. The valuation is fair with an attractive dividend yield, enhancing the stock's appeal. Overall, the company is well-positioned in its industry, contributing to a solid stock score.

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

Company Description

Launch Tech Company Limited, together with its subsidiaries, provides products and services to the automotive aftermarket and the automobile industry in the People's Republic of China and internationally. It operates through three segments: Automotive Diagnosis, Lift, and Overseas Sales. The company is involved in the research and development, production, and sale of car diagnosis, testing, and maintenance equipment; development, production, and sale of automotive diagnosis, inspection, repair, and maintenance software; development, production, and sale of auto electronic products; and provision of information network services. It also provides consulting services of electronic products and technical; technology exchange, transfer, and promotion; artificial intelligence public data platform; software development; big data technology services; health care management consultation and health care products development services; mobile phones and communication products; and Internet information consultation services, as well as develops, trades in, and sells computer software and hardware, and peripherals. In addition, the company engages in the development and distribution of electronic products and chips; development, distribution, and sale of computer software and hardware technology; computer network project, computer graphic design, and corporate image planning businesses; and provision of goods and technologies import and export, and agent services activities. Further, it is involved in the production of automobiles maintenance machines and equipment, and automobile warranty machines, such as automobile spray booths, tire balancers, tire changers, 4-wheel aligners, frame racks, and automobile testing lines; and development and sale of computer software, information system software, and car sharing technology. The company was founded in 1992 and is headquartered in Shenzhen, the People's Republic of China.

How the Company Makes Money

Launch Tech Co. Ltd. makes money primarily through the sale of its automotive diagnostic tools and equipment. The company's revenue streams include direct sales to automotive repair shops, dealerships, and service centers, as well as distribution partnerships with automotive suppliers worldwide. Additionally, the company may earn revenue from providing after-sales services, such as maintenance and training on their equipment, and through software updates for their diagnostic tools. Significant partnerships with automotive manufacturers and service networks enhance its market reach and customer base, contributing to its financial performance.

Launch Tech Co. Ltd. Class H Financial Statement Overview

Summary

Overall, 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. The company is well-positioned for future growth with a stable financial foundation.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.88B	1.60B	1.18B	1.34B	1.07B
Gross Profit	895.08M	686.50M	433.16M	527.62M	478.55M
EBITDA	410.22M	235.28M	118.75M	179.45M	―
Net Income	339.51M	168.90M	328.03M	92.39M	―
Balance Sheet
Total Assets	2.00B	1.86B	1.99B	1.56B	1.40B
Cash, Cash Equivalents and Short-Term Investments	557.39M	625.58M	546.51M	415.39M	396.94M
Total Debt	267.57M	414.35M	560.38M	425.18M	455.48M
Total Liabilities	752.84M	780.38M	914.66M	810.02M	747.36M
Stockholders Equity	1.24B	1.07B	1.07B	745.32M	653.40M
Cash Flow
Free Cash Flow	315.94M	76.97M	9.24M	―	158.45M
Operating Cash Flow	391.42M	163.61M	71.35M	―	203.84M
Investing Cash Flow	―	173.01M	―	―	―
Financing Cash Flow	―	―	26.07M	125.48M	―

Launch Tech Co. Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.00
• 50DMA: Negative
• 100DMA: Negative
• 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:2488, the sentiment is Negative. The current price of 11 is below the 20-day moving average (MA) of 11.34, below the 50-day MA of 12.14, and above the 200-day MA of 10.15, indicating a neutral trend. The MACD of -0.32 indicates Negative momentum. The RSI at 41.30 is Neutral, neither overbought nor oversold. The STOCH value of 49.78 is Neutral, 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
2488	78 Outperform	€4.51B	11.02	33.52%	7.52%	-0.98%	―
Sector *	61 Neutral	$35.83B	9.00	-10.39%	1.87%	8.46%	-7.85%
W4K1	―	€1.02B	19.37	9.35%	―	―	―
1571	82 Outperform	HK$4.20B	8.06	13.59%	7.09%	-3.80%	-27.62%
1809	76 Outperform	HK$4.43B	4.07	15.64%	9.17%	2.85%	-33.83%
2025	67 Neutral	HK$4.46B	212.60	1.95%	0.36%	30.75%	63.75%
1760	61 Neutral	HK$1.66B	9.57	6.62%	4.12%	13.35%	-38.32%

Launch Tech Co. Ltd. Class H Corporate Events

Launch Tech Co. Ltd. Announces Successful AGM Resolutions

Launch Tech Co. Ltd. announced the successful passing of all resolutions at its Annual General Meeting held on April 25, 2025. The resolutions included the approval of the Directors’ and Supervisory Committee’s reports, audited financial statements, reappointment of the independent auditor, and the reappointment of key executive directors. This outcome reflects strong shareholder support and is likely to positively impact the company’s governance and operational continuity.

Launch Tech Co. Ltd. Announces Final Dividend for 2024

Launch Tech Company Limited has announced a final cash dividend of RMB 0.45 per share for the financial year ending December 31, 2024. The dividend will be paid in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.08307, with the payment date set for May 23, 2025. The ex-dividend date is April 29, 2025, and the record date is May 8, 2025. Non-resident enterprise shareholders will face a 10% withholding tax, while individual resident shareholders will be subject to a 20% tax rate. This announcement reflects the company’s commitment to returning value to its shareholders and may impact the company’s financial positioning and investor relations.

Launch Tech Co. Ltd. Announces AGM and Key Resolutions

Launch Tech Co. Ltd. has announced its Annual General Meeting, scheduled for April 25, 2025, where several key resolutions will be considered. These include approving the directors’ and auditors’ reports, re-appointing directors, and authorizing a profit distribution plan with a proposed cash dividend of RMB0.45 per share. Additionally, a special resolution will be discussed to grant the board a mandate to repurchase issued H shares, subject to regulatory approvals.

Launch Tech Co. Ltd. Announces Final Dividend for 2024

Launch Tech Company Limited has announced a final cash dividend of RMB 0.45 per share for the year ending December 31, 2024. The announcement includes details about the dividend’s nature, currency conversion, and payment process, but specific dates for shareholder approval and payment are yet to be announced.

Launch Tech Co. Ltd. Reports Robust 2024 Financial Results

Launch Tech Company Limited announced its 2024 annual financial results, reporting a turnover of RMB1,880 million and a net profit of RMB340 million. The company declared a final dividend of RMB0.45 per share, reflecting a strong financial performance. The results indicate a solid position in the market, with increased accounts receivable and investments in non-current assets, suggesting strategic growth and expansion efforts.

Launch Tech Co. Ltd. Announces 2024 Interim Dividend

Launch Tech Company Limited has announced a cash dividend distribution for the financial year ending December 31, 2024. The company declared a final ordinary dividend of RMB 0.45 per share, with further details on the exchange rate, ex-dividend date, and payment date to be announced. This announcement reflects the company’s financial performance and its commitment to returning value to shareholders, potentially impacting its market positioning and investor relations.

Launch Tech Co. Ltd. Schedules Board Meeting to Review Annual Results

Launch Tech Co. Ltd. has announced a board meeting scheduled for March 25, 2025, to discuss the annual results for the year ending December 31, 2024, and the potential declaration of dividends. This meeting is significant as it will provide insights into the company’s financial performance and future dividend policies, impacting stakeholders and the company’s market positioning.