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

• Market Cap: HK$3.50B
• Dividend Yield: 9.69%
• Average Volume (3M): 633.22K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.17
• Revenue Growth: -0.88%
• 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: 566,766
• 30 Day Avg. Volume: 633,218
• 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.

Positive Factors

Revenue Growth

Consistent revenue growth indicates effective market strategies and product demand, supporting long-term business expansion and sustainability.

Cash Flow Performance

Robust cash flow generation enhances financial flexibility, enabling the company to invest in growth opportunities and weather economic fluctuations.

Balance Sheet Health

Low leverage and strong equity position provide a solid financial foundation, reducing risk and supporting long-term operational stability.

Negative Factors

Revenue Growth Decline

A negative revenue growth rate suggests potential challenges in maintaining sales momentum, which could impact future financial performance.

Market Sentiment

Bearish market sentiment may reflect investor concerns about future performance, potentially affecting capital raising and market perception.

Stock Performance

Persistently low stock prices can limit the company's ability to attract new investors and may signal underlying business challenges.

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. 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	398.89M	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: Neutral
• Last Price: 9.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 9.99 is above the 20-day moving average (MA) of 8.27, above the 50-day MA of 8.75, and below the 200-day MA of 10.74, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 51.49 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$4.89B	4.48	15.64%	8.50%	2.85%	-33.83%
1571	76 Outperform	HK$3.75B	7.19	13.59%	13.37%	-3.80%	-27.62%
2025	67 Neutral	HK$8.04B	330.59	2.26%	0.20%	32.92%	67.96%
2488	65 Neutral	HK$3.50B	8.62	33.52%	9.69%	-0.88%	50.26%
1057	65 Neutral	HK$12.93B	20.73	9.59%	1.27%	35.32%	24.24%
1760	64 Neutral	HK$2.27B	13.08	6.62%	3.01%	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. Announces Capital Reduction Following H Share Repurchase

Launch Tech Co. Ltd. has announced a reduction in its registered capital following the repurchase of its H Shares, which has decreased the number of these shares to 156,595,600. This move, approved at the company’s special general meeting, involves notifying creditors and making necessary amendments to the company’s Articles of Association and business registration. The reduction in registered capital is part of the company’s strategic financial adjustments, potentially impacting its financial structure and stakeholder interests.

Launch Tech Co. Ltd. Successfully Passes Key Resolutions at SGM

Launch Tech Co. Ltd. announced that all resolutions proposed at the Special General Meeting (SGM) held on November 19, 2025, were passed by a significant majority. The resolutions included amendments to the Articles of Association and a reduction of registered capital, both of which received overwhelming support from shareholders. The successful passing of these resolutions indicates strong shareholder backing and could potentially impact the company’s governance and financial structure.

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.

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.