Lonking Holdings (3339) AI Stock Analysis

• Market Cap: HK$8.56B
• Dividend Yield: 6.5%
• Average Volume (3M): 7.26M
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.52
• Revenue Growth: -5.02%
• EPS Growth: 54.95%
• Country: HK
• Employees: 7,212
• Sector: Industrials
• Sector Strength: 87
• Industry: Agricultural - Machinery
• EPS (TTM): 0.26
• Shares Outstanding: 4,280,100,000
• 10 Day Avg. Volume: 5,616,400
• 30 Day Avg. Volume: 7,262,056
• PEG Ratio: -0.18
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.20
• 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: 72 Outperform
• Price Target: ―

Lonking Holdings is financially stable with strong profitability and no debt issues, but the declining revenue and absent cash flow data are concerning. The stock's technical indicators suggest a modest upward trend, and its valuation appears attractive, with a low P/E ratio and a decent dividend yield. These factors contribute to a cautiously optimistic overall score.

Lonking Holdings Business Overview & Revenue Model

Company Description

Lonking Holdings Limited, an investment holding company, manufactures and distributes wheel loaders, road rollers, excavators, forklifts, and other construction machinery in Mainland China. The company also provides hydraulic excavators and skid steer loaders; and diesel, electric, and LPG forklifts. In addition, it offers components, such as axles, gear boxes, cylinders, gears, castings, and high-end hydraulic pumps and valves; and main valves, parts, pilot oil valves, radial plunger motors, swing motors and reducer assemblies, and variable plunger pumps. Further, the company provides finance leasing for wheel loaders and other machinery. It also sells its products to approximately 40 countries in Mid and South America, Russia, Asia and Pacific area, Mid-East countries and Africa, etc. The company was founded in 1993 and is headquartered in Shanghai, the People's Republic of China.

How the Company Makes Money

Lonking Holdings generates revenue through the sale of its construction machinery products, including wheel loaders, excavators, forklifts, and road rollers. The company's revenue streams are primarily derived from the direct sales of these products to domestic and international customers. Lonking leverages its extensive distribution network, comprising independent dealers and distributors, to penetrate various markets. Additionally, the company benefits from after-sales services, parts sales, and maintenance services, which provide a steady stream of income. Strategic partnerships with suppliers and a focus on maintaining efficient manufacturing processes help Lonking Holdings maintain competitive pricing and profitability in the construction machinery industry.

Lonking Holdings Financial Statement Overview

Summary

Lonking Holdings shows strong profitability and financial stability with a solid balance sheet and no debt. However, declining revenue and absent cash flow data in 2024 raise concerns about future growth and liquidity management.

Income Statement

The company's gross profit margin for 2024 is approximately 19.49%, with a net profit margin of about 9.97%, indicating solid profitability. However, there is a revenue decline of about 2.94% from 2023 to 2024, which raises concerns about growth. EBIT margin is approximately 8.83%, and EBITDA margin is roughly 11.47%, supporting a stable operating performance despite the revenue drop.

Balance Sheet

The company shows a healthy balance sheet with no total debt in 2024, resulting in a debt-to-equity ratio of 0. The equity ratio is a robust 69.15%, indicating financial stability. Return on equity (ROE) is strong at about 9.52%, reflecting efficient use of equity. The overall position is strengthened by significant cash reserves.

Cash Flow

The absence of operating and free cash flow in 2024 is a significant concern, possibly indicating cash flow management issues. In prior years, the company showed positive free cash flow, but the lack of current data prevents a thorough analysis of cash flow health and sustainability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.21B	10.52B	11.15B	13.69B	12.88B
	Gross Profit
2.00B	1.84B	1.87B	2.46B	3.01B
	EBIT
902.11M	683.42M	815.63M	1.11B	2.37B
	EBITDA
1.17B	952.65M	1.09B	1.40B	2.71B
	Net Income Common Stockholders
1.02B	645.44M	400.45M	1.28B	1.96B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.98B	5.75B	3.71B	4.08B	4.53B
	Total Assets
15.47B	15.62B	15.39B	16.60B	17.27B
	Total Debt
0.00	732.37M	714.47M	655.98M	671.58M
	Net Debt
-1.21B	-2.74B	-1.32B	-1.37B	-2.11B
	Total Liabilities
4.77B	5.64B	5.64B	6.40B	7.18B
	Stockholders Equity
10.70B	9.98B	9.75B	10.20B	10.09B
Cash Flow		Free Cash Flow
0.00	1.80B	1.62B	37.28M	780.96M
	Operating Cash Flow
0.00	1.98B	1.86B	419.68M	1.07B
	Investing Cash Flow
0.00	-58.70M	-999.69M	-105.64M	362.27M
	Financing Cash Flow
0.00	-458.29M	-854.23M	-1.07B	-1.15B

Lonking Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.00
• 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:3339, the sentiment is Positive. The current price of 2 is above the 20-day moving average (MA) of 1.95, above the 50-day MA of 1.88, and above the 200-day MA of 1.57, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 61.59 is Neutral, neither overbought nor oversold. The STOCH value of 79.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3339.

Lonking Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3339	72 Outperform	HK$8.56B	7.75	9.85%	6.50%	-5.02%	54.95%
Sector *	63 Neutral	$770.65M	8.81	4.79%	3.72%	1.11%	-32.34%
FIRRF		$1.68B	8.44	11.27%	4.68%	―	―
SNYYF		$2.76B	18.50	9.23%	4.22%	―	―
ZLIOF		$8.25B	12.20	6.96%	5.75%	―	―
HP6H		€1.40B	7.08	11.35%	0.99%	―	―
BKG		€247.38M	4.63	3.16%	―	―	―

Lonking Holdings Corporate Events

Lonking Holdings Announces Discloseable Transaction in Wealth Management Investments

Lonking Holdings Limited, a company incorporated in the Cayman Islands, has announced a discloseable transaction involving investments in various wealth management products. These investments, which include products from BOC, CCB, CITIC, CMBC, FOTIC, ICBC, and SPBD, have outstanding principal amounts ranging from RMB410 million to RMB1,246.2 million. The transaction is subject to reporting and announcement requirements under the Listing Rules, as the highest applicable percentage ratio for each investment exceeds 5% but is below 25%. This strategic move reflects Lonking Holdings’ efforts to manage its financial resources effectively, potentially impacting its financial performance and offering insights into its investment strategy.

Lonking Holdings Announces 2025 Annual General Meeting

Lonking Holdings Limited has announced its upcoming annual general meeting, set to take place on May 28, 2025, in Shanghai. The meeting will address several key resolutions, including the adoption of the company’s 2024 financial statements, approval of a final dividend payment, re-election of directors, and reappointment of auditors. Additionally, the board seeks authorization to manage share allotments and related securities, potentially impacting the company’s capital structure and market operations.

Lonking Holdings Declares Final Dividend for 2024

Lonking Holdings Limited has announced a final cash dividend of HKD 0.13 per share for the financial year ending December 31, 2024. This announcement reflects the company’s stable financial performance and commitment to delivering shareholder value. The dividend will be paid on July 31, 2025, following shareholder approval on May 28, 2025. This decision underscores Lonking Holdings’ strategic focus on maintaining investor confidence and enhancing its market positioning.

Lonking Holdings Reports Increased Profitability Despite Revenue Dip in 2024

Lonking Holdings Limited has announced its annual financial results for the year ended December 31, 2024. The company reported a revenue of RMB 10,213,556,000, a slight decrease from the previous year. However, the profit before tax increased significantly to RMB 1,217,182,000, up from RMB 772,657,000 in 2023. This improvement in profitability is attributed to reduced cost of sales and other gains, despite a decrease in revenue. The earnings per share for ordinary equity holders also rose to RMB 0.24 from RMB 0.15, indicating a positive impact on shareholder value.