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Lonking Holdings
(3339)
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Rating:76Outperform
Price Target:
HK$3.50
▲(12.90% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by improving financial performance and strong cash conversion in 2024–2025, supported by an attractive valuation (low P/E and high dividend yield). Technicals are also positive with price above key moving averages and supportive momentum indicators. The main constraint is increased leverage in 2025 and a historically uneven revenue trajectory.
Positive Factors
High free cash flow conversion
Lonking converted nearly all reported net income into free cash flow (~94% in 2024; ~95% in 2025) with FCF growing ~20.4% in 2025. Reliable FCF conversion improves the company's capacity to fund capex, sustain dividends, support dealers and absorb cyclical demand shocks.
Negative Factors
Rising leverage from prior conservatism
Debt-to-equity rising to ~0.19 from near-zero marks a meaningful shift from prior conservatism. Higher leverage increases interest expense and reduces financial flexibility, leaving the company more exposed if construction demand softens or working-capital needs spike.
Read all positive and negative factors
Positive Factors
Negative Factors
High free cash flow conversion
Lonking converted nearly all reported net income into free cash flow (~94% in 2024; ~95% in 2025) with FCF growing ~20.4% in 2025. Reliable FCF conversion improves the company's capacity to fund capex, sustain dividends, support dealers and absorb cyclical demand shocks.
Read all positive factors
Lonking Holdings (3339) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$12.65B
Dividend Yield6.78%
Average Volume (3M)9.99M
Price to Earnings (P/E)8.4
Beta (1Y)0.77
Revenue Growth9.84%
EPS Growth27.75%
CountryHK
Employees8,239
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.30
Shares Outstanding4,280,100,000
10 Day Avg. Volume8,127,356
30 Day Avg. Volume9,993,107
Financial Highlights & Ratios
PEG Ratio0.35
Price to Book (P/B)0.99
Price to Sales (P/S)1.01
P/FCF Ratio9.39
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.37
Revenue Forecast (FY)HK$12.76B
Lonking Holdings Business Overview & Revenue Model
Company Description
Lonking Holdings Limited operates as an investment holding entity primarily involved in the production and global sale of a wide range of construction equipment. Based in Mainland China, its extensive product portfolio includes heavy machinery suc...
How the Company Makes Money
Lonking primarily makes money by selling construction machinery to distributors/dealers and end customers. Its core revenue stream is the sale of new machines (notably wheel loaders and excavators), where revenue is recognized from delivering equi...
Lonking Holdings Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
66
Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.22B | 10.21B | 10.52B | 11.15B | 13.69B |
| Gross Profit | 2.40B | 2.00B | 1.84B | 1.87B | 2.46B |
| EBITDA | 1.42B | 1.17B | 952.65M | 827.81M | 1.18B |
| Net Income | 1.30B | 1.02B | 645.44M | 400.45M | 1.28B |
Balance Sheet | |||||
| Total Assets | 16.92B | 15.47B | 15.62B | 15.39B | 16.60B |
| Cash, Cash Equivalents and Short-Term Investments | 6.82B | 5.98B | 5.75B | 3.71B | 4.08B |
| Total Debt | 2.15B | 5.81M | 732.37M | 714.47M | 655.98M |
| Total Liabilities | 5.44B | 4.77B | 5.64B | 5.64B | 6.40B |
| Stockholders Equity | 11.48B | 10.70B | 9.98B | 9.75B | 10.20B |
Cash Flow | |||||
| Free Cash Flow | 1.21B | 1.28B | 1.80B | 1.62B | 37.28M |
| Operating Cash Flow | 1.27B | 1.37B | 1.98B | 1.86B | 419.68M |
| Investing Cash Flow | 2.33B | -3.01B | -58.70M | -999.69M | -105.64M |
| Financing Cash Flow | -474.33M | -615.43M | -458.29M | -854.23M | -1.07B |
Lonking Holdings Technical Analysis
Positive
3.10
Price Trends
2.88
Positive
2.90
Positive
2.90
Positive
Market Momentum
0.04
Positive
46.67
Neutral
10.39
Positive
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 3.1 is above the 20-day moving average (MA) of 3.06, above the 50-day MA of 2.88, and above the 200-day MA of 2.90, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 46.67 is Neutral, neither overbought nor oversold. The STOCH value of 10.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3339.
Lonking Holdings Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | HK$12.65B | 8.43 | 11.67% | 6.45% | 9.84% | 27.75% | |
71 Outperform | HK$109.11B | 13.16 | 15.91% | 4.77% | 15.34% | 20.27% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | HK$23.57B | 11.61 | 13.81% | 4.59% | 11.08% | 59.37% | |
60 Neutral | HK$68.10B | 13.86 | 7.49% | 5.93% | 14.66% | 30.39% | |
42 Neutral | HK$1.41B | -45.72 | -0.36% | ― | 5.97% | 53.11% | |
42 Neutral | HK$921.83M | -6.72 | -9.84% | ― | -6.74% | -2.06% |
* Industrials Sector Average
HK:3339
Lonking Holdings
2.95
0.26
9.58%
HK:1122
Qingling Motors Co
0.57
-0.23
-28.48%
HK:3808
Sinotruk Hong Kong
38.98
16.71
74.99%
HK:0631
Sany Heavy Equipment International Holdings Co
7.31
0.45
6.61%
HK:1157
Zoomlion Heavy Industry Science & Technology Co
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0.46
7.13%
HK:2153
Tat Hong Equipment Service Co. Ltd.
0.80
-0.30
-27.27%
Lonking Holdings Corporate Events
Lonking Sets August Board Meeting to Review Interim Results and Dividend
Jul 31, 2026
Lonking Holdings Limited has scheduled a board meeting for August 26, 2026, at its Shanghai offices to review and approve the interim financial results for the six months ended June 30, 2026. The board will also consider the declaration of an inte...
Lonking Issues Positive Profit Alert on Strong First-Half 2026 Earnings
Jul 20, 2026
Lonking Holdings has issued a positive profit alert for the six months ended 30 June 2026, forecasting unaudited net profit of RMB730 million to RMB800 million, up 16% to 27% year on year. The improvement is attributed to expanded product offering...
Lonking Holdings Corrects ESG Water Consumption Figure in 2025 Annual Report
Jul 3, 2026
Lonking Holdings issued a clarification to its 2025 annual report, correcting an error in the Environmental, Social and Governance section related to the group’s reported tap water consumption. The company stated that the correct figure shou...
Lonking Wins Shareholder Backing for Dividend, Board Mandates at AGM
May 28, 2026
Lonking Holdings shareholders approved all resolutions at the 28 May 2026 annual general meeting, including the adoption of the 2025 audited accounts and the reappointment of Ernst Young as auditor. Investors also backed the re-election of the fu...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.