Lonking Holdings (3339) AI Stock Analysis

• Market Cap: HK$13.27B
• Dividend Yield: 4.26%
• Average Volume (3M): 9.99M
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.61
• Revenue Growth: 2.60%
• EPS Growth: 49.21%
• Country: HK
• Employees: 7,212
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 0.17
• Shares Outstanding: 4,280,100,000
• 10 Day Avg. Volume: 8,127,356
• 30 Day Avg. Volume: 9,993,107
• PEG Ratio: 0.10
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 4.73
• 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: HK$3.20
• Price Target Upside: 3.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: HK$3.50 ▲(13.27% Upside)

The stock's overall score is driven by strong technical indicators and a solid valuation, despite concerns over declining revenue and absent cash flow data. The company's financial stability and profitability provide a solid foundation, but growth and liquidity management need monitoring.

Positive Factors

Balance Sheet Health

A debt-free balance sheet enhances financial stability and flexibility, allowing Lonking Holdings to invest in growth opportunities without the burden of interest obligations.

Profitability

Solid profit margins indicate efficient operations and pricing power, supporting sustainable profitability and the ability to reinvest in the business.

Market Position

A strong reputation for quality and innovation helps Lonking maintain a competitive edge in the construction machinery market, supporting long-term growth.

Negative Factors

Revenue Decline

A decline in revenue raises concerns about the company's ability to maintain market share and grow its business, potentially impacting future profitability.

Cash Flow Concerns

Lack of current cash flow data suggests potential liquidity issues, which could limit the company's ability to fund operations and invest in growth.

Growth Challenges

Challenges in revenue growth and cash flow management may hinder Lonking's ability to capitalize on market opportunities and sustain long-term expansion.

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 primarily through the sale of its construction machinery and equipment. The company has a diversified revenue model that includes direct sales to customers, distribution through authorized dealers, and export sales to various international markets. Key revenue streams include the sale of wheel loaders, excavators, and other specialized machinery. Additionally, Lonking earns money through after-sales services, which encompass maintenance, repair, and parts sales, providing ongoing support to customers. The company's strategic partnerships with local and international distributors enhance its market reach and contribute significantly to its sales. Economic growth in infrastructure development, both in China and globally, further drives demand for its products, solidifying its revenue potential.

Lonking Holdings Financial Statement Overview

Summary

Lonking Holdings shows solid profitability and financial stability with a strong balance sheet and no debt. However, the decline in revenue and absence of cash flow data in 2024 raise concerns about 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.45B	10.21B	10.52B	11.15B	13.69B	12.88B
Gross Profit	2.14B	2.00B	1.84B	1.87B	2.46B	3.01B
EBITDA	1.25B	1.17B	952.65M	827.81M	1.18B	1.86B
Net Income	1.19B	1.02B	645.44M	400.45M	1.28B	1.96B
Balance Sheet
Total Assets	16.52B	15.47B	15.62B	15.39B	16.60B	17.27B
Cash, Cash Equivalents and Short-Term Investments	6.53B	5.98B	5.75B	3.71B	4.08B	4.53B
Total Debt	20.00M	5.81M	732.37M	714.47M	655.98M	671.58M
Total Liabilities	5.70B	4.77B	5.64B	5.64B	6.40B	7.18B
Stockholders Equity	10.81B	10.70B	9.98B	9.75B	10.20B	10.09B
Cash Flow
Free Cash Flow	1.01B	1.28B	1.80B	1.62B	37.28M	780.96M
Operating Cash Flow	1.05B	1.37B	1.98B	1.86B	419.68M	1.07B
Investing Cash Flow	-2.48B	-3.01B	-58.70M	-999.69M	-105.64M	362.27M
Financing Cash Flow	-331.25M	-615.43M	-458.29M	-854.23M	-1.07B	-1.15B

Lonking Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 3.09 is above the 20-day moving average (MA) of 3.03, above the 50-day MA of 3.05, and above the 200-day MA of 2.55, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 59.91 is Neutral, neither overbought nor oversold. The STOCH value of 83.76 is Negative, 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	78 Outperform	HK$13.27B	10.45	11.37%	4.26%	2.60%	49.21%
0038	76 Outperform	HK$14.95B	11.00	10.40%	4.49%	-9.90%	-20.25%
1157	74 Outperform	HK$83.50B	17.03	7.29%	7.28%	-3.92%	2.33%
1133	74 Outperform	HK$41.30B	16.64	15.06%	1.44%	34.78%	98.79%
0631	69 Neutral	HK$29.64B	20.13	11.02%	3.41%	15.52%	-23.76%
2355	65 Neutral	HK$2.14B	11.34	1.40%	3.23%	-27.65%	-68.36%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Lonking Holdings Corporate Events

Lonking Renews Connected Parts Supply Deal With Jinlong Through 2028

Lonking Holdings has renewed its master purchase agreement with Lonyan City Jinlong Machinery Company Limited, a connected supplier controlled by a family member of the group’s deputy chairman, to continue purchasing machinery parts from 1 January 2026 to 31 December 2028. The renewed agreement, classified as a continuing connected transaction under Hong Kong listing rules, will be subject to reporting, annual review and announcement requirements but will not require a shareholder circular or independent shareholders’ approval, streamlining compliance while preserving an established supply relationship for key parts.

The most recent analyst rating on (HK:3339) stock is a Buy with a HK$3.50 price target. To see the full list of analyst forecasts on Lonking Holdings stock, see the HK:3339 Stock Forecast page.