Lonking Holdings Limited (HK:3339)
:3339
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Lonking Holdings
(3339)
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Rating:78Outperform
Price Target:
HK$4.00
▲(29.45% Upside)
Action:Reiterated
Date:05/06/26
The score is driven primarily by attractive valuation (low P/E and a ~3.88% dividend yield) and improving fundamentals (2025 profit and cash flow rebound with strong cash conversion). Technicals also support the outlook with an uptrend and positive momentum. Key risks tempering the score are the uneven multi-year revenue trajectory and the sharp step-up in leverage in 2025.
Positive Factors
Free cash flow strength
Free cash flow covering roughly 94–95% of net income and rising 20.4% in 2025 shows durable ability to convert earnings into cash. That strengthens funding for dividends, maintenance capex and parts/service growth, reduces reliance on external financing and supports medium-term financial stability.
Negative Factors
Revenue cyclicality
Revenue declined across 2022–2024 and only modestly rebounded +4.5% in 2025, reflecting the cyclical nature of construction equipment demand. Persistent top-line volatility complicates capacity planning, dealer inventory absorption and long-term revenue predictability, raising execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow strength
Free cash flow covering roughly 94–95% of net income and rising 20.4% in 2025 shows durable ability to convert earnings into cash. That strengthens funding for dividends, maintenance capex and parts/service growth, reduces reliance on external financing and supports medium-term financial stability.
Read all positive factors
Lonking Holdings (3339) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$13.87B
Dividend Yield4.26%
Average Volume (3M)9.99M
Price to Earnings (P/E)9.0
Beta (1Y)0.73
Revenue Growth9.84%
EPS Growth27.75%
CountryHK
Employees7,212
SectorIndustrials
Sector Strength72
IndustryAgricultural - 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 Ratio0.36
Price to Book (P/B)0.99
Price to Sales (P/S)1.04
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)0.32
Revenue Forecast (FY)HK$12.41B
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 s...
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 | 10.92B | 10.21B | 10.52B | 11.15B | 13.69B |
| Gross Profit | 2.33B | 2.00B | 1.84B | 1.87B | 2.46B |
| EBITDA | 1.44B | 1.17B | 952.65M | 827.81M | 1.18B |
| Net Income | 1.27B | 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
Negative
3.09
Price Trends
3.14
Negative
3.16
Negative
3.05
Positive
Market Momentum
0.02
Positive
38.99
Neutral
12.00
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3339, the sentiment is Negative. The current price of 3.09 is below the 20-day moving average (MA) of 3.31, below the 50-day MA of 3.14, and above the 200-day MA of 3.05, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 38.99 is Neutral, neither overbought nor oversold. The STOCH value of 12.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | HK$13.87B | 8.98 | 11.57% | 4.26% | 9.84% | 27.75% | |
66 Neutral | HK$102.93B | 4.80 | 14.20% | 4.77% | 15.34% | 20.27% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | HK$36.32B | 13.19 | 13.75% | 3.41% | 11.08% | 59.37% | |
57 Neutral | HK$73.50B | 19.02 | 7.49% | 7.28% | 14.66% | 30.39% | |
51 Neutral | HK$2.33B | -80.02 | -1.07% | ― | 5.97% | 53.11% | |
39 Underperform | HK$1.06B | -5.14 | -10.95% | ― | -10.77% | -25.12% |
* Industrials Sector Average
HK:3339
Lonking Holdings
3.10
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Lonking Holdings Corporate Events
Lonking Sets 2026 AGM to Approve 2025 Dividend, Board Mandates and Share Issuance Authority
Apr 26, 2026
Lonking Holdings has called its annual general meeting for 28 May 2026 in Shanghai, where shareholders will review the audited consolidated financial statements for the year ended 31 December 2025 and vote on a proposed final dividend of HK$0.20 p...
Lonking Proposes HKD 0.20 Final Dividend for 2025 Financial Year
Mar 26, 2026
Lonking Holdings Limited has proposed a final ordinary dividend of HKD 0.20 per share for the financial year ended 31 December 2025, reinforcing its practice of returning cash to shareholders. The payout, which remains subject to shareholder appro...
Lonking Holdings Delivers Higher Profit on Revenue Growth in 2025
Mar 26, 2026
Lonking Holdings reported a solid increase in full-year 2025 results, with revenue rising to RMB 11.22 billion from RMB 10.21 billion and gross profit improving to RMB 2.40 billion. Net profit attributable to shareholders climbed to RMB 1.30 billi...
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.