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.
Flawless balance sheet with solid track record.
Share Price & News
How has Launch Tech's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 2488's share price has been volatile over the past 3 months.
7 Day Return
HK Auto Components
1 Year Return
HK Auto Components
Return vs Industry: 2488 underperformed the Hong Kong Auto Components industry which returned -38.8% over the past year.
Return vs Market: 2488 underperformed the Hong Kong Market which returned -22.7% over the past year.
Price Volatility Vs. Market
How volatile is Launch Tech's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall StRead This Before You Buy Launch Tech Company Limited (HKG:2488) Because Of Its P/E Ratio
1 month ago | Simply Wall StWhat Kind Of Shareholder Appears On The Launch Tech Company Limited's (HKG:2488) Shareholder Register?
1 month ago | Simply Wall StIs Launch Tech Company Limited's (HKG:2488) CEO Paid At A Competitive Rate?
Is Launch Tech undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 2488 (HK$2.3) is trading above our estimate of fair value (HK$0.85)
Significantly Below Fair Value: 2488 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 2488 is poor value based on its PE Ratio (12.1x) compared to the Auto Components industry average (11.4x).
PE vs Market: 2488 is poor value based on its PE Ratio (12.1x) compared to the Hong Kong market (8.9x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 2488's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 2488 is overvalued based on its PB Ratio (1x) compared to the HK Auto Components industry average (0.8x).
How is Launch Tech forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
Forecasted Automobiles industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Launch Tech has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
- Check out Launch Tech's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.
- Launch Tech competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Automobiles industry.
How has Launch Tech performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 2488 has high quality earnings.
Growing Profit Margin: 2488's current net profit margins (7.3%) are higher than last year (4.1%).
Past Earnings Growth Analysis
Earnings Trend: 2488 has become profitable over the past 5 years, growing earnings by 52.8% per year.
Accelerating Growth: 2488's earnings growth over the past year (106.6%) exceeds its 5-year average (52.8% per year).
Earnings vs Industry: 2488 earnings growth over the past year (106.6%) exceeded the Auto Components industry -22.1%.
Return on Equity
High ROE: 2488's Return on Equity (8.1%) is considered low.
How is Launch Tech's financial position?
Financial Position Analysis
Short Term Liabilities: 2488's short term assets (CN¥940.9M) exceed its short term liabilities (CN¥636.7M).
Long Term Liabilities: 2488's short term assets (CN¥940.9M) exceed its long term liabilities (CN¥18.7M).
Debt to Equity History and Analysis
Debt Level: 2488's debt to equity ratio (24.1%) is considered satisfactory.
Reducing Debt: 2488's debt to equity ratio has reduced from 81.2% to 24.1% over the past 5 years.
Inventory Level: 2488 has a high level of physical assets or inventory.
Debt Coverage by Assets: 2488's debt is covered by short term assets (assets are 4.1x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: 2488 is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: Insufficient data to determine if 2488 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
What is Launch Tech's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 2488's dividend (3.96%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.63%).
High Dividend: 2488's dividend (3.96%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.28%).
Stability and Growth of Payments
Stable Dividend: 2488's dividend payments have been volatile in the past 10 years.
Growing Dividend: 2488's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (47.7%), 2488's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Charles Liu (50yo)
Mr. Jun Liu, also known as Charles, serves as Executive Vice President of Lenovo Group Limited and has been its President of Lenovo China since June 8, 2017. Mr. Liu served as Executive Vice President and ...
CEO Compensation Analysis
Compensation vs Market: Charles's total compensation ($USD287.32K) is about average for companies of similar size in the Hong Kong market ($USD232.34K).
Compensation vs Earnings: Charles's compensation has increased by more than 20% in the past year.
|Founder & Chairman||no data||CN¥2.06m||18.32% CN¥172.7m|
|Co-Founder||no data||CN¥2.04m||no data|
|Chief Information Officer & Executive Director||9yrs||CN¥716.80k||no data|
|Head of Domestic Marketing Centre & Executive Director||9yrs||CN¥513.13k||no data|
|Independent Non-Executive Director||10yrs||CN¥50.00k||no data|
|Independent Non-Executive Director||5.67yrs||CN¥50.00k||no data|
|Supervisor||1.67yrs||no data||no data|
|Independent Non-Executive Director||4.67yrs||CN¥50.00k||no data|
|Supervisor||3.67yrs||no data||no data|
|Non-Executive Director||1.67yrs||CN¥50.00k||no data|
Experienced Board: 2488's board of directors are considered experienced (5.7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Launch Tech Company Limited's company bio, employee growth, exchange listings and data sources
- Name: Launch Tech Company Limited
- Ticker: 2488
- Exchange: SEHK
- Founded: 1992
- Industry: Auto Parts and Equipment
- Sector: Automobiles
- Market Cap: HK$942.232m
- Shares outstanding: 432.22m
- Website: https://www.cnlaunch.com
Number of Employees
- Launch Tech Company Limited
- Launch Industrial Park
- North of Wuhe Road
- Guangdong Province
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|2488||SEHK (The Stock Exchange of Hong Kong Ltd.)||Yes||Foreign Shares-Foreign Listed||HK||HKD||Oct 2002|
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 develops, trades in, and sells computer software and hardware, and peripherals; provides consulting services of electronic products and technical; and provides health care management consultation and health care products development services. In addition, the company provides mobile phones and communication products; electronic products development and distribution; chip development and distribution; goods and technologies import and export, and agencies; computer software and hardware technology development, distribution, and sale; computer network projects; computer graphic design; corporate image planning; and Internet information consultation services. Further, it engages 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; purchase and sale of computer software and hardware; and development and sale of computer software, information system software, and car sharing technology. The company was founded in 1992 and is based in Shenzhen, the People’s Republic of China.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/03/31 13:12|
|End of Day Share Price||2020/03/31 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.