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. More Details
Excellent balance sheet and slightly overvalued.
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 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: 2488's weekly volatility (8%) has been stable over the past year.
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 77.7% over the past year.
Return vs Market: 2488 underperformed the Hong Kong Market which returned 27.5% over the past year.
Long-Term 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
1 month ago | Simply Wall StWhat Kind Of Shareholders Hold The Majority In Launch Tech Company Limited's (HKG:2488) Shares?
5 months ago | Simply Wall StHow Much is Launch Tech's (HKG:2488) CEO Getting Paid?
6 months ago | Simply Wall StDo Institutions Own Launch Tech Company Limited (HKG:2488) Shares?
Is Launch Tech undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 2488 (HK$4.21) is trading below our estimate of fair value (HK$14.06)
Significantly Below Fair Value: 2488 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 2488 is unprofitable, so we can't compare its PE Ratio to the HK Auto Components industry average.
PE vs Market: 2488 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.
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 (2.3x) compared to the HK Auto Components industry average (1.3x).
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.
How has Launch Tech performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 2488 is currently unprofitable.
Growing Profit Margin: 2488 is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: 2488 is unprofitable, and losses have increased over the past 5 years at a rate of 26.1% per year.
Accelerating Growth: Unable to compare 2488's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: 2488 is unprofitable, making it difficult to compare its past year earnings growth to the Auto Components industry (13.4%).
Return on Equity
High ROE: 2488 has a negative Return on Equity (-18.43%), as it is currently unprofitable.
How is Launch Tech's financial position?
Financial Position Analysis
Short Term Liabilities: 2488's short term assets (CN¥832.3M) exceed its short term liabilities (CN¥733.3M).
Long Term Liabilities: 2488's short term assets (CN¥832.3M) exceed its long term liabilities (CN¥14.1M).
Debt to Equity History and Analysis
Debt Level: 2488's debt to equity ratio (42.2%) is considered high.
Reducing Debt: 2488's debt to equity ratio has reduced from 79.5% to 42.2% over the past 5 years.
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: Whilst unprofitable 2488 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: 2488 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 49.1% per year.
What is Launch Tech current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate 2488's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate 2488's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if 2488's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if 2488's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: 2488 is not paying a notable dividend for the Hong Kong market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of 2488's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Charles Liu (51 yo)
Mr. Jun Liu, also known as Charles, serves as Executive Vice President and President of China Geography at Lenovo Group Limited since April 2021. He served as Executive Vice President of Lenovo Group Limit...
CEO Compensation Analysis
Compensation vs Market: Charles's total compensation ($USD277.04K) is about average for companies of similar size in the Hong Kong market ($USD292.01K).
Compensation vs Earnings: Charles's compensation has been consistent with company performance over the past year.
Experienced Board: 2488's board of directors are considered experienced (6.4 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$1.811b
- 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
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. ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/07 11:22|
|End of Day Share Price||2021/05/07 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.