Why Fundamental Investors Might Love Lung Kee (Bermuda) Holdings Limited (HKG:255)

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I’ve been keeping an eye on Lung Kee (Bermuda) Holdings Limited (HKG:255) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe 255 has a lot to offer. Basically, it is a well-regarded dividend payer that has been able to sustain great financial health over the past. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my broad commentary, take a look at the report on Lung Kee (Bermuda) Holdings here.

Flawless balance sheet average dividend payer

255’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. Investors should not worry about 255’s debt levels because the company has none! It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.

SEHK:255 Historical Debt, July 19th 2019
SEHK:255 Historical Debt, July 19th 2019

For those seeking income streams from their portfolio, 255 is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 8.5%, making it one of the best dividend companies in the market.

SEHK:255 Historical Dividend Yield, July 19th 2019
SEHK:255 Historical Dividend Yield, July 19th 2019

Next Steps:

For Lung Kee (Bermuda) Holdings, there are three essential aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for 255’s future growth? Take a look at our free research report of analyst consensus for 255’s outlook.
  2. Historical Performance: What has 255’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 255? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.