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3339

Lonking Holdings SEHK:3339 Stock Report

Last Price

HK$1.47

Market Cap

HK$6.3b

7D

1.4%

1Y

-43.9%

Updated

14 Aug, 2022

Data

Company Financials +
3339 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance1/6
Financial Health6/6
Dividends4/6

3339 Stock Overview

Lonking Holdings Limited, an investment holding company, manufactures and distributes wheel loaders, road rollers, excavators, forklifts, and other construction machinery in Mainland China.

Lonking Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Lonking Holdings
Historical stock prices
Current Share PriceHK$1.47
52 Week HighHK$2.64
52 Week LowHK$1.43
Beta0.72
1 Month Change-17.88%
3 Month Change-31.31%
1 Year Change-43.89%
3 Year Change-18.33%
5 Year Change-40.00%
Change since IPO311.19%

Recent News & Updates

Aug 04
Is Lonking Holdings Limited (HKG:3339) Trading At A 25% Discount?

Is Lonking Holdings Limited (HKG:3339) Trading At A 25% Discount?

How far off is Lonking Holdings Limited ( HKG:3339 ) from its intrinsic value? Using the most recent financial data...

Shareholder Returns

3339HK MachineryHK Market
7D1.4%1.5%0.3%
1Y-43.9%-35.7%-21.8%

Return vs Industry: 3339 underperformed the Hong Kong Machinery industry which returned -35.7% over the past year.

Return vs Market: 3339 underperformed the Hong Kong Market which returned -21.8% over the past year.

Price Volatility

Is 3339's price volatile compared to industry and market?
3339 volatility
3339 Average Weekly Movement5.4%
Machinery Industry Average Movement6.7%
Market Average Movement6.5%
10% most volatile stocks in HK Market12.7%
10% least volatile stocks in HK Market3.2%

Stable Share Price: 3339 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 3339's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19938,198San Yim Lihttps://www.lonking.cn

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.

Lonking Holdings Fundamentals Summary

How do Lonking Holdings's earnings and revenue compare to its market cap?
3339 fundamental statistics
Market CapCN¥5.41b
Earnings (TTM)CN¥1.28b
Revenue (TTM)CN¥13.69b

4.2x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
3339 income statement (TTM)
RevenueCN¥13.69b
Cost of RevenueCN¥11.23b
Gross ProfitCN¥2.46b
Other ExpensesCN¥1.18b
EarningsCN¥1.28b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 26, 2022

Earnings per share (EPS)0.30
Gross Margin17.97%
Net Profit Margin9.32%
Debt/Equity Ratio6.4%

How did 3339 perform over the long term?

See historical performance and comparison

Dividends

14.8%

Current Dividend Yield

60%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 3339 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3339?

Other financial metrics that can be useful for relative valuation.

3339 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.1x
Enterprise Value/EBITDA1.5x
PEG Ratio-2.2x

Price to Earnings Ratio vs Peers

How does 3339's PE Ratio compare to its peers?

3339 PE Ratio vs Peers
The above table shows the PE ratio for 3339 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average11.1x
1596 Hebei Yichen Industrial Group
12.8xn/aHK$3.7b
1839 CIMC Vehicles (Group)
10.5x25.5%HK$18.8b
3808 Sinotruk (Hong Kong)
4.7x4.0%HK$23.7b
631 Sany Heavy Equipment International Holdings
16.5x21.8%HK$26.1b
3339 Lonking Holdings
4.2x-1.9%HK$6.3b

Price-To-Earnings vs Peers: 3339 is good value based on its Price-To-Earnings Ratio (4.2x) compared to the peer average (11.1x).


Price to Earnings Ratio vs Industry

How does 3339's PE Ratio compare vs other companies in the HK Machinery Industry?

Price-To-Earnings vs Industry: 3339 is good value based on its Price-To-Earnings Ratio (4.2x) compared to the Hong Kong Machinery industry average (10.3x)


Price to Earnings Ratio vs Fair Ratio

What is 3339's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

3339 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.2x
Fair PE Ratio4.6x

Price-To-Earnings vs Fair Ratio: 3339 is good value based on its Price-To-Earnings Ratio (4.2x) compared to the estimated Fair Price-To-Earnings Ratio (4.6x).


Share Price vs Fair Value

What is the Fair Price of 3339 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3339 (HK$1.47) is trading below our estimate of fair value (HK$4.5)

Significantly Below Fair Value: 3339 is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Lonking Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-1.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3339's earnings are forecast to decline over the next 3 years (-1.9% per year).

Earnings vs Market: 3339's earnings are forecast to decline over the next 3 years (-1.9% per year).

High Growth Earnings: 3339's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 3339's revenue is expected to decline over the next 3 years (-1% per year).

High Growth Revenue: 3339's revenue is forecast to decline over the next 3 years (-1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3339's Return on Equity is forecast to be low in 3 years time (10.5%).


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Past Performance

How has Lonking Holdings performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


18.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 3339 has a large one-off gain of CN¥351.6M impacting its December 31 2021 financial results.

Growing Profit Margin: 3339's current net profit margins (9.3%) are lower than last year (15.2%).


Past Earnings Growth Analysis

Earnings Trend: 3339's earnings have grown by 18.4% per year over the past 5 years.

Accelerating Growth: 3339's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3339 had negative earnings growth (-34.9%) over the past year, making it difficult to compare to the Machinery industry average (34.7%).


Return on Equity

High ROE: 3339's Return on Equity (12.5%) is considered low.


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Financial Health

How is Lonking Holdings's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 3339's short term assets (CN¥12.5B) exceed its short term liabilities (CN¥5.7B).

Long Term Liabilities: 3339's short term assets (CN¥12.5B) exceed its long term liabilities (CN¥738.3M).


Debt to Equity History and Analysis

Debt Level: 3339 has more cash than its total debt.

Reducing Debt: 3339's debt to equity ratio has reduced from 31.9% to 6.4% over the past 5 years.

Debt Coverage: 3339's debt is well covered by operating cash flow (64.7%).

Interest Coverage: 3339 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Lonking Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


14.84%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 3339's dividend (14.84%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.86%).

High Dividend: 3339's dividend (14.84%) is in the top 25% of dividend payers in the Hong Kong market (8.26%)


Stability and Growth of Payments

Stable Dividend: 3339's dividend payments have been volatile in the past 10 years.

Growing Dividend: 3339's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (60.1%), 3339's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (2153.8%), 3339's dividend payments are not well covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

13.9yrs

Average board tenure


CEO

San Yim Li (71 yo)

6.67yrs

Tenure

CN¥11,739,000

Compensation

Mr. San Yim Li is the Founder of Lonking Holdings Ltd. (Also called as Lonking Holdings Limited) and serves as its Executive Chairman and has also been Chief Executive Officer since December 21, 2015. Mr....


CEO Compensation Analysis

Compensation vs Market: San Yim's total compensation ($USD1.74M) is above average for companies of similar size in the Hong Kong market ($USD547.70K).

Compensation vs Earnings: San Yim's compensation has been consistent with company performance over the past year.


Board Members

Experienced Board: 3339's board of directors are seasoned and experienced ( 13.9 years average tenure).


Ownership

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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lonking Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Lonking Holdings Limited
  • Ticker: 3339
  • Exchange: SEHK
  • Founded: 1993
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Implied Market Cap: HK$6.292b
  • Shares outstanding: 4.28b
  • Website: https://www.lonking.cn

Number of Employees


Location

  • Lonking Holdings Limited
  • No. 26 Mingyi Road
  • Xinqiao
  • Shanghai
  • 201612
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/14 00:00
End of Day Share Price2022/08/12 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.