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3339

Lonking HoldingsSEHK:3339 Stock Report

Market Cap

HK$10.0b

7D

2.2%

1Y

8.3%

Updated

21 Oct, 2021

Data

Company Financials +
3339 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance1/6
Financial Health6/6
Dividends5/6

3339 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

Caterpillar

NYSE:CAT

US$111.8b

Sany Heavy Industry

SHSE:600031

CN¥207.4b

XCMG Construction Machinery

SZSE:000425

CN¥48.3b

Guangxi Liugong Machinery

SZSE:000528

CN¥11.3b

Price History & Performance

Summary of all time highs, changes and price drops for Lonking Holdings
Historical stock prices
Current Share PriceHK$2.34
52 Week HighHK$2.03
52 Week LowHK$3.58
Beta0.77
1 Month Change-4.10%
3 Month Change-0.43%
1 Year Change8.33%
3 Year Change30.00%
5 Year Change81.40%
Change since IPO554.55%

Recent News & Updates

Aug 17
Lonking Holdings (HKG:3339) Shareholders Will Want The ROCE Trajectory To Continue

Lonking Holdings (HKG:3339) Shareholders Will Want The ROCE Trajectory To Continue

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Amongst...

Aug 02
Is There An Opportunity With Lonking Holdings Limited's (HKG:3339) 49% Undervaluation?

Is There An Opportunity With Lonking Holdings Limited's (HKG:3339) 49% Undervaluation?

In this article we are going to estimate the intrinsic value of Lonking Holdings Limited ( HKG:3339 ) by taking the...

Jun 07
I Built A List Of Growing Companies And Lonking Holdings (HKG:3339) Made The Cut

I Built A List Of Growing Companies And Lonking Holdings (HKG:3339) Made The Cut

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

3339HK MachineryHK Market
7D2.2%5.8%3.1%
1Y8.3%21.5%6.2%

Return vs Industry: 3339 underperformed the Hong Kong Machinery industry which returned 21.5% over the past year.

Return vs Market: 3339 exceeded the Hong Kong Market which returned 6.2% over the past year.

Price Volatility

Is 3339's price volatile compared to industry and market?
3339 volatility
3339 Beta0.77
Industry Beta1.01
Market Beta1

Stable Share Price: 3339 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 3339's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19938,237San 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¥8.24b
Earnings (TTM)CN¥1.96b
Revenue (TTM)CN¥14.56b

4.2x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
3339 income statement (TTM)
RevenueCN¥14.56b
Cost of RevenueCN¥11.50b
Gross ProfitCN¥3.06b
ExpensesCN¥1.10b
EarningsCN¥1.96b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.46
Gross Margin21.01%
Net Profit Margin13.46%
Debt/Equity Ratio6.7%

How did 3339 perform over the long term?

See historical performance and comparison

Dividends

14.1%

Current Dividend Yield

61%

Payout Ratio

Valuation

Is Lonking Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3339 (HK$2.34) is trading below our estimate of fair value (HK$4.81)

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


Price To Earnings Ratio

PE vs Industry: 3339 is good value based on its PE Ratio (4.2x) compared to the Hong Kong Machinery industry average (11.6x).

PE vs Market: 3339 is good value based on its PE Ratio (4.2x) compared to the Hong Kong market (9.7x).


Price to Earnings Growth Ratio

PEG Ratio: 3339's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 3339's PB Ratio (0.8x) is in line with the HK Machinery industry average.


Future Growth

How is Lonking Holdings forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

-2.9%

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 (-2.9% per year).

Earnings vs Market: 3339's earnings are forecast to decline over the next 3 years (-2.9% per year).

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

Revenue vs Market: 3339's revenue (0.05% per year) is forecast to grow slower than the Hong Kong market (12.6% per year).

High Growth Revenue: 3339's revenue (0.05% per year) is forecast to grow slower than 20% 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 (13.2%).


Past Performance

How has Lonking Holdings performed over the past 5 years?

28.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3339 has a high level of non-cash earnings.

Growing Profit Margin: 3339's current net profit margins (13.5%) are lower than last year (14.8%).


Past Earnings Growth Analysis

Earnings Trend: 3339's earnings have grown significantly by 28.3% per year over the past 5 years.

Accelerating Growth: 3339's earnings growth over the past year (15.4%) is below its 5-year average (28.3% per year).

Earnings vs Industry: 3339 earnings growth over the past year (15.4%) underperformed the Machinery industry 23.8%.


Return on Equity

High ROE: 3339's Return on Equity (19.9%) is considered low.


Financial Health

How is Lonking Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 3339's short term assets (CN¥14.1B) exceed its short term liabilities (CN¥7.9B).

Long Term Liabilities: 3339's short term assets (CN¥14.1B) exceed its long term liabilities (CN¥735.5M).


Debt to Equity History and Analysis

Debt Level: 3339's debt to equity ratio (6.7%) is considered satisfactory.

Reducing Debt: 3339's debt to equity ratio has reduced from 56.1% to 6.7% over the past 5 years.

Debt Coverage: 3339's debt is well covered by operating cash flow (169.1%).

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


Balance Sheet


Dividend

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

14.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3339's dividend (14.07%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 3339's dividend (14.07%) is in the top 25% of dividend payers in the Hong Kong market (6.79%)


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60.7%), 3339's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3339's dividends in 3 years are forecast to be covered by earnings (57.4% payout ratio).


Next Steps

Management

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

9.4yrs

Average board tenure


CEO

San Yim Li (70 yo)

5.83yrs

Tenure

CN¥4,794,000

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 ($USD749.86K) is above average for companies of similar size in the Hong Kong market ($USD528.74K).

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 considered experienced (9.4 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.


Recent Insider Transactions

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
  • Market Cap: HK$10.015b
  • 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 Analysis2021/10/21 18:13
End of Day Share Price2021/10/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.