Lonking Holdings
Market Cap
HK$9.7b
Last Updated
2019/11/16 12:42 UTC
Data Sources
Company Financials +
Executive Summary
Lonking Holdings Limited, an investment holding company, manufactures and distributes wheel loaders, road rollers, excavators, forklifts, and other construction machinery in Mainland China.
Snowflake
Fundamentals
Flawless balance sheet, undervalued and pays a dividend.
Similar Companies
Share Price & News
How has Lonking Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 3339 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-4.6%
3339
-5.2%
HK Machinery
-4.2%
HK Market
1 Year Return
4.6%
3339
21.1%
HK Machinery
-2.6%
HK Market
Return vs Industry: 3339 underperformed the Hong Kong Machinery industry which returned 21.1% over the past year.
Return vs Market: 3339 exceeded the Hong Kong Market which returned -2.6% over the past year.
Shareholder returns
| 3339 | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.6% | -5.2% | -4.2% |
| 30 Day | 2.7% | 3.2% | -1.4% |
| 90 Day | 26.1% | 10.7% | 3.5% |
| 1 Year | 14.2%4.6% | 24.6%21.1% | 0.9%-2.6% |
| 3 Year | 81.7%55.5% | 62.4%52.0% | 19.6%7.6% |
| 5 Year | 96.5%59.9% | 40.2%28.4% | 18.6%-1.0% |
Price Volatility Vs. Market
How volatile is Lonking Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall St
These 4 Measures Indicate That Lonking Holdings (HKG:3339) Is Using Debt Reasonably Well1 week ago | Simply Wall St
Read This Before You Buy Lonking Holdings Limited (HKG:3339) Because Of Its P/E Ratio3 weeks ago | Simply Wall St
Can Lonking Holdings Limited's (HKG:3339) ROE Continue To Surpass The Industry Average?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$2.27) is trading below our estimate of fair value (HK$7.18)
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 (6.5x) compared to the Machinery industry average (10.2x).
PE vs Market: 3339 is good value based on its PE Ratio (6.5x) compared to the Hong Kong market (10.1x).
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 is good value based on its PB Ratio (1x) compared to the HK Machinery industry average (1x).
Next Steps
Future Growth
How is Lonking Holdings forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
-3.8%
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 (-3.8% per year).
Earnings vs Market: 3339's earnings are forecast to decline over the next 3 years (-3.8% 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 (-0.7% per year).
High Growth Revenue: 3339's revenue is forecast to decline over the next 3 years (-0.7% 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 (13.7%).
Next Steps
Past Performance
How has Lonking Holdings performed over the past 5 years?
36.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 3339 has high quality earnings.
Growing Profit Margin: 3339's current net profit margins (11.1%) are lower than last year (11.3%).
Past Earnings Growth Analysis
Earnings Trend: 3339's earnings have grown significantly by 36% per year over the past 5 years.
Accelerating Growth: 3339's earnings growth over the past year (6.1%) is below its 5-year average (36% per year).
Earnings vs Industry: 3339 earnings growth over the past year (6.1%) exceeded the Machinery industry 5.7%.
Return on Equity
High ROE: 3339's Return on Equity (15.9%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Lonking Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: 3339's short term assets (CN¥10.8B) exceeds its short term liabilities (CN¥4.9B)
Long Term Liabilities: 3339's short term assets (10.8B) exceeds its long term liabilities (1.3B)
Debt to Equity History and Analysis
Debt Level: 3339's debt to equity ratio (15.5%) is considered satisfactory
Reducing Debt: 3339's debt to equity ratio has reduced from 64% to 15.5% over the past 5 years.
Debt Coverage: 3339's debt is well covered by operating cash flow (111.1%).
Interest Coverage: 3339 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: 3339 has a high level of physical assets or inventory.
Debt Coverage by Assets: 3339's debt is covered by short term assets (assets are 8.4x debt).
Next Steps
Dividend
What is Lonking Holdings's current dividend yield, its reliability and sustainability?
8.39%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: 3339's dividend (8.39%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).
High Dividend: 3339's dividend (8.39%) is in the top 25% of dividend payers in the Hong Kong market (6.38%)
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 (56.6%), 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 (51.8% payout ratio).
Next Steps
Management
What is the CEO of Lonking Holdings's salary, the management and board of directors tenure and is there insider trading?
7.5yrs
Average board tenure
CEO
San Li (68yo)
3.9yrs
Tenure
CN¥9,925,000
Compensation
Mr. San Yim Li is the Founder of Lonking Holdings Ltd. (Also called as China Infrastructure Machinery Holdings Ltd.) and serves as its Executive Chairman and has also been Chief Executive Officer since Dec ...
CEO Compensation Analysis
Compensation vs Market: San's total compensation ($USD1.42M) is above average for companies of similar size in the Hong Kong market ($USD488.74K).
Compensation vs Earnings: San's compensation has increased by more than 20% in the past year.
Board Age and Tenure
7.5yrs
Average Tenure
63yo
Average Age
Experienced Board: 3339's board of directors are considered experienced (7.5 years average tenure).
Insider Trading
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.
Management Team
San Li (68yo)
Founder
- Tenure: 3.9yrs
- Compensation: CN¥9.93m
Jianru Luo (72yo)
VP & Executive Director
- Tenure: 14.8yrs
- Compensation: CN¥900.00k
Chao Chen (44yo)
Executive VP & Executive Director
- Tenure: 14.8yrs
- Compensation: CN¥1.25m
Shun Chu (41yo)
Company Secretary & Financial Controller
- Tenure: 10.3yrs
Ke Zheng (44yo)
VP, GM of Excavator Business Segment & Executive Director
- Tenure: 7.5yrs
- Compensation: CN¥1.25m
Kun Yin (51yo)
CFO & Executive Director
- Tenure: 7.5yrs
- Compensation: CN¥850.00k
Board Members
Shizheng Qian (67yo)
Independent Non Executive Director
- Tenure: 14.8yrs
- Compensation: CN¥200.00k
San Li (68yo)
Founder
- Tenure: 3.9yrs
- Compensation: CN¥9.93m
Jianru Luo (72yo)
VP & Executive Director
- Tenure: 14.8yrs
- Compensation: CN¥900.00k
Ngan Ngai (63yo)
Non Executive Vice Chairman
- Tenure: 0yrs
- Compensation: CN¥1.20m
Chao Chen (44yo)
Executive VP & Executive Director
- Tenure: 14.8yrs
- Compensation: CN¥1.25m
Ke Zheng (44yo)
VP, GM of Excavator Business Segment & Executive Director
- Tenure: 7.5yrs
- Compensation: CN¥1.25m
Kun Yin (51yo)
CFO & Executive Director
- Tenure: 7.5yrs
- Compensation: CN¥850.00k
Jian Wu (65yo)
Independent Non-Executive Director
- Tenure: 6.3yrs
- Compensation: CN¥100.00k
Zhen Chen (44yo)
Independent Non-Executive Director
- Tenure: 5.1yrs
- Compensation: CN¥100.00k
Company Information
Lonking Holdings Limited's company bio, 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$9.716b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 3339 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Nov 2005 |
| C9IB | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Nov 2005 |
| LONK.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Nov 2005 |
| 3339 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Nov 2005 |
| 3339 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Nov 2005 |
| LKHL.Y | OTCPK (Pink Sheets LLC) | ADR | US | USD | May 2010 |
Biography
Lonking Holdings Limited, an investment holding company, manufactures and distributes wheel loaders, road rollers, excavators, forklifts, and other construction machinery in Mainland China. It also provide ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/11/16 12:42 |
| End of Day Share Price | 2019/11/15 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.