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Lonking Holdings

SEHK:3339
Snowflake Description

Flawless balance sheet, undervalued and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
3339
SEHK
HK$11B
Market Cap
  1. Home
  2. HK
  3. Capital Goods
Company description

Lonking Holdings Limited, an investment holding company, manufactures and distributes wheel loaders, road rollers, excavators, forklifts, and other construction machinery in Mainland China. The last earnings update was 30 days ago. More info.


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3339 Share Price and Events
7 Day Returns
-7%
SEHK:3339
-3.9%
HK Machinery
-1.3%
HK Market
1 Year Returns
-26.9%
SEHK:3339
11.2%
HK Machinery
-5.7%
HK Market
3339 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Lonking Holdings (3339) -7% 8.2% 2.7% -26.9% 97% 84.6%
HK Machinery -3.9% 5.6% 24.2% 11.2% 66.1% 42%
HK Market -1.3% 3.2% 9.8% -5.7% 27% 20.8%
1 Year Return vs Industry and Market
  • 3339 underperformed the Machinery industry which returned 11.2% over the past year.
  • 3339 underperformed the Market in Hong Kong which returned -5.7% over the past year.
Price Volatility
3339
Industry
5yr Volatility vs Market
Related Companies

3339 Value

 Is Lonking Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Lonking Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Lonking Holdings.

SEHK:3339 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.7%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:3339
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.067 (1 + (1- 25%) (13.29%))
1.116
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.12
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.116 * 5.96%)
8.66%

Discounted Cash Flow Calculation for SEHK:3339 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Lonking Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:3339 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 8.66%)
2019 1,836.92 Analyst x1 1,690.59
2020 1,873.80 Analyst x1 1,587.15
2021 1,882.26 Analyst x1 1,467.30
2022 1,856.94 Est @ -1.35% 1,332.25
2023 1,850.62 Est @ -0.34% 1,221.94
2024 1,857.32 Est @ 0.36% 1,128.68
2025 1,873.20 Est @ 0.85% 1,047.64
2026 1,895.66 Est @ 1.2% 975.74
2027 1,922.96 Est @ 1.44% 910.95
2028 1,953.90 Est @ 1.61% 851.87
Present value of next 10 years cash flows CN¥12,214.11
SEHK:3339 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CN¥1,953.90 × (1 + 2%) ÷ (8.66% – 2%)
CN¥29,957.79
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥29,957.79 ÷ (1 + 8.66%)10
CN¥13,061.09
SEHK:3339 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥12,214.11 + CN¥13,061.09
CN¥25,275.20
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥25,275.20 / 4,280.10
CN¥5.91
SEHK:3339 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:3339)
1.167
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥5.91 x 1.167
HK$6.89
Value per share (HKD) From above. HK$6.89
Current discount Discount to share price of HK$2.64
= -1 x (HK$2.64 - HK$6.89) / HK$6.89
61.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Lonking Holdings is available for.
Intrinsic value
>50%
Share price is HK$2.64 vs Future cash flow value of HK$6.89
Current Discount Checks
For Lonking Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Lonking Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Lonking Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Lonking Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Lonking Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:3339 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CNY CN¥0.27
SEHK:3339 Share Price ** SEHK (2019-04-25) in HKD HK$2.64
SEHK:3339 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.857 CN¥2.26
Hong Kong Machinery Industry PE Ratio Median Figure of 32 Publicly-Listed Machinery Companies 10.19x
Hong Kong Market PE Ratio Median Figure of 1,476 Publicly-Listed Companies 12.09x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Lonking Holdings.

SEHK:3339 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:3339 Share Price ÷ EPS (both in CNY)

= 2.26 ÷ 0.27

8.47x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lonking Holdings is good value based on earnings compared to the HK Machinery industry average.
  • Lonking Holdings is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Lonking Holdings's expected growth come at a high price?
Raw Data
SEHK:3339 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.47x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
8.6%per year
Hong Kong Machinery Industry PEG Ratio Median Figure of 11 Publicly-Listed Machinery Companies 0.91x
Hong Kong Market PEG Ratio Median Figure of 465 Publicly-Listed Companies 0.86x

*Line of best fit is calculated by linear regression .

SEHK:3339 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.47x ÷ 8.6%

0.98x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lonking Holdings is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Lonking Holdings's assets?
Raw Data
SEHK:3339 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CNY CN¥1.92
SEHK:3339 Share Price * SEHK (2019-04-25) in HKD HK$2.64
SEHK:3339 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.857 CN¥2.26
Hong Kong Machinery Industry PB Ratio Median Figure of 46 Publicly-Listed Machinery Companies 0.89x
Hong Kong Market PB Ratio Median Figure of 2,150 Publicly-Listed Companies 1.02x
SEHK:3339 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:3339 Share Price ÷ Book Value per Share (both in CNY)

= 2.26 ÷ 1.92

1.18x

* Primary Listing of Lonking Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lonking Holdings is overvalued based on assets compared to the HK Machinery industry average.
X
Value checks
We assess Lonking Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Lonking Holdings has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

3339 Future Performance

 How is Lonking Holdings expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Lonking Holdings expected to grow at an attractive rate?
  • Lonking Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Lonking Holdings's earnings growth is positive but not above the Hong Kong market average.
  • Lonking Holdings's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:3339 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:3339 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 8.6%
SEHK:3339 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 5.7%
Hong Kong Machinery Industry Earnings Growth Rate Market Cap Weighted Average 13%
Hong Kong Machinery Industry Revenue Growth Rate Market Cap Weighted Average 10.1%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.9%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 11.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:3339 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:3339 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 14,053 1,980 1,515 7
2020-12-31 13,927 1,569 1,446 12
2019-12-31 13,386 1,623 1,401 12
SEHK:3339 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-12-31 11,868 1,144
2018-09-30 11,489 1,198
2018-06-30 11,109 904 1,252
2018-03-31 10,052 1,248 1,149
2017-12-31 8,994 1,592 1,046
2017-09-30 8,029 1,709 903
2017-06-30 7,064 1,827 760
2017-03-31 6,105 1,893 611
2016-12-31 5,146 1,960 462
2016-09-30 4,823 1,988 301
2016-06-30 4,500 2,016 139
2016-03-31 4,664 1,869 128

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Lonking Holdings's earnings are expected to grow by 8.6% yearly, however this is not considered high growth (20% yearly).
  • Lonking Holdings's revenue is expected to grow by 5.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:3339 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Lonking Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:3339 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.36 0.47 0.24 7.00
2020-12-31 0.35 0.42 0.29 11.00
2019-12-31 0.34 0.38 0.29 10.00
SEHK:3339 Past Financials Data
Date (Data in CNY Millions) EPS *
2018-12-31 0.27
2018-09-30 0.28
2018-06-30 0.29
2018-03-31 0.27
2017-12-31 0.24
2017-09-30 0.21
2017-06-30 0.18
2017-03-31 0.14
2016-12-31 0.11
2016-09-30 0.07
2016-06-30 0.03
2016-03-31 0.03

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Lonking Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Lonking Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Lonking Holdings has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

3339 Past Performance

  How has Lonking Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Lonking Holdings's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Lonking Holdings has delivered over 20% year on year earnings growth in the past 5 years.
  • Lonking Holdings's 1-year earnings growth is less than its 5-year average (9.4% vs 31%)
  • Lonking Holdings's earnings growth has not exceeded the HK Machinery industry average in the past year (9.4% vs 13.5%).
Earnings and Revenue History
Lonking Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Lonking Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:3339 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 11,868.32 1,143.87 873.05 544.50
2018-09-30 11,488.83 1,197.79 837.19 513.69
2018-06-30 11,109.34 1,251.71 801.33 482.89
2018-03-31 10,051.72 1,148.67 759.39 432.43
2017-12-31 8,994.10 1,045.64 717.45 381.97
2017-09-30 8,029.11 902.77 700.58 328.88
2017-06-30 7,064.13 759.91 683.71 275.80
2017-03-31 6,105.28 610.84 635.68 239.62
2016-12-31 5,146.44 461.76 587.65 203.44
2016-09-30 4,823.05 300.56 569.91 187.17
2016-06-30 4,499.67 139.36 552.16 170.90
2016-03-31 4,664.50 127.96 570.48 179.93
2015-12-31 4,829.33 116.56 588.80 188.97
2015-09-30 5,358.33 182.17 626.92 224.66
2015-06-30 5,887.33 247.79 665.03 260.34
2015-03-31 6,657.27 332.32 688.22 286.69
2014-12-31 7,427.21 416.86 711.41 313.04
2014-09-30 7,797.69 449.84 703.95 322.55
2014-06-30 8,168.18 482.82 696.50 332.05
2014-03-31 8,162.85 481.43 648.00 323.58
2013-12-31 8,157.52 480.05 599.50 315.12
2013-09-30 7,902.01 349.22 584.03 291.32
2013-06-30 7,646.49 218.40 568.56 267.52
2013-03-31 7,771.23 184.94 603.68 267.78
2012-12-31 7,895.96 151.49 638.80 268.03
2012-09-30 8,471.47 501.54 672.08 305.82
2012-06-30 9,046.98 851.60 705.36 343.61

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Lonking Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Lonking Holdings used its assets more efficiently than the HK Machinery industry average last year based on Return on Assets.
  • Lonking Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Lonking Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Lonking Holdings has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

3339 Health

 How is Lonking Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Lonking Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Lonking Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Lonking Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Lonking Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Lonking Holdings Company Filings, last reported 3 months ago.

SEHK:3339 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 8,207.18 1,286.85 3,909.23
2018-09-30 8,207.18 1,286.85 3,909.23
2018-06-30 7,845.53 1,521.82 3,600.95
2018-03-31 7,845.53 1,521.82 3,600.95
2017-12-31 7,730.21 1,502.87 3,814.45
2017-09-30 7,730.21 1,502.87 3,814.45
2017-06-30 7,101.53 1,659.73 3,418.35
2017-03-31 7,101.53 1,659.73 3,418.35
2016-12-31 6,719.71 2,150.45 1,769.24
2016-09-30 6,719.71 2,150.45 1,769.24
2016-06-30 6,644.35 3,746.62 2,908.96
2016-03-31 6,644.35 3,746.62 2,908.96
2015-12-31 6,624.14 4,365.34 1,580.67
2015-09-30 6,624.14 4,365.34 1,580.67
2015-06-30 6,978.06 4,190.89 1,957.85
2015-03-31 6,978.06 4,190.89 1,957.85
2014-12-31 7,029.28 4,281.22 1,400.15
2014-09-30 7,029.28 4,281.22 1,400.15
2014-06-30 6,933.05 4,440.55 751.93
2014-03-31 6,933.05 4,440.55 751.93
2013-12-31 6,845.40 4,238.28 1,015.26
2013-09-30 6,845.40 4,238.28 1,015.26
2013-06-30 6,631.22 4,427.12 912.23
2013-03-31 6,631.22 4,427.12 912.23
2012-12-31 6,244.68 5,104.92 904.50
2012-09-30 6,244.68 5,104.92 904.50
2012-06-30 6,369.41 4,841.62 1,473.76
  • Lonking Holdings's level of debt (15.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (61.9% vs 15.7% today).
  • Debt is well covered by operating cash flow (70.2%, greater than 20% of total debt).
  • Lonking Holdings earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Lonking Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Lonking Holdings has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

3339 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
7.54%
Current annual income from Lonking Holdings dividends. Estimated to be 8.22% next year.
If you bought HK$2,000 of Lonking Holdings shares you are expected to receive HK$151 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Lonking Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (1.97%).
  • Lonking Holdings's dividend is above the markets top 25% of dividend payers in Hong Kong (5.39%).
Upcoming dividend payment

Purchase Lonking Holdings before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:3339 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
Hong Kong Machinery Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 4.8%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 966 Stocks 3.4%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.1%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:3339 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.19 6.00
2020-12-31 0.18 10.00
2019-12-31 0.19 9.00
SEHK:3339 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-03-27 0.171 7.284
2018-03-27 0.128 5.918
2017-04-27 0.050 2.155
2016-05-26 0.014 1.145
2016-04-22 0.014 1.404
2016-03-29 0.014 1.229
2015-05-28 0.052 5.440
2014-07-18 0.051 4.302
2013-09-27 0.000 0.000
2013-08-29 0.000 0.000
2013-04-23 0.000 0.000
2013-03-28 0.000 0.000
2012-09-28 0.000 0.000
2012-03-27 0.121 8.470
2011-08-24 0.130 5.621
2011-06-10 0.164 5.434
2011-04-14 0.123 3.055
2011-03-21 0.122 2.591
2010-08-26 0.072 1.965
2010-03-30 0.059 2.512

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lonking Holdings has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Lonking Holdings only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Lonking Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (2x coverage).
X
Income/ dividend checks
We assess Lonking Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Lonking Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Lonking Holdings has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

3339 Management

 What is the CEO of Lonking Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
San Li
COMPENSATION CN¥3,255,000
AGE 67
TENURE AS CEO 3.3 years
CEO Bio

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 December 21, 2015. Mr. Li has extensive experience in corporate management and is responsible for formulating the Group’s management philosophy and business strategies. Mr. Li has been an Executive Director of Lonking Holdings Ltd. since May 11, 2004. He served as a Non Executive Member of Board of Directors of Weichai Power Co. Ltd. from December 18, 2002 to June 29, 2012. He served as Vice-chairman of the Fujian Province Federation of Industry and Commerce and Vice-chairman of the Longyan City Federation of Industry and Commerce. Mr. Li was appointed as a standing committee member of People’s Political Consultative Conference of Fujian Province), a standing committee member of the People’s Consultative Conference of Longyan City, executive committee member of the All-China Federation of Industry and Commerce. Mr. Li has also been accredited as one of the “Outstanding Enterprise Founders under Chinese Socialism and is an honorary citizen of Longyan City, Fujian Province.

CEO Compensation
  • San's compensation has been consistent with company performance over the past year.
  • San's remuneration is about average for companies of similar size in Hong Kong.
Management Team

San Li

TITLE
Founder
COMPENSATION
CN¥3M
AGE
67
TENURE
3.3 yrs

Kun Yin

TITLE
CFO & Executive Director
COMPENSATION
CN¥677K
AGE
50

Chao Chen

TITLE
Executive VP & Executive Director
COMPENSATION
CN¥937K
AGE
43

Jian Luo

TITLE
VP & Executive Director
COMPENSATION
CN¥600K
AGE
71

Ke Zheng

TITLE
VP, GM of Excavator Business Segment & Executive Director
COMPENSATION
CN¥937K
AGE
43

Shun Chu

TITLE
Company Secretary & Financial Controller
AGE
40
TENURE
9.7 yrs
Board of Directors Tenure

Average tenure and age of the Lonking Holdings board of directors in years:

6.9
Average Tenure
62
Average Age
  • The tenure for the Lonking Holdings board of directors is about average.
Board of Directors

San Li

TITLE
Founder
COMPENSATION
CN¥3M
AGE
67

Ngan Ngai

TITLE
Non Executive Vice Chairman
COMPENSATION
CN¥1M
AGE
62

Kun Yin

TITLE
CFO & Executive Director
COMPENSATION
CN¥677K
AGE
50
TENURE
6.9 yrs

Chao Chen

TITLE
Executive VP & Executive Director
COMPENSATION
CN¥937K
AGE
43
TENURE
14.2 yrs

Jian Luo

TITLE
VP & Executive Director
COMPENSATION
CN¥600K
AGE
71
TENURE
14.2 yrs

Ke Zheng

TITLE
VP, GM of Excavator Business Segment & Executive Director
COMPENSATION
CN¥937K
AGE
43
TENURE
6.9 yrs

Shizheng Qian

TITLE
Independent Non Executive Director
COMPENSATION
CN¥200K
AGE
66
TENURE
14.2 yrs

Zhen Chen

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥100K
AGE
43
TENURE
4.5 yrs

Jian Wu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥100K
AGE
64
TENURE
5.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
15. Oct 18 Buy San Li Individual 11. Oct 18 11. Oct 18 1,000,000 HK$2.12 HK$2,122,001
01. Sep 18 Buy Jian Luo Individual 30. Aug 18 30. Aug 18 1,100,000 HK$2.83 HK$3,112,997
01. Sep 18 Sell BlackRock, Inc. Company 30. Aug 18 30. Aug 18 -20,702,000 HK$2.84 HK$-58,897,125
03. Sep 18 Buy Chao Chen Individual 31. Aug 18 31. Aug 18 96,000 HK$2.71 HK$260,160
07. Aug 18 Buy BlackRock, Inc. Company 02. Aug 18 02. Aug 18 8,826,000 HK$3.57 HK$31,484,084
X
Management checks
We assess Lonking Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Lonking Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

3339 News

Simply Wall St News

Will Lonking Holdings Limited's (HKG:3339) Earnings Grow Over The Next Year?

On 31 December 2018, Lonking Holdings Limited (HKG:3339) announced its earnings update. … as a 22% increase in profits is expected in the upcoming year,

Simply Wall St -

Have Insiders Been Buying Lonking Holdings Limited (HKG:3339) Shares This Year?

So shareholders might well want to know whether insiders have been buying or selling shares in Lonking Holdings Limited (HKG:3339). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … While Lonking Holdings insiders bought shares last year, they didn't sell.

Simply Wall St -

What Should Investors Know About Lonking Holdings Limited's (HKG:3339) Earnings Trend?

Lonking Holdings Limited's (HKG:3339) most recent earnings update in December 2018a … showed

Simply Wall St -

Could Lonking Holdings Limited's (HKG:3339) Investor Composition Influence The Stock Price?

Every investor in Lonking Holdings Limited (HKG:3339) should be aware of the most powerful shareholder groups. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Lonking Holdings isn't enormous, but it's not particularly small either.

Simply Wall St -

Lonking Holdings Limited (HKG:3339) Has Attractive Fundamentals

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … In the case of Lonking Holdings Limited (HKG:3339), it

Simply Wall St -

Is There Now An Opportunity In Lonking Holdings Limited (HKG:3339)?

As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … However, could the stock still be trading at a relatively cheap price. … Today I will analyse the most recent data on Lonking Holdings’s outlook and valuation to see if the opportunity still exists

Simply Wall St -

Is Lonking Holdings Limited's (HKG:3339) 16% ROE Better Than Average?

Our data shows Lonking Holdings has a return on equity of 16% for the last year. … Check out our latest analysis for Lonking Holdings? … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Can You Imagine How Chuffed Lonking Holdings's Shareholders Feel About Its 165% Share Price Gain?

To wit, the Lonking Holdings Limited (HKG:3339) share price has flown 165% in the last three years. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Lonking Holdings was able to grow its EPS at 44% per year over three years, sending the share price higher.

Simply Wall St -

An Intrinsic Calculation For Lonking Holdings Limited (HKG:3339) Shows It's 47.65% Undervalued

I am going to run you through how I calculated the intrinsic value of Lonking Holdings Limited (HKG:3339). … by projecting its future cash flows and then discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.

Simply Wall St -

Should You Buy Lonking Holdings Limited (HKG:3339) For Its Dividend?

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Historically, Lonking Holdings Limited (HKG:3339) has been paying a dividend to shareholders. … Let's take a look at Lonking Holdings in more detail.

Simply Wall St -

3339 Company Info

Description

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’s products include hydraulic excavators, skid steer loaders, motor graders, bulldozers, and stackers. It also develops and produces components, including gearboxes, torque converters, axles, hydraulic components, gear pipes and driver shaft, and other products; and provides loader, excavator, forklift, road machinery, warehouse, and other parts, as well as maintenance and support services. In addition, the company offers finance leasing for construction machinery. Further, it distributes wheel loaders and other machinery; and trades in construction machinery and components. The company also sells its products to approximately 40 countries in Mid and South America, Russia, Asia and Pacific area, Mid-East countries and Africa, etc. Lonking Holdings Limited was founded in 1993 and is headquartered in Shanghai, the People’s Republic of China.

Details
Name: Lonking Holdings Limited
3339
Exchange: SEHK
Founded: 1993
HK$11,299,464,000
4,280,100,000
Website: http://www.lonking.cn
Address: Lonking Holdings Limited
No. 26, Mingyi Road,
Xinqiao,
Shanghai,
201612,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 3339 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 17. Nov 2005
OTCPK LONK.F Ordinary Shares Pink Sheets LLC US USD 17. Nov 2005
DB C9IB Ordinary Shares Deutsche Boerse AG DE EUR 17. Nov 2005
SHSC 3339 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 17. Nov 2005
SZSC 3339 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 17. Nov 2005
OTCPK LKHL.Y ADR Pink Sheets LLC US USD 04. May 2010
Number of employees
Current staff
Staff numbers
8,445
Lonking Holdings employees.
Industry
Construction Machinery and Heavy Trucks
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/25 13:28
End of day share price update: 2019/04/25 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/03/26
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.