SEHK:3339

Stock Analysis Report

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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. More Details


Snowflake Analysis

Flawless balance sheet established dividend payer.


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 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.


Market Performance


7 Day Return

2.5%

3339

-3.5%

HK Machinery

0.4%

HK Market


1 Year Return

7.6%

3339

34.7%

HK Machinery

11.0%

HK Market

Return vs Industry: 3339 underperformed the Hong Kong Machinery industry which returned 34.7% over the past year.

Return vs Market: 3339 underperformed the Hong Kong Market which returned 11% over the past year.


Shareholder returns

3339IndustryMarket
7 Day2.5%-3.5%0.4%
30 Day12.6%-0.1%7.0%
90 Day8.5%2.9%6.4%
1 Year18.9%7.6%38.0%34.7%15.5%11.0%
3 Year5.2%-16.3%68.9%56.2%4.1%-6.8%
5 Year150.1%90.6%134.3%114.0%34.9%12.3%

Long-Term 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

Valuation

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

36.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3339 (HK$2.42) is trading below our estimate of fair value (HK$3.78)

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 (5.2x) compared to the HK Machinery industry average (12.1x).

PE vs Market: 3339 is good value based on its PE Ratio (5.2x) compared to the Hong Kong market (11.1x).


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's PB Ratio (1x) is in line with the HK Machinery industry average.


Next Steps

Future Growth

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

-8.2%

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 (-8.2% per year).

Earnings vs Market: 3339's earnings are forecast to decline over the next 3 years (-8.2% per year).

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

Revenue vs Market: 3339's revenue (1.1% per year) is forecast to grow slower than the Hong Kong market (13.6% per year).

High Growth Revenue: 3339's revenue (1.1% 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 (12.8%).


Next Steps

Past Performance

How has Lonking Holdings performed over the past 5 years?

39.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3339 has a large one-off gain of CN¥529.0M impacting its June 30 2020 financial results.

Growing Profit Margin: 3339's current net profit margins (14.8%) are higher than last year (11.1%).


Past Earnings Growth Analysis

Earnings Trend: 3339's earnings have grown significantly by 39.2% per year over the past 5 years.

Accelerating Growth: 3339's earnings growth over the past year (27.7%) is below its 5-year average (39.2% per year).

Earnings vs Industry: 3339 earnings growth over the past year (27.7%) exceeded the Machinery industry -1.5%.


Return on Equity

High ROE: 3339's Return on Equity (18.8%) is considered low.


Next Steps

Financial Health

How is Lonking Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 3339's short term assets (CN¥12.5B) exceed its short term liabilities (CN¥6.9B).

Long Term Liabilities: 3339's short term assets (CN¥12.5B) exceed its long term liabilities (CN¥106.7M).


Debt to Equity History and Analysis

Debt Level: 3339's debt to equity ratio (8%) is considered satisfactory.

Reducing Debt: 3339's debt to equity ratio has reduced from 60.2% to 8% over the past 5 years.

Debt Coverage: 3339's debt is well covered by operating cash flow (156.7%).

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


Balance Sheet


Next Steps

Dividend

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

10.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3339's dividend (10.32%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.2%).

High Dividend: 3339's dividend (10.32%) is in the top 25% of dividend payers in the Hong Kong market (6.59%)


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 (56.3%), 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 (56.2% payout ratio).


Next Steps

Management

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

8.6yrs

Average board tenure


CEO

San Yim Li (69 yo)

5yrs

Tenure

CN¥9,700,000

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 Yim's total compensation ($USD1.48M) is above average for companies of similar size in the Hong Kong market ($USD589.08K).

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


Board Members

NamePositionTenureCompensationOwnership
San Yim Li
Founder5yrsCN¥9.70mno data
Kun Lun Yin
CFO & Executive Director8.58yrsCN¥849.00kno data
Jianru Luo
VP & Executive Director15.83yrsCN¥900.00k0.065%
CN¥ 6.6m
Chao Chen
Executive VP & Executive Director15.83yrsCN¥1.25m0.037%
CN¥ 3.8m
Ke Wen Zheng
VP, GM of Excavator Business Segment & Executive Director8.58yrsCN¥1.25m0.010%
CN¥ 1.0m
Shizheng Qian
Independent Non Executive Director15.83yrsCN¥200.00kno data
Ngan Ying Ngai
Non Executive Vice Chairmanno dataCN¥1.20m56.03%
CN¥ 5.7b
Jian Ming Wu
Independent Non-Executive Director7.33yrsCN¥100.00kno data
Zhen Chen
Independent Non-Executive Director6.17yrsCN¥100.00kno data

8.6yrs

Average Tenure

64yo

Average Age

Experienced Board: 3339's board of directors are considered experienced (8.6 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 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$10.187b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3339SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2005
C9IBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2005
LONK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2005
3339SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 2005
3339SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 2005
LKHL.YOTCPK (Pink Sheets LLC)ADRUSUSDMay 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/03 10:04
End of Day Share Price2020/12/03 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.