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L.K. Technology Holdings

SEHK:558
Snowflake Description

Fair value with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
558
SEHK
HK$858M
Market Cap
  1. Home
  2. HK
  3. Capital Goods
Company description

L.K. Technology Holdings Limited, an investment holding company, designs, manufactures, and sells die-casting machines. The last earnings update was 23 days ago. More info.


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  • L.K. Technology Holdings has significant price volatility in the past 3 months.
558 Share Price and Events
7 Day Returns
7.5%
SEHK:558
2.4%
HK Machinery
0.8%
HK Market
1 Year Returns
-38.5%
SEHK:558
9.3%
HK Machinery
-4.4%
HK Market
558 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
L.K. Technology Holdings (558) 7.5% -8.9% -30.8% -38.5% 63.6% -6.5%
HK Machinery 2.4% 0.3% -10% 9.3% 60.7% 41.8%
HK Market 0.8% 1.5% -7.4% -4.4% 17.7% 1.6%
1 Year Return vs Industry and Market
  • 558 underperformed the Machinery industry which returned 9.3% over the past year.
  • 558 underperformed the Market in Hong Kong which returned -4.4% over the past year.
Price Volatility
558
Industry
5yr Volatility vs Market

Value

 Is L.K. Technology 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 L.K. Technology 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 L.K. Technology Holdings.

SEHK:558 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 15.3%
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:558
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.08
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.081 (1 + (1- 25%) (204.21%))
2.164
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (2 * 6.65%)
15.3%

Discounted Cash Flow Calculation for SEHK:558 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for L.K. Technology 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:558 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 15.3%)
2020 5.14 Est @ 7.98% 4.46
2021 5.45 Est @ 6.19% 4.10
2022 5.72 Est @ 4.93% 3.73
2023 5.96 Est @ 4.05% 3.37
2024 6.16 Est @ 3.44% 3.02
2025 6.35 Est @ 3.01% 2.70
2026 6.52 Est @ 2.71% 2.41
2027 6.68 Est @ 2.5% 2.14
2028 6.84 Est @ 2.35% 1.90
2029 6.99 Est @ 2.24% 1.68
Present value of next 10 years cash flows HK$29.51
SEHK:558 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= HK$6.99 × (1 + 2%) ÷ (15.3% – 2%)
HK$53.61
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$53.61 ÷ (1 + 15.3%)10
HK$12.91
SEHK:558 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$29.51 + HK$12.91
HK$42.42
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$42.42 / 1,191.27
HK$0.04
SEHK:558 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$0.04
Current discount Discount to share price of HK$0.72
= -1 x (HK$0.72 - HK$0.04) / HK$0.04
-1922.1%

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

  • The current share price of L.K. Technology Holdings is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 L.K. Technology Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are L.K. Technology Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:558 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in HKD HK$0.16
SEHK:558 Share Price ** SEHK (2019-07-19) in HKD HK$0.72
Hong Kong Machinery Industry PE Ratio Median Figure of 37 Publicly-Listed Machinery Companies 9.04x
Hong Kong Market PE Ratio Median Figure of 1,511 Publicly-Listed Companies 10.76x

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

** Primary Listing of L.K. Technology Holdings.

SEHK:558 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:558 Share Price ÷ EPS (both in HKD)

= 0.72 ÷ 0.16

4.5x

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

  • L.K. Technology Holdings is good value based on earnings compared to the HK Machinery industry average.
  • L.K. Technology Holdings is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does L.K. Technology Holdings's expected growth come at a high price?
Raw Data
SEHK:558 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 4.5x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
8.7%per year
Hong Kong Machinery Industry PEG Ratio Median Figure of 12 Publicly-Listed Machinery Companies 0.71x
Hong Kong Market PEG Ratio Median Figure of 480 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

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

  • Unable to calculate PEG ratio for L.K. Technology Holdings, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on L.K. Technology Holdings's assets?
Raw Data
SEHK:558 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in HKD HK$1.80
SEHK:558 Share Price * SEHK (2019-07-19) in HKD HK$0.72
Hong Kong Machinery Industry PB Ratio Median Figure of 50 Publicly-Listed Machinery Companies 0.99x
Hong Kong Market PB Ratio Median Figure of 2,197 Publicly-Listed Companies 0.92x
SEHK:558 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:558 Share Price ÷ Book Value per Share (both in HKD)

= 0.72 ÷ 1.80

0.4x

* Primary Listing of L.K. Technology Holdings.

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

  • L.K. Technology Holdings is good value based on assets compared to the HK Machinery industry average.
X
Value checks
We assess L.K. Technology 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. L.K. Technology Holdings has a total score of 3/6, 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.

Future Performance

 How is L.K. Technology Holdings expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover L.K. Technology Holdings, future earnings growth has been estimated based on fundamentals.
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
8.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is L.K. Technology Holdings expected to grow at an attractive rate?
  • L.K. Technology Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • L.K. Technology Holdings's earnings growth is positive but not above the Hong Kong market average.
  • Unable to compare L.K. Technology Holdings's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:558 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:558 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 8.7%
Hong Kong Machinery Industry Earnings Growth Rate Market Cap Weighted Average 13.3%
Hong Kong Machinery Industry Revenue Growth Rate Market Cap Weighted Average 10.5%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.3%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.7%

*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:558 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:558 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2019-03-31 3,604 191
2018-12-31 3,681 203
2018-09-30 3,758 -22 216
2018-06-30 3,743 62 229
2018-03-31 3,729 146 242
2017-12-31 3,610 217 218
2017-09-30 3,492 287 194
2017-06-30 3,358 306 166
2017-03-31 3,225 324 137
2016-12-31 3,058 302 109
2016-09-30 2,890 280 82
2016-06-30 2,857 251 41

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • L.K. Technology Holdings's earnings are expected to grow by 8.7% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if L.K. Technology Holdings is high growth as no revenue estimate data is available.
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:558 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 0 Analyst Estimates (S&P Global) See Below

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

SEHK:558 Past Financials Data
Date (Data in HKD Millions) EPS *
2019-03-31 0.16
2018-12-31 0.17
2018-09-30 0.18
2018-06-30 0.20
2018-03-31 0.22
2017-12-31 0.20
2017-09-30 0.18
2017-06-30 0.15
2017-03-31 0.12
2016-12-31 0.10
2016-09-30 0.07
2016-06-30 0.04

*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.
  • Unable to establish if L.K. Technology Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess L.K. Technology 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.
L.K. Technology 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.

Past Performance

  How has L.K. Technology 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 L.K. Technology 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.
  • L.K. Technology Holdings has delivered over 20% year on year earnings growth in the past 5 years.
  • L.K. Technology Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • L.K. Technology Holdings's 1-year earnings growth is negative, it can't be compared to the HK Machinery industry average.
Earnings and Revenue History
L.K. Technology 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 L.K. Technology Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:558 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 3,604.45 190.68 704.25
2018-12-31 3,681.44 203.20 737.47
2018-09-30 3,758.42 215.73 770.68
2018-06-30 3,743.48 228.70 773.03
2018-03-31 3,728.53 241.67 775.38
2017-12-31 3,610.08 218.04 728.52
2017-09-30 3,491.62 194.41 681.66
2017-06-30 3,358.20 165.60 668.92
2017-03-31 3,224.78 136.79 656.19
2016-12-31 3,057.58 109.16 662.77
2016-09-30 2,890.37 81.53 669.35
2016-06-30 2,856.60 41.12 672.51
2016-03-31 2,822.82 0.71 675.66
2015-12-31 2,910.40 1.82 682.17
2015-09-30 2,997.97 2.93 688.69
2015-06-30 3,071.62 54.04 696.74
2015-03-31 3,145.26 105.16 704.80
2014-12-31 3,088.93 157.43 694.85
2014-09-30 3,032.60 209.70 684.89
2014-06-30 2,843.02 140.16 652.30
2014-03-31 2,653.44 70.62 619.72
2013-12-31 2,638.45 21.51 596.82
2013-09-30 2,623.46 -27.60 573.93
2013-06-30 2,591.71 3.05 571.78
2013-03-31 2,559.97 33.71 569.63
2012-12-31 2,581.98 51.29 583.57
2012-09-30 2,603.99 68.88 597.51

*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.
  • L.K. Technology Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • L.K. Technology Holdings used its assets less efficiently than the HK Machinery industry average last year based on Return on Assets.
  • L.K. Technology Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess L.K. Technology 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.
L.K. Technology Holdings has a total score of 2/6, 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.

Health

 How is L.K. Technology 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 L.K. Technology Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • L.K. Technology Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • L.K. Technology Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of L.K. Technology 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 1.9x 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 L.K. Technology Holdings Company Filings, last reported 3 months ago.

SEHK:558 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 2,148.56 1,751.50 634.70
2018-12-31 2,148.56 1,751.50 634.70
2018-09-30 2,033.19 1,737.79 573.42
2018-06-30 2,033.19 1,737.79 573.42
2018-03-31 2,240.29 1,691.40 700.77
2017-12-31 2,240.29 1,691.40 700.77
2017-09-30 1,962.65 1,495.90 550.82
2017-06-30 1,962.65 1,495.90 550.82
2017-03-31 1,738.65 1,417.87 470.52
2016-12-31 1,738.65 1,417.87 470.52
2016-09-30 1,768.70 1,466.12 396.47
2016-06-30 1,768.70 1,466.12 396.47
2016-03-31 1,754.82 1,556.79 387.37
2015-12-31 1,754.82 1,556.79 387.37
2015-09-30 1,775.64 1,608.46 348.91
2015-06-30 1,775.64 1,608.46 348.91
2015-03-31 1,843.61 1,553.15 365.98
2014-12-31 1,843.61 1,553.15 365.98
2014-09-30 1,878.00 1,401.30 276.39
2014-06-30 1,878.00 1,401.30 276.39
2014-03-31 1,754.16 1,404.29 413.89
2013-12-31 1,754.16 1,404.29 413.89
2013-09-30 1,691.33 1,401.90 336.13
2013-06-30 1,691.33 1,401.90 336.13
2013-03-31 1,719.20 1,385.99 434.98
2012-12-31 1,719.20 1,385.99 434.98
2012-09-30 1,647.66 1,473.14 432.20
  • L.K. Technology Holdings's level of debt (81.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (80% vs 81.5% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 3.4x coverage).
X
Financial health checks
We assess L.K. Technology 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. L.K. Technology Holdings has a total score of 3/6, 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.

Dividends

 What is L.K. Technology 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
6.53%
Current annual income from L.K. Technology Holdings dividends.
If you bought HK$2,000 of L.K. Technology Holdings shares you are expected to receive HK$131 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?
  • L.K. Technology Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.07%).
  • L.K. Technology Holdings's dividend is above the markets top 25% of dividend payers in Hong Kong (5.71%).
Upcoming dividend payment

Purchase L.K. Technology 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:558 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 0 Analyst Estimates (S&P Global) See Below
Hong Kong Machinery Industry Average Dividend Yield Market Cap Weighted Average of 26 Stocks 3.1%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 978 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

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

SEHK:558 Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-06-27 0.047 6.690
2018-11-29 0.093 13.075
2018-06-28 0.100 10.797
2017-11-29 0.048 3.479
2017-06-29 0.032 4.195
2016-12-16 0.036 6.171
2016-11-29 0.036 6.266
2013-12-12 0.000 0.000
2013-11-28 0.000 0.000
2013-07-22 0.000 0.000
2013-06-27 0.000 0.000
2012-08-28 0.050 3.455
2011-06-30 0.050 2.568
2010-07-29 0.000 0.000
2010-07-21 0.000 0.000
2009-12-29 0.000 0.000
2009-12-21 0.000 0.000
2009-07-22 0.000 0.000
2008-12-22 0.027 7.662
2008-07-25 0.050 12.020

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

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of L.K. Technology Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.4x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess L.K. Technology Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - 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 L.K. Technology Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. L.K. Technology Holdings has a total score of 3/6, see the detailed checks below.


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

Management

 What is the CEO of L.K. Technology 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
Zhuo Liu
COMPENSATION HK$1,741,000
AGE 34
TENURE AS CEO 2.3 years
CEO Bio

Mr. Zhuo Ming Liu has been Chief Executive Officer of L.K. Technology Holdings Limited since April 1, 2017. Mr. Liu served as Project Manager at L.K. Technology Holdings Limited. Mr. Liu joined L.K. Technology Group in October 2008 and is responsible for various system and information projects' management. Mr. Liu serves as a Director at LK Systems, Inc. He has been a Director of L.K. Machinery International Limited since March 2012. He has been an Executive Director of L.K. Technology Holdings Limited since April 1, 2014. He graduated from Oregon State University with a bachelor degree in Computer Science.

CEO Compensation
  • Zhuo's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Zhuo's remuneration is about average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the L.K. Technology Holdings management team in years:

11.9
Average Tenure
52
Average Age
  • The average tenure for the L.K. Technology Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Siw Chong

TITLE
Executive Chairperson
COMPENSATION
HK$5M
AGE
63

Zhuo Liu

TITLE
CEO & Executive Director
COMPENSATION
HK$2M
AGE
34
TENURE
2.3 yrs

Xinliang Wang

TITLE
Executive Director
COMPENSATION
HK$3M
AGE
51

Siu Tse

TITLE
Executive Director
COMPENSATION
HK$2M
AGE
51

Eric Hong

TITLE
Financial Controller
AGE
49

Dennis Sau

TITLE
Corporate Development Director
AGE
52

Yi Yang

TITLE
Chief Internal Auditor
AGE
76

Chi Fung

TITLE
GM & Chief Engineer of Plastic Injection Molding Machine Business Unit
AGE
53
TENURE
11.9 yrs

Kin Ming Wong

TITLE
Company Secretary
TENURE
12.3 yrs

William Wong

TITLE
Chief Executive Officer of Cnc Machine Tool
AGE
61
Board of Directors Tenure

Average tenure and age of the L.K. Technology Holdings board of directors in years:

10.2
Average Tenure
63
Average Age
  • The average tenure for the L.K. Technology Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Siw Chong

TITLE
Executive Chairperson
COMPENSATION
HK$5M
AGE
63

Zhuo Liu

TITLE
CEO & Executive Director
COMPENSATION
HK$2M
AGE
34
TENURE
5.3 yrs

Xinliang Wang

TITLE
Executive Director
COMPENSATION
HK$3M
AGE
51
TENURE
5.3 yrs

Siu Tse

TITLE
Executive Director
COMPENSATION
HK$2M
AGE
51
TENURE
5.6 yrs

Paul Tsang

TITLE
Independent Non-Executive Director
COMPENSATION
HK$310K
AGE
66
TENURE
14.8 yrs

Seow Chay Low

TITLE
Independent Non-Executive Director
COMPENSATION
HK$310K
AGE
69
TENURE
14.8 yrs

Ming Lui

TITLE
Independent Non-Executive Director
COMPENSATION
HK$310K
AGE
81
TENURE
14.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
X
Management checks
We assess L.K. Technology 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. L.K. Technology 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.

News

Simply Wall St News

What You Must Know About L.K. Technology Holdings Limited's (HKG:558) Beta Value

Technology Holdings Limited (HKG:558) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. … Technology Holdings What does 558's beta value mean to investors? … Technology Holdings has a reasonably high beta, it's worth considering why it is so heavily influenced by broader market sentiment.

Simply Wall St -

Did You Miss L.K. Technology Holdings's (HKG:558) 67% Share Price Gain?

But over three years, the returns would have left most investors smiling In the last three years the share price is up, 67%: better than the market. … Technology Holdings was able to grow its EPS at 535% per year over three years, sending the share price higher. … Technology Holdings's TSR for the last 3 years was 101%, which exceeds the share price return mentioned earlier.

Simply Wall St -

Here's Why L.K. Technology Holdings (HKG:558) Has A Meaningful Debt Burden

Technology Holdings does have net debt, we think it is worthwhile for shareholders to keep an eye on the balance sheet, over time. … Technology Holdings's conversion of EBIT to free cash flow and its track record of staying on top of its total liabilities make us rather uncomfortable with its debt levels. … If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.

Simply Wall St -

Has L.K. Technology Holdings Limited (HKG:558) Been Employing Capital Shrewdly?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for L.K. … Technology Holdings's current liabilities are fairly high, which increases its ROCE significantly. … Technology Holdings's ROCE This ROCE is pretty good, but remember that it would look less impressive with fewer current liabilities.

Simply Wall St -

Is L.K. Technology Holdings Limited's (HKG:558) P/E Ratio Really That Good?

Technology Holdings has a price to earnings ratio of 5.28, based on the last twelve months. … How Do I Calculate A Price To Earnings Ratio. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Should You Be Concerned About L.K. Technology Holdings Limited's (HKG:558) Historical Volatility?

Technology Holdings Limited (HKG:558), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

L.K. Technology Holdings Shareholders Booked A 60% Gain In The Last Three Years

Technology Holdings Limited (HKG:558) shareholders have seen the share price rise 60% over three years, well in excess of the market return (34%, not including dividends). … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Technology Holdings achieved compound earnings per share growth of 314% per year.

Simply Wall St -

Do Insiders Own Lots Of Shares In L.K. Technology Holdings Limited (HKG:558)?

Technology Holdings Limited (HKG:558) should be aware of the most powerful shareholder groups. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Technology Holdings is not a large company by global standards.

Simply Wall St -

Is L.K. Technology Holdings Limited's (HKG:558) Balance Sheet A Threat To Its Future?

Technology Holdings Limited (HKG:558) is a small-cap stock with a market capitalization of HK$786m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Evaluating financial health as part of your investment thesis is

Simply Wall St -

Do You Know What L.K. Technology Holdings Limited's (HKG:558) P/E Ratio Means?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … Technology Holdings Limited's (HKG:558) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Company Info

Description

L.K. Technology Holdings Limited, an investment holding company, designs, manufactures, and sells die-casting machines. It provides hot chamber and cold chamber die-casting machines; and plastic injection molding machines, computerized numerical controlled machining centers, and related accessories. The company is also involved in the steel casting activities; and manufacture and sale of peripheral equipment. In addition, it provides technical consultation, pre-sales, and aftersales services. The company sells its products in Mainland China, Hong Kong, Europe, Central America and South America, North America, and internationally. L.K. Technology Holdings Limited was founded in 1979 and is headquartered in Kwai Chung, Hong Kong. L.K. Technology Holdings Limited is a subsidiary of Girgio Industries Limited.

Details
Name: L.K. Technology Holdings Limited
558
Exchange: SEHK
Founded: 1979
HK$857,710,800
1,191,265,000
Website: http://www.lktechnology.com
Address: L.K. Technology Holdings Limited
Mai Wah Industrial Building,
Unit A, 8th Floor,
Kwai Chung,
New Territories, Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 558 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 16. Oct 2006
Number of employees
Current staff
Staff numbers
3,900
L.K. Technology Holdings employees.
Industry
Industrial Machinery
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 12:47
End of day share price update: 2019/07/19 00:00
Last earnings filing: 2019/06/27
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


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.