SEHK:558

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L.K. Technology Holdings

Executive Summary

L.K. Technology Holdings Limited, an investment holding company, designs, manufactures, and sells die-casting machines.


Snowflake Analysis

Fair value with questionable track record.

Share Price & News

How has L.K. Technology Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 558's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.2%

558

2.5%

HK Machinery

1.2%

HK Market


1 Year Return

-35.0%

558

42.2%

HK Machinery

5.4%

HK Market

Return vs Industry: 558 underperformed the Hong Kong Machinery industry which returned 42.2% over the past year.

Return vs Market: 558 underperformed the Hong Kong Market which returned 5.4% over the past year.


Shareholder returns

558IndustryMarket
7 Day-8.2%2.5%1.2%
30 Day-12.4%3.6%-4.4%
90 Day0%24.4%7.6%
1 Year-32.5%-35.0%45.9%42.2%9.7%5.4%
3 Year-35.3%-46.6%68.3%55.6%3.5%-7.6%
5 Year-28.0%-42.6%73.1%59.1%12.0%-6.8%

Price Volatility Vs. Market

How volatile is L.K. Technology Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is L.K. Technology 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: 558 (HK$0.39) is trading below our estimate of fair value (HK$1.12)

Significantly Below Fair Value: 558 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 558 is poor value based on its PE Ratio (141.8x) compared to the HK Machinery industry average (13x).

PE vs Market: 558 is poor value based on its PE Ratio (141.8x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 558's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 558 is good value based on its PB Ratio (0.2x) compared to the HK Machinery industry average (1x).


Next Steps

Future Growth

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

4.2%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as L.K. Technology Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has L.K. Technology Holdings performed over the past 5 years?

17.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 558 has high quality earnings.

Growing Profit Margin: 558's current net profit margins (0.1%) are lower than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: 558's earnings have grown by 17% per year over the past 5 years.

Accelerating Growth: 558's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 558 had negative earnings growth (-98.3%) over the past year, making it difficult to compare to the Machinery industry average (-8.7%).


Return on Equity

High ROE: 558's Return on Equity (0.2%) is considered low.


Next Steps

Financial Health

How is L.K. Technology Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 558's short term assets (HK$3.2B) exceed its short term liabilities (HK$2.9B).

Long Term Liabilities: 558's short term assets (HK$3.2B) exceed its long term liabilities (HK$73.2M).


Debt to Equity History and Analysis

Debt Level: 558's debt to equity ratio (88.9%) is considered high.

Reducing Debt: 558's debt to equity ratio has increased from 84.4% to 88.9% over the past 5 years.

Debt Coverage: 558's debt is not well covered by operating cash flow (9.7%).

Interest Coverage: 558's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Next Steps

Dividend

What is L.K. Technology Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 558's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 558's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 558's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 558's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 558 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 558's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

13.0yrs

Average management tenure


CEO

Zhuo Ming Liu (35 yo)

3.33yrs

Tenure

HK$1,418,000

Compensation

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. Techno ...


CEO Compensation Analysis

Compensation vs Market: Zhuo Ming's total compensation ($USD182.96K) is about average for companies of similar size in the Hong Kong market ($USD230.44K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Siw Yin Chong
Executive Chairpersonno dataHK$3.92m65.37%
HK$ 303.7m
Zhuo Ming Liu
CEO & Executive Director3.33yrsHK$1.42mno data
Siu Sze Tse
Executive Director6.67yrsHK$1.93m0.10%
HK$ 481.6k
Ka Kei Hong
Financial Controllerno datano datano data
Chan Yin Sau
Corporate Development Directorno datano datano data
Yi Zhong Yang
Chief Internal Auditorno datano datano data
Chi Yuen Fung
GM & Chief Engineer of Plastic Injection Molding Machine Business Unit13yrsno datano data
Kin Ming Wong
Company Secretary13.42yrsno datano data
Kee Ying Wong
Chief Executive Officer of Cnc Machine Toolno datano datano data
William P. Damian
President of L K Machinery Inc - USAno datano datano data
Pin Li
General Manager of Shanghai Atechno datano datano data
Sun Meng
Assistant Chief Executive Officerno datano datano data

13.0yrs

Average Tenure

56yo

Average Age

Experienced Management: 558's management team is seasoned and experienced (13 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Siw Yin Chong
Executive Chairpersonno dataHK$3.92m65.37%
HK$ 303.7m
Zhuo Ming Liu
CEO & Executive Director3.33yrsHK$1.42mno data
Siu Sze Tse
Executive Director6.67yrsHK$1.93m0.10%
HK$ 481.6k
Seow Chay Low
Independent Non-Executive Director15.92yrsHK$310.00kno data
Ming Wah Lui
Independent Non-Executive Director15.92yrsHK$310.00kno data
Yiu Keung Tsang
Independent Non-Executive Director15.92yrsHK$310.00kno data

15.9yrs

Average Tenure

65.5yo

Average Age

Experienced Board: 558's board of directors are seasoned and experienced ( 15.9 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

L.K. Technology Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: L.K. Technology Holdings Limited
  • Ticker: 558
  • Exchange: SEHK
  • Founded: 1979
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: HK$464.593m
  • Shares outstanding: 1.19b
  • Website: https://www.lktechnology.com

Number of Employees


Location

  • L.K. Technology Holdings Limited
  • Mai Wah Industrial Building
  • Unit A, 8th Floor
  • Kwai Chung
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
558SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2006

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/09 12:40
End of Day Share Price2020/08/07 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.