L.K. Technology Holdings Limited

SEHK:558 Stock Report

Market Cap: HK$4.0b

L.K. Technology Holdings Valuation

Is 558 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 558 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 558 (HK$2.96) is trading above our estimate of fair value (HK$1.49)

Significantly Below Fair Value: 558 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 558?

Other financial metrics that can be useful for relative valuation.

558 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.9x
Enterprise Value/EBITDA6.5x
PEG Ratio0.3x

Price to Earnings Ratio vs Peers

How does 558's PE Ratio compare to its peers?

The above table shows the PE ratio for 558 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average6.2x
1286 Impro Precision Industries
7.2xn/aHK$4.2b
1651 Precision Tsugami (China)
6.5x15.4%HK$3.5b
2155 Morimatsu International Holdings
5.6x17.5%HK$5.1b
838 EVA Precision Industrial Holdings
5.5xn/aHK$1.3b
558 L.K. Technology Holdings
8.7x30.3%HK$4.0b

Price-To-Earnings vs Peers: 558 is expensive based on its Price-To-Earnings Ratio (8.7x) compared to the peer average (6.2x).


Price to Earnings Ratio vs Industry

How does 558's PE Ratio compare vs other companies in the HK Machinery Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.0%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.0%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 558 is expensive based on its Price-To-Earnings Ratio (8.7x) compared to the Hong Kong Machinery industry average (8.1x).


Price to Earnings Ratio vs Fair Ratio

What is 558's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

558 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.7x
Fair PE Ratio10.2x

Price-To-Earnings vs Fair Ratio: 558 is good value based on its Price-To-Earnings Ratio (8.7x) compared to the estimated Fair Price-To-Earnings Ratio (10.2x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 558 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$2.82
HK$6.51
+130.9%
33.6%HK$9.68HK$2.90n/a8
Apr ’25HK$3.20
HK$6.67
+108.5%
29.2%HK$9.68HK$3.30n/a8
Mar ’25HK$3.51
HK$6.75
+92.2%
27.5%HK$9.68HK$3.30n/a8
Feb ’25HK$3.04
HK$6.75
+122.0%
27.5%HK$9.68HK$3.30n/a8
Jan ’25HK$5.04
HK$7.77
+54.2%
17.2%HK$10.00HK$6.10n/a8
Dec ’24HK$5.72
HK$9.48
+65.8%
22.8%HK$12.43HK$6.10n/a8
Nov ’24HK$6.57
HK$10.38
+58.0%
18.4%HK$12.43HK$7.20n/a8
Oct ’24HK$7.78
HK$10.51
+35.1%
18.2%HK$12.43HK$7.20n/a8
Sep ’24HK$7.52
HK$10.51
+39.7%
18.2%HK$12.43HK$7.20n/a8
Aug ’24HK$8.30
HK$10.51
+26.6%
18.2%HK$12.43HK$7.20n/a8
Jul ’24HK$7.08
HK$10.66
+50.5%
15.5%HK$12.00HK$7.20n/a8
Jun ’24HK$6.90
HK$11.06
+60.2%
21.0%HK$14.00HK$6.80n/a7
May ’24HK$7.96
HK$11.45
+43.8%
19.9%HK$14.00HK$6.80n/a6
Apr ’24HK$9.71
HK$11.45
+17.9%
19.9%HK$14.00HK$6.80HK$3.206
Mar ’24HK$11.10
HK$11.04
-0.6%
19.8%HK$14.00HK$6.80HK$3.516
Feb ’24HK$9.73
HK$10.64
+9.3%
22.3%HK$14.00HK$6.80HK$3.046
Jan ’24HK$6.42
HK$11.39
+77.4%
26.6%HK$17.00HK$6.80HK$5.047
Dec ’23HK$7.87
HK$14.26
+81.2%
28.4%HK$20.00HK$8.60HK$5.727
Nov ’23HK$7.58
HK$19.45
+156.6%
11.0%HK$23.00HK$15.71HK$6.577
Oct ’23HK$8.99
HK$20.02
+122.7%
16.2%HK$27.00HK$15.71HK$7.787
Sep ’23HK$11.30
HK$20.02
+77.2%
16.2%HK$27.00HK$15.71HK$7.527
Aug ’23HK$12.10
HK$21.90
+81.0%
13.6%HK$27.00HK$19.60HK$8.304
Jul ’23HK$15.00
HK$21.90
+46.0%
13.6%HK$27.00HK$19.60HK$7.084
Jun ’23HK$12.12
HK$22.35
+84.4%
12.5%HK$27.00HK$20.00HK$6.904
May ’23HK$10.00
HK$22.35
+123.5%
12.5%HK$27.00HK$20.00HK$7.964
Apr ’23HK$11.98
HK$22.35
+86.6%
12.5%HK$27.00HK$20.00HK$9.714

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


Discover undervalued companies

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.