SEHK:842

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Leoch International Technology

Executive Summary

Leoch International Technology Limited, an investment holding company, researches and develops, manufactures, and sells lead acid batteries under the LEOCH brand name in the People’s Republic of China, Europe, the Middle East, Africa, the Americas, and Asia-Pacific region.


Snowflake Analysis

Very undervalued with proven track record.


Similar Companies

Share Price & News

How has Leoch International Technology's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 842 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.2%

842

2.6%

HK Electrical

4.1%

HK Market


1 Year Return

-27.8%

842

-23.3%

HK Electrical

-4.7%

HK Market

Return vs Industry: 842 underperformed the Hong Kong Electrical industry which returned -23.3% over the past year.

Return vs Market: 842 underperformed the Hong Kong Market which returned -4.7% over the past year.


Shareholder returns

842IndustryMarket
7 Day-4.2%2.6%4.1%
30 Day-2.2%-1.0%4.2%
90 Day-7.1%9.7%11.7%
1 Year-24.3%-27.8%-22.4%-23.3%-1.2%-4.7%
3 Year-64.4%-67.0%-48.1%-50.2%7.7%-3.5%
5 Year-38.4%-46.5%-60.5%-62.7%7.2%-10.1%

Price Volatility Vs. Market

How volatile is Leoch International Technology's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Leoch International Technology undervalued compared to its fair value and its price relative to the market?

49.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 842 (HK$0.46) is trading below our estimate of fair value (HK$0.9)

Significantly Below Fair Value: 842 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 842 is good value based on its PE Ratio (4.2x) compared to the Electrical industry average (9.7x).

PE vs Market: 842 is good value based on its PE Ratio (4.2x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 842 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: 842 is good value based on its PB Ratio (0.2x) compared to the HK Electrical industry average (0.6x).


Next Steps

Future Growth

How is Leoch International Technology forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

15.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 842's forecast earnings growth (15.1% per year) is above the savings rate (1.6%).

Earnings vs Market: 842's earnings (15.1% per year) are forecast to grow slower than the Hong Kong market (17.7% per year).

High Growth Earnings: 842's earnings are forecast to grow, but not significantly.

Revenue vs Market: 842's revenue (9.9% per year) is forecast to grow slower than the Hong Kong market (11.1% per year).

High Growth Revenue: 842's revenue (9.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 842's Return on Equity is forecast to be low in 3 years time (4.6%).


Next Steps

Past Performance

How has Leoch International Technology performed over the past 5 years?

7.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 842 has a large one-off gain of CN¥35.8M impacting its December 31 2004 financial results.

Growing Profit Margin: 842's current net profit margins (1.6%) are higher than last year (1.1%).


Past Earnings Growth Analysis

Earnings Trend: 842's earnings have grown by 7.7% per year over the past 5 years.

Accelerating Growth: 842's earnings growth over the past year (24.6%) exceeds its 5-year average (7.7% per year).

Earnings vs Industry: 842 earnings growth over the past year (24.6%) exceeded the Electrical industry 12.8%.


Return on Equity

High ROE: 842's Return on Equity (3.9%) is considered low.


Next Steps

Financial Health

How is Leoch International Technology's financial position?


Financial Position Analysis

Short Term Liabilities: 842's short term assets (CN¥5.3B) exceed its short term liabilities (CN¥5.2B).

Long Term Liabilities: 842's short term assets (CN¥5.3B) exceed its long term liabilities (CN¥171.7M).


Debt to Equity History and Analysis

Debt Level: 842's debt to equity ratio (71.7%) is considered high.

Reducing Debt: 842's debt to equity ratio has increased from 51.6% to 71.7% over the past 5 years.

Debt Coverage: 842's debt is well covered by operating cash flow (49.5%).

Interest Coverage: 842's interest payments on its debt are not well covered by EBIT (1.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Leoch International Technology current dividend yield, its reliability and sustainability?

4.39%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 842's dividend (4.39%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.35%).

High Dividend: 842's dividend (4.39%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.69%).


Stability and Growth of Payments

Stable Dividend: 842 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 842 has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.3%), 842's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 842 is not forecast to pay a dividend in 3 years.


Next Steps

Management

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

3.9yrs

Average board tenure


CEO

Haiyan Yin (44yo)

2yrs

Tenure

CN¥876,000

Compensation

Ms. Yin Haiyan has been Chief Executive Officer and Executive Director of Leoch International Technology Limited since July 30, 2018. Ms. Yin graduated from JiangSu University of Science and Technology wit ...


CEO Compensation Analysis

Compensation vs Market: Haiyan's total compensation ($USD123.97K) is below average for companies of similar size in the Hong Kong market ($USD226.42K).

Compensation vs Earnings: Haiyan's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Li Dong
Founder & Chairmanno dataCN¥892.00k74.36% CN¥459.3m
Haiyan Yin
CEO & Executive Director2yrsCN¥876.00kno data
Chi Kit Lau
Independent Non-Executive Director5.83yrsCN¥236.00kno data
Yixiong Cao
Independent Non-Executive Director9.75yrsCN¥236.00kno data
Ping Zhu
Independent Non-Executive Director0.75yrCN¥37.00kno data

3.9yrs

Average Tenure

53yo

Average Age

Experienced Board: 842's board of directors are considered experienced (3.9 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

Leoch International Technology Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Leoch International Technology Limited
  • Ticker: 842
  • Exchange: SEHK
  • Founded: 1999
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: HK$617.728m
  • Shares outstanding: 1.36b
  • Website: https://www.leoch.com

Number of Employees


Location

  • Leoch International Technology Limited
  • Xin Bao Hui Building
  • 5th Floor
  • Shenzhen
  • Guangdong Province
  • 518054
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
842SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2010
0LTDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2010

Biography

Leoch International Technology Limited, an investment holding company, researches and develops, manufactures, and sells lead acid batteries under the LEOCH brand name in the People’s Republic of China, Europe, the Middle East, Africa, the Americas, and Asia-Pacific region. The company primarily offers reserve power, SLI, and motive power batteries, such as AGM VRLA, VRLA-GEL, pure lead, UPS high rate, marine, railway, start-stop, automotive, motorcycle, golf cart, scrubber sweeper, and electric vehicle batteries, as well as OPzV, OPzS, PzS, PzV, and PzB tubular plate batteries. Its products are used in various areas, such as telecommunication, power system, radio and television system, railway, solar energy, UPS, emergency lights, security, alarm, gardening tool, car, motorcycle, golf cart, forklift truck, electric vehicle and baby carrier, etc. The company also leases properties. In addition, it engages in the recycle and remanufacture of lead from batteries disposed of. The company was founded in 1999 and is headquartered in Shenzhen, the People’s Republic of China. Leoch International Technology Limited is a subsidiary of Master Alliance Investment Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/05 12:40
End of Day Share Price2020/07/03 00:00
Earnings2019/12/31
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.