Leoch International Technology (SEHK:842) - Share price, News & Analysis

842 fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	4/6
Past Performance	3/6
Financial Health	3/6
Dividends	0/6

842 Stock Overview

Rewards

Trading at 87.7% below our estimate of its fair value

Earnings are forecast to grow 24.9% per year

Earnings grew by 10% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Leoch International Technology Competitors

ZHEJIANG NARADA POWER SOURCE

SZSE:300068

CN¥11.1b

Exide Industries

BSE:500086

₹120.4b

Amara Raja Batteries

BSE:500008

₹87.7b

Price History & Performance

Summary of all time highs, changes and price drops for Leoch International Technology
Historical stock prices
Current Share Price	HK$0.64
52 Week High	HK$1.31
52 Week Low	HK$0.55
Beta	0.57
1 Month Change	-8.57%
3 Month Change	-18.99%
1 Year Change	-18.99%
3 Year Change	3.23%
5 Year Change	-62.79%
Change since IPO	-86.30%

Recent News & Updates

Mar 15

Leoch International Technology (HKG:842) May Have Issues Allocating Its Capital

There are a few key trends to look for if we want to identify the next multi-bagger. Ideally, a business will show two...

Oct 27

Be Wary Of Leoch International Technology (HKG:842) And Its Returns On Capital

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Typically, we'll want to notice a...

Shareholder Returns

	842	HK Electrical	HK Market
7D	0%	5.0%	2.1%
1Y	-19.0%	-10.6%	-25.1%

Return vs Industry: 842 underperformed the Hong Kong Electrical industry which returned -11.9% over the past year.

Return vs Market: 842 exceeded the Hong Kong Market which returned -24.3% over the past year.

Price Volatility

Is 842's price volatile compared to industry and market?
842 volatility
842 Average Weekly Movement	6.7%
Electrical Industry Average Movement	9.0%
Market Average Movement	8.0%
10% most volatile stocks in HK Market	15.1%
10% least volatile stocks in HK Market	3.9%

Stable Share Price: 842 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 842's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1999	13,746	Haiyan Yin	https://www.leoch.com

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.

Leoch International Technology Fundamentals Summary

How do Leoch International Technology's earnings and revenue compare to its market cap?
842 fundamental statistics
Market Cap	CN¥747.72m
Earnings (TTM)	CN¥136.13m
Revenue (TTM)	CN¥11.30b

5.5x

P/E Ratio

0.1x

P/S Ratio

Is 842 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
842 income statement (TTM)
Revenue	CN¥11.30b
Cost of Revenue	CN¥9.79b
Gross Profit	CN¥1.51b
Other Expenses	CN¥1.37b
Earnings	CN¥136.13m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.10
Gross Margin	13.36%
Net Profit Margin	1.20%
Debt/Equity Ratio	68.7%

How did 842 perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

6/6

Valuation Score 6/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 842 (HK$0.64) is trading below our estimate of fair value (HK$5.19)

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 (5.5x) compared to the Hong Kong Electrical industry average (12x).

PE vs Market: 842 is good value based on its PE Ratio (5.5x) compared to the Hong Kong market (8.8x).

Price to Earnings Growth Ratio

PEG Ratio: 842 is good value based on its PEG Ratio (0.2x)

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).

Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

24.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 842's forecast earnings growth (24.9% per year) is above the savings rate (1.5%).

Earnings vs Market: 842's earnings (24.9% per year) are forecast to grow faster than the Hong Kong market (14.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 842's revenue (12.6% per year) is forecast to grow faster than the Hong Kong market (9.9% per year).

High Growth Revenue: 842's revenue (12.6% 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 (7.2%).

Past Performance

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

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-18.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 842 has high quality earnings.

Growing Profit Margin: 842's current net profit margins (1.2%) are lower than last year (1.3%).

Past Earnings Growth Analysis

Earnings Trend: 842's earnings have declined by 18.3% per year over the past 5 years.

Accelerating Growth: 842's earnings growth over the past year (10%) exceeds its 5-year average (-18.3% per year).

Earnings vs Industry: 842 earnings growth over the past year (10%) exceeded the Electrical industry -7.1%.

Return on Equity

High ROE: 842's Return on Equity (4.7%) is considered low.

Financial Health

How is Leoch International Technology's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 842's short term assets (CN¥6.1B) exceed its short term liabilities (CN¥5.6B).

Long Term Liabilities: 842's short term assets (CN¥6.1B) exceed its long term liabilities (CN¥464.5M).

Debt to Equity History and Analysis

Debt Level: 842's net debt to equity ratio (53.2%) is considered high.

Reducing Debt: 842's debt to equity ratio has increased from 64.2% to 68.7% over the past 5 years.

Debt Coverage: 842's debt is well covered by operating cash flow (29.2%).

Interest Coverage: 842's interest payments on its debt are not well covered by EBIT (2.7x coverage).

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 842's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 842'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 842's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 842's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: 842 is not paying a notable dividend for the Hong Kong market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 842 has not reported any payouts.

Discover strong dividend paying companies

Management

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

7.7yrs

Average board tenure

CEO

Haiyan Yin (45 yo)

3.83yrs

Tenure

CN¥927,000

Compensation

Ms. Yin Haiyan has been Chief Executive Officer and Executive Director at 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 ($USD137.26K) is below average for companies of similar size in the Hong Kong market ($USD232.32K).

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

Board Members

Experienced Board: 842's board of directors are considered experienced (7.7 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/19 00:00
End of Day Share Price	2022/05/19 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31