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Leoch International Technology

SEHK:842
Snowflake Description

Very undervalued with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
842
SEHK
HK$842M
Market Cap
  1. Home
  2. HK
  3. Capital Goods
Company description

Leoch International Technology Limited, an investment holding company, develops, manufactures, and sells lead acid batteries under the LEOCH brand name worldwide. The last earnings update was 84 days ago. More info.


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  • Leoch International Technology has significant price volatility in the past 3 months.
842 Share Price and Events
7 Day Returns
1.7%
SEHK:842
-1.7%
HK Electrical
0.6%
HK Market
1 Year Returns
-30.7%
SEHK:842
-29.4%
HK Electrical
-5.9%
HK Market
842 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Leoch International Technology (842) 1.7% 7% -17.6% -30.7% -26.5% -65.3%
HK Electrical -1.7% -4.5% -19.1% -29.4% -34.7% -35%
HK Market 0.6% 3.7% -8.2% -5.9% 17.2% 4.8%
1 Year Return vs Industry and Market
  • 842 underperformed the Electrical industry which returned -29.4% over the past year.
  • 842 underperformed the Market in Hong Kong which returned -5.9% over the past year.
Price Volatility
842
Industry
5yr Volatility vs Market

842 Value

 Is Leoch International Technology 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 Leoch International Technology 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 Leoch International Technology.

SEHK:842 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 13.9%
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:842
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Electrical Unlevered Beta Simply Wall St/ S&P Global 1.19
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.187 (1 + (1- 25%) (395.38%))
3.483
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 * 5.96%)
13.92%

Discounted Cash Flow Calculation for SEHK:842 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Leoch International Technology 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:842 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 13.92%)
2020 -166.40 Analyst x1 -146.06
2021 138.70 Analyst x1 106.87
2022 256.00 Analyst x1 173.14
2023 380.10 Analyst x1 225.66
2024 486.27 Est @ 27.93% 253.41
2025 584.27 Est @ 20.15% 267.27
2026 670.21 Est @ 14.71% 269.11
2027 743.24 Est @ 10.9% 261.96
2028 804.40 Est @ 8.23% 248.87
2029 855.57 Est @ 6.36% 232.35
Present value of next 10 years cash flows CN¥1,892.57
SEHK:842 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥855.57 × (1 + 2%) ÷ (13.92% – 2%)
CN¥7,321.33
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥7,321.33 ÷ (1 + 13.92%)10
CN¥1,988.27
SEHK:842 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥1,892.57 + CN¥1,988.27
CN¥3,880.84
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥3,880.84 / 1,357.52
CN¥2.86
SEHK:842 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:842)
1.138
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥2.86 x 1.138
HK$3.25
Value per share (HKD) From above. HK$3.25
Current discount Discount to share price of HK$0.61
= -1 x (HK$0.61 - HK$3.25) / HK$3.25
81.3%

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

Current Discount
Amount off the current price Leoch International Technology is available for.
Intrinsic value
>50%
Share price is HK$0.61 vs Future cash flow value of HK$3.25
Current Discount Checks
For Leoch International Technology to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Leoch International Technology's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Leoch International Technology's share price is below the future cash flow value, and at a substantial discount (> 40%).
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 Leoch International Technology's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Leoch International Technology's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:842 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CNY CN¥0.08
SEHK:842 Share Price ** SEHK (2019-07-16) in HKD HK$0.61
SEHK:842 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.879 CN¥0.54
Hong Kong Electrical Industry PE Ratio Median Figure of 23 Publicly-Listed Electrical Companies 10.75x
Hong Kong Market PE Ratio Median Figure of 1,503 Publicly-Listed Companies 10.71x

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

** Primary Listing of Leoch International Technology.

SEHK:842 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:842 Share Price ÷ EPS (both in CNY)

= 0.54 ÷ 0.08

6.84x

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

  • Leoch International Technology is good value based on earnings compared to the HK Electrical industry average.
  • Leoch International Technology is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Leoch International Technology's expected growth come at a high price?
Raw Data
SEHK:842 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.84x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
34.3%per year
Hong Kong Electrical Industry PEG Ratio Median Figure of 9 Publicly-Listed Electrical Companies 1.11x
Hong Kong Market PEG Ratio Median Figure of 477 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

SEHK:842 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 6.84x ÷ 34.3%

0.2x

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

  • Leoch International Technology is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Leoch International Technology's assets?
Raw Data
SEHK:842 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CNY CN¥2.19
SEHK:842 Share Price * SEHK (2019-07-16) in HKD HK$0.61
SEHK:842 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.879 CN¥0.54
Hong Kong Electrical Industry PB Ratio Median Figure of 34 Publicly-Listed Electrical Companies 0.65x
Hong Kong Market PB Ratio Median Figure of 2,190 Publicly-Listed Companies 0.92x
SEHK:842 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:842 Share Price ÷ Book Value per Share (both in CNY)

= 0.54 ÷ 2.19

0.24x

* Primary Listing of Leoch International Technology.

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

  • Leoch International Technology is good value based on assets compared to the HK Electrical industry average.
X
Value checks
We assess Leoch International Technology'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 Electrical 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 Electrical industry average (and greater than 0)? (1 check)
  5. Leoch International Technology has a total score of 6/6, 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.

842 Future Performance

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

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
34.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Leoch International Technology expected to grow at an attractive rate?
  • Leoch International Technology's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Leoch International Technology's earnings growth is expected to exceed the Hong Kong market average.
  • Leoch International Technology's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:842 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:842 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 34.3%
SEHK:842 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 9.5%
Hong Kong Electrical Industry Earnings Growth Rate Market Cap Weighted Average 8.5%
Hong Kong Electrical Industry Revenue Growth Rate Market Cap Weighted Average 8.7%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.3%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.5%

*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:842 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:842 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 15,493 798 581 1
2022-12-31 14,791 655 512 1
2021-12-31 13,800 511 432 1
2020-12-31 12,593 174 180 1
2019-12-31 10,902 -34 108 1
SEHK:842 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-12-31 9,544 924 106
2018-09-30 9,967 608 163
2018-06-30 10,390 291 219
2018-03-31 9,928 80 231
2017-12-31 9,465 -131 243
2017-09-30 8,482 120 232
2017-06-30 7,498 372 221
2017-03-31 6,881 281 232
2016-12-31 6,263 189 242
2016-09-30 5,726 -5 239
2016-06-30 5,188 -200 236
2016-03-31 4,760 -29 171

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Leoch International Technology's earnings are expected to grow significantly at over 20% yearly.
  • Leoch International Technology's revenue is expected to grow by 9.5% yearly, however this is not considered high growth (20% yearly).
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:842 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Leoch International Technology Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:842 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.43 0.43 0.43 1.00
2022-12-31 0.38 0.38 0.38 1.00
2021-12-31 0.32 0.32 0.32 1.00
2020-12-31 0.13 0.13 0.13 1.00
2019-12-31 0.08 0.08 0.08 1.00
SEHK:842 Past Financials Data
Date (Data in CNY Millions) EPS *
2018-12-31 0.08
2018-09-30 0.12
2018-06-30 0.16
2018-03-31 0.17
2017-12-31 0.18
2017-09-30 0.17
2017-06-30 0.16
2017-03-31 0.17
2016-12-31 0.18
2016-09-30 0.18
2016-06-30 0.17
2016-03-31 0.13

*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.
  • Leoch International Technology is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Leoch International Technology'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.
Leoch International Technology has a total score of 3/6, 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.

842 Past Performance

  How has Leoch International Technology 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 Leoch International Technology's growth in the last year to its industry (Electrical).
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.
  • Leoch International Technology has delivered over 20% year on year earnings growth in the past 5 years.
  • Leoch International Technology's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Leoch International Technology's 1-year earnings growth is negative, it can't be compared to the HK Electrical industry average.
Earnings and Revenue History
Leoch International Technology'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 Leoch International Technology Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:842 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 9,544.42 106.42 681.65 111.03
2018-09-30 9,967.19 162.79 677.03 126.79
2018-06-30 10,389.96 219.17 679.97 142.55
2018-03-31 9,927.70 231.03 653.88 142.82
2017-12-31 9,465.44 242.89 620.23 143.08
2017-09-30 8,481.97 232.18 607.23 134.34
2017-06-30 7,498.50 221.48 594.22 125.60
2017-03-31 6,880.68 231.69 557.74 113.73
2016-12-31 6,262.87 241.90 521.25 101.87
2016-09-30 5,725.56 238.75 481.13 94.22
2016-06-30 5,188.25 235.59 441.02 86.58
2016-03-31 4,759.57 171.09 437.14 85.72
2015-12-31 4,330.89 106.58 433.27 84.86
2015-09-30 4,214.03 60.62 436.05 119.05
2015-06-30 4,097.17 14.65 438.83 153.25
2015-03-31 4,172.76 48.22 430.58 153.84
2014-12-31 4,248.35 81.79 422.33 154.43
2014-09-30 4,154.59 118.86 414.82 133.09
2014-06-30 4,060.83 155.92 407.32 111.76
2014-03-31 3,853.85 13.32 408.22 118.38
2013-12-31 3,646.87 -129.29 409.12 125.01
2013-09-30 3,517.16 -181.86 406.56 112.19
2013-06-30 3,387.44 -234.44 404.00 99.36
2013-03-31 3,317.71 -81.39 396.82 96.59
2012-12-31 3,247.99 71.66 389.63 93.82
2012-09-30 3,215.61 122.23 367.95 103.85

*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.
  • Leoch International Technology has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Leoch International Technology used its assets less efficiently than the HK Electrical industry average last year based on Return on Assets.
  • Leoch International Technology's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Leoch International Technology'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 Electrical 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.
Leoch International Technology has a total score of 1/6, 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.

842 Health

 How is Leoch International Technology'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 Leoch International Technology's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Leoch International Technology is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Leoch International Technology's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Leoch International Technology'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 2x 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 Leoch International Technology Company Filings, last reported 6 months ago.

SEHK:842 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 3,173.90 2,924.11 747.62
2018-09-30 3,173.90 2,924.11 747.62
2018-06-30 3,138.74 3,096.94 583.17
2018-03-31 3,138.74 3,096.94 583.17
2017-12-31 3,046.69 3,013.89 446.51
2017-09-30 3,046.69 3,013.89 446.51
2017-06-30 2,877.75 2,488.78 712.99
2017-03-31 2,877.75 2,488.78 712.99
2016-12-31 2,757.93 1,763.48 258.50
2016-09-30 2,757.93 1,763.48 258.50
2016-06-30 2,538.08 1,676.62 296.46
2016-03-31 2,538.08 1,676.62 296.46
2015-12-31 2,445.58 1,555.89 259.40
2015-09-30 2,445.58 1,555.89 259.40
2015-06-30 2,279.59 1,200.53 147.34
2015-03-31 2,279.59 1,200.53 147.34
2014-12-31 2,330.68 1,201.67 150.96
2014-09-30 2,330.68 1,201.67 150.96
2014-06-30 2,269.69 1,216.29 109.28
2014-03-31 2,269.69 1,216.29 109.28
2013-12-31 2,210.30 1,222.52 156.42
2013-09-30 2,210.30 1,222.52 156.42
2013-06-30 2,111.21 1,408.56 93.91
2013-03-31 2,111.21 1,408.56 93.91
2012-12-31 2,344.28 1,394.55 108.28
2012-09-30 2,344.28 1,394.55 108.28
  • Leoch International Technology's level of debt (92.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (55.3% vs 92.1% today).
  • Debt is well covered by operating cash flow (31.6%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.3x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Leoch International Technology'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. Leoch International Technology 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.

842 Dividends

 What is Leoch International Technology'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
3.2%
Current annual income from Leoch International Technology dividends. Estimated to be 0% next year.
If you bought HK$2,000 of Leoch International Technology shares you are expected to receive HK$64 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?
  • Leoch International Technology's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).
  • Leoch International Technology's dividend is below the markets top 25% of dividend payers in Hong Kong (5.74%).
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:842 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 1 Analyst Estimates (S&P Global) See Below
Hong Kong Electrical Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 2.2%
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:842 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.00 1.00
2022-12-31 0.00 1.00
2021-12-31 0.00 1.00
2020-12-31 0.00 1.00
2019-12-31 0.00 1.00
SEHK:842 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-04-23 0.017 3.279
2018-09-21 0.000 0.000
2018-08-24 0.000 0.000
2018-04-18 0.000 0.000
2017-04-21 0.044 3.731
2017-03-24 0.049 3.263
2016-04-27 0.022 2.654
2016-03-29 0.022 2.707
2015-04-27 0.018 3.184
2014-09-29 0.000 0.000
2014-04-29 0.000 0.000
2014-03-25 0.000 0.000
2013-09-26 0.000 0.000
2013-08-21 0.000 0.000
2013-04-23 0.000 0.000
2013-03-28 0.000 0.000
2012-08-29 0.023 2.457
2012-03-28 0.040 3.526
2011-08-23 0.054 2.843

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

  • Leoch International Technology has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Leoch International Technology has only been paying a dividend for 8 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of Leoch International Technology's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.5x coverage).
Future Payout to shareholders
  • No need to calculate the sustainability of Leoch International Technology's dividends in 3 years as they are not expected to pay a notable one for Hong Kong.
X
Income/ dividend checks
We assess Leoch International Technology'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 Leoch International Technology afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Leoch International Technology has a total score of 2/6, see the detailed checks below.


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

842 Management

 What is the CEO of Leoch International Technology'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
Haiyan Yin
COMPENSATION CN¥402,000
AGE 42
TENURE AS CEO 1 years
CEO Bio

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 with a degree in Accounting. She joined the Group in 2004 as manager of the finance department. She was subsequently promoted to deputy general manager of administration department, general manager, vice president of finance department, president at Leoch.

CEO Compensation
  • Insufficient data for Haiyan to compare compensation growth.
  • Haiyan's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team

Li Dong

TITLE
Founder & Chairman
COMPENSATION
CN¥909K
AGE
52

Haiyan Yin

TITLE
CEO & Executive Director
COMPENSATION
CN¥402K
AGE
42
TENURE
1 yrs

Albert Chow

TITLE
CFO & Company Secretary
AGE
55
TENURE
3.7 yrs
Board of Directors Tenure

Average tenure and age of the Leoch International Technology board of directors in years:

6.8
Average Tenure
52
Average Age
  • The tenure for the Leoch International Technology board of directors is about average.
Board of Directors

Li Dong

TITLE
Founder & Chairman
COMPENSATION
CN¥909K
AGE
52

Haiyan Yin

TITLE
CEO & Executive Director
COMPENSATION
CN¥402K
AGE
42
TENURE
1 yrs

Alan Cao

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥249K
AGE
50
TENURE
8.8 yrs

Chi Kit Lau

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥249K
AGE
74
TENURE
4.8 yrs

Charles Liu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥249K
AGE
72
TENURE
8.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Leoch International Technology individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
05. Jul 19 Buy Li Dong Individual 05. Jul 19 05. Jul 19 588,000 HK$0.62 HK$363,151
04. Jul 19 Buy Li Dong Individual 04. Jul 19 04. Jul 19 502,000 HK$0.62 HK$308,832
03. Jul 19 Buy Li Dong Individual 03. Jul 19 03. Jul 19 349,000 HK$0.58 HK$203,257
02. Jul 19 Buy Li Dong Individual 02. Jul 19 02. Jul 19 15,000 HK$0.58 HK$8,700
26. Jun 19 Buy Li Dong Individual 26. Jun 19 26. Jun 19 1,000,000 HK$0.58 HK$576,102
19. Sep 18 Buy Li Dong Individual 17. Sep 18 17. Sep 18 1,000,000 HK$0.76 HK$760,802
10. Sep 18 Buy Li Dong Individual 10. Sep 18 10. Sep 18 1,000,000 HK$0.74 HK$742,903
X
Management checks
We assess Leoch International Technology'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. Leoch International Technology 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.

842 News

Simply Wall St News

Why We’re Not Keen On Leoch International Technology Limited’s (HKG:842) 6.4% Return On Capital

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 Leoch International Technology: 0.064 = CN¥256m ÷ (CN¥9.0b - CN¥5.0b) (Based on the trailing twelve months to December 2018.) So, Leoch International Technology has an ROCE of 6.4%. … Do Leoch International Technology's Current Liabilities Skew Its ROCE? … With a high level of current liabilities, Leoch International Technology will experience a boost to its ROCE.

Simply Wall St -

Is Now An Opportune Moment To Examine Leoch International Technology Limited (HKG:842)?

Leoch International Technology Limited (HKG:842), which is in the electrical business, and is based in China, received a lot of attention from a substantial price movement on the SEHK over the last few months, increasing to HK$0.80 at one point, and dropping to the lows of HK$0.57. … Great news for investors – Leoch International Technology is still trading at a fairly cheap price. … This is because Leoch International Technology’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market.

Simply Wall St -

Do Institutions Own Leoch International Technology Limited (HKG:842) Shares?

As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.' With a market capitalization of HK$855m, Leoch International Technology is a small cap stock, so it might not be well known by many institutional investors. … View our latest analysis for Leoch International Technology SEHK:842 Ownership Summary, June 3rd 2019 What Does The Lack Of Institutional Ownership Tell Us About Leoch International Technology? … Insider Ownership Of Leoch International Technology While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.

Simply Wall St -

Does Leoch International Technology Limited (HKG:842) Have A Volatile Share Price?

If you own shares in Leoch International Technology Limited (HKG:842) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … What this means for you: Beta only tells us that the Leoch International Technology share price is sensitive to broader market movements.

Simply Wall St -

Read This Before Selling Leoch International Technology Limited (HKG:842) Shares

So we'll take a look at whether insiders have been buying or selling shares in Leoch International Technology Limited (HKG:842). … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price

Simply Wall St -

Did Changing Sentiment Drive Leoch International Technology's (HKG:842) Share Price Down By 37%?

Leoch International Technology Limited (HKG:842) shareholders should be happy to see the share price up 24% in the last quarter. … In fact, the share price is down 37%, which falls well short of the return you could get by buying an index fund. … During five years of share price growth, Leoch International Technology moved from a loss to profitability.

Simply Wall St -

Is Leoch International Technology Limited (HKG:842) An Attractive Dividend Stock?

Historically, Leoch International Technology Limited (HKG:842) has been paying a dividend to shareholders. … Let's dig deeper into whether Leoch International Technology should have a place in your portfolio. … Check out our latest analysis for Leoch International Technology

Simply Wall St -

Is Leoch International Technology Limited's (HKG:842) Capital Allocation Ability Worth Your Time?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Should You Investigate Leoch International Technology Limited (HKG:842) At HK$0.65?

Leoch International Technology Limited (HKG:842), which is in the electrical business, and is based in China,. … So, could the stock still be trading at a low price relative to its actual value. … Let’s take a look at Leoch International Technology’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

Leoch International Technology Limited (HKG:842) Has Attractive Fundamentals

Attractive stocks have exceptional fundamentals. … In the case of Leoch International Technology Limited (HKG:842), there's. … Below, I've touched on some key aspects you should know on a high level.

Simply Wall St -

842 Company Info

Description

Leoch International Technology Limited, an investment holding company, develops, manufactures, and sells lead acid batteries under the LEOCH brand name worldwide. The company primarily offers reserve power, SLI, lithium Ion, LHT Anti HT, TRUE Hybrid GEL, 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 develops, sells, and 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.

Details
Name: Leoch International Technology Limited
842
Exchange: SEHK
Founded: 1999
HK$841,663,432
1,357,521,666
Website: http://www.leoch.com
Address: Leoch International Technology Limited
Xin Bao Hui Building,
5th Floor,
Shenzhen,
Guangdong Province, 518054,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 842 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 16. Nov 2010
DB 0LT Ordinary Shares Deutsche Boerse AG DE EUR 16. Nov 2010
Number of employees
Current staff
Staff numbers
13,288
Leoch International Technology employees.
Industry
Electrical Components and Equipment
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/16 12:56
End of day share price update: 2019/07/16 00:00
Last estimates confirmation: 2019/06/10
Last earnings filing: 2019/04/23
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


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.