OTCPK:LONK.F

Stock Analysis Report

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Executive Summary

Lonking Holdings Limited, an investment holding company, manufactures and distributes wheel loaders, road rollers, excavators, forklifts, and other construction machinery in Mainland China.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Lonking Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

LONK.F

-0.7%

US Machinery

-0.7%

US Market


1 Year Return

n/a

LONK.F

-6.9%

US Machinery

5.3%

US Market

Return vs Industry: Insufficient data to determine how LONK.F performed against the US Machinery industry.

Return vs Market: Insufficient data to determine how LONK.F performed against the US Market.


Shareholder returns

LONK.FIndustryMarket
7 Day0%-0.7%-0.7%
30 Day0%2.1%4.6%
90 Dayn/a14.0%14.0%
1 Yearn/a-5.1%-6.9%7.6%5.3%
3 Year3.4%3.4%9.9%2.7%34.9%26.1%
5 Year116.3%116.3%49.1%31.3%62.3%44.7%

Price Volatility Vs. Market

How volatile is Lonking Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Lonking Holdings undervalued compared to its fair value and its price relative to the market?

6.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LONK.F ($0.33) is trading above our estimate of fair value ($0.31)

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


Price To Earnings Ratio

PE vs Industry: LONK.F is good value based on its PE Ratio (6.4x) compared to the US Machinery industry average (19.1x).

PE vs Market: LONK.F is good value based on its PE Ratio (6.4x) compared to the US market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: LONK.F's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: LONK.F is good value based on its PB Ratio (1.2x) compared to the US Machinery industry average (1.9x).


Next Steps

Future Growth

How is Lonking Holdings forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

-7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LONK.F's earnings are forecast to decline over the next 3 years (-7.1% per year).

Earnings vs Market: LONK.F's earnings are forecast to decline over the next 3 years (-7.1% per year).

High Growth Earnings: LONK.F's earnings are forecast to decline over the next 3 years.

Revenue vs Market: LONK.F's revenue (1.2% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: LONK.F's revenue (1.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LONK.F's Return on Equity is forecast to be low in 3 years time (12.9%).


Next Steps

Past Performance

How has Lonking Holdings performed over the past 5 years?

39.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LONK.F has a large one-off gain of CN¥399.3M impacting its December 31 2019 financial results.

Growing Profit Margin: LONK.F's current net profit margins (14%) are higher than last year (9.6%).


Past Earnings Growth Analysis

Earnings Trend: LONK.F's earnings have grown significantly by 39.8% per year over the past 5 years.

Accelerating Growth: LONK.F's earnings growth over the past year (43.7%) exceeds its 5-year average (39.8% per year).

Earnings vs Industry: LONK.F earnings growth over the past year (43.7%) exceeded the Machinery industry -5.4%.


Return on Equity

High ROE: LONK.F's Return on Equity (18.1%) is considered low.


Next Steps

Financial Health

How is Lonking Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: LONK.F's short term assets (CN¥10.8B) exceed its short term liabilities (CN¥4.7B).

Long Term Liabilities: LONK.F's short term assets (CN¥10.8B) exceed its long term liabilities (CN¥799.4M).


Debt to Equity History and Analysis

Debt Level: LONK.F's debt to equity ratio (7.8%) is considered satisfactory.

Reducing Debt: LONK.F's debt to equity ratio has reduced from 60.9% to 7.8% over the past 5 years.

Debt Coverage: LONK.F's debt is well covered by operating cash flow (221.5%).

Interest Coverage: LONK.F earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Lonking Holdings's current dividend yield, its reliability and sustainability?

9.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LONK.F's dividend (9.15%) is higher than the bottom 25% of dividend payers in the US market (1.68%).

High Dividend: LONK.F's dividend (9.15%) is in the top 25% of dividend payers in the US market (4.59%)


Stability and Growth of Payments

Stable Dividend: LONK.F's dividend payments have been volatile in the past 10 years.

Growing Dividend: LONK.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.2%), LONK.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LONK.F's dividends in 3 years are forecast to be covered by earnings (51% payout ratio).


Next Steps

Management

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

8.2yrs

Average board tenure


CEO

San Yim Li (69yo)

4.58yrs

Tenure

CN¥9,700,000

Compensation

Mr. San Yim Li is the Founder of Lonking Holdings Ltd. (Also called as China Infrastructure Machinery Holdings Ltd.) and serves as its Executive Chairman and has also been Chief Executive Officer since Dec ...


CEO Compensation Analysis

Compensation vs Market: San Yim's total compensation ($USD1.39M) is below average for companies of similar size in the US market ($USD4.72M).

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


Board Members

NamePositionTenureCompensationOwnership
San Yim Li
Founder4.58yrsCN¥9.70mno data
Kun Lun Yin
CFO & Executive Director8.17yrsCN¥849.00kno data
Jianru Luo
VP & Executive Director15.42yrsCN¥900.00k0.054% CN¥810.8k
Chao Chen
Executive VP & Executive Director15.42yrsCN¥1.25m0.037% CN¥562.2k
Ke Wen Zheng
VP, GM of Excavator Business Segment & Executive Director8.17yrsCN¥1.25m0.010% CN¥151.4k
Shizheng Qian
Independent Non Executive Director15.42yrsCN¥200.00kno data
Ngan Ying Ngai
Non Executive Vice Chairmanno dataCN¥1.20m56.03% CN¥844.7m
Jian Ming Wu
Independent Non-Executive Director6.92yrsCN¥100.00kno data
Zhen Chen
Independent Non-Executive Director5.75yrsCN¥100.00kno data

8.2yrs

Average Tenure

64yo

Average Age

Experienced Board: LONK.F's board of directors are considered experienced (8.2 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

Lonking Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lonking Holdings Limited
  • Ticker: LONK.F
  • Exchange: OTCPK
  • Founded: 1993
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: HK$11.685b
  • Listing Market Cap: HK$1.508b
  • Shares outstanding: 4.28b
  • Website: https://www.lonking.cn

Number of Employees


Location

  • Lonking Holdings Limited
  • No. 26 Mingyi Road
  • Xinqiao
  • Shanghai
  • 201612
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3339SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2005
C9IBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2005
LONK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2005
3339SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 2005
3339SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 2005
LKHL.YOTCPK (Pink Sheets LLC)ADRUSUSDMay 2010

Biography

Lonking Holdings Limited, an investment holding company, manufactures and distributes wheel loaders, road rollers, excavators, forklifts, and other construction machinery in Mainland China. It also provides hydraulic excavators and skid steer loaders; and diesel, electric, and LPG forklifts. In addition, the company offers components, such as axles, gear boxes, cylinders, gears, castings, and high-end hydraulic pumps and valves; and main valves, parts, pilot oil valves, radial plunger motors, swing motors and reducer assemblies, and variable plunger pumps. Further, it provides finance leasing for wheel loaders and other machinery. The company also sells its products to approximately 40 countries in Mid and South America, Russia, Asia and Pacific area, Mid-East countries and Africa, etc. Lonking Holdings Limited was founded in 1993 and is headquartered in Shanghai, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/15 00:37
End of Day Share Price2020/05/27 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.