Leoch International Technology Limited (0842) AI Stock Analysis

• Market Cap: HK$2.08B
• Dividend Yield: 7.28%
• Average Volume (3M): 1.88M
• Price to Earnings (P/E): 4.5
• Beta (1Y): 0.66
• Revenue Growth: 13.14%
• EPS Growth: -28.26%
• Country: HK
• Employees: 16,732
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.07
• Shares Outstanding: 1,432,881,300
• 10 Day Avg. Volume: 1,713,200
• 30 Day Avg. Volume: 1,880,639
• PEG Ratio: 0.45
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.12
• P/FCF Ratio: -1.65
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: HK$1.50 ▲(0.67% Upside)

Leoch International Technology Limited's overall stock score is driven by strong financial performance and attractive valuation. However, technical analysis indicates bearish momentum, which could pose short-term risks. The company's low P/E ratio and high dividend yield make it appealing for value and income-focused investors, but attention should be paid to its cash flow management and increasing debt levels.

Leoch International Technology Limited Business Overview & Revenue Model

Company Description

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 sale of lead-acid batteries, and recycle and remanufacture of lead from disposed batteries. 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.

How the Company Makes Money

Leoch International Technology Limited generates revenue primarily through the manufacturing and sale of its battery products. The company's key revenue streams include sales to telecommunications providers, UPS manufacturers, and automotive companies, as well as to renewable energy projects that require reliable energy storage solutions. Leoch's strong distribution network and strategic partnerships with industry leaders enhance its market presence and sales opportunities. Additionally, the company invests in research and development to innovate and improve its product offerings, thereby maintaining a competitive edge and driving sales growth.

Leoch International Technology Limited Financial Statement Overview

Summary

Leoch International Technology Limited exhibits strong financial health with consistent revenue growth and profitability. The balance sheet is stable, but increasing debt levels require monitoring. Cash flow management needs improvement, especially in maintaining positive free cash flow amid high capital expenditures.

Income Statement

Leoch International Technology Limited has shown strong revenue growth over the years, with a notable increase from 2023 to 2024. The gross profit margin has remained stable, reflecting good cost management. The company has maintained a healthy net profit margin, indicating effective control over expenses. EBITDA margin shows efficient operational performance. However, a slight decline in EBIT margin suggests potential rising operational costs or expenses.

Balance Sheet

The balance sheet reflects a solid equity base with a consistent increase in stockholders' equity over the years. The debt-to-equity ratio is manageable, showing a balanced approach to leveraging. However, there is a noticeable increase in total debt from 2023 to 2024, which may indicate increased financial leverage risk. The equity ratio remains stable, underscoring the company's financial stability.

Cash Flow

The cash flow statement shows fluctuating free cash flow, with significant capital expenditures potentially impacting liquidity. The operating cash flow to net income ratio indicates strong cash generation capabilities. However, in 2024, operating cash flow data is unavailable, which raises concerns about cash flow consistency and reliability of cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.02B	16.13B	13.47B	12.85B	11.30B	9.63B
Gross Profit	2.07B	2.27B	1.94B	1.59B	1.51B	1.19B
EBITDA	950.42M	1.16B	1.45B	1.30B	884.28M	774.61M
Net Income	415.31M	566.39M	535.37M	481.07M	136.13M	123.73M
Balance Sheet
Total Assets	15.43B	14.52B	14.10B	10.49B	9.60B	9.07B
Cash, Cash Equivalents and Short-Term Investments	776.85M	929.12M	1.78B	649.55M	523.38M	716.74M
Total Debt	5.59B	5.31B	4.57B	2.74B	2.39B	2.31B
Total Liabilities	10.38B	9.51B	9.51B	6.46B	6.02B	5.67B
Stockholders Equity	4.65B	4.60B	4.20B	3.82B	3.39B	3.24B
Cash Flow
Free Cash Flow	139.36M	-1.21B	59.13M	126.65M	183.03M	117.89M
Operating Cash Flow	1.10B	1.67M	963.70M	788.16M	718.74M	763.05M
Investing Cash Flow	-1.35B	-1.01B	-964.28M	-811.26M	-689.43M	-490.84M
Financing Cash Flow	31.91M	184.56M	1.14B	80.93M	-41.23M	-111.86M

Leoch International Technology Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0842, the sentiment is Negative. The current price of 1.49 is below the 20-day moving average (MA) of 1.56, below the 50-day MA of 1.68, and below the 200-day MA of 2.03, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 42.60 is Neutral, neither overbought nor oversold. The STOCH value of 35.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0842.

Leoch International Technology Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3393	77 Outperform	HK$14.48B	16.53	15.02%	2.59%	20.33%	27.05%
1979	76 Outperform	HK$2.29B	5.45	22.34%	5.52%	18.32%	14.06%
0842	68 Neutral	HK$2.08B	4.47	9.11%	7.28%	13.14%	-28.26%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1729	59 Neutral	HK$28.23B	49.95	32.21%	0.19%	―	―
1710	56 Neutral	HK$194.00M	9.85	5.04%	9.14%	4.01%	―
2188	40 Underperform	HK$350.63M	-7.12	-8.16%	―	-0.84%	42.31%

Leoch International Technology Limited Corporate Events

Leoch International Updates Executive Compensation Details for FY2023 and FY2024

Leoch International Technology Limited has released supplemental information regarding the emoluments of its chief executive officers for the fiscal years 2023 and 2024. The announcement highlights changes in leadership, with Mr. Chang Jianwei serving as CEO until December 2024, after which Mr. Wu Kouyue took over. This update does not affect other information in the annual reports, maintaining the company’s transparency and stability in its executive compensation practices.

The most recent analyst rating on (HK:0842) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Leoch International Technology Limited stock, see the HK:0842 Stock Forecast page.

Leoch International Reports Increased Revenue but Declining Profits in Interim Results

Leoch International Technology Limited announced its interim results for the six months ending June 30, 2025, showing an 11.9% increase in turnover compared to the previous year. However, the company experienced a significant decline in gross profit and profit attributable to owners, with a 71.3% drop in profit for the period. The results indicate financial challenges despite increased revenue, impacting the company’s profitability and shareholder returns.

The most recent analyst rating on (HK:0842) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Leoch International Technology Limited stock, see the HK:0842 Stock Forecast page.

Leoch International Schedules Board Meeting and Provides Annual Report Update

Leoch International Technology Limited announced that its board of directors will meet on August 29, 2025, to review and approve the unaudited interim results for the first half of 2025, and to discuss the potential payment of an interim dividend. Additionally, the company provided a supplemental detail regarding its 2024 annual report, noting the weighted average closing price of its shares before the exercise of share options was HK$1.51.

Leoch International Secures Strategic Supply Agreement for Production Facilities

Leoch International Technology Limited has entered into a Master Purchase Agreement with Dr. Dong to secure a stable supply of production facilities, essential for its expanding operations. This agreement, effective from August 13, 2025, to December 31, 2027, is a strategic move to ensure competitive terms and meet the company’s growing production needs, highlighting its commitment to operational growth and stability.