Leoch International Technology Limited (0842) AI Stock Analysis

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Leoch International Technology Limited

(HKEX:0842)

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Rating:44Neutral

Price Target:HKD 0.68▼(-2.98% Downside)

Action:reiterated

Date:08/19/26

The overall score is driven primarily by weakened financial performance, with recent losses, higher leverage, and strained cash flows dominating the risk profile, while technical signals point to a mildly bearish but oversold setup and the high dividend yield partially offsets concerns raised by the negative P/E.

Positive Factors

Established battery platformLeoch operates an established manufacturing business serving multiple battery applications and geographic channels. This diversification provides a broader demand base than reliance on one end market, supporting the potential for durable customer relationships and recovery when industry conditions improve.

Negative Factors

Sharp revenue and margin deteriorationThe latest results show a material deterioration in demand or commercial economics, with revenue contraction, lower gross margin, and a shift into losses. This weakens earnings visibility and suggests that pricing, product mix, or cost absorption must improve before profitability can become dependable again.

Leoch International Technology Limited (0842) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 1.01B
Dividend Yield: 2.55%
Average Volume (3M): 240.90K
Price to Earnings (P/E): -7.1
Beta (1Y): 0.86
Revenue Growth: -44.15%
EPS Growth: -130.35%
Country: Hong Kong
Employees: 17,089
Sector: Industrials
Sector Strength: 63
Industry: Electrical Equipment & Parts

Leoch International Technology Limited Business Overview & Revenue Model

Company Description

Leoch International Technology Limited, an investment holding company, engages in the power solutions and recycled lead business in Mainland China and internationally. The company offers lithium solutions; network power solutions for use in telecom,...

Leoch International Technology Limited Financial Statement Overview

Summary

Recent results show a sharp revenue decline, operating and net losses, higher leverage, and volatile, negative free cash flow, offset only partially by prior years of steady growth and profitability.

Income Statement

41Neutral

Balance Sheet

52Neutral

Cash Flow

29Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.09B	10.57B	16.13B	13.47B	12.85B	11.30B
Gross Profit	1.10B	937.39M	2.27B	1.94B	1.59B	1.51B
EBITDA	569.15M	388.40M	1.50B	1.45B	1.30B	884.28M
Net Income	-125.32M	-173.90M	566.39M	535.37M	481.07M	136.13M
Balance Sheet
Total Assets	15.65B	15.53B	14.52B	14.10B	10.49B	9.60B
Cash, Cash Equivalents and Short-Term Investments	1.57B	1.39B	929.12M	1.78B	649.55M	523.38M
Total Debt	5.11B	5.15B	5.31B	4.57B	2.74B	2.39B
Total Liabilities	10.70B	10.54B	9.51B	9.51B	6.46B	6.02B
Stockholders Equity	4.58B	4.44B	4.60B	4.20B	3.82B	3.39B
Cash Flow
Free Cash Flow	923.81M	-137.42M	-1.21B	59.13M	126.65M	183.03M
Operating Cash Flow	1.86B	988.14M	1.67M	963.70M	788.16M	718.74M
Investing Cash Flow	-1.34B	-1.43B	-1.01B	-964.28M	-811.26M	-689.43M
Financing Cash Flow	-398.06M	491.17M	184.56M	1.14B	80.93M	-41.23M

Leoch International Technology Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price0.70

Price Trends

50DMA0.78Negative

100DMA0.86Negative

200DMA0.85Negative

Market Momentum

MACD-0.02Negative

RSI37.71Neutral

STOCH69.84Neutral

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 0.70 is below the 20-day moving average (MA) of 0.71, below the 50-day MA of 0.78, and below the 200-day MA of 0.85, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 37.71 is Neutral, neither overbought nor oversold. The STOCH value of 69.84 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

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

HK:0842 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:3750	66Neutral	HKD 1.33T	12.37	24.02%	2.87%	58.67%	40.21%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HK:3931	50Neutral	HKD 27.04B	9.26	5.77%	―	79.77%	149.08%
HK:8328	45Neutral	HKD 294.58M	-2.85	-11.50%	―	-7.44%	56.28%
HK:3919	44Neutral	HKD 41.52M	-1.89	-3.88%	―	-2.14%	23.66%
HK:0842	44Neutral	HKD 1.02B	-7.06	-2.78%	2.55%	-44.15%	-130.35%

* Industrials Sector Average

Performance Comparison

HK:0842 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:0842	Leoch International Technology Limited	0.70	-0.03	-3.82%
HK:3919	Golden Power Group Holdings Ltd.	0.63	-1.01	-61.63%
HK:3931	CALB Co., Ltd. Class H	13.29	-20.03	-60.11%
HK:8328	Xinyi Electric Storage Holdings Limited	0.38	-0.32	-46.43%
HK:3750	Contemporary Amperex Technology Co., Limited Class H	369.80	-148.37	-28.63%
HK:6960	Shuangdeng Group Co., Ltd. Class H	4.63	-13.94	-75.09%

Leoch International Technology Limited Corporate Events

Leoch Clarifies Lapsed Share Options in 2025 Annual Report

Sep 10, 2026

Leoch International Technology Limited has issued a supplemental announcement to its annual report for the year ended 31 December 2025, clarifying the treatment of certain share options under its New Share Option Scheme. The board stated that options...

Leoch International Boosts Profit and Resumes Dividend Despite Revenue Decline

Aug 26, 2026

Leoch International Technology Limited reported interim results for the six months ended 30 June 2026 showing a 17.6% decline in turnover to RMB 6.95 billion, but an 18.5% increase in gross profit to RMB 1.02 billion. Profit for the period rose 41.2%...

Leoch International Declares Interim Dividend for First Half of 2026

Aug 26, 2026

Leoch International Technology Limited has declared an interim ordinary cash dividend of HKD 0.018 per share for the six months ended 30 June 2026, for the financial year ending 31 December 2026. The ex-dividend date is set for 12 October 2026, with...

Leoch International Sets August Board Meeting to Review Interim Results and Dividend

Aug 14, 2026

Leoch International Technology Limited has scheduled a board meeting for 26 August 2026 to review and approve the unaudited interim results for the first half of 2026. The board will also consider publishing the interim results announcement and deter...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 12, 2026

Leoch International Technology Limited AI Stock Analysis