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Launch Tech Co. Ltd. Class H
(2488)
Select Model
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Rating:74Outperform
Price Target:
HK$7.50
▲(6.69% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by solid financial performance (strong recent profitability, improved leverage, and better cash generation) and attractive valuation (low P/E and high dividend yield). These positives are partially offset by weak technicals, with price below key moving averages and negative MACD indicating bearish near-term momentum.
Positive Factors
Revenue Growth
Launch Tech shows a sustained multi-year revenue rebound with continued growth into 2025, indicating durable demand for its auto-parts. Persistent top-line expansion supports scale economies, long-term customer relationships, and the ability to invest in product quality and distribution over the next 2–6 months and beyond.
Negative Factors
Earnings and Margin Volatility
Historic swings in margins and episodic losses signal that profitability is not yet fully stable. This undermines predictability of operating cash flow and returns, making capital allocation and dividend sustainability more uncertain across business cycles over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Launch Tech shows a sustained multi-year revenue rebound with continued growth into 2025, indicating durable demand for its auto-parts. Persistent top-line expansion supports scale economies, long-term customer relationships, and the ability to invest in product quality and distribution over the next 2–6 months and beyond.
Read all positive factors
Launch Tech Co. Ltd. Class H (2488) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$4.23B
Dividend Yield11.51%
Average Volume (3M)412.32K
Price to Earnings (P/E)7.5
Beta (1Y)0.30
Revenue Growth22.02%
EPS Growth-10.82%
CountryHK
Employees1,208
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.79
Shares Outstanding350,837,200
10 Day Avg. Volume642,940
30 Day Avg. Volume412,318
Financial Highlights & Ratios
PEG Ratio7.65
Price to Book (P/B)2.62
Price to Sales (P/S)1.52
P/FCF Ratio7.69
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Launch Tech Co. Ltd. Class H Business Overview & Revenue Model
Company Description
Launch Tech Company Limited, along with its affiliated entities, serves the global automotive sector, encompassing both the aftermarket and the broader automobile industry, across the People's Republic of China and internationally. Its operations ...
Launch Tech Co. Ltd. Class H Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.20B | 2.11B | 1.88B | 1.60B | 1.18B | 1.34B |
| Gross Profit | 1.02B | 994.31M | 895.08M | 686.50M | 433.16M | 527.62M |
| EBITDA | 401.92M | 396.81M | 410.22M | 235.28M | 119.83M | 179.45M |
| Net Income | 324.23M | 344.26M | 339.51M | 168.90M | 328.03M | 92.39M |
Balance Sheet | ||||||
| Total Assets | 2.53B | 2.17B | 2.00B | 1.86B | 1.99B | 1.56B |
| Cash, Cash Equivalents and Short-Term Investments | 633.56M | 580.39M | 557.39M | 625.58M | 546.51M | 415.39M |
| Total Debt | 440.58M | 271.80M | 267.57M | 414.35M | 560.38M | 398.89M |
| Total Liabilities | 1.30B | 931.84M | 752.84M | 780.38M | 914.66M | 810.02M |
| Stockholders Equity | 1.22B | 1.22B | 1.24B | 1.07B | 1.07B | 745.32M |
Cash Flow | ||||||
| Free Cash Flow | 355.15M | 416.51M | 315.94M | 76.97M | 9.24M | -63.23M |
| Operating Cash Flow | 408.61M | 469.97M | 391.42M | 163.61M | 71.35M | -14.17M |
| Investing Cash Flow | -53.67M | -85.87M | -114.87M | 173.01M | -29.84M | -71.37M |
| Financing Cash Flow | -274.80M | -388.47M | -342.21M | -212.88M | 26.07M | 125.48M |
Launch Tech Co. Ltd. Class H Technical Analysis
Negative
7.03
Price Trends
6.79
Positive
7.14
Negative
7.39
Negative
Market Momentum
0.05
Positive
50.38
Neutral
39.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2488, the sentiment is Negative. The current price of 7.03 is above the 20-day moving average (MA) of 6.99, above the 50-day MA of 6.79, and below the 200-day MA of 7.39, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 50.38 is Neutral, neither overbought nor oversold. The STOCH value of 39.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2488.
Launch Tech Co. Ltd. Class H Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | HK$162.85B | 16.66 | 22.56% | 4.30% | 13.06% | -0.41% | |
74 Outperform | HK$4.23B | 7.48 | 26.57% | 11.51% | 22.02% | -10.82% | |
64 Neutral | HK$9.45B | 29.86 | 6.10% | ― | 15.91% | -37.62% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
47 Neutral | HK$442.00M | 667.90 | 1.68% | ― | -44.66% | ― | |
47 Neutral | HK$1.74B | -38.50 | -6.42% | ― | -2.96% | -198.48% | |
44 Neutral | HK$757.55M | -5.58 | -38.18% | ― | 15.81% | -16.67% |
* Consumer Cyclical Sector Average
HK:2488
Launch Tech Co. Ltd. Class H
6.83
-3.21
-31.94%
HK:0360
New Focus Auto Tech Holdings
0.04
>-0.01
-16.00%
HK:3606
Fuyao Glass Industry Group Co., Ltd. Class H
54.85
-17.24
-23.92%
HK:8418
Optima Automobile Group Holdings Limited
0.54
0.08
16.30%
HK:9690
TUHU Car Inc. Class A
12.42
-7.70
-38.27%
HK:2531
GL-Carlink Technology Holding Limited
4.75
-7.26
-60.45%
Launch Tech Co. Ltd. Class H Corporate Events
Launch Tech Sets August Board Meeting for Interim Results and Dividend Review
Jul 29, 2026
Launch Tech Company Limited has scheduled a board meeting for 10 August 2026 to review and approve its interim results for the six months ended 30 June 2026, and to consider a potential dividend declaration. The meeting signals an upcoming update ...
Launch Tech signs connected 2.5-year framework purchase deal
Jun 30, 2026
Launch Tech Company Limited has entered into a 2.5-year framework purchase agreement with a connected supplier group, under which the company will buy goods from 1 July 2026 to 31 December 2028. The arrangement covers automotive-related products t...
Launch Tech Completes Full H-Share Circulation, Boosting Free Float
May 8, 2026
Launch Tech Company Limited has completed the conversion of 194,241,600 domestic unlisted shares into H shares, marking a full circulation of its H shares on the Hong Kong Stock Exchange. Following this move, the company’s share structure no...
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.