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Leoch International Technology Limited (0842) Fair Value & Analysis

Industrials · HK · Market cap HK$1.5B

LI Leoch International Technology Limited 0842 · HK
PriceHK$0.8850
Fair ValueHK$1.67
Upside+88.7%
Quality28/100
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Weak Growth
Loss-making · -1.6% net margin
Low debt · negative free cash flow
Mixed vs. peers (5/11)
Narrow moat 7/100
Evidence: Low Range HK$1.25 – HK$2.49 Share as image

Fair value as of: Aug 13, 2026

From 2 valuation models · updated 2 days ago

Fair value updated Aug 13, 2026, revised from HK$2.41 to HK$1.67 (−30.7%) since Aug 5, 2026. Share price −10.6% over the past month.

Below-average quality, screening 89% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (28/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (HK$1.25). The market is more pessimistic than our downside scenario.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • A fairly wide model range (HK$1.25 to HK$2.49) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

HK$2.73 HK$0.4037 Fair Value HK$1.67 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$0.4037 – HK$2.73 · fair‑value band HK$1.25 – HK$2.49 · the HK$0.8850 price screens below the HK$1.67 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Leoch International Technology Limited (0842) currently trades at HK$0.8850, while our model-based Fair Value estimate is HK$1.67, implying the stock looks roughly 88.7% undervalued today. The Quality Score stands at 28/100 (below-average quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: low), always confirm before acting.

Over the trailing twelve months, Leoch International Technology Limited generated revenue of HK$10.6B at a net margin of -1.6%. Revenue grew 11.9% year over year. It earns a return on equity of -5.5%. Net debt stands at HK$3.9B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$1.25 (bear case) to HK$2.49 (bull case); at HK$0.8850, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 66% below its 52-week high and 70% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -65% fair-value upside, at 89%, 0842 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
EV/EBITDA HK$1.17 HK$1.45 HK$1.73 54
NCAV (Graham) HK$1.55 HK$2.07 HK$3.09 50
All 2 models by family
Multiples
EV/EBITDA HK$1.17 HK$1.45 HK$1.73 54
Asset-Based
NCAV (Graham) HK$1.55 HK$2.07 HK$3.09 50

Widest divergence: Asset-Based (HK$2.07) versus Multiples (HK$1.45). Highest evidence: EV/EBITDA (54).

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Key figures & financial health

Revenue (TTM) HK$10.6B
Revenue growth (YoY) +11.9%
Net margin -1.6%
Return on equity -5.5%
Free cash flow −HK$137M FY2025
Operating margin -1.4%
More key figures
EPS (TTM) HK$0.0700
EPS growth (YoY) -61.2%
Net debt HK$3.9B FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 28/100

Of which business quality 30 · Market factors (momentum, volatility) 23

Profitability 16
Margins and returns on capital today
Quality Growth 0
Are margins and returns improving?
Cashflow 18
Earnings quality: real cash, not paper profit
Fin. Strength 25
Balance sheet, leverage, solvency risk
Investment 52
Disciplined investing over empire-building
Low Volatility 16
Calm price path (market factor)
Momentum 36
Price trend over the last 3–12 months (market factor)
52W Momentum 9
Distance to the 52-week high (market factor)
Net Issuance 85
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Leoch International Technology Limited, an investment holding company, engages in the power solutions and recycled lead business in Mainland China and internationally.

Full company description

Leoch International Technology Limited, an investment holding company, engages in the power solutions and recycled lead business in Mainland China and internationally. It offers lithium batteries; network power solutions for use in telecom, UPS, renewable energy, and general purposes; energy saving and emission reduction solutions for start-stop systems used in the ignition of automotive, motorcycle, ship, etc.; and motive power solutions for electric bicycle and tricycle, electric wheelchair, cleaning equipment, golf cart, aerial work platform, and traction battery. The company was founded in 1999 and is headquartered in Singapore. Leoch International Technology Limited operates as a subsidiary of Master Alliance Investment Limited.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Leoch International Technology Limited reported revenue of HK$10.6B in FY2025 versus HK$11.3B in FY2021, a compound −1.7%/yr. Reported net income was −HK$174M in FY2025.

Growth Quality 9/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$10.6B
Latest YoY
−34.4%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−6.3%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+1.9%
Avg. growth/yr (18Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.2%
Revenue −1.7%/yr
FY21 HK$11.3B
FY22 HK$12.8B
FY23 HK$13.5B
FY24 HK$16.1B
FY25 HK$10.6B
Net income
FY21 HK$136M
FY22 HK$481M
FY23 HK$535M
FY24 HK$566M
FY25 −HK$174M
Character of growth · EPS growth decomposed (2014-2025) +16.1 % p.a.
Revenue per share +12.8 pp

of which total revenue +13.8 pp · buybacks/dilution −1.0 pp

EBIT margin −3.7 pp
Tax rate +0.6 pp
Residual (interest, one-offs) +6.5 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Leoch International Technology Limited Fair Value". https://www.fairvalue-calculator.com/stock/0842

Peer Group

Electrical Equipment & Parts · 524 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 30 · Bottom 25%
Fair Value upside +89% · Top 25%
Return on assets -1% · Bottom 25%
Net margin (TTM) -2% · Bottom 25%
Operating margin (TTM) -1% · Bottom 25%
Revenue growth 12% · Above median
Dividend yield (TTM) 6.1% · Top 25%
Debt / equity 0.17× · Higher than median

Valuation Multiples vs Electrical Equipment & Parts median · lower = cheaper

P/S (TTM) 0.02× · Cheaper than 75% of peers
PEG 0.19× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 0
FUTURE 60 · sector 57
PAST 0 · sector 27
HEALTH 92 · sector 97
DIVIDEND 100 · sector 23

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Electrical Equipment & Parts stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Contemporary Amperex Technology Co 3750 HK$652.50 HK$394.19 -40%
Delta Electronics (Thailand) Public Company DELTA 269.00 THB 40.28 THB -85%
LG Energy Solution, Ltd 373220 365,500 KRW 201,455 KRW -45%
WEG S.A WEGE3 14,900 ARS 4,338 ARS -71%
Sungrow Power Supply Co 300274 ¥117.53 ¥123.83 +5%
HD Hyundai Electric Co 267260 782,000 KRW 371,133 KRW -53%
LS ELECTRIC Co 010120 208,500 KRW 29,594 KRW -86%
Hyosung Heavy Industries Corporation 298040 2,892,000 KRW 1,013,099 KRW -65%
Hitachi Energy India Limited POWERINDIA ₹35,800 ₹6,106 -83%
Polycab India Limited POLYCAB ₹9,289 ₹3,218 -65%

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Frequently asked questions

Is Leoch International Technology Limited (0842) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$1.67 versus a price of HK$0.8850, about +89% (undervalued).
What is the fair value of 0842?
Our model-based fair value for Leoch International Technology Limited is HK$1.67 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$0.8850.
What is the quality score of 0842?
Leoch International Technology Limited has a Quality Score of 28/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Leoch International Technology Limited (0842)?
Leoch International Technology Limited reported trailing-twelve-month revenue of about HK$10.6B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 0842?
The net profit margin of Leoch International Technology Limited is about -1.6%, meaning it is currently running at a net loss. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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