Shares & Derivatives
Company prospecting: Lonking 3999 (HK)
By Sillyinvestor  •  August 23, 2020
Has been a while since I done this, but Lonking is a company manucturing for the construction machinery industry. Again, I used price screener to screen stocks in HKex. I recommend FSM price screener. Lonking is a company with almost an 10% yield. Following pictures are sourced from FSM. Stable and generally growing top line and bottom line Balance sheet strength reasonable. FCF is good. PE is low, at 6. Enough for me to want to dig up on the Annual reports, to read the "story", and also read up more about the industry Here is what i find: 1) It is a cyclical company, beyond the 5 years info from FSM, you can see earnings going up and down and there is a year in 2013 where they skip dividends. 2) This is a company that has enough market share that allowed it to positively correlated to the construction machinery demand. When i read about the industry having a rebound from excess supply of machinery, in 2017, the revenue and profits also improved tremendously...
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By Sillyinvestor
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