Lonking Holdings Limited (HKG:3339) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of 3339, it is a financially-sound company with a strong track record high-grade dividend payments, trading at a discount. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on Lonking Holdings here.
Flawless balance sheet established dividend payer
3339 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that 3339 manages its cash and cost levels well, which is a crucial insight into the health of the company. 3339 appears to have made good use of debt, producing operating cash levels of 0.63x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. 3339's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. Investors have the opportunity to buy into the stock to reap capital gains, if 3339's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, 3339's share price is trading below the group's average. This further reaffirms that 3339 is potentially undervalued.
3339’s reputation for being one of the best dividend payers in the market is supported by the fact that it has been steadily growing its dividend payments over the past ten years and currently is one of the top yielding companies on the markets, at 9.3%.
For Lonking Holdings, I've put together three fundamental factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for 3339’s future growth? Take a look at our free research report of analyst consensus for 3339’s outlook.
- Historical Performance: What has 3339's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 3339? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.