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<a href="https://smartkarma.com/entities/leoch-international-technology-limited">Leoch</a> is a major global battery supplier with a strong foothold in the telecommunications and data center sectors, poised to benefit from the global 5G rollout and data infrastructure expansion.</li>
 <li>The company is facing significant financial headwinds, evidenced by a sharp decline in revenue and a swing to a net loss in the most recent fiscal year, alongside a deteriorating growth track record.</li>
 <li>Valuation appears distressed, with key metrics like Price-to-Book ratio trading at a substantial discount to peers, reflecting market concerns over profitability, negative cash flow, and high competitive intensity.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  
Leoch is a major global battery supplier with a strong foothold in the telecommunications and data center sectors, poised to benefit from the global 5G rollout and data infrastructure expansion.
  The company is facing significant financial headwinds, evidenced by a sharp decline in revenue and a swing to a net loss in the most recent fiscal year, alongside a deteriorating growth track record.
  Valuation appears distressed, with key metrics like Price-to-Book ratio trading at a substantial discount to peers, reflecting market concerns over profitability, negative cash flow, and high competitive intensity.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Back in February 2025, <a href="https://www.smartkarma.com/entities/leoch-international-technology-limited" target="_blank" data-smartkarma-citation="entities:7957:1" rel="noopener">Leoch International Technology (842 HK)</a> ("LIT"), a leading manufacturer of lead-acid batteries, announced the spin-off and separate listing of wholly-owned Leoch Energy on a US exchange.</li>
<li>LIT will distribute all shares held in-specie. There will be no concurrent global offering.</li>
<li>Leoch Energy, the international  arm of the group, accounted for 32% of LIT's revs in the 1H25, and 15% of profit.</li>
</ul>


Back in February 2025, Leoch International Technology (842 HK) ("LIT"), a leading manufacturer of lead-acid batteries, announced the spin-off and separate listing of wholly-owned Leoch Energy on a US exchange.
LIT will distribute all shares held in-specie. There will be no concurrent global offering.
Leoch Energy, the international  arm of the group, accounted for 32% of LIT's revs in the 1H25, and 15% of profit.


Leoch Int'l (842 HK)'s Spin-Off and Listing Of Leoch Energy

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<a href="https://www.smartkarma.com/entities/ane-cayman-inc" target="_blank" data-smartkarma-citation="entities:35025:1" rel="noopener">ANE Cayman (9956 HK)</a>'s Scheme Doc is out, absent any reference to CDH (holding an estimated 18%). Given precedents with similar fact patterns, this is probably one deal to avoid.</li>
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<a href="https://www.smartkarma.com/entities/hogy-medical-co-ltd" target="_blank" data-smartkarma-citation="entities:10493:1" rel="noopener">Hogy Medical (3593 JP)</a>'s Offer Price is more than expected; but the fact that Dalton , who really wanted to sell, but isn't selling, suggests the price should be higher.</li>
<li>8th January vote on <a href="https://www.smartkarma.com/entities/hsbc-holdings-plc" target="_blank" data-smartkarma-citation="entities:516:1" rel="noopener">HSBC (5 HK)</a>'s Offer for <a href="https://www.smartkarma.com/entities/hang-seng-bank-ltd" target="_blank" data-smartkarma-citation="entities:24:1" rel="noopener">Hang Seng Bank (11 HK)</a>.  Safe deal. This is effectively a term deposit hybrid.</li>
</ul>



ANE Cayman (9956 HK)'s Scheme Doc is out, absent any reference to CDH (holding an estimated 18%). Given precedents with similar fact patterns, this is probably one deal to avoid.

Hogy Medical (3593 JP)'s Offer Price is more than expected; but the fact that Dalton , who really wanted to sell, but isn't selling, suggests the price should be higher.
8th January vote on HSBC (5 HK)'s Offer for Hang Seng Bank (11 HK).  Safe deal. This is effectively a term deposit hybrid.


Last Week In Event SPACE: ANE Cayman. Hogy Medical, Hang Seng, Zhejiang Sanhua Intelligent

Stock research on global mid-cap companies, Evaluate Research

Evaluate Research

Stock research on global mid-cap companies

Evaluate Research provides institutional quality stock research on small-cap and  mid-cap companies on a global basis, thus helping connect investors with the company.

At Evaluate Research, we provide free of cost to all investors a 20-25 page Initiation Report which evaluates in great detail all aspects of the company:  growth opportunities, catalysts, business description, competitive positioning, SWOT analysis, risks, etc.  In addition, we determine specific price targets for the company based on detailed 5-year complete forecasts of financial statements including IS, BS, CF, ratios, etc.  Finally, whereas many sell-side brokers offer sketchy and irregular ongoing maintenance research of companies, if not outright dropped or termination of coverage, at Evaluate Research we systematically monitor and regularly publish Update Notes covering quarterly earnings, major corporate events, etc.

All of the research reports are broadly and freely disseminated globally to leading Fund Managers and analysts who invest specifically in mid-size equities, and also on leading investment information platforms including: Bloomberg, Thomson Reuters, FactSet etc.

<ul>
<li>Capital Expenditure - New Investment in Mexico Plant in 2023</li>
<li>The company achieved a solid performance in its Recycled Lead business and Power Solutions business with a revenue growth of 18% and 13%, respectively, as compared to 2021.</li>
<li>The revenue for Recycled Lead business and Power Solutions business was RMB2,413 million and RMB10,433 million respectively. </li>
</ul>


Capital Expenditure - New Investment in Mexico Plant in 2023
The company achieved a solid performance in its Recycled Lead business and Power Solutions business with a revenue growth of 18% and 13%, respectively, as compared to 2021.
The revenue for Recycled Lead business and Power Solutions business was RMB2,413 million and RMB10,433 million respectively. 


Leoch [842]:  +225% EPS, 5G Play, 4x P/E, 6% Dividend, Inflection Point

<a target="_blank">We had an encouraging meeting with the Senior Management of Leoch</a><a target="_blank">&nbsp;[842_HK; HK$2 billion/US$260 million market cap]</a>&nbsp;at their Hong Kong corporate headquarters recently.&nbsp;During our discussion with the management, they mentioned that focus for the year 2023 would be primarily on generating higher sales growth along with improvement in the gross, operating and net profit margins. The inherent demand for batteries especially in China is expected to drive revenue growth in the 2nd&nbsp;half of 2022. The year 2023 is expected to witness growth in both overseas and China regions with the momentum expected to continue further.

We had an encouraging meeting with the Senior Management of Leoch&nbsp;[842_HK; HK$2 billion/US$260 million market cap]&nbsp;at their Hong Kong corporate headquarters recently.&nbsp;During our discussion with the management, they mentioned that focus for the year 2023 would be primarily on generating higher sales growth along with improvement in the gross, operating and net profit margins. The inherent demand for batteries especially in China is expected to drive revenue growth in the 2nd&nbsp;half of 2022. The year 2023 is expected to witness growth in both overseas and China regions with the momentum expected to continue further.

Leoch [842]: 100% Profit Upside, 3x P/E, 2x EV/EBITDA, Stock Double Target

China

Leoch International Technology Limited specializes in the research, development, manufacturing, and sales of lead-acid and lithium batteries. The company offers a comprehensive range of products including reserve power, starting, lighting, and ignition (SLI), and motive power batteries for various applications such as telecommunications, UPS systems, automotive, and renewable energy. Founded in 1999, the company is headquartered in Singapore.

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Leoch (842 HK)

Primer: Leoch (842 HK) - Aug 2026

Leoch is a major global battery supplier with a strong foothold in the telecommunications and data center sectors, poised to benefit from the...

αSK Primers

Leoch Int'l (842 HK)'s Spin-Off and Listing Of Leoch Energy

Despite the size of Leoch Energy, relative to LIT, I'd expect the sum of the parts to be greater than the whole. If small, illiquid events are your...

David Blennerhassett

Last Week In Event SPACE: ANE Cayman. Hogy Medical, Hang Seng, Zhejiang Sanhua Intelligent

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Leoch [842]: +225% EPS, 5G Play, 4x P/E, 6% Dividend, Inflection Point

We are extremely bullish on Leoch International Technology stock as our short-term price target of HK$1.50 per share has been reached within a one...

Evaluate Research

Leoch [842]: 100% Profit Upside, 3x P/E, 2x EV/EBITDA, Stock Double Target

We had an encouraging meeting with the Senior Management of Leoch [842_HK; HK$2 billion/US$260 million market cap] at their Hong Kong corporate...

Evaluate Research

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