Launch Tech Company Limited
Launch Tech Company Limited Fundamental Analysis
Launch Tech Company Limited (2488.HK) shows strong financial fundamentals with a PE ratio of 3.30, profit margin of 16.42%, and ROE of 27.86%. The company generates $5.5B in annual revenue with strong year-over-year growth of 17.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 80.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze 2488.HK's fundamental strength across five key dimensions:
Efficiency Score
Excellent2488.HK demonstrates superior asset utilization.
Valuation Score
Excellent2488.HK trades at attractive valuation levels.
Growth Score
Moderate2488.HK shows steady but slowing expansion.
Financial Health Score
Excellent2488.HK maintains a strong and stable balance sheet.
Profitability Score
Excellent2488.HK achieves industry-leading margins.
Key Financial Metrics
Is 2488.HK Expensive or Cheap?
P/E Ratio
2488.HK trades at 3.30 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 2488.HK's PEG of 0.07 indicates potential undervaluation.
Price to Book
The market values Launch Tech Company Limited at 0.92 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.85 times EBITDA. This is generally considered low.
How Well Does 2488.HK Make Money?
Net Profit Margin
For every $100 in sales, Launch Tech Company Limited keeps $16.42 as profit after all expenses.
Operating Margin
Core operations generate 16.60 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $27.86 in profit for every $100 of shareholder equity.
ROA
Launch Tech Company Limited generates $15.78 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Launch Tech Company Limited produces operating cash flow of $1.35B, showing steady but balanced cash generation.
Free Cash Flow
Launch Tech Company Limited generates strong free cash flow of $1.15B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.77 in free cash annually.
FCF Yield
2488.HK converts 14.58% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
3.30
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.92
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.43
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.22
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.76
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.28
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
0.24
vs 25 benchmark
How 2488.HK Stacks Against Its Sector Peers
| Metric | 2488.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 3.30 | 23.78 | Better (Cheaper) |
| ROE | 27.86% | 1098.00% | Weak |
| Net Margin | 16.42% | -626.00% (disorted) | Strong |
| Debt/Equity | 0.22 | 0.86 | Strong (Low Leverage) |
| Current Ratio | 1.76 | 2.64 | Neutral |
| ROA | 15.78% | -8081.00% (disorted) | Strong |
2488.HK outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Launch Tech Company Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
107.75%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
357.73%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
221.92%
Industry Style: Cyclical, Growth, Discretionary
High Growth