HK Stock Market Move | LONKING (03339) rose nearly 7% in the afternoon, with annual net profit increasing by nearly 58% and dividend growth. The company's overseas revenue accounts for more than 30%.

LONKING (03339) rose nearly 7% in the afternoon, as of the time of writing, it increased by 5.61% to HK$2.07, with a turnover of HK$288.715 million. On the news side, LONKING announced its 2024 annual financial report, with a revenue of 10.214 billion RMB, a decrease of 2.9% year-on-year; net profit was 1.018 billion RMB, an increase of 57.8% year-on-year. Industrial Bank International released a research report stating that LONKING's profit last year was in line with the financial report forecast. The dividend per share increased to HK$0.13 per share, with a payout ratio of 50%, and the enterprise value (EV) valuation is attractive. The bank raised the company's target price from HK$2.3 to HK$2.5, maintaining an "outperform" rating. EB SECURITIES pointed out that the company's domestic sales revenue in 2024 was 7.02 billion RMB, a decrease of 5.7% year-on-year, mainly due to the weakening demand in the domestic construction industry. Looking ahead, the domestic construction machinery industry demand is expected to continue to recover, and the company is expected to benefit significantly. In addition, the company's overseas revenue in 2024 was 3.19 billion RMB, an increase of 3.8% year-on-year, with overseas revenue accounting for 31.2%, a 2.0 percentage point increase year-on-year. In the future, the company will continue to optimize its product series to meet the demand of overseas markets, constantly enhance international competitiveness, and the overseas revenue is expected to continue to increase.