Launch Tech Co (HKSE:02488) EBIT: HK$397 Mil (TTM As of Dec. 2025)


HKSE:02488 Launch Tech Co Ltd HKSE:02488
72 GF Score
Price HK$6.90
GF Value HK$6.49
Valuation Fairly Valued
! 2 Warning Signs
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What is Launch Tech Co EBIT?

Launch Tech Co HKSE:02488 -0.14% 72 EBIT is HK$397 Mil as of Dec. 2025. GuruFocus rates HKSE:02488 with a GF Score™ of 72/100 and a GF Value™ of HK$6.49 (Fairly Valued). The stock has 2 warning signs investors should review.

Launch Tech Co's earnings before interest and taxes (EBIT) for the six months ended in Dec. 2025 was HK$175 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2025 was HK$397 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Launch Tech Co's annualized ROC % for the quarter that ended in Dec. 2025 was 25.13%. Launch Tech Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 98.10%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Launch Tech Co's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 15.93%.

Launch Tech Co  (HKSE:02488) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Launch Tech Co's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=356.444 * ( 1 - 0.55% )/( (1427.949 + 1393.707)/ 2 )
=354.483558/1410.828
=25.13 %

where

Invested Capital(Q: Jun. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2379.642 - 340.557 - ( 611.136 - max(0, 832.995 - 1511.579+611.136))
=1427.949

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2390.827 - 370.848 - ( 640.896 - max(0, 823.317 - 1449.589+640.896))
=1393.707

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

Launch Tech Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2025  Q: Dec. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=350.824/( ( (229.337 + max(134.309, 0)) + (296.81 + max(54.797, 0)) )/ 2 )
=350.824/( ( 363.646 + 351.607 )/ 2 )
=350.824/357.6265
=98.10 %

where Working Capital is:

Working Capital(Q: Jun. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(368.136 + 342.703 + 111.17) - (340.557 + 0 + 347.143)
=134.309

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(371.151 + 295.328 + 106.111) - (370.848 + 0 + 346.945)
=54.797

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Launch Tech Co's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Dec. 2025 )
=397.05/2493.109
=15.93 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Launch Tech Co EBIT Related Terms

Launch Tech Co EBIT Historical Data

* Premium members only.

The historical data trend for Launch Tech Co's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Launch Tech Co EBIT Chart

Launch Tech Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 142.24 408.46 206.47 387.00 399.42

Launch Tech Co Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 130.83 216.43 172.35 221.64 175.41

HKSE:02488 vs ORLY, AZO: EBIT Comparison

For the Auto Parts subindustry, Launch Tech Co's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Launch Tech Co EV-to-EBIT vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Launch Tech Co's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Launch Tech Co's EV-to-EBIT falls into.


HKSE:02488
72GF Score
Launch Tech Co Ltd HKSE:02488
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Launch Tech Co EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was HK$397 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of HK$397 Mil mean?
Launch Tech Co (HKSE:02488) has a EBIT of HK$397 Mil as of Dec. 2025. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Launch Tech Co.
Is Launch Tech Co's EBIT too high?
Launch Tech Co's current EBIT is HK$397 Mil. Overall, Launch Tech Co has a GF Score™ of 72/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Launch Tech Co's EBIT compare to ORLY and AZO?
Launch Tech Co's EBIT of HK$397 Mil can be compared against companies in the Vehicles & Parts industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Vehicles & Parts company?
A good EBIT depends on the Vehicles & Parts industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Launch Tech Co. Launch Tech Co's current EBIT is HK$397 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Launch Tech Co stock overvalued right now?
Based on GuruFocus' analysis, Launch Tech Co (HKSE:02488) is currently considered Fairly Valued. The stock's GF Value™ is HK$6.49, compared to a current price of HK$6.90 — trading 6.3% above its estimated fair value. The current EBIT is HK$397 Mil. Launch Tech Co's overall GF Score™ is 72/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Launch Tech Co (HKSE:02488), the current EBIT is HK$397 Mil as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Launch Tech Co (HKSE:02488) Overvalued in 2026?

Based on GuruFocus' analysis, Launch Tech Co stock appears to be overvalued. The current stock price of HK$6.90 is trading 6.3% above its estimated GF Value™ of HK$6.49. GuruFocus considers Launch Tech Co to be Fairly Valued.

Key valuation signals for HKSE:02488:

  • EBIT: HK$397 Mil
  • GF Value™: HK$6.49 vs. price of HK$6.90 (6.3% above fair value)
  • GF Score™: 72/100 with 2 warning signs

No single metric tells the full story. See the HKSE:02488 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Launch Tech Co Business Description

Other Exchanges LAN:Germany
Address North of Wuhe Road, Launch Industrial Park, Banxuegang, Longgang District, Shenzhen, CHN, 518129
Launch Tech Co Ltd principally engages in the provision of products and services serving the automotive aftermarket and the automobile industry mainly in the People's Republic of China and certain overseas countries. The Company has three reporting segments: i) Automotive diagnosis segment, ii) Europe Overseas Sales segment, and iii) U.S. overseas sales segment. The automotive diagnosis segment covers research and development, production and sales of automotive diagnostic and inspection products. The Europe Overseas Sales segment covers development and maintenance of European distributors and customers. The U.S. Overseas Sales segment covers development and maintenance of distributors and customers in the Americas. The majority of revenue is derived from the Automotive diagnosis segment.
72GF Score

Get the complete analysis for HKSE:02488

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$6.90
Price
HK$6.49
GF Value