MeritValue

Lianhe Sowell International Group Ltd

LHSWdata completeness 100%3 fiscal years on file

Data notes: no data for concept 'interestExpense'

The thesis, from the filings

Lianhe Sowell International Group Ltd earns about 39% on invested capital, with a roughly flat share count. The applicable estimate puts fair value near $0.58 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2023FY 2024FY 2025
Revenue$13.1M1$36.6M1$36.5M1
Net income$1.61M2$2.82M2$3.12M2
Operating cash flow−$1.47M3−$2.08M3−$1.47M3
Capital expenditure$3,0564$66,7454$4,9174
Free cash flow (derived)−$1.47M3−$2.14M3−$1.48M3
Total debt—$1.66M5$2.04M6
Cash & equivalents$752,0077$206,1878$108,7458
Diluted shares50.0M50.0M50.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$2.32
your share of equity
Profit it earned you last year
$0.62
Free cash flow it threw off
−$0.3
Debt you’d be carrying
$0.41

10 shares is a claim on $2.32 of net worth that earned you $0.62 and generated −$0.3 of cash last year, against $0.41 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
39% avg · 3y
FY23 65%FY24 30%FY25 23%

It earned an average 39% on invested capital over 3 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−0% shares · 3y

Share count is roughly flat over 3 years — little dilution, little buyback. Total debt has risen 23% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
$0.58
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$2.82M
  • growthAssumed0.0%
Graham Number
$0.56
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F · period ending 2023-03-31 · accession 0001213900-25-077169 (Revenues)
  2. 20-F · period ending 2023-03-31 · accession 0001213900-25-077169 (NetIncomeLoss)
  3. 20-F · period ending 2023-03-31 · accession 0001213900-25-077169 (NetCashProvidedByUsedInOperatingActivities)
  4. 20-F · period ending 2023-03-31 · accession 0001213900-25-077169 (PaymentsToAcquirePropertyPlantAndEquipment)
  5. 20-F · period ending 2024-03-31 · accession 0001213900-25-077169 (ShortTermBorrowings)
  6. 20-F · period ending 2025-03-31 · accession 0001213900-25-077169 (LongTermDebtCurrent)
  7. 20-F · period ending 2023-03-31 · accession 0001213900-25-077169 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  8. 20-F · period ending 2024-03-31 · accession 0001213900-25-077169 (CashAndCashEquivalentsAtCarryingValue)