China Lilang Ltd. (1234) AI Stock Analysis

• Market Cap: HK$4.07B
• Dividend Yield: 8.24%
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.39
• Revenue Growth: 3.23%
• EPS Growth: -21.82%
• Country: HK
• Employees: 4,977
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.22
• Shares Outstanding: 1,197,485,000
• 10 Day Avg. Volume: 1,597,034
• 30 Day Avg. Volume: 1,065,085
• PEG Ratio: -0.69
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 1.19
• P/FCF Ratio: 10.75
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$4.39
• Price Target Upside: 29.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: HK$3.50 ▲(2.94% Upside)

China Lilang Ltd. scores well on valuation due to its low P/E ratio and high dividend yield, making it attractive for value and income investors. However, the technical analysis indicates bearish momentum, which could pose short-term risks. The company's strong financial performance is somewhat offset by declining revenue and free cash flow growth, which could impact future profitability.

Positive Factors

Balance Sheet Health

A strong equity base and low debt-to-equity ratio of 0.33 indicate financial stability and reduced risk, supporting long-term growth.

Profitability

Consistent profit margins demonstrate effective cost management and pricing power, which are crucial for sustaining long-term profitability.

Cash Generation Ability

Strong operational cash generation ensures the company can fund operations and investments, supporting long-term financial health.

Negative Factors

Revenue Growth Slowdown

Slowing revenue growth may indicate market saturation or increased competition, potentially impacting future profitability and expansion.

Decline in Free Cash Flow

A significant decline in free cash flow growth could limit the company's ability to invest in growth opportunities or service debt.

Decreased Return on Equity

A decrease in ROE suggests reduced efficiency in generating profits from shareholders' equity, potentially impacting investor returns.

China Lilang Ltd. Business Overview & Revenue Model

Company Description

China Lilang Limited, together with its subsidiaries, engages in the manufacture and sale of branded menswear and related accessories in the People's Republic of China. The company designs, sources, manufactures, and sells business and casual apparel for men under the LILANZ brand through a distribution network covering 31 provinces, autonomous regions, and municipalities. It also provides management services. As of December 31, 2021, it operated a total of 2,733 retail stores. The company was founded in 1987 and is headquartered in Jinjiang, the People's Republic of China. China Lilang Limited is a subsidiary of Xiao Sheng International Limited.

How the Company Makes Money

China Lilang Ltd. generates revenue through several key streams. The primary revenue source is the sale of its apparel products through various retail channels, including its own branded stores, e-commerce platforms, and third-party retailers. The company also engages in wholesale distribution, supplying its products to other retailers and department stores. Additionally, Lilang may benefit from strategic partnerships with fashion distributors and online platforms that enhance its market reach. The brand's focus on quality, seasonal collections, and promotional campaigns contributes to repeat business and customer loyalty, further solidifying its financial performance.

China Lilang Ltd. Financial Statement Overview

Summary

China Lilang Ltd. maintains a robust financial position with strong profitability and a stable balance sheet. The company has low leverage and a solid equity base, reducing financial risk. However, the decline in revenue growth and free cash flow growth presents potential challenges that need to be addressed to sustain future growth and profitability.

Income Statement

China Lilang Ltd. demonstrates strong profitability with consistent gross and net profit margins. The gross profit margin for 2024 is 47.66% and the net profit margin is 12.63%, indicating effective cost management. However, the revenue growth rate from 2023 to 2024 is only 3.00%, showing a slowdown which could impact future profitability. Despite a decrease in EBIT margin to 15.14%, the company's EBITDA margin remains healthy at 24.49%.

Balance Sheet

The company's balance sheet shows a solid equity base with an equity ratio of 58.74% in 2024, reflecting financial stability. The debt-to-equity ratio is 0.33, indicating low leverage and reduced financial risk. However, the return on equity (ROE) has decreased to 11.44%, suggesting reduced efficiency in generating profits from shareholders' equity.

Cash Flow

China Lilang Ltd. has a stable cash flow situation with a free cash flow to net income ratio of 0.88, indicating good conversion of net income to free cash. However, the free cash flow growth rate is -58.20% from 2023 to 2024, highlighting a significant decline that could challenge future investments or debt servicing. The operating cash flow to net income ratio of 1.14 shows strong operational cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.78B	3.65B	3.54B	3.09B	3.38B	2.68B
Gross Profit	1.81B	1.74B	1.71B	1.42B	1.42B	1.20B
EBITDA	846.51M	893.87M	913.55M	794.03M	795.27M	787.26M
Net Income	423.19M	460.80M	530.43M	448.06M	468.13M	557.24M
Balance Sheet
Total Assets	6.67B	6.85B	6.50B	5.48B	5.01B	5.01B
Cash, Cash Equivalents and Short-Term Investments	1.87B	1.66B	1.08B	960.11M	1.57B	1.74B
Total Debt	1.15B	1.32B	1.27B	568.45M	233.87M	123.93M
Total Liabilities	2.43B	2.80B	2.54B	1.70B	1.33B	1.36B
Stockholders Equity	4.12B	4.03B	3.97B	3.78B	3.67B	3.65B
Cash Flow
Free Cash Flow	298.61M	403.85M	966.59M	273.38M	282.47M	511.94M
Operating Cash Flow	425.38M	527.30M	1.10B	653.69M	598.55M	773.29M
Investing Cash Flow	-261.52M	-306.29M	-1.21B	-1.18B	-280.05M	-190.78M
Financing Cash Flow	-553.13M	-471.60M	227.99M	-90.43M	-482.92M	-590.33M

China Lilang Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1234, the sentiment is Negative. The current price of 3.4 is below the 20-day moving average (MA) of 3.40, below the 50-day MA of 3.52, and below the 200-day MA of 3.55, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 45.67 is Neutral, neither overbought nor oversold. The STOCH value of 24.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1234.

China Lilang Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3998	78 Outperform	$55.62B	14.14	22.98%	5.90%	10.50%	10.34%
2232	71 Outperform	HK$19.88B	11.89	14.24%	5.95%	14.76%	23.04%
1234	69 Neutral	HK$4.07B	8.91	10.67%	8.24%	3.23%	-21.82%
3818	68 Neutral	HK$2.94B	13.12	2.27%	5.95%	-4.65%	―
2030	63 Neutral	HK$1.03B	32.15	2.21%	1.26%	-14.05%	20.05%
2298	63 Neutral	HK$767.70M	6.96	4.94%	4.57%	0.72%	2.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

China Lilang Ltd. Corporate Events

China Lilang Ltd. Sees Retail Sales Growth in Q3 2025

China Lilang Ltd. reported a low double-digit increase in retail sales for its LILANZ products in the third quarter of 2025 compared to the same period in 2024. This operational update, based on preliminary unaudited data, suggests a positive trend in the company’s retail performance, though stakeholders are advised to exercise caution as the figures are subject to change.

The most recent analyst rating on (HK:1234) stock is a Buy with a HK$4.00 price target. To see the full list of analyst forecasts on China Lilang Ltd. stock, see the HK:1234 Stock Forecast page.

China Lilang Ltd. Releases 2025 Interim Financial Results

China Lilang Ltd. has announced its unaudited consolidated results for the first half of 2025, revealing its financial performance and operational outcomes. The interim results, which comply with the Hong Kong Stock Exchange’s listing requirements, provide stakeholders with insights into the company’s current market positioning and potential future developments.

The most recent analyst rating on (HK:1234) stock is a Buy with a HK$4.85 price target. To see the full list of analyst forecasts on China Lilang Ltd. stock, see the HK:1234 Stock Forecast page.

China Lilang Schedules Board Meeting to Review Interim Results

China Lilang Limited has announced a board meeting scheduled for August 12, 2025, to approve the unaudited consolidated interim results for the first half of the year and to consider the payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:1234) stock is a Buy with a HK$4.96 price target. To see the full list of analyst forecasts on China Lilang Ltd. stock, see the HK:1234 Stock Forecast page.