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China Longevity Group Co. Ltd. (1863) AI Stock Analysis

HK:1863

China Longevity Group Co. Ltd.

(HKEX:1863)

Select Model
Rating:50Neutral
Action:reiterated
Date:10/01/26

The overall score is driven mainly by mixed financial performance: the business maintains sizable revenue, positive equity and manageable leverage, but growth has cooled, margins have compressed, and free cash flow conversion is extremely weak, creating significant cash flow risk; valuation, with a mid‑20s P/E and no dividend, is only moderately appealing and does not fully offset the underlying weakness in cash generation.

Positive Factors
Positive Revenue GrowthReported revenue growth indicates the company continues to expand its top line, providing a foundation for future operating leverage and reinvestment. Although recent annual revenue has been volatile, the positive growth measure remains a constructive indicator of ongoing business activity.
Negative Factors
Margin and Profit CompressionDeteriorating margins and lower operating profit indicate reduced earnings quality and weaker operating leverage. The trend may limit the company’s ability to convert revenue growth into durable profit expansion, while also reducing internal funds available for investment and balance-sheet improvement.

China Longevity Group Co. Ltd. Business Overview & Revenue Model

Company Description

China Longevity Group operates within the reinforced materials industry, engaging comprehensively in the design, development, production, and distribution of its specialized products. These offerings include advanced polymer-processed polyester fabri...

China Longevity Group Co. Ltd. Financial Statement Overview

Summary

Revenue remains sizable at RMB1.17 billion and the company is still profitable, but a 3.2% top-line decline, margin compression across gross, operating and net levels, and extremely weak free cash flow relative to net income point to pressured earnings quality and cash generation despite a manageable, moderately leveraged balance sheet.

Income Statement

52Neutral

Balance Sheet

58Neutral

Cash Flow

33Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.18B1.17B1.17B933.93M926.62M1.44B
Gross Profit205.48M203.90M202.74M186.04M146.32M260.47M
EBITDA117.55M106.46M127.29M127.75M118.23M191.28M
Net Income43.54M43.19M55.55M63.00M46.19M106.93M
Balance Sheet
Total Assets1.98B1.98B1.94B1.71B1.33B1.39B
Cash, Cash Equivalents and Short-Term Investments178.41M178.41M83.35M64.36M90.58M77.99M
Total Debt724.45M724.45M680.75M619.57M332.50M255.45M
Total Liabilities1.11B1.11B1.11B951.79M688.27M831.66M
Stockholders Equity797.67M797.67M749.28M676.42M599.34M531.17M
Cash Flow
Free Cash Flow1.93M1.85M-23.86M-354.53M-138.53M55.80M
Operating Cash Flow110.62M108.71M103.56M-10.62M35.14M177.51M
Investing Cash Flow-106.50M-104.77M-135.18M-333.16M-95.10M-201.75M
Financing Cash Flow42.82M42.15M50.22M317.36M73.07M67.21M

China Longevity Group Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

HK:1863 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:1830HK:183068NeutralHKD 1.43B8.0143.78%12.76%-14.68%-13.60%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
HK:3869HK:386954NeutralHKD 467.79M-143.32-0.41%―3.16%-101.02%
HK:1863HK:186350Neutral―22.705.57%―6.49%-5.55%
HK:0722HK:072242NeutralHKD 292.35M-3.79-10.76%9.04%-1.37%-334.69%
HK:2138HK:213842NeutralHKD 645.94M-1.61-25.36%―-8.94%-140.82%
HK:3886HK:388641NeutralHKD 1.10B78.090.48%1.10%-3.26%―

* General Sector Average

Performance Comparison

-40%-20%0%HK:1830HK:2138HK:3869HK:3886HK:0722Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:1863 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:1830Perfect Medical Health Management Limited1.14-0.08-6.79%
HK:2138EC Healthcare0.55-0.10-16.15%
HK:3869Hospital Corporation of China Ltd3.38-2.61-43.49%
HK:3886Town Health International Medical Group Ltd.0.16-0.11-40.07%
HK:0722UMP Healthcare Holdings Limited0.36-0.07-16.67%

China Longevity Group Co. Ltd. Corporate Events

China Longevity Group Lifts Interim Profit Despite Margin Pressure

Aug 31, 2026

China Longevity Group reported interim revenue of about RMB646.1 million for the six months ended 30 June 2026, a year-on-year increase of 9.2%, though its gross profit margin slipped from 17.0% to 15.6%, reflecting pressure on margins despite higher...

China Longevity Group Sets Board Meeting to Review Interim Results and Dividend

Aug 6, 2026

China Longevity Group Company Limited has scheduled a board meeting for 31 August 2026 to review and approve the interim results for the six months ended 30 June 2026. The board will also consider the potential declaration and payment of an interim d...

China Longevity Group Still Healthy but Faces Prolonged Trading Suspension Review

Jul 31, 2026

China Longevity Group Company Limited, a Cayman Islands-incorporated issuer listed in Hong Kong under stock code 1863, operates a group structure engaged in production and materials-related activities. The company highlights research and development...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 01, 2026