China Ludao Technology Co. Ltd. (2023) AI Stock Analysis

China Ludao Technology Co. Ltd.

(HKEX:2023)

Select Model

Rating:55Neutral

Price Target:HKD 0.75▲(1.07% Upside)

Action:reiterated

Date:08/04/26

The score is held back primarily by financial quality concerns—especially negative operating/free cash flow and margin compression—alongside weak technical momentum. These are partially offset by a low P/E that suggests potentially attractive valuation if cash flow stabilizes.

Positive Factors

Sustained revenue growthMulti-year high revenue growth (32%/28.5%/14.6% across 2023–2025) signals durable demand and expanding market penetration. Persistent top-line momentum supports scale benefits, capacity to invest in product or distribution, and provides a foundation for long-term margin recovery if cost discipline or pricing improves.

Negative Factors

Deteriorating cash generationA sharp 2025 swing to negative operating (-76.6M) and free cash flow (-134.4M), after prior years of volatile FCF, materially raises financing and liquidity risk. Persistent weak cash conversion can force external funding, constrain reinvestment, and amplify vulnerability to economic or supply shocks.

China Ludao Technology Co. Ltd. (2023) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 366.39M
Dividend Yield: ―
Average Volume (3M): 36.64K
Price to Earnings (P/E): 5.6
Beta (1Y): -0.10
Revenue Growth: 31.47%
EPS Growth: 11.93%
Country: Hong Kong
Employees: 513
Sector: Consumer Defensive
Sector Strength: 62
Industry: Household & Personal Products

China Ludao Technology Co. Ltd. Business Overview & Revenue Model

Company Description

China Ludao Technology Company Limited operates as an investment holding company, specializing in the research, development, manufacturing, and global distribution of aerosol, chemical, and related products. With a global footprint, its markets inclu...

China Ludao Technology Co. Ltd. Financial Statement Overview

Summary

Strong multi-year revenue growth and positive earnings are offset by material margin compression and a sharp deterioration in cash generation in 2025 (negative operating and free cash flow). Leverage has improved but remains meaningful, keeping overall financial risk elevated.

Income Statement

66Positive

Balance Sheet

58Neutral

Cash Flow

32Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.19B	1.12B	906.85M	705.75M	534.70M	476.40M
Gross Profit	169.90M	151.61M	141.84M	133.11M	83.38M	128.59M
EBITDA	102.23M	99.50M	70.03M	76.03M	35.07M	59.59M
Net Income	55.78M	56.26M	51.30M	43.58M	22.32M	35.23M
Balance Sheet
Total Assets	1.94B	1.93B	1.69B	1.39B	1.15B	933.76M
Cash, Cash Equivalents and Short-Term Investments	122.62M	136.15M	33.90M	32.47M	53.74M	26.50M
Total Debt	951.19M	705.39M	640.75M	712.97M	638.51M	360.40M
Total Liabilities	1.28B	1.32B	1.25B	979.45M	775.84M	553.99M
Stockholders Equity	653.45M	597.86M	447.03M	409.18M	372.64M	377.76M
Cash Flow
Free Cash Flow	-150.21M	-134.41M	87.26M	-80.23M	-119.92M	-124.46M
Operating Cash Flow	-115.97M	-76.62M	191.69M	30.00M	41.86M	6.44M
Investing Cash Flow	-19.26M	-57.55M	-133.17M	-139.95M	-157.54M	-110.16M
Financing Cash Flow	144.85M	139.05M	-44.65M	94.22M	142.02M	68.61M

China Ludao Technology Co. Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price0.74

Price Trends

50DMA0.76Negative

100DMA0.76Negative

200DMA0.76Negative

Market Momentum

MACD-0.01Positive

RSI48.90Neutral

STOCH25.00Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2023, the sentiment is Negative. The current price of 0.74 is above the 20-day moving average (MA) of 0.74, below the 50-day MA of 0.76, and below the 200-day MA of 0.76, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 48.90 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2023.

China Ludao Technology Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

HK:2023 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:2145	71Outperform	HKD 9.03B	11.18	25.77%	6.20%	23.19%	-22.44%
HK:1044	68Neutral	HKD 24.47B	8.46	10.98%	7.60%	2.19%	10.78%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HK:2023	55Neutral	HKD 366.39M	5.61	8.92%	―	31.47%	11.93%
HK:0157	46Neutral	HKD 880.92M	-15.33	-12.81%	―	13.43%	7.72%
HK:6993	33Underperform	HKD 13.52B	-148.17	-1.21%	6.58%	-2.44%	81.73%

* Consumer Defensive Sector Average

Performance Comparison

HK:2023 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:2023	China Ludao Technology Co. Ltd.	0.74	-0.02	-1.97%
HK:1044	Hengan International Group Co	21.08	-4.88	-18.80%
HK:0157	Natural Beauty Bio-Technology	0.44	-0.10	-18.52%
HK:2145	Shanghai Chicmax Cosmetics Co., Ltd. Class H	22.66	-60.79	-72.85%
HK:6993	Blue Moon Group Holdings Ltd.	2.43	-0.36	-13.03%
HK:6883	Eternal Beauty Holdings Limited	2.03	0.06	3.05%

China Ludao Technology Co. Ltd. Corporate Events

China Ludao Shareholders Unanimously Approve All AGM Resolutions

May 28, 2026

China Ludao Technology Company Limited reported that all resolutions at its 28 May 2026 annual general meeting were approved by shareholders via poll. Every resolution, including the adoption of the 2025 financial statements, re-election of directors...

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: Aug 04, 2026

China Ludao Technology Co. Ltd. AI Stock Analysis