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China Dongxiang (Group) Co (3818) AI Stock Analysis

HK:3818

China Dongxiang (Group) Co

(HKEX:3818)

Select Model
Rating:57Neutral
Price Target:HKD 0.25â–²(3.36% Upside)
Action:reiterated
Date:09/29/26

The score is mainly supported by financial resilience from a conservatively levered balance sheet and a very high dividend yield. Offsetting this, profitability has been inconsistent with a return to losses, and technical signals show a broader downtrend (price below key moving averages and negative MACD).

Positive Factors
Conservative Balance SheetVery low leverage gives China Dongxiang meaningful financial flexibility and reduces exposure to interest and refinancing pressures. The substantial equity base should help the company absorb operating volatility while preserving capacity to support its brands and maintain operations through weaker periods.
Negative Factors
Volatile ProfitabilityThe swing from profits in 2025 back to operating and net losses in 2026 makes current earnings power difficult to assess. Persistent profitability volatility can constrain reinvestment, weaken confidence in the business model’s earnings durability, and reduce the benefits of its strong gross margin.

China Dongxiang (Group) Co (3818) vs. iShares MSCI Hong Kong ETF (EWH)

-50%-40%-30%-20%-10%0%10%20%HK:3818-50.00%EWH+7.37%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 176.16M
Dividend Yield
17.39%
Average Volume (3M)
2.84M
Price to Earnings (P/E)
-7.8
Beta (1Y)
1.11
Revenue Growth
4.14%
EPS Growth
-180.84%
Country
Hong Kong
Employees
338
Sector
Consumer Cyclical
Sector Strength
61
Industry
Apparel - Manufacturers

China Dongxiang (Group) Co Business Overview & Revenue Model

Company Description

China Dongxiang (Group) Co., Ltd. is primarily involved in the design, development, marketing, and sale of sport-related apparel, footwear, and accessories. The company operates both domestically within the People's Republic of China and across inter...

How the Company Makes Money

China Dongxiang makes money mainly from (1) selling sportswear products and (2) licensing/royalty-style income tied to its brand rights. 1) Product sales (core operating revenue) - The company generates revenue by selling Kappa-branded (and other por...

China Dongxiang (Group) Co Financial Statement Overview

Summary

Strong balance sheet strength (very low leverage and solid equity base) supports resilience, but operating results are volatile with a return to losses in 2026 despite strong gross margin and revenue rebound. Cash flow is positive recently, though uneven over time and with declining free cash flow in 2026.

Income Statement

44Neutral

Balance Sheet

83Very Positive

Cash Flow

58Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue1.66B1.66B1.68B1.74B1.68B1.92B
Gross Profit1.44B1.10B1.15B1.19B1.06B1.12B
EBITDA206.99M58.86M351.21M-655.84M100.10M-1.80B
Net Income-152.49M-152.49M207.00M-639.36M115.00M-1.78B
Balance Sheet
Total Assets9.68B9.68B10.04B9.74B10.58B10.49B
Cash, Cash Equivalents and Short-Term Investments4.86B4.86B4.70B3.83B3.97B3.86B
Total Debt235.81M235.81M47.22M38.90M57.56M232.81M
Total Liabilities981.39M981.39M832.42M665.80M911.38M1.13B
Stockholders Equity8.70B8.70B9.21B9.07B9.67B9.35B
Cash Flow
Free Cash Flow161.80M133.92M73.12M143.47M30.27M-262.57M
Operating Cash Flow254.53M193.73M141.65M198.90M101.60M-211.19M
Investing Cash Flow-528.27M-372.27M-141.10M-923.98M1.18B276.79M
Financing Cash Flow-63.40M-39.08M-133.21M-109.81M-307.86M-334.57M

China Dongxiang (Group) Co Technical Analysis

Technical Analysis SentimentNegative
Last Price0.24

Price Trends

50DMA0.27Negative
100DMA0.28Negative
200DMA0.36Negative

Market Momentum

MACD-0.01Positive
RSI29.67Positive
STOCH6.45Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3818, the sentiment is Negative. The current price of 0.24 is below the 20-day moving average (MA) of 0.26, below the 50-day MA of 0.27, and below the 200-day MA of 0.36, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 29.67 is Positive, neither overbought nor oversold. The STOCH value of 6.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3818.

China Dongxiang (Group) Co Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

HK:3818 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:2232HK:223280OutperformHKD 21.97B11.8814.47%5.52%4.21%9.77%
HK:3306HK:330678OutperformHKD 11.32B9.8536.49%6.06%12.46%13.93%
HK:3998HK:399874OutperformHKD 48.69B10.4222.96%7.48%8.08%12.13%
HK:1234HK:123469NeutralHKD 3.13B5.5511.18%9.94%20.57%16.02%
HK:2313HK:231362NeutralHKD 57.57B10.8012.10%5.43%1.86%-27.58%
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
HK:3818HK:381857NeutralHKD 1.40B-7.79-1.65%17.39%4.14%-180.84%

* Consumer Cyclical Sector Average

Performance Comparison

-40%-20%0%20%40%HK:3818HK:3998HK:3306HK:2313HK:1234HK:2232Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:3818 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:3818China Dongxiang (Group) Co 0.24-0.25-51.03%
HK:3998Bosideng International Holdings 4.18-0.32-7.00%
HK:3306JNBY Design 22.066.2939.87%
HK:2313Shenzhou International Group Holdings 38.30-25.23-39.71%
HK:1234China Lilang Ltd.2.62-0.50-15.97%
HK:2232Crystal International Group Limited7.701.2619.64%

China Dongxiang (Group) Co Corporate Events

China Dongxiang Completes Share Buy-Back Settlement, Boosting Chen Family Control

Oct 20, 2026

China Dongxiang has completed a previously approved share buy-back settlement, with all conditions satisfied and completion taking place on 20 October 2026. The company will cancel the repurchased shares, reducing its total issued share capital and f...

China Dongxiang Shareholders Back All AGM Resolutions, Reaffirm Board

Sep 30, 2026

China Dongxiang (Group) Co., Ltd., a Hong Kong-listed sportswear and apparel group operating mainly in mainland China and wider Asian markets, focuses on branded athletic and lifestyle clothing sold through a mix of self-operated and franchised store...

China Dongxiang shareholders back settlement and share buy-back plan

Sep 30, 2026

China Dongxiang (Group) Co., Ltd. reported that disinterested shareholders overwhelmingly approved a special resolution at its extraordinary general meeting on 30 September 2026 to endorse settlement deeds, the related settlement and associated trans...

China Dongxiang Sends Circular on Share Buy-back and Settlement Plans

Sep 11, 2026

China Dongxiang (Group) Co., Ltd. has despatched a circular to shareholders outlining details of a proposed settlement that includes off-market share buy-backs, a set-off arrangement, a loan waiver and a connected transaction. The circular also conta...

China Dongxiang Affirms Director’s Suitability After Hong Kong Disciplinary Action

Sep 11, 2026

China Dongxiang (Group) Co., Ltd., a Cayman Islands-incorporated company listed in Hong Kong, operates under the regulatory framework of the Stock Exchange of Hong Kong and is governed by a board that includes both executive and independent non-execu...

China Dongxiang Calls EGM to Approve Settlement Deeds and Empower Directors

Sep 10, 2026

China Dongxiang has called an extraordinary general meeting for 30 September 2026 in Beijing, to be held immediately after its annual general meeting, seeking shareholder approval for a special resolution related to a series of Settlement Deeds and a...

China Dongxiang Sets Register Closure Ahead of Capital Restructuring Vote

Sep 10, 2026

China Dongxiang (Group) Co., Ltd., a Cayman Islands-incorporated sportswear and apparel company listed in Hong Kong, serves mainland China and broader Asian consumer markets with branded athletic and casual products. The group’s leadership comb...

China Dongxiang Delays Circular on Share Buy-back and Settlement Plan

Aug 14, 2026

China Dongxiang (Group) Co., Ltd. has announced a delay in sending a shareholder circular related to proposed off-market share buy-backs, a set-off arrangement, a loan waiver and a connected transaction collectively referred to as the Settlement. The...

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: Sep 29, 2026