Crocodile Garments Limited (0122) AI Stock Analysis

• Market Cap: HK$142.13M
• Dividend Yield: N/A
• Average Volume (3M): 25.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.05
• Revenue Growth: 9.73%
• EPS Growth: 72.62%
• Country: HK
• Employees: 105
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.48
• Shares Outstanding: 71,065,780
• 10 Day Avg. Volume: 28,587
• 30 Day Avg. Volume: 25,665
• PEG Ratio: -4.81
• Price to Book (P/B): 2.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.97K
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 44 Neutral
• Price Target: ―

Crocodile Garments Limited faces major financial hurdles with declining revenues and persistent losses. Technical indicators point to negative momentum, and valuation metrics are unattractive due to the lack of profitability. These factors contribute to a low overall stock score, suggesting caution for potential investors.

Crocodile Garments Limited Business Overview & Revenue Model

Company Description

Crocodile Garments Limited, together with its subsidiaries, engages in the manufacture, retail, and wholesale of garments and related accessories in Hong Kong and the People's Republic of China. The company operates in three segments: Garment and Related Accessories Business, Property Investment and Letting Business, and securities trading. It offers menswear, ladies wear, children's clothing, including shirts, ties, tees and polos, sweatshirts and knitwear, outerwear, pants, and underwear; and accessories, such as bags and wallets, belts, and umbrellas, as well as distributes LACOSTE branded apparel. As of July 31, 2021, the company operated 11 shops under the Crocodile brand and 5 shops under the Lacoste brand in Hong Kong and Macau, as well as 13 shops, including 7 self-operated and 6 franchisee operated shops in Mainland China. Crocodile Garments Limited also sells its products through CROCODILE online shop and other e-channels. In addition, it is involved in the property investment and letting, and trading of securities. The company was is based in Kwun Tong, Hong Kong. Crocodile Garments Limited operates as a subsidiary of Rich Promise Limited.

How the Company Makes Money

Crocodile Garments Limited generates revenue through the sale of apparel and accessories via its retail outlets and franchise network. The company earns income from direct sales in its branded stores as well as royalty fees from franchisees who operate under the Crocodile brand. Additionally, the company may engage in wholesale operations, distributing their products to other retailers. Key factors contributing to its earnings include strategic location of retail outlets, brand recognition, and a focus on fashion trends that appeal to their target market. Partnerships with suppliers and designers also play a crucial role in maintaining quality and innovation in their product offerings.

Crocodile Garments Limited Financial Statement Overview

Summary

Crocodile Garments Limited is facing significant financial challenges, with declining revenues and consistent net losses. The balance sheet shows a solid equity base, but the cash flow situation is concerning. Overall, there's a need for improved profitability and cash flow stabilization.

Income Statement

The company shows a significant decline in revenue from a high of 235 million in 2019 to 95 million in 2024. Gross profit margin remains high at around 82%, indicating efficient production, but the net profit margin is negative due to consistent net losses over the years. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The balance sheet displays a reasonably strong equity base with an equity ratio of approximately 64.7% in 2024. However, the debt-to-equity ratio is concerning at 0.50, suggesting moderate leverage. Return on equity is negative, indicating challenges in generating profits from equity.

Cash Flow

The company experienced fluctuating operating cash flows, with a notable decline to zero in 2024. Free cash flow has been inconsistent, with a considerable positive flow in 2019 but zero in the latest year. The operating cash flow to net income ratio is not available for the latest period, reflecting operational cash challenges.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
95.33M	86.88M	103.29M	112.00M	151.27M
	Gross Profit
76.55M	72.83M	74.85M	81.44M	105.31M
	EBIT
-22.56M	-81.28M	-58.35M	917.00K	-209.74M
	EBITDA
-18.86M	-56.52M	-56.96M	11.61M	-214.95M
	Net Income Common Stockholders
-33.84M	-108.79M	-87.32M	-4.78M	-290.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
243.44M	351.30M	441.76M	201.19M	265.95M
	Total Assets
2.23B	2.34B	2.42B	2.20B	2.31B
	Total Debt
725.10M	771.18M	857.40M	593.76M	695.63M
	Net Debt
560.02M	541.73M	579.65M	552.81M	609.23M
	Total Liabilities
787.33M	862.29M	921.96M	669.10M	779.66M
	Stockholders Equity
1.44B	1.48B	1.49B	1.53B	1.53B
Cash Flow		Free Cash Flow
0.00	864.00K	-27.96M	39.91M	-48.90M
	Operating Cash Flow
-36.37M	14.17M	-22.28M	40.95M	-45.80M
	Investing Cash Flow
0.00	-4.21M	266.00K	17.52M	62.30M
	Financing Cash Flow
0.00	-57.92M	259.39M	-104.88M	-35.56M

Crocodile Garments Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0122, the sentiment is Positive. The current price of 2 is above the 20-day moving average (MA) of 1.99, below the 50-day MA of 2.02, and above the 200-day MA of 1.97, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.87 is Neutral, neither overbought nor oversold. The STOCH value of 73.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0122.

Crocodile Garments Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1749	69 Neutral	HK$150.74M	4.19	12.55%	7.68%	-6.75%	3.61%
1433	67 Neutral	HK$164.00M	2.65	28.06%	―	48.01%	―
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
0333	48 Neutral	HK$81.28M	―	-1.92%	―	20.02%	90.55%
0294	46 Neutral	HK$184.01M	―	-6.00%	2.25%	-20.02%	-24.55%
0122	44 Neutral	HK$142.13M	―	-2.32%	―	9.73%	72.62%
TUGHF		$11.32M	―	-4.24%	2.55%	―	―

Crocodile Garments Limited Corporate Events

Crocodile Garments Limited Announces 2024 Adjourned AGM

Crocodile Garments Limited has announced the scheduling of its 2024 adjourned annual general meeting (AGM) to be held on May 21, 2025. The meeting will focus on adopting the audited financial statements for the 17-month period ending December 31, 2024. This announcement is significant for stakeholders as it provides an opportunity to review the company’s financial performance and strategic direction.

Crocodile Garments Limited Announces 2025 AGM and Share Buyback Proposal

Crocodile Garments Limited has announced the details of its 2025 Annual General Meeting, scheduled for May 21, 2025. The meeting will address ordinary business matters such as the adoption of financial statements, re-election of directors, and re-appointment of auditors. Additionally, a special resolution will be considered to authorize the company’s directors to buy back up to 10% of its shares, which could impact the company’s stock market activities and shareholder value.

Crocodile Garments Limited Reports Financial Results with Reduced Losses

Crocodile Garments Limited announced its consolidated financial results for the 17-month period ending December 31, 2024. The company reported a revenue increase to HK$137,631,000, but faced a net loss of HK$49,896,000, showing a decrease in losses compared to the previous year. Despite improvements in revenue and gross profit, the company experienced significant expenses and fair value losses on investment properties, impacting its overall financial performance.

Crocodile Garments to Announce Final Results and Dividend Decision

Crocodile Garments Limited has announced a board meeting scheduled for March 26, 2025, to discuss and approve the final results for the 17-month period ending December 31, 2024. The meeting will also consider the recommendation of a final dividend, which could impact the company’s financial strategy and shareholder returns.