Crocodile Garments Limited (0122) AI Stock Analysis

• Market Cap: HK$151.14M
• Dividend Yield: N/A
• Average Volume (3M): 40.53K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.02
• Revenue Growth: 47.69%
• EPS Growth: -6.36%
• Country: HK
• Employees: 105
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.16
• Shares Outstanding: 103,517,510
• 10 Day Avg. Volume: 21,875
• 30 Day Avg. Volume: 40,534
• PEG Ratio: 1.25
• Price to Book (P/B): 2.09
• Price to Sales (P/S): 31.61
• P/FCF Ratio: -77.08
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• 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.

Positive Factors

Strong Gross Profit Margin

A high gross profit margin indicates efficient production processes and strong pricing power, which can support long-term profitability if operational inefficiencies are addressed.

Solid Equity Base

A strong equity base provides financial stability and can support future growth initiatives, reducing reliance on external debt financing.

Revenue Increase

An increase in revenue suggests potential market expansion and improved sales performance, which can contribute to long-term business growth if sustained.

Negative Factors

Consistent Net Losses

Ongoing net losses highlight challenges in achieving profitability, which can strain financial resources and hinder long-term sustainability.

Operational Cash Flow Challenges

Inconsistent operating cash flows can impact the company's ability to fund operations and invest in growth opportunities, posing risks to financial health.

Negative Return on Equity

A negative return on equity suggests inefficiencies in using shareholder funds to generate profits, which can deter investment and affect long-term growth.

Crocodile Garments Limited Business Overview & Revenue Model

Company Description

Crocodile Garments Limited (0122) is a Hong Kong-based fashion company specializing in the design, manufacture, and retail of apparel and accessories. Primarily known for its men's and women's clothing lines, the company operates through a network of retail outlets and franchises. Crocodile Garments focuses on offering high-quality, stylish, and affordable fashion products, catering to a diverse consumer base in the Asia-Pacific region.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	184.73M	95.33M	86.88M	103.29M	112.00M	151.27M
Gross Profit	138.79M	76.55M	72.83M	74.85M	81.44M	105.31M
EBITDA	7.42M	-18.86M	-56.52M	-56.96M	21.46M	-214.95M
Net Income	-73.66M	-33.84M	-108.79M	-78.39M	-1.93M	-290.48M
Balance Sheet
Total Assets	2.16B	2.23B	2.34B	2.42B	2.20B	2.31B
Cash, Cash Equivalents and Short-Term Investments	218.61M	240.08M	351.30M	444.68M	208.62M	265.95M
Total Debt	691.73M	711.77M	771.18M	857.40M	593.76M	695.63M
Total Liabilities	746.17M	787.33M	862.29M	921.96M	669.10M	779.66M
Stockholders Equity	1.42B	1.44B	1.48B	1.49B	1.53B	1.53B
Cash Flow
Free Cash Flow	-67.95M	-39.09M	864.00K	-27.96M	39.91M	-48.90M
Operating Cash Flow	-64.09M	-36.37M	14.17M	-22.28M	40.95M	-45.80M
Investing Cash Flow	5.93M	6.38M	-4.21M	266.00K	17.52M	62.30M
Financing Cash Flow	-99.88M	-79.41M	-57.92M	259.39M	-104.88M	-35.56M

Crocodile Garments Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.93
• 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:0122, the sentiment is Negative. The current price of 1.93 is above the 20-day moving average (MA) of 1.49, above the 50-day MA of 1.51, and above the 200-day MA of 1.82, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 36.19 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0122.

Crocodile Garments Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1433	70 Outperform	HK$192.00M	3.49	23.94%	7.89%	14.30%	125.41%
1749	70 Outperform	HK$104.05M	3.01	11.95%	12.12%	-7.88%	-4.49%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0333	58 Neutral	HK$75.26M	-2.31	-8.92%	―	7.57%	-1383.56%
0294	52 Neutral	HK$171.60M	-2.11	-8.49%	2.08%	-6.96%	-32.24%
0518	46 Neutral	HK$87.51M	-31.80	-0.71%	2.59%	3.84%	83.42%
0122	44 Neutral	HK$151.14M	-2.70	―	―	47.69%	-6.36%

Crocodile Garments Limited Corporate Events

Crocodile Garments Limited Announces Results of Rights Issue

Crocodile Garments Limited announced the results of its rights issue, which offered one rights share for every two existing shares on a non-underwritten basis. The rights issue was under-subscribed, with approximately 91.33% of the total rights shares subscribed, resulting in a shortfall of 3,081,152 shares. The company raised approximately HK$46.98 million in net proceeds, which will be used as outlined in their prospectus.

Crocodile Garments Limited Announces HK$53.3 Million Rights Issue

Crocodile Garments Limited has announced a proposed rights issue to raise approximately HK$53.3 million by offering new shares to existing shareholders. The initiative aims to strengthen the company’s financial position without requiring shareholder approval, as it complies with Hong Kong’s listing rules. The rights issue is non-underwritten, meaning it will proceed regardless of the level of shareholder participation, and Ms. Lam, the company’s Chairman and CEO, has committed to subscribing to her full entitlement of rights shares.

Crocodile Garments Appoints Mr. Lee Po On as Alternate Director

Crocodile Garments Limited has appointed Mr. Lee Po On as an alternate director to Ms. Lam Wai Shan, Vanessa, who is the Chairman, Executive Director, and CEO of the company, effective from October 22, 2025. Mr. Lee brings extensive experience from his previous roles at Television Broadcasts Limited and the Lai Sun Group, enhancing the company’s leadership with his expertise in media, real estate, and investment management. This appointment is expected to strengthen the company’s governance and strategic direction.

Crocodile Garments Limited Announces Board Roles and Functions

Crocodile Garments Limited has announced the roles and functions of its board of directors. The company’s board consists of executive, non-executive, and independent non-executive directors, with specific members assigned to various committees such as the Audit, Executive, Nomination, and Remuneration Committees. This announcement provides clarity on the governance structure of the company, potentially impacting its strategic decision-making and operational oversight.