Yangtzekiang Garment Co. Ltd. (0294) AI Stock Analysis

• Market Cap: HK$184.01M
• Dividend Yield: 2.25%
• Average Volume (3M): 16.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.05
• Revenue Growth: -20.02%
• EPS Growth: -24.55%
• Country: HK
• Employees: 247
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.30
• Shares Outstanding: 206,747,680
• 10 Day Avg. Volume: 12,200
• 30 Day Avg. Volume: 16,300
• PEG Ratio: 0.07
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.58
• 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: 46 Neutral
• Price Target: ―

Yangtzekiang Garment Co. Ltd. has significant financial and operational challenges, with declining revenue and profitability, as well as negative cash flows. Despite a strong balance sheet with low leverage, the technical indicators suggest a bearish trend, and valuation metrics indicate overvaluation due to ongoing losses. The combination of these factors results in a low overall stock score.

Yangtzekiang Garment Co. Ltd. Business Overview & Revenue Model

Company Description

Yangtzekiang Garment Limited engages in the manufacture and sale of garment and textile products. It operates through three segments: Manufacture and Sale of Garments and Textiles; Interests in Joint Ventures; and Property Leasing. The company offers men's and ladies' shirts, trousers, shorts, polo shirts, T-shirts, jackets, knitted outerwear, etc. It is also involved in the manufacture and sale of textile yarn products, as well as knitting and dyeing fabrics. In addition, the company provides garment processing services; and leases commercial and industrial premises. It has operations in the United Kingdom, Italy, Spain, Germany, and other European countries; Mainland China; the United States and Canada; and internationally. The company was formerly known as Yangtzekiang Garment Mfg. Co., Ltd. and changed its name to Yangtzekiang Garment Limited in 2005. Yangtzekiang Garment Limited was founded in 1949 and is headquartered in San Po Kong, Hong Kong.

How the Company Makes Money

Yangtzekiang Garment Co. Ltd. generates revenue through its garment manufacturing and textiles trading operations. The company makes money by producing garments for well-known brands and retailers, leveraging its manufacturing facilities to fulfill large-scale orders. Its revenue streams include direct sales of finished apparel products, as well as income from textiles trading, where it deals in raw materials and semi-finished textile goods. Significant partnerships with international fashion brands and retailers enhance its market reach and contribute to its earnings. The company's ability to efficiently manage production costs and maintain quality standards is crucial to its profitability.

Yangtzekiang Garment Co. Ltd. Financial Statement Overview

Summary

Yangtzekiang Garment Co. Ltd. faces financial challenges with declining revenue, profitability, and cash flow. Despite a strong balance sheet with low debt and high equity, the company struggles with negative cash flows and profitability, indicating operational inefficiencies and market pressures. The financial health is stable due to the low leverage, but strategic improvements are needed to enhance operating performance and financial outcomes.

Income Statement

Yangtzekiang Garment Co. Ltd. experienced a significant decline in revenue and profitability over the last year. The gross profit margin dropped to 18.93% from 19.60% the previous year, and the net profit margin is negative at -20.55%, indicating substantial losses. The revenue growth rate is negative at -35.94%, which raises concerns about declining sales and market share. Additionally, EBIT and EBITDA margins are weak, reflecting operational inefficiencies and high costs relative to revenue.

Balance Sheet

The company maintains a strong balance sheet with a very low debt-to-equity ratio of 0.0002, indicating minimal leverage and financial risk. The equity ratio is high at 93.51%, showcasing robust equity financing. However, the return on equity is negative at -4.71% due to net losses, highlighting challenges in generating shareholder returns despite a solid asset base.

Cash Flow

The cash flow situation shows deterioration, with a negative free cash flow and a significant drop in operating cash flow by -109.43% from the previous year. The operating cash flow to net income ratio is negative, indicating insufficient cash generation from operations to cover net losses. While the company has a positive investing cash flow, primarily from asset sales, it is not enough to offset the negative operating cash flow.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
211.45M	234.30M	365.76M	390.45M	420.48M	656.21M
	Gross Profit
36.91M	44.36M	71.70M	60.63M	71.36M	111.07M
	EBIT
-4.43M	653.00K	18.74M	-13.06M	-22.46M	3.37M
	EBITDA
-15.80M	-8.27M	-15.37M	-4.08M	-19.93M	-13.06M
	Net Income Common Stockholders
-61.58M	-48.17M	-23.25M	30.66M	-27.82M	-51.01M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
313.21M	304.50M	306.17M	235.47M	266.08M	272.45M
	Total Assets
1.09B	1.09B	1.19B	1.30B	1.23B	1.24B
	Total Debt
118.00K	164.00K	74.00K	535.00K	7.10M	17.96M
	Net Debt
-189.98M	-188.82M	-178.00M	-234.94M	-258.99M	-254.49M
	Total Liabilities
87.06M	71.27M	85.24M	127.32M	113.18M	143.57M
	Stockholders Equity
1.00B	1.02B	1.11B	1.17B	1.12B	1.10B
Cash Flow		Free Cash Flow
-2.31M	-6.95M	65.47M	-24.73M	-6.78M	-20.86M
	Operating Cash Flow
-2.16M	-6.80M	72.15M	-18.31M	-3.74M	-16.83M
	Investing Cash Flow
121.20M	24.53M	-121.31M	-8.23M	3.48M	275.00K
	Financing Cash Flow
-5.16M	-5.10M	-5.99M	-4.98M	-7.16M	-33.46M

Yangtzekiang Garment Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0294, the sentiment is Negative. The current price of 0.89 is below the 20-day moving average (MA) of 0.90, below the 50-day MA of 0.94, and below the 200-day MA of 1.02, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 44.86 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0294.

Yangtzekiang Garment Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
0294	46 Neutral	HK$184.01M	―	-6.00%	2.25%	-20.02%	-24.55%
SBMFF		$12.60B	51.81	6.14%	1.09%	―	―
BSDGF		$6.73B	13.43	25.72%	5.49%	―	―
PTEXF		$239.34M	11.75	4.99%	6.97%	―	―
XIACF		$171.67B	39.21	14.98%	―	―	―
0331	78 Outperform	HK$2.54B	5.31	49.10%	3.73%	3.11%	-2.34%

Yangtzekiang Garment Co. Ltd. Corporate Events

Yangtzekiang Garment Co. Ltd. Announces Supplemental Information on Connected Transactions

Yangtzekiang Garment Co. Ltd. has issued a supplemental announcement to its Annual Report 2023/24, detailing connected transactions with YGM Trading Group. These transactions include a Garment Master Agreement for selling garment products and a Licence Agreement for leasing warehouse and office space. The company has complied with Chapter 14A of the Listing Rules for these transactions, which are significant due to shared controlling shareholders between Yangtzekiang and YGM Trading.