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Yangtzekiang Garment Co. Ltd. (HK:0294)
:0294
Hong Kong Market

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

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HK

Yangtzekiang Garment Co. Ltd.

(0294)

Rating:46Neutral
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. (0294) vs. iShares MSCI Hong Kong ETF (EWH)

Yangtzekiang Garment Co. Ltd. Business Overview & Revenue Model

Company DescriptionYangtzekiang Garment Co. Ltd. (0294) is a Hong Kong-based company primarily engaged in the manufacturing and sale of garment products. The company operates through two segments: garment manufacturing and textiles trading. Its product portfolio includes a wide range of apparel, catering to both domestic and international markets. Yangtzekiang Garment Co. Ltd. is known for its strong manufacturing capabilities and its ability to produce high-quality garments that meet diverse customer needs.
How the Company Makes MoneyYangtzekiang 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
35
Negative
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
80
Positive
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
40
Negative
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.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue211.45M234.30M365.76M390.45M420.48M656.21M
Gross Profit36.91M44.36M71.70M60.63M71.36M111.07M
EBITDA-15.80M-8.27M-15.37M-4.08M-19.93M-13.06M
Net Income-61.58M-48.17M-23.25M30.66M-27.82M-51.01M
Balance Sheet
Total Assets1.09B1.09B1.19B1.30B1.23B1.24B
Cash, Cash Equivalents and Short-Term Investments313.21M304.50M306.17M235.47M266.08M272.45M
Total Debt118.00K164.00K74.00K535.00K7.10M17.96M
Total Liabilities87.06M71.27M85.24M127.32M113.18M143.57M
Stockholders Equity1.00B1.02B1.11B1.17B1.12B1.10B
Cash Flow
Free Cash Flow-2.31M-6.95M65.47M-24.73M-6.78M-20.86M
Operating Cash Flow-2.16M-6.80M72.15M-18.31M-3.74M-16.83M
Investing Cash Flow121.20M24.53M-121.31M-8.23M3.48M275.00K
Financing Cash Flow-5.16M-5.10M-5.99M-4.98M-7.16M-33.46M

Yangtzekiang Garment Co. Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.95
Price Trends
50DMA
0.92
Positive
100DMA
1.00
Negative
200DMA
1.01
Negative
Market Momentum
MACD
<0.01
Negative
RSI
62.33
Neutral
STOCH
40.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0294, the sentiment is Positive. The current price of 0.95 is above the 20-day moving average (MA) of 0.91, above the 50-day MA of 0.92, and below the 200-day MA of 1.01, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 62.33 is Neutral, neither overbought nor oversold. The STOCH value of 40.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0294.

Yangtzekiang Garment Co. Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$51.63B13.2022.98%5.72%32.49%37.50%
78
Outperform
HK$2.56B5.3649.10%3.70%3.11%-2.34%
78
Outperform
$1.49T43.7814.98%38.46%72.44%
69
Neutral
HK$100.15B52.786.14%1.43%7.63%-24.23%
56
Neutral
HK$23.37B3.96-1.56%6.69%0.06%-64.88%
50
Neutral
$1.93B11.575.75%20.14%10.66%3.88%
46
Neutral
HK$196.41M-6.04%2.10%-20.02%-24.55%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0294
Yangtzekiang Garment Co. Ltd.
0.95
-0.32
-25.20%
HK:0331
FSE Lifestyle Services Limited
5.72
0.53
10.21%
HK:1177
Sino Biopharmaceutical
5.50
2.76
100.51%
HK:3998
Bosideng International Holdings
4.49
0.75
19.93%
HK:1382
Pacific Textiles Holdings
1.36
-0.16
-10.64%
HK:1810
Xiaomi
57.30
40.84
248.12%

Yangtzekiang Garment Co. Ltd. Corporate Events

Yangtzekiang Garment Co. Ltd. Announces Supplemental Information on Connected Transactions
Apr 1, 2025

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.

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: Apr 22, 2025