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

• Market Cap: HK$171.60M
• Dividend Yield: 2.41%
• Average Volume (3M): 33.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.09
• Revenue Growth: -6.96%
• EPS Growth: -32.24%
• Country: HK
• Employees: 247
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.26
• Shares Outstanding: 206,747,680
• 10 Day Avg. Volume: 61,921
• 30 Day Avg. Volume: 33,540
• PEG Ratio: -0.14
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 1.20
• P/FCF Ratio: 125.73
• 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: 52 Neutral
• Price Target: HK$0.98 ▲(13.95% Upside)

The overall stock score of 52 reflects significant financial challenges, with declining revenues and persistent losses impacting profitability. Technical analysis shows mixed signals, with the stock trading above key moving averages but weak momentum indicators. Valuation is constrained by negative earnings, though the dividend yield offers some investor return.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability, providing the company with resilience against economic downturns.

Global Clientele

Serving a global clientele diversifies revenue sources and reduces dependence on any single market, supporting long-term growth.

Partnerships with Fashion Brands

Partnerships with fashion brands can provide steady demand and enhance market competitiveness, supporting sustainable revenue streams.

Negative Factors

Declining Revenue

Declining revenue indicates potential loss of market share or demand, which can impact long-term profitability and growth prospects.

Negative Profit Margins

Negative profit margins suggest operational challenges, which can hinder the company's ability to invest in growth and innovation.

Weak Cash Flow

Weak cash flow limits the company's ability to fund operations and growth initiatives, potentially affecting long-term financial health.

Yangtzekiang Garment Co. Ltd. Business Overview & Revenue Model

Company Description

Yangtzekiang Garment Co. Ltd. (0294) is a prominent player in the garment manufacturing sector, specializing in the production and export of a diverse range of apparel. The company is engaged in designing, manufacturing, and distributing various clothing items, including casual wear, sportswear, and formal attire. With a strong emphasis on quality and innovation, Yangtzekiang serves a global clientele, catering to both retail and wholesale markets.

How the Company Makes Money

Yangtzekiang Garment Co. Ltd. generates revenue primarily through the sale of its manufactured clothing products to international retailers and wholesalers. The company's revenue model is built around producing garments at competitive prices while maintaining high-quality standards, enabling it to attract a broad customer base. Key revenue streams include bulk orders from established retail brands, which often involve long-term contracts ensuring steady demand. Additionally, the company may benefit from partnerships with fashion brands that require outsourced production capabilities. Factors contributing to its earnings include efficient manufacturing processes, strong supply chain management, and the ability to adapt to changing fashion trends, which enhance its market competitiveness.

Yangtzekiang Garment Co. Ltd. Financial Statement Overview

Summary

Yangtzekiang Garment Co. Ltd. faces significant financial challenges, with declining revenues and persistent losses impacting profitability. While the balance sheet remains strong with low leverage, cash flow issues and negative returns on equity highlight the need for operational improvements.

Income Statement

The income statement reveals significant challenges, with declining revenue and negative profit margins. The company experienced a revenue decline of 11.83% in the latest year, and both EBIT and EBITDA margins are negative, indicating operational inefficiencies. The net profit margin is also negative, reflecting ongoing losses.

Balance Sheet

The balance sheet shows a strong equity position with a very low debt-to-equity ratio, indicating minimal leverage risk. However, the return on equity is negative, highlighting profitability issues. The equity ratio is healthy, suggesting financial stability despite the company's profitability challenges.

Cash Flow

Cash flow analysis indicates a decline in free cash flow, with a negative growth rate of -176.75%. The operating cash flow to net income ratio is low, suggesting weak cash generation relative to net income. The free cash flow to net income ratio is positive, but overall cash flow performance is concerning.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	186.43M	186.43M	234.30M	365.76M	390.45M	420.48M
Gross Profit	34.00M	34.41M	44.36M	71.70M	60.63M	71.36M
EBITDA	-16.05M	-62.46M	-8.27M	-15.37M	39.70M	-19.93M
Net Income	-59.88M	-59.88M	-48.17M	-23.25M	30.66M	-27.82M
Balance Sheet
Total Assets	1.02B	1.02B	1.09B	1.19B	1.30B	1.23B
Cash, Cash Equivalents and Short-Term Investments	332.14M	332.14M	304.50M	306.17M	235.47M	266.08M
Total Debt	64.00K	64.00K	164.00K	74.00K	535.00K	7.10M
Total Liabilities	63.99M	63.99M	71.27M	85.24M	127.32M	113.18M
Stockholders Equity	960.28M	960.28M	1.02B	1.11B	1.17B	1.12B
Cash Flow
Free Cash Flow	1.78M	1.78M	-6.95M	65.47M	-24.73M	-6.78M
Operating Cash Flow	2.39M	2.39M	-6.80M	72.15M	-18.31M	-3.74M
Investing Cash Flow	-76.19M	-63.21M	24.53M	-121.31M	-8.23M	3.48M
Financing Cash Flow	-4.24M	-4.99M	-5.10M	-5.99M	-4.98M	-7.16M

Yangtzekiang Garment Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.86
• 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:0294, the sentiment is Negative. The current price of 0.86 is below the 20-day moving average (MA) of 0.86, below the 50-day MA of 0.88, and below the 200-day MA of 0.94, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.67 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 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
1433	70 Outperform	HK$198.00M	3.60	23.94%	7.65%	14.30%	125.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0294	52 Neutral	HK$171.60M	-2.13	-8.49%	2.41%	-6.96%	-32.24%
1388	45 Neutral	HK$168.97M	-0.48	-18.57%	―	-6.47%	-118.56%
0311	40 Underperform	HK$224.40M	-1.09	-14.53%	―	0.34%	-47.98%
3398	39 Underperform	HK$134.39M	-0.32	-25.27%	―	4.98%	-3.47%

Yangtzekiang Garment Co. Ltd. Corporate Events

Yangtzekiang Garment Co. Ltd. Reports Increased Revenue but Faces Significant Losses

Yangtzekiang Garment Co. Ltd. reported its unaudited interim results for the six months ending September 30, 2025, revealing a significant increase in revenue to HK$85.6 million from HK$75.3 million in the previous year. Despite the revenue growth, the company faced a substantial loss of HK$53.3 million, primarily due to increased share of losses from joint ventures and net valuation losses on investment properties, impacting its overall financial performance.

Yangtzekiang Garment Schedules Board Meeting for Financial Review

Yangtzekiang Garment Co. Ltd. has announced a board meeting scheduled for November 21, 2025, to approve the unaudited consolidated results for the six months ending September 30, 2025, and to consider the payment of an interim dividend. This meeting is significant as it will determine the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.

Yangtzekiang Garment Co. Ltd. Successfully Passes All AGM Resolutions

Yangtzekiang Garment Co. Ltd. announced that all resolutions proposed at its Annual General Meeting on September 26, 2025, were passed by shareholders via poll. The resolutions included the approval of financial statements, the declaration of a final dividend, the re-election of directors, and the reappointment of KPMG as auditors. Additionally, the board was granted mandates to manage share allotments and buybacks. This successful AGM reflects the company’s stable governance and shareholder support, potentially enhancing its operational strategies and market confidence.