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

• Market Cap: HK$179.87M
• Dividend Yield: 2.3%
• Average Volume (3M): 25.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.10
• Revenue Growth: -20.43%
• EPS Growth: -24.29%
• Country: HK
• Employees: 247
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.14
• Shares Outstanding: 206,747,680
• 10 Day Avg. Volume: 355
• 30 Day Avg. Volume: 25,685
• 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: 45 Neutral
• Price Target: HK$1.00 ▲(16.28% Upside)

Yangtzekiang Garment Co. Ltd. has significant financial challenges, with declining revenues and persistent losses impacting profitability. Technical indicators suggest the stock is oversold, but weak momentum and negative valuation metrics indicate limited attractiveness. The strong balance sheet provides some stability, but operational improvements are necessary for a positive outlook.

Yangtzekiang Garment Co. Ltd. Business Overview & Revenue Model

Company Description

Yangtzekiang Garment Co. Ltd. (0294) is a prominent player in the textile and garment manufacturing industry, primarily based in Hong Kong. The company specializes in the design, production, and export of a wide range of apparel, including casual wear, formal wear, and outerwear. With a strong emphasis on quality and craftsmanship, Yangtzekiang serves various markets globally, catering to both retail and wholesale customers, and has established a solid reputation for its innovative designs and sustainable practices.

How the Company Makes Money

Yangtzekiang Garment Co. Ltd. generates revenue primarily through the manufacturing and sale of garments to international retailers and brands. The company operates on a business-to-business (B2B) model, where it partners with well-known fashion labels and distributors, supplying them with finished apparel products. Key revenue streams include bulk orders and long-term contracts with major retailers, which provide a steady income flow. Additionally, Yangtzekiang may also earn from custom garment production and private label services, allowing clients to brand the products as their own. The company's commitment to quality, efficient production processes, and strategic partnerships with global fashion brands significantly contribute to its financial performance.

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	211.45M	186.43M	234.30M	365.76M	390.45M	420.48M
Gross Profit	36.91M	34.41M	44.36M	71.70M	60.63M	71.36M
EBITDA	-15.80M	-62.46M	-8.27M	-15.37M	-4.08M	-19.93M
Net Income	-61.58M	-59.88M	-48.17M	-23.25M	30.66M	-27.82M
Balance Sheet
Total Assets	1.09B	1.02B	1.09B	1.19B	1.30B	1.23B
Cash, Cash Equivalents and Short-Term Investments	313.21M	332.14M	304.50M	306.17M	235.47M	266.08M
Total Debt	118.00K	64.00K	164.00K	74.00K	535.00K	7.10M
Total Liabilities	87.06M	63.99M	71.27M	85.24M	127.32M	113.18M
Stockholders Equity	1.00B	960.28M	1.02B	1.11B	1.17B	1.12B
Cash Flow
Free Cash Flow	-2.31M	1.78M	-6.95M	65.47M	-24.73M	-6.78M
Operating Cash Flow	-2.16M	2.39M	-6.80M	72.15M	-18.31M	-3.74M
Investing Cash Flow	114.34M	-63.21M	24.53M	-121.31M	-8.23M	3.48M
Financing Cash Flow	-5.16M	-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 0.88, below the 50-day MA of 0.93, and below the 200-day MA of 0.96, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 40.65 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
1433	64 Neutral	HK$188.00M	3.42	23.94%	7.98%	14.30%	125.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0294	45 Neutral	HK$179.87M	―	-6.04%	2.30%	-20.43%	-24.29%
1388	45 Neutral	HK$164.74M	―	-18.57%	―	-6.47%	-118.56%
0311	40 Underperform	HK$227.50M	―	-14.53%	―	0.34%	-47.98%
3398	40 Underperform	HK$170.09M	-0.40	-25.27%	―	4.98%	-3.47%

Yangtzekiang Garment Co. Ltd. Corporate Events

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.

The most recent analyst rating on (HK:0294) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Yangtzekiang Garment Co. Ltd. stock, see the HK:0294 Stock Forecast page.

Yangtzekiang Garment Co. Ltd. Updates Nomination Committee Composition

Yangtzekiang Garment Co. Ltd. has announced changes in its Nomination Committee, effective August 1, 2025. These changes involve the replacement of Mr. Chan Wing Kee with Ms. Chan Suk Man as a member of the committee. This decision aligns with recent amendments to the Listing Rules and Corporate Governance Code, aiming to enhance the board’s effectiveness and diversity, thereby strengthening the company’s corporate governance practices.

Yangtzekiang Garment Co. Ltd. Announces Board Composition and Roles

Yangtzekiang Garment Co. Ltd. has announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement provides clarity on the leadership structure, which is crucial for stakeholders to understand the company’s governance and strategic direction.

Yangtzekiang Garment Co. Ltd. Forms Nomination Committee to Strengthen Board Governance

Yangtzekiang Garment Co. Ltd. has established a Nomination Committee as part of its board of directors to oversee the nomination process for board members. The committee is tasked with reviewing the board’s structure, identifying qualified candidates for directorships, and assessing the independence of non-executive directors. This move is aimed at ensuring a diverse and skilled board that aligns with the company’s corporate strategy, potentially enhancing its governance and strategic direction.

Yangtzekiang Garment Co. Ltd. Announces AGM with Key Resolutions

Yangtzekiang Garment Co. Ltd. has announced its upcoming Annual General Meeting (AGM) scheduled for September 26, 2025, in Hong Kong. Key agenda items include the approval of financial statements, the declaration of a final dividend, re-election of directors, re-appointment of KPMG as auditors, and resolutions regarding share allotment and buy-back. These decisions could impact the company’s financial strategies and shareholder value.