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

• Market Cap: HK$163.33M
• Dividend Yield: 2.08%
• Average Volume (3M): 33.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.01
• 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: 11,521
• 30 Day Avg. Volume: 33,607
• 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$0.77 ▼(-10.70% Downside)
• Action: Reiterated Date: 12/09/25
• Date: Action: Reiterated 12/09/25

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

Low leverage / strong balance sheet

A very low debt-to-equity position reduces solvency and refinancing risk, giving the company durable financial flexibility. This cushioning supports meeting supplier and contract obligations, funding selective capex or working capital needs, and surviving cyclical downturns in apparel demand.

Diversified product mix and global clientele

A diversified product lineup across casual, sportswear and formal wear sold globally reduces single-market and single-product concentration risk. This breadth helps stabilize orders from international retailers and wholesalers over months, aiding resilience to localized demand shocks and fashion cycles.

Long-term retail contracts and manufacturing scale

Long-term contracts with established retailers provide predictable baseline demand and revenue visibility, enabling better capacity planning and supplier negotiation. Manufacturing scale and outsourced production expertise create stickiness with customers and a structural cost advantage versus smaller vendors.

Negative Factors

Sustained revenue decline

An ongoing revenue decline signals weakening demand or market share loss, which reduces operating leverage and the ability to cover fixed manufacturing costs. Unless reversed by structural sales recovery or contract wins, it impairs reinvestment capacity and long-term competitiveness.

Negative operating and net margins

Persistent negative margins indicate core operations are not generating profit, reflecting pricing, cost structure, or productivity issues. Sustained unprofitability erodes equity, limits strategic investment, and makes it harder to retain customers or invest in efficiency improvements over the medium term.

Weak cash generation and falling free cash flow

A sharp deterioration in free cash flow constrains the company's ability to fund working capital, maintain capex, or sustain distributions. Low operating cash relative to net income signals earnings quality issues and raises liquidity risk if revenues or margins remain pressured over coming quarters.

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 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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	196.72M	186.43M	234.30M	365.76M	390.45M	420.48M
Gross Profit	35.94M	34.41M	44.36M	71.70M	60.63M	71.36M
EBITDA	-13.48M	-62.46M	-8.27M	-15.37M	39.70M	-19.93M
Net Income	-81.42M	-59.88M	-48.17M	-23.25M	30.66M	-27.82M
Balance Sheet
Total Assets	988.06M	1.02B	1.09B	1.19B	1.30B	1.23B
Cash, Cash Equivalents and Short-Term Investments	318.92M	332.14M	304.50M	306.17M	235.47M	266.08M
Total Debt	14.00K	64.00K	164.00K	74.00K	535.00K	7.10M
Total Liabilities	74.64M	63.99M	71.27M	85.24M	127.32M	113.18M
Stockholders Equity	913.42M	960.28M	1.02B	1.11B	1.17B	1.12B
Cash Flow
Free Cash Flow	-3.25M	1.78M	-6.95M	65.47M	-24.73M	-6.78M
Operating Cash Flow	-2.65M	2.39M	-6.80M	72.15M	-18.31M	-3.74M
Investing Cash Flow	-76.66M	-63.21M	24.53M	-121.31M	-8.23M	3.48M
Financing Cash Flow	-4.17M	-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 above the 20-day moving average (MA) of 0.80, above the 50-day MA of 0.82, and below the 200-day MA of 0.89, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 41.61 is Neutral, neither overbought nor oversold. The STOCH value of 48.48 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$188.00M	1.58	23.94%	7.89%	14.30%	125.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0294	52 Neutral	HK$163.33M	-0.96	-8.49%	2.08%	-6.96%	-32.24%
1388	45 Neutral	HK$166.85M	-0.79	-18.57%	―	-6.47%	-118.56%
3398	43 Neutral	HK$142.79M	-0.62	-25.27%	―	4.98%	-3.47%
0311	40 Underperform	HK$245.08M	13.71	-14.53%	―	0.34%	-47.98%