tiprankstipranks
Trending News
More News >
Yangtzekiang Garment Co. Ltd. (HK:0294)
:0294
Hong Kong Market
Advertisement

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

Compare
0 Followers

Top Page

HK:0294

Yangtzekiang Garment Co. Ltd.

(0294)

Select Model
Select Model
Select Model
Neutral 45 (OpenAI - 4o)
Rating:45Neutral
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. (0294) vs. iShares MSCI Hong Kong ETF (EWH)

Yangtzekiang Garment Co. Ltd. Business Overview & Revenue Model

Company DescriptionYangtzekiang 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 MoneyYangtzekiang 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 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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue211.45M186.43M234.30M365.76M390.45M420.48M
Gross Profit36.91M34.41M44.36M71.70M60.63M71.36M
EBITDA-15.80M-62.46M-8.27M-15.37M-4.08M-19.93M
Net Income-61.58M-59.88M-48.17M-23.25M30.66M-27.82M
Balance Sheet
Total Assets1.09B1.02B1.09B1.19B1.30B1.23B
Cash, Cash Equivalents and Short-Term Investments313.21M332.14M304.50M306.17M235.47M266.08M
Total Debt118.00K64.00K164.00K74.00K535.00K7.10M
Total Liabilities87.06M63.99M71.27M85.24M127.32M113.18M
Stockholders Equity1.00B960.28M1.02B1.11B1.17B1.12B
Cash Flow
Free Cash Flow-2.31M1.78M-6.95M65.47M-24.73M-6.78M
Operating Cash Flow-2.16M2.39M-6.80M72.15M-18.31M-3.74M
Investing Cash Flow114.34M-63.21M24.53M-121.31M-8.23M3.48M
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 Price0.86
Price Trends
50DMA
0.95
Negative
100DMA
0.93
Negative
200DMA
0.97
Negative
Market Momentum
MACD
-0.02
Positive
RSI
27.74
Positive
STOCH
9.64
Positive
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 0.97, below the 50-day MA of 0.95, and below the 200-day MA of 0.97, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 27.74 is Positive, neither overbought nor oversold. The STOCH value of 9.64 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
HK$176.00M3.2023.94%8.24%14.30%125.41%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
51
Neutral
€248.19M-14.53%0.34%-47.98%
45
Neutral
HK$177.80M-6.04%2.33%-20.43%-24.29%
44
Neutral
HK$166.85M-18.57%-6.47%-118.56%
40
Underperform
HK$184.78M-25.27%4.98%-3.47%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0294
Yangtzekiang Garment Co. Ltd.
0.86
-0.10
-10.42%
HK:0311
Luen Thai Holdings Limited
0.24
0.05
26.32%
HK:1388
Embry Holdings Limited
0.40
0.05
14.29%
HK:1433
Cirtek Holdings Limited
0.09
0.04
80.00%
HK:3398
China Ting Group Holdings Limited
0.09
-0.08
-47.06%

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: Oct 14, 2025