Giordano International (0709) AI Stock Analysis

• Market Cap: HK$2.36B
• Dividend Yield: 9.18%
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.65
• Revenue Growth: 3.78%
• EPS Growth: -21.19%
• Country: HK
• Employees: 6,627
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 0.07
• Shares Outstanding: 1,616,368,500
• 10 Day Avg. Volume: 1,242,412
• 30 Day Avg. Volume: 1,014,316
• PEG Ratio: -0.31
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 4.24
• 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: 67 Neutral
• Price Target: HK$1.50 ▲(3.45% Upside)

Giordano International's overall stock score is driven by its stable financial performance and attractive valuation, despite challenges in profitability and lack of strong market momentum. The high dividend yield adds to its appeal, but operational efficiency needs improvement for future growth.

Positive Factors

Strong Balance Sheet

A low debt-to-equity ratio indicates reduced leverage, enhancing financial stability and providing flexibility for future investments.

Revenue Growth

Steady revenue growth reflects resilience and effective market strategies, supporting long-term business sustainability.

Brand Presence

A strong brand presence in key markets enhances competitive advantage and customer loyalty, driving sustained demand and market share.

Negative Factors

Declining Profitability

Decreasing profitability can strain financial resources and limit reinvestment capacity, impacting long-term growth prospects.

Operational Efficiency Challenges

A decline in ROE suggests less efficient use of equity, potentially affecting investor confidence and capital allocation efficiency.

Stagnant Cash Flow Growth

Stagnant cash flow growth limits the company's ability to invest in new opportunities and manage financial obligations effectively.

Giordano International Business Overview & Revenue Model

Company Description

Giordano International Limited, an investment holding company, engages in the retail and distribution of men's, women's, and children's fashion apparel and accessories worldwide. It operates through two segments, Retail and Distribution; and Wholesales to Overseas Franchisees. The company sells its products under the Giordano, Giordano Junior, Giordano Ladies, BSX, and other owned and licensed brands through its own stores, as well as third party franchisees. As of December 31, 2021, the company operated a network of 2,056 points of sales. Giordano International Limited was founded in 1981 and is based in Kowloon, Hong Kong.

How the Company Makes Money

Giordano International generates revenue primarily through the sale of its clothing and accessories in its retail stores and through e-commerce platforms. The company operates a franchise model, allowing it to expand its presence in various markets with lower capital investment. Key revenue streams include direct retail sales, franchise fees, and royalties from franchise operations. Additionally, strategic partnerships with local distributors and promotional campaigns contribute to increased sales. Seasonally driven collections and a focus on customer loyalty programs also play a significant role in enhancing customer retention and boosting revenue.

Giordano International Financial Statement Overview

Summary

Giordano International shows stable revenue growth and a strong balance sheet with low leverage. However, declining profitability metrics such as net profit margin and ROE indicate challenges in operational efficiency. The lack of 2024 operating cash flow data limits comprehensive cash flow analysis.

Income Statement

Giordano International has shown consistent revenue recovery over the years, rebounding from a low in 2020 with a 7.7% growth in 2021 and a 2.1% growth in 2023. The gross profit margin remained stable at around 57% in recent years. However, net profit margin decreased from 8.9% in 2023 to 5.5% in 2024, indicating a decline in profitability. The EBIT margin also fell from 13.0% to 9.6% over the same period, suggesting increased operational costs.

Balance Sheet

The company's balance sheet reflects solid equity with a debt-to-equity ratio decreasing to 0.18 in 2024, down from previous years, indicating reduced leverage. However, the return on equity (ROE) declined from 15.8% in 2023 to 10.8% in 2024, suggesting less efficient use of equity. The equity ratio stands strong at 53.1% in 2024, showing a well-capitalized structure.

Cash Flow

While Giordano has maintained a positive free cash flow over the years, the growth rate stagnated with no significant change in 2024. With operating cash flow data unavailable for 2024, the operating cash flow to net income ratio cannot be assessed for the latest period. Historical data shows a robust free cash flow to net income ratio, which was 2.6 in 2023.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.95B	3.92B	3.87B	3.80B	3.38B	3.12B
Gross Profit	2.19B	2.23B	2.26B	2.15B	1.93B	1.74B
EBITDA	395.00M	879.00M	540.00M	448.00M	272.00M	-96.00M
Net Income	217.00M	216.00M	345.00M	268.00M	190.00M	-112.00M
Balance Sheet
Total Assets	3.72B	3.77B	3.86B	4.01B	4.21B	4.38B
Cash, Cash Equivalents and Short-Term Investments	749.00M	836.00M	935.00M	966.00M	1.04B	1.26B
Total Debt	734.00M	744.00M	696.00M	625.00M	805.00M	919.00M
Total Liabilities	1.51B	1.65B	1.54B	1.49B	1.65B	1.75B
Stockholders Equity	2.08B	2.00B	2.19B	2.32B	2.40B	2.47B
Cash Flow
Free Cash Flow	616.00M	644.00M	906.00M	788.00M	469.00M	651.00M
Operating Cash Flow	688.00M	710.00M	993.00M	854.00M	511.00M	682.00M
Investing Cash Flow	-61.00M	149.00M	-207.00M	-120.00M	-63.00M	173.00M
Financing Cash Flow	-638.00M	-779.00M	-925.00M	-853.00M	-641.00M	-644.00M

Giordano International Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0709, the sentiment is Neutral. The current price of 1.45 is below the 20-day moving average (MA) of 1.47, below the 50-day MA of 1.49, and above the 200-day MA of 1.42, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 46.14 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0709.

Giordano International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3709	80 Outperform	HK$5.29B	10.15	10.59%	4.83%	-7.34%	-28.66%
1368	74 Outperform	$14.81B	9.58	15.27%	4.94%	-12.29%	21.00%
0483	70 Outperform	HK$108.38M	14.60	4.49%	―	-1.14%	―
6110	68 Neutral	HK$17.98B	13.84	12.82%	9.65%	-5.66%	-31.36%
0709	67 Neutral	HK$2.36B	10.87	10.57%	9.18%	3.78%	-21.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1817	54 Neutral	HK$280.25M	7.76	4.51%	―	-7.95%	98.95%

Giordano International Corporate Events

Giordano International Grants Share Awards to Executive Directors

Giordano International Limited announced the grant of 3,340,000 share awards to three Executive Directors under its 2025 Share Award Scheme. These awards are contingent upon a one-year vesting period and specific performance targets related to the company’s consolidated revenue and operating profits for the year ending December 31, 2025. The initiative aims to motivate executives to enhance the company’s growth and profitability, aligning with the company’s ‘Beyond Boundaries’ 5-Year Strategy.

The most recent analyst rating on (HK:0709) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Giordano International stock, see the HK:0709 Stock Forecast page.

Giordano International’s Strategic Shift Boosts Online Revenue Amidst Q3 Revenue Decline

Giordano International Limited reported a slight decline in Q3 2025 revenue by 1.4%, but showed a year-to-date growth of 0.6%, highlighting the company’s strategic shift towards high-growth channels and markets. The company’s ‘Digital-First’ strategy resulted in a significant increase in online revenue by 16.5% for the quarter, and the Gulf Cooperation Council markets also performed strongly, contributing to an improved gross profit margin. Despite challenges such as adverse weather in Greater China, Giordano’s core business remained stable, and the company continues to focus on margin improvement, inventory optimization, and channel diversification to drive long-term growth.

The most recent analyst rating on (HK:0709) stock is a Buy with a HK$1.50 price target. To see the full list of analyst forecasts on Giordano International stock, see the HK:0709 Stock Forecast page.