Giordano International (0709) AI Stock Analysis

• Market Cap: $2.28B
• Dividend Yield: 8.45%
• Average Volume (3M): 2.23M
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.57
• Revenue Growth: 1.19%
• EPS Growth: -38.04%
• Country: HK
• Employees: 6,627
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Apparel - Retail
• EPS (TTM): 0.13
• Shares Outstanding: 1,616,282,500
• 10 Day Avg. Volume: 2,305,862
• 30 Day Avg. Volume: 2,225,602
• PEG Ratio: -0.45
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.57
• 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: $1.49
• Price Target Upside: 4.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: HK$1.50 ▲(4.90%Upside)

Giordano International scores well due to its attractive valuation, characterized by a low P/E ratio and high dividend yield, which are significant strengths. While its financial performance shows a stable revenue base, declines in profitability metrics pose a challenge. The technical analysis indicates a stable stock price trend, supporting the overall positive outlook.

Giordano International Business Overview & Revenue Model

Company Description

Giordano International (0709) is a leading international retailer of men's, women's, and children's apparel and accessories, recognized for its high-quality clothing and value-for-money offerings. Operating in the retail sector, Giordano has established a strong presence in Asia, the Middle East, and other regions, with a focus on casual and everyday wear that appeals to a broad customer base. The company is known for its streamlined and efficient operations, which support its expansive network of stores and franchises across numerous countries.

How the Company Makes Money

Giordano International generates revenue primarily through the sale of its clothing and accessories in company-operated stores, franchised outlets, and online platforms. Its key revenue streams include direct retail sales, royalties, and franchise fees from its extensive network of franchise partners. The company benefits from strategic partnerships and collaborations that enhance its brand presence and market penetration. Additionally, Giordano focuses on optimizing its supply chain and inventory management to maximize profitability. Its ability to adapt to market trends and consumer preferences also plays a critical role in sustaining its revenue growth.

Giordano International Financial Statement Overview

Summary

Giordano International has shown steady revenue growth and a strong balance sheet with low leverage. However, declines in profitability metrics, such as net profit margin and ROE, suggest 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.92B	3.87B	3.80B	3.38B	3.12B
Gross Profit	2.23B	2.26B	2.15B	1.93B	1.74B
EBITDA	879.00M	540.00M	448.00M	272.00M	-96.00M
Net Income	216.00M	345.00M	268.00M	190.00M	-112.00M
Balance Sheet
Total Assets	3.77B	3.86B	4.01B	4.21B	4.38B
Cash, Cash Equivalents and Short-Term Investments	836.00M	935.00M	966.00M	1.04B	1.26B
Total Debt	744.00M	696.00M	625.00M	805.00M	919.00M
Total Liabilities	1.65B	1.54B	1.49B	1.65B	1.75B
Stockholders Equity	2.00B	2.19B	2.32B	2.40B	2.47B
Cash Flow
Free Cash Flow	644.00M	906.00M	788.00M	469.00M	651.00M
Operating Cash Flow	762.00M	993.00M	854.00M	511.00M	682.00M
Investing Cash Flow	97.00M	-207.00M	-120.00M	-63.00M	173.00M
Financing Cash Flow	-779.00M	-925.00M	-853.00M	-641.00M	-644.00M

Giordano International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.43
• 50DMA: Positive
• 100DMA: Positive
• 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:0709, the sentiment is Positive. The current price of 1.43 is above the 20-day moving average (MA) of 1.41, above the 50-day MA of 1.41, and below the 200-day MA of 1.48, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.37 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0709.

Giordano International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1368	80 Outperform	HK$14.17B	10.06	14.95%	45.17%	-7.00%	16.26%
0709	75 Outperform	$2.28B	10.54	10.30%	8.45%	1.19%	-38.04%
3709	74 Outperform	HK$4.96B	9.82	10.33%	5.23%	-6.46%	-45.94%
6110	73 Outperform	HK$19.16B	13.79	13.64%	6.49%	-7.87%	-42.79%
Sector *	63 Neutral	$16.78B	10.88	-7.08%	3.04%	1.73%	-25.15%
1817	54 Neutral	HK$294.50M	9.27	4.29%	―	-4.28%	-25.99%
0483	48 Neutral	HK$83.03M	7.52	6.87%	―	-7.14%	-110.87%

Giordano International Corporate Events

Giordano International Announces Successful AGM Resolutions

Giordano International Limited, a company incorporated in Bermuda and listed on the Hong Kong Stock Exchange, announced that all proposed resolutions were passed at their Annual General Meeting held on May 30, 2025. The resolutions included the adoption of financial statements, declaration of a final dividend, re-election of directors, and approval of share option and award schemes. The successful passing of these resolutions reflects a strong shareholder support and positions the company for continued governance and operational stability.

Giordano International Announces 2025 Annual General Meeting

Giordano International Limited has announced its upcoming annual general meeting scheduled for May 30, 2025, in Hong Kong. Key agenda items include the adoption of financial statements, declaration of a final dividend, re-election of directors, and re-appointment of auditors. Additionally, the company seeks approval for the directors to allot and issue additional shares, up to 5% of the total shares, under specific conditions. This meeting is significant for stakeholders as it addresses both routine corporate governance matters and strategic decisions regarding share issuance.

Giordano International Reports Strong Q1 2025 Sales Growth

Giordano International Limited reported a 5.2% increase in sales on a constant exchange rate basis for the first quarter of 2025, despite challenges from unfavorable exchange impacts. The Gulf Cooperation Council region showed significant growth, while Southeast Asia faced challenges. The company’s online business grew by 18.4%, driven by improvements in Mainland China, and wholesale revenue increased by 23.6%, particularly in the Philippines and Myanmar. Giordano remains committed to its ‘Beyond Boundaries’ 5-year strategic plan to achieve sustainable growth amidst global market challenges.