Giordano International (0709) AI Stock Analysis

• Market Cap: HK$2.20B
• Dividend Yield: 8.82%
• Average Volume (3M): 1.69M
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.55
• Revenue Growth: 1.19%
• EPS Growth: -38.04%
• Country: HK
• Employees: 6,627
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Apparel - Retail
• EPS (TTM): 0.13
• Shares Outstanding: 1,616,174,600
• 10 Day Avg. Volume: 2,380,864
• 30 Day Avg. Volume: 1,694,649
• PEG Ratio: 0.24
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.47
• 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

• Rating: 70 Outperform
• Price Target: HK$1.50 ▲(10.29%Upside)

Giordano International's strong valuation, highlighted by a low P/E ratio and high dividend yield, is a significant positive factor despite the declines in profitability metrics. The stable financial position with low leverage supports the score, though technical indicators suggest limited market momentum.

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 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 shows stable revenue growth and a strong balance sheet with low leverage. However, declines in profitability metrics such as net profit margin and ROE indicate challenges in operational efficiency. The lack of operating cash flow data for 2024 limits full 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
	EBIT
377.00M	503.00M	425.00M	263.00M	-105.00M
	EBITDA
879.00M	540.00M	448.00M	272.00M	-96.00M
	Net Income Common Stockholders
216.00M	345.00M	268.00M	190.00M	-112.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
836.00M	935.00M	966.00M	1.04B	1.26B
	Total Assets
3.77B	3.86B	4.01B	4.21B	4.38B
	Total Debt
744.00M	696.00M	625.00M	805.00M	919.00M
	Net Debt
-92.00M	-24.00M	-235.00M	-199.00M	-275.00M
	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: Negative
• Last Price: 1.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0709, the sentiment is Negative. The current price of 1.36 is below the 20-day moving average (MA) of 1.40, below the 50-day MA of 1.38, and below the 200-day MA of 1.49, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.52 is Neutral, neither overbought nor oversold. The STOCH value of 6.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0709.

Giordano International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0709	70 Outperform	HK$2.20B	10.16	10.30%	8.82%	1.19%	-38.04%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
XTPEF		$1.87B	10.40	14.95%	4.57%	―	―
3709	66 Neutral	HK$5.13B	10.15	10.33%	5.05%	-6.46%	-45.94%
1817	53 Neutral	HK$337.25M	9.97	4.29%	―	-4.28%	-23.49%
0483	48 Neutral	HK$102.87M	―	-2.90%	―	-7.14%	-110.87%
6110		HK$17.49B	12.58	13.64%	7.23%	―	―

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.

Giordano International Declares Final Dividend for 2024

Giordano International Limited announced a final ordinary dividend of HKD 0.06 per share for the financial year ending December 31, 2024. This decision reflects the company’s ongoing commitment to returning value to its shareholders and may impact its financial positioning and investor relations positively.

Giordano International Announces Change in Share Registrar

Giordano International Limited has announced a change in its Hong Kong branch share registrar and transfer office, effective March 26, 2025. The new registrar will be Tricor Investor Services Limited, and this change is expected to streamline the company’s share registration and transfer processes, potentially impacting stakeholders by improving operational efficiency.