China Lilang Ltd. (1234) AI Stock Analysis

• Market Cap: €4.48B
• Dividend Yield: 19.25%
• Average Volume (3M): 600.35K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.37
• Revenue Growth: 1.38%
• EPS Growth: -14.80%
• Country: HK
• Employees: 4,977
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.16
• Shares Outstanding: 1,197,485,000
• 10 Day Avg. Volume: 669,100
• 30 Day Avg. Volume: 600,345
• PEG Ratio: -1.73
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.54
• 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: €4.97
• Price Target Upside: 30.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: HK$4.00 ▲(4.99%Upside)

The stock's overall score reflects strong financial performance with low leverage and high dividend yield, countered by negative cash flow trends and neutral technical indicators. The compelling valuation offers potential upside, but investors should be cautious of cash flow concerns.

China Lilang Ltd. Business Overview & Revenue Model

Company Description

China Lilang Ltd. (1234) is a leading menswear company in China that designs, sources, manufactures, and retails high-quality men's apparel. The company operates under its core brand, 'LILANZ,' and offers a wide range of products including casual wear, business attire, and accessories. With a strong retail network across China, China Lilang Ltd. focuses on delivering fashionable, affordable, and comfortable clothing to its customers.

How the Company Makes Money

China Lilang Ltd. primarily generates revenue through the sale of men's apparel and accessories under the LILANZ brand. The company's revenue streams include wholesale distribution to franchisees and direct sales through self-operated retail stores. China Lilang Ltd. benefits from an extensive retail network comprising both franchised outlets and self-managed stores, enabling it to reach a broad customer base across various regions in China. Additionally, the company leverages its design and production capabilities to maintain competitive pricing and quality, which contributes to its profitability. Strategic marketing initiatives and brand recognition further enhance its revenue generation potential.

China Lilang Ltd. Financial Statement Overview

Summary

China Lilang Ltd. maintains strong profitability and a stable balance sheet with low leverage. However, a decline in revenue growth and free cash flow growth poses challenges for future growth and profitability.

Income Statement

China Lilang Ltd. demonstrates strong profitability with consistent gross and net profit margins. The gross profit margin for 2024 is 47.66% and the net profit margin is 12.63%, indicating effective cost management. However, the revenue growth rate from 2023 to 2024 is only 3.00%, showing a slowdown which could impact future profitability. Despite a decrease in EBIT margin to 15.14%, the company's EBITDA margin remains healthy at 24.49%.

Balance Sheet

The company's balance sheet shows a solid equity base with an equity ratio of 58.74% in 2024, reflecting financial stability. The debt-to-equity ratio is 0.33, indicating low leverage and reduced financial risk. However, the return on equity (ROE) has decreased to 11.44%, suggesting reduced efficiency in generating profits from shareholders' equity.

Cash Flow

China Lilang Ltd. has a stable cash flow situation with a free cash flow to net income ratio of 0.88, indicating good conversion of net income to free cash. However, the free cash flow growth rate is -58.20% from 2023 to 2024, highlighting a significant decline that could challenge future investments or debt servicing. The operating cash flow to net income ratio of 1.14 shows strong operational cash generation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.65B	3.54B	3.09B	3.38B	2.68B
Gross Profit	1.74B	1.71B	1.42B	1.42B	1.20B
EBITDA	893.87M	913.55M	794.03M	795.27M	787.26M
Net Income	460.80M	530.43M	448.06M	468.13M	557.24M
Balance Sheet
Total Assets	6.85B	6.50B	5.48B	5.01B	5.01B
Cash, Cash Equivalents and Short-Term Investments	1.66B	1.08B	960.11M	1.57B	1.74B
Total Debt	1.32B	1.27B	568.45M	233.87M	123.93M
Total Liabilities	2.80B	2.54B	1.70B	1.33B	1.36B
Stockholders Equity	4.03B	3.97B	3.78B	3.67B	3.65B
Cash Flow
Free Cash Flow	403.85M	966.59M	273.38M	282.47M	511.94M
Operating Cash Flow	527.30M	1.10B	653.69M	598.55M	773.29M
Investing Cash Flow	-306.29M	-1.21B	-1.18B	-280.05M	-190.78M
Financing Cash Flow	-471.60M	227.99M	-90.43M	-482.92M	-590.33M

China Lilang Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1234, the sentiment is Positive. The current price of 3.81 is above the 20-day moving average (MA) of 3.66, above the 50-day MA of 3.64, and above the 200-day MA of 3.75, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 61.76 is Neutral, neither overbought nor oversold. The STOCH value of 81.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1234.

China Lilang Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3998	80 Outperform	HK$52.07B	13.32	22.98%	5.67%	32.49%	37.50%
1234	74 Outperform	€4.48B	8.96	11.40%	19.25%	1.38%	-14.80%
2232	73 Outperform	HK$13.21B	8.44	13.55%	11.92%	13.03%	22.23%
2030	73 Outperform	HK$1.04B	35.06	2.07%	1.10%	-14.59%	29.36%
2298	69 Neutral	HK$515.45M	3.74	6.38%	2.13%	7.08%	190.74%
Sector *	56 Neutral	HK$23.71B	3.90	-1.57%	6.72%	0.06%	-64.88%
3818	50 Neutral	$2.35B	10.50	2.27%	15.20%	-0.16%	-189.58%

China Lilang Ltd. Corporate Events

China Lilang Appoints New Independent Directors

China Lilang Limited has announced the appointment of Prof. Liao Jianwen and Prof. Jiang Zhan as independent non-executive directors. Both professors have confirmed their independence according to the Listing Rules, with no financial or other interests in the company’s business, ensuring their impartiality in governance.

The most recent analyst rating on (HK:1234) stock is a Buy with a HK$4.85 price target. To see the full list of analyst forecasts on China Lilang Ltd. stock, see the HK:1234 Stock Forecast page.

China Lilang Ltd. Successfully Passes All AGM Resolutions

China Lilang Ltd. announced that all proposed ordinary resolutions at its Annual General Meeting held on April 30, 2025, were approved by shareholders. Key resolutions included the approval of financial statements, declaration of dividends, re-election of directors, and granting mandates for share issuance and repurchase, reflecting strong shareholder support and strategic alignment for future growth.

China Lilang Reports Positive Retail Growth in Q1 2025

China Lilang Ltd. reported a high-single-digit growth in retail sales for its LILANZ products in the first quarter of 2025 compared to the same period in 2024. This operational update, based on preliminary unaudited data, suggests a positive trend in the company’s retail performance, though stakeholders are advised to exercise caution as the data is subject to change.