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China Lilang Ltd. (HK:1234)
:1234
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China Lilang Ltd. (1234) AI Stock Analysis

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HK:1234

China Lilang Ltd.

(Frankfurt:1234)

Rating:74Outperform
Price Target:
HK$4.00
▲(5.26%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. (1234) vs. iShares MSCI Hong Kong ETF (EWH)

China Lilang Ltd. Business Overview & Revenue Model

Company DescriptionChina Lilang Ltd. (1234) is a leading menswear company based in China. It primarily engages in the design, manufacturing, and retail of a wide range of apparel products. The company's core products include business and casual menswear, such as suits, jackets, shirts, and trousers, marketed under the 'LILANZ' and 'L2' brands. With a strong focus on quality and style, China Lilang has established a significant presence in the Chinese menswear market.
How the Company Makes MoneyChina Lilang Ltd. makes money primarily through the sale of its menswear products. The company's revenue model is centered around its extensive retail network, which includes a combination of self-operated stores and franchised outlets across China. Key revenue streams include direct sales from its branded stores and wholesale distribution to franchisees. The company also benefits from its strategic partnerships with suppliers and designers, which help in maintaining the quality and appeal of its product offerings. Additionally, China Lilang invests in marketing and brand-building initiatives to strengthen its market position and drive sales growth.

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
75
Positive
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
80
Positive
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
70
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.65B3.54B3.09B3.38B2.68B
Gross Profit1.74B1.71B1.42B1.42B1.20B
EBITDA893.87M913.55M794.03M795.27M787.26M
Net Income460.80M530.43M448.06M468.13M557.24M
Balance Sheet
Total Assets6.85B6.50B5.48B5.01B5.01B
Cash, Cash Equivalents and Short-Term Investments1.66B1.08B960.11M1.57B1.74B
Total Debt1.32B1.27B568.45M233.87M123.93M
Total Liabilities2.80B2.54B1.70B1.33B1.36B
Stockholders Equity4.03B3.97B3.78B3.67B3.65B
Cash Flow
Free Cash Flow403.85M966.59M273.38M282.47M511.94M
Operating Cash Flow527.30M1.10B653.69M598.55M773.29M
Investing Cash Flow-306.29M-1.21B-1.18B-280.05M-190.78M
Financing Cash Flow-471.60M227.99M-90.43M-482.92M-590.33M

China Lilang Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.80
Price Trends
50DMA
3.69
Positive
100DMA
3.69
Positive
200DMA
3.75
Positive
Market Momentum
MACD
0.04
Negative
RSI
59.11
Neutral
STOCH
64.51
Neutral
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 3.8 is above the 20-day moving average (MA) of 3.78, above the 50-day MA of 3.69, and above the 200-day MA of 3.75, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 59.11 is Neutral, neither overbought nor oversold. The STOCH value of 64.51 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
HK$16.26B10.3913.55%1.34%13.03%22.23%
80
Outperform
HK$50.94B13.0222.98%1.49%32.49%37.50%
74
Outperform
€4.59B9.1711.40%3.54%1.38%-14.80%
73
Outperform
HK$1.00B33.712.07%0.95%-14.59%29.36%
70
Outperform
HK$679.96M4.946.38%23.89%7.08%190.74%
57
Neutral
HK$26.32B4.03-2.03%5.52%-0.23%-68.02%
50
Neutral
HK$2.46B11.022.27%14.02%-0.16%-189.58%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1234
China Lilang Ltd.
3.80
-0.02
-0.42%
HK:2298
Cosmo Lady (China) Holdings Co. Ltd.
0.33
0.15
83.33%
HK:2232
Crystal International Group Limited
5.77
2.73
89.80%
HK:2030
Cabbeen Fashion Limited
1.54
0.14
10.00%
HK:3998
Bosideng International Holdings
4.44
0.94
26.82%
HK:3818
China Dongxiang (Group) Co
0.48
0.19
66.67%

China Lilang Ltd. Corporate Events

China Lilang Reports Growth in Retail Sales for 2025
Jul 10, 2025

China Lilang Ltd. reported mid-to-high-single-digit growth in retail sales for its LILANZ products in both the second quarter and the first half of 2025 compared to the same periods in 2024. This operational update, based on preliminary unaudited data, suggests a positive trend in the company’s retail performance, although it does not fully represent the group’s overall financial results. Stakeholders are advised to exercise caution as the information may be subject to change.

The most recent analyst rating on (HK:1234) stock is a Buy with a HK$4.96 price target. To see the full list of analyst forecasts on China Lilang Ltd. stock, see the HK:1234 Stock Forecast page.

China Lilang Appoints New Independent Directors
Jun 27, 2025

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
Apr 30, 2025

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.

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: Jun 27, 2025