Lever Style Corp. (1346) AI Stock Analysis

• Market Cap: HK$901.13M
• Dividend Yield: 6.76%
• Average Volume (3M): 252.43K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 0.17
• Revenue Growth: 7.12%
• EPS Growth: 28.89%
• Country: HK
• Employees: 347
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.06
• Shares Outstanding: 639,100,000
• 10 Day Avg. Volume: 242,900
• 30 Day Avg. Volume: 252,433
• PEG Ratio: 0.40
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 2.80
• 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: 71 Outperform
• Price Target: HK$1.50 ▲(2.74% Upside)

Lever Style Corp. has a strong financial foundation with robust revenue growth and cash flow. The stock's valuation is attractive with a low P/E ratio and high dividend yield. However, technical indicators suggest caution due to bearish momentum, and operational profitability needs improvement.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health.

Cash Flow Generation

Improved cash flow generation enhances financial flexibility and supports sustainable business operations and potential growth investments.

Balance Sheet Health

A strong balance sheet with low leverage provides stability and reduces financial risk, supporting long-term resilience and investment capacity.

Negative Factors

Operational Profitability

Zero EBIT margin indicates challenges in operational efficiency, which could impact long-term profitability if not addressed.

Significant Liabilities

High liabilities can strain financial resources and limit strategic flexibility, necessitating careful management to ensure financial stability.

Operational Profitability Needs Attention

Addressing operational profitability is crucial for sustaining long-term growth and maintaining competitive advantage in the market.

Lever Style Corp. Business Overview & Revenue Model

Company Description

Lever Style Corporation, an investment holding company, designs, manufactures, and sells garments in the United States, Europe, the People's Republic of China, Hong Kong, Macau, Taiwan, and internationally. The company offers shirts, bottoms, suits, outerwear, cut-and-sewn knit products, soft wovens, denims, sweaters, and leather products for men and women. It also trades in garments. The company was founded in 1956 and is based in Kwun Tong, Hong Kong. Lever Style Corporation is a subsidiary of Lever Style Holdings Limited.

How the Company Makes Money

Lever Style Corp. generates revenue through multiple streams, primarily by manufacturing and selling tailored clothing to retail partners and direct consumers. The company collaborates with established fashion brands, providing them with custom manufacturing services that allow these brands to offer unique, high-quality products to their customers. Additionally, Lever Style has developed its own direct-to-consumer platform, enhancing its revenue through online sales. The company benefits from partnerships with various international brands, which not only expand its market reach but also diversify its product offerings, ultimately contributing to its overall earnings.

Lever Style Corp. Financial Statement Overview

Summary

Lever Style Corp. shows strong revenue growth and improved cash flow generation. The balance sheet is robust with low leverage, but operational profitability needs attention due to a zero EBIT margin.

Income Statement

Lever Style Corp. has demonstrated strong revenue growth, with an increase from $208.5M in 2023 to $222.9M in 2024. The gross profit margin improved slightly, indicating efficient cost management. However, EBIT margin dropped to zero, suggesting operational profitability issues despite a positive net income margin improvement.

Balance Sheet

The company's balance sheet is robust, with a low debt-to-equity ratio and a healthy equity ratio of 66.3% by the end of 2024. Stockholders' equity has increased, indicating solid financial footing. However, total liabilities remain significant, and there is room for improving asset utilization.

Cash Flow

Cash flow performance is strong, with a notable increase in free cash flow from $6.7M in 2023 to $24.4M in 2024, driven by improved operating cash flow. The company has successfully turned around previous negative free cash flow trends, enhancing its cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	218.32M	222.93M	208.53M	217.21M	143.69M	87.73M
Gross Profit	63.26M	63.49M	59.88M	61.58M	39.67M	25.94M
EBITDA	24.16M	21.77M	18.21M	20.71M	6.61M	1.81M
Net Income	18.15M	17.14M	15.62M	14.52M	4.32M	107.90K
Balance Sheet
Total Assets	92.11M	95.02M	89.10M	91.03M	86.60M	62.43M
Cash, Cash Equivalents and Short-Term Investments	33.17M	42.21M	18.12M	23.52M	19.87M	17.76M
Total Debt	260.56K	800.47K	1.67M	13.05M	28.08M	19.53M
Total Liabilities	30.92M	32.00M	35.54M	43.27M	50.76M	31.06M
Stockholders Equity	61.19M	63.02M	53.56M	47.72M	35.84M	31.37M
Cash Flow
Free Cash Flow	31.16M	25.06M	6.68M	3.59M	-3.24M	3.04M
Operating Cash Flow	32.38M	26.03M	7.34M	3.92M	-2.39M	3.93M
Investing Cash Flow	-698.36K	-971.56K	-150.57K	-496.58K	-4.76M	-794.94K
Financing Cash Flow	-11.55M	-8.98M	-12.48M	676.97K	9.34M	-2.51M

Lever Style Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.46
• 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:1346, the sentiment is Negative. The current price of 1.46 is above the 20-day moving average (MA) of 1.44, below the 50-day MA of 1.47, and above the 200-day MA of 1.38, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 38.98 is Neutral, neither overbought nor oversold. The STOCH value of 48.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1346.

Lever Style Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1346	71 Outperform	HK$901.13M	6.33	31.67%	6.76%	7.12%	28.89%
2030	63 Neutral	HK$942.72M	29.44	2.21%	1.28%	-14.05%	20.05%
0608	63 Neutral	HK$455.37M	5.68	2.55%	2.33%	-4.07%	-26.53%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0420	54 Neutral	HK$845.27M	15.40	1.77%	1.90%	-7.20%	-55.24%
0294	52 Neutral	HK$171.60M	-2.11	-8.49%	2.08%	-6.96%	-32.24%

Lever Style Corp. Corporate Events

Lever Style Deepens Premium Activewear Push with Valued Asset Acquisition

Lever Style Corporation has provided further details on its asset purchase agreement involving Active Apparel Group Pty Ltd and Active Apparel Group (America) LLC, a deal aimed at reinforcing its foothold in the premium activewear category. Management describes premium activewear as a high-growth, alternative-luxury segment favored by Gen Z consumers and sees the acquisition as a way to expand its outdoor/active business, leverage the vendors’ strong customer base, and drive cross-selling of additional product categories. An independent valuer, GW Financial Advisory Services Limited, applied a market approach using price-to-earnings multiples from seven comparable asset-light sportswear companies listed in major global exchanges to estimate the value of the sale assets at approximately US$12.4 million to US$14.8 million, with the valuation and related profit forecast prepared in line with Hong Kong listing rules and international valuation standards.

The most recent analyst rating on (HK:1346) stock is a Buy with a HK$1.50 price target. To see the full list of analyst forecasts on Lever Style Corp. stock, see the HK:1346 Stock Forecast page.

Lever Style Corporation Expands with Strategic Acquisition in Activewear

Lever Style Corporation announced its acquisition of assets from Active Apparel Group Pty Ltd and Active Apparel Group (America) LLC for an initial price of US$13 million. The acquisition complements Lever Style’s existing fashion segment with the Vendors’ activewear segment, enhancing customer tier alignment and operational leverage, and is seen as a strategic move in the face of challenging market conditions and reduced business volumes with major customers.

The most recent analyst rating on (HK:1346) stock is a Buy with a HK$1.50 price target. To see the full list of analyst forecasts on Lever Style Corp. stock, see the HK:1346 Stock Forecast page.

Lever Style Corp. Updates 2024 Annual Report on Share Options

Lever Style Corporation announced a supplemental update to its 2024 Annual Report, clarifying that there were no share options outstanding under its Share Option Scheme as of December 31, 2024. The company also noted that there is no specified vesting period for options granted under the Share Option Scheme and Awarded Shares under the Share Award Scheme. This update does not alter any other information in the annual report, indicating stability in the company’s share option management.

The most recent analyst rating on (HK:1346) stock is a Buy with a HK$1.50 price target. To see the full list of analyst forecasts on Lever Style Corp. stock, see the HK:1346 Stock Forecast page.