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Lever Style Corp. (HK:1346)
:1346
Hong Kong Market

Lever Style Corp. (1346) AI Stock Analysis

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HK

Lever Style Corp.

(1346)

Rating:80Outperform
Price Target:
HK$1.50
▲(12.78%Upside)
Lever Style Corp.'s strong financial performance and attractive valuation drive the stock's appeal, although technical indicators suggest caution due to overbought conditions. The company's operational profitability needs improvement, but its financial stability and high dividend yield provide a solid foundation.

Lever Style Corp. (1346) vs. iShares MSCI Hong Kong ETF (EWH)

Lever Style Corp. Business Overview & Revenue Model

Company DescriptionLever Style Corp. (1346) is a leading apparel manufacturer based in Hong Kong. The company specializes in offering end-to-end garment production services, including design, development, and manufacturing of a wide range of apparel products. Lever Style Corp. caters to various sectors such as menswear, womenswear, and activewear, providing customized solutions to a global clientele that includes both established brands and emerging fashion labels.
How the Company Makes MoneyLever Style Corp. generates revenue primarily through its garment manufacturing services. The company's business model revolves around creating value for its clients by offering comprehensive apparel production processes, from initial design and prototyping to final manufacturing and delivery. Key revenue streams include contract manufacturing fees from fashion brands and retailers, who rely on Lever Style's expertise to produce high-quality garments at scale. Additionally, the company may have strategic partnerships with major fashion houses, allowing it to maintain a steady flow of orders and leverage industry trends. Factors contributing to its earnings include its ability to provide flexible, quick-turnaround services and its focus on sustainability, which appeal to modern fashion brands seeking reliable and eco-conscious manufacturing partners.

Lever Style Corp. Financial Statement Overview

Summary
Lever Style Corp. has demonstrated robust revenue growth with improved cash flow generation. Strong financial stability is maintained with a low debt-to-equity ratio, although operational profitability needs attention due to a zero EBIT margin.
Income Statement
85
Very Positive
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
78
Positive
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
90
Very Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue222.93M208.53M217.21M143.69M87.73M
Gross Profit63.49M59.88M61.58M39.67M25.94M
EBITDA21.77M18.21M20.71M6.29M1.81M
Net Income17.14M15.62M14.52M4.32M107.90K
Balance Sheet
Total Assets95.02M89.10M91.03M86.60M62.43M
Cash, Cash Equivalents and Short-Term Investments34.05M27.68M23.69M20.08M17.99M
Total Debt800.47K689.17K13.05M28.08M19.53M
Total Liabilities32.00M35.54M43.27M50.76M31.06M
Stockholders Equity63.02M53.56M47.72M35.84M31.37M
Cash Flow
Free Cash Flow24.36M6.68M3.59M-3.24M3.04M
Operating Cash Flow25.33M7.34M3.92M-2.39M3.93M
Investing Cash Flow-301.92K-150.57K-496.58K-4.76M-794.94K
Financing Cash Flow-9.01M-12.48M676.97K9.34M-2.51M

Lever Style Corp. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.33
Price Trends
50DMA
1.18
Positive
100DMA
1.17
Positive
200DMA
0.99
Positive
Market Momentum
MACD
0.04
Negative
RSI
68.82
Neutral
STOCH
67.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1346, the sentiment is Positive. The current price of 1.33 is above the 20-day moving average (MA) of 1.25, above the 50-day MA of 1.18, and above the 200-day MA of 0.99, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 68.82 is Neutral, neither overbought nor oversold. The STOCH value of 67.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1346.

Lever Style Corp. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
HK$850.00M6.3129.45%10.53%6.53%9.34%
73
Outperform
HK$1.03B34.612.07%1.12%-14.59%29.36%
57
Neutral
HK$796.27M55.170.43%1.81%-0.31%-72.12%
57
Neutral
HK$24.54B3.87-2.03%6.53%-0.31%-67.70%
46
Neutral
HK$194.34M-6.04%2.13%-20.02%-24.55%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1346
Lever Style Corp.
1.33
0.61
84.72%
HK:2030
Cabbeen Fashion Limited
1.55
0.42
37.17%
HK:0420
Fountain Set (Holdings) Limited
0.63
<0.01
0.80%
HK:0294
Yangtzekiang Garment Co. Ltd.
0.94
-0.33
-25.98%

Lever Style Corp. Corporate Events

Lever Style Corp. Clarifies Typographical Error in Announcement
Jul 4, 2025

Lever Style Corporation has issued a clarification regarding a typographical error in the Chinese version of a previous announcement. The error pertained to the consideration of shares, which was incorrectly stated as HK$55,450,080,000 instead of the correct amount of HK$55,450,080. The English version of the announcement was accurate and remains unchanged. Shareholders and potential investors are advised to exercise caution when dealing with the company’s shares.

Lever Style Corporation Announces Share Sale to LFX Growth Capital
Jul 2, 2025

Lever Style Corporation announced that Fung Trinity Holdings Limited has sold its 6.88% stake in the company to LFX Growth Capital Limited for HK$55,450,080. This transaction is expected to provide Lever Style with access to LFX’s network of innovative technologies and solutions, potentially benefiting both parties through enhanced digitalization and platformization efforts.

Lever Style Corp. Schedules Board Meeting for Interim Results
Jul 2, 2025

Lever Style Corporation has announced that its Board of Directors will hold a meeting on July 17, 2025, to discuss and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the payment of an interim dividend, which could have implications for the company’s financial strategy and shareholder returns.

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: Jul 09, 2025