Lever Style Corp. (1346) AI Stock Analysis

• Market Cap: HK$971.43M
• Dividend Yield: 6.71%
• Average Volume (3M): 250.57K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.22
• 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: 253,300
• 30 Day Avg. Volume: 250,566
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$2.00
• Price Target Upside: 34.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: HK$2.00 ▲(34.23% Upside)

Lever Style Corp. benefits from strong financial performance, particularly in revenue growth and cash flow generation. The stock's valuation is attractive with a low P/E ratio and high dividend yield. While technical indicators show a generally positive trend, some caution is warranted due to the negative MACD. Operational profitability remains a concern due to the zero EBIT margin.

Lever Style Corp. Business Overview & Revenue Model

Company Description

Lever Style Corp. (1346) is a leading apparel manufacturer based in Hong Kong, specializing in high-quality menswear, including suits, jackets, and other tailored garments. The company operates primarily in the fashion and textile sectors, focusing on providing innovative and stylish clothing solutions for various markets, including retail brands and direct-to-consumer channels. Lever Style is known for its commitment to craftsmanship and sustainable production practices, catering to an increasingly eco-conscious consumer base.

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 robust revenue growth and improved cash flow generation, with strong financial stability and low leverage. However, the zero EBIT margin indicates operational profitability issues that need addressing.

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	6.29M	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: Neutral
• Last Price: 1.49
• 50DMA: Negative
• 100DMA: Positive
• 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 Neutral. The current price of 1.49 is below the 20-day moving average (MA) of 1.52, below the 50-day MA of 1.53, and above the 200-day MA of 1.23, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 47.31 is Neutral, neither overbought nor oversold. The STOCH value of 76.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	78 Outperform	HK$971.43M	6.83	31.67%	6.71%	7.12%	28.89%
0608	71 Outperform	HK$482.87M	6.03	2.55%	2.22%	-4.07%	-26.53%
2030	63 Neutral	HK$1.04B	32.36	2.21%	1.28%	-14.05%	20.05%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0420	54 Neutral	HK$796.27M	14.51	1.77%	1.78%	-7.20%	-55.24%
0294	45 Neutral	HK$177.80M	―	-6.04%	2.33%	-20.43%	-24.29%

Lever Style Corp. Corporate Events

Lever Style Corp. Clarifies Awarded Shares Announcement

Lever Style Corporation issued a clarification announcement regarding a previous release about the grant of Awarded Shares to Mr. TAN William. The company corrected typos in the Chinese version of the announcement concerning the value of the Awarded Shares and the closing price of the Shares, ensuring stakeholders have accurate information. The English version remains unchanged.

Lever Style Corp. Grants Shares to Executive Director Under Award Scheme

Lever Style Corporation has announced the grant of 12,782,000 awarded shares to Mr. Tan William, an executive director, as part of its Co-Ownership Share Award Scheme. This grant, representing approximately 2% of the company’s total issued shares, is valued at HK$17,894,800 based on the current share price. The shares will vest over a period from 2026 to 2033, with no financial assistance provided for their purchase. The move is designed to align the interests of the executive director with those of the company and its shareholders, without causing dilution to existing shareholders.

Lever Style Corporation Reports Increased Profit Amid Revenue Decline

Lever Style Corporation announced its unaudited financial results for the first half of 2025, reporting a slight decline in revenue to $91.4 million compared to the previous year. Despite this, the company saw an increase in profit before tax, reaching $6.53 million, attributed to improved cost management and a significant reduction in impairment loss on trade receivables. This financial performance highlights Lever Style’s resilience and strategic focus on operational efficiency, potentially strengthening its position in the competitive apparel market.

Lever Style Corp. Clarifies Typographical Error in Announcement

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

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

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.