Shanshan Brand Management Co. Ltd. Class H (1749) AI Stock Analysis

• Market Cap: HK$102.72M
• Dividend Yield: 11.34%
• Average Volume (3M): 268.03K
• Price to Earnings (P/E): 2.8
• Beta (1Y): 0.08
• Revenue Growth: -7.88%
• EPS Growth: -4.49%
• Country: HK
• Employees: 265
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.10
• Shares Outstanding: 33,400,000
• 10 Day Avg. Volume: 108,100
• 30 Day Avg. Volume: 268,033
• PEG Ratio: 0.86
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.12
• P/FCF Ratio: -14.05
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: HK$0.84 ▲(8.96% Upside)

The stock's overall score is primarily influenced by its strong valuation, with a low P/E ratio and high dividend yield suggesting potential undervaluation and attractive returns. However, technical analysis indicates bearish momentum, which could pose short-term risks. Financial performance shows stable profitability but highlights challenges in revenue growth and cash flow generation.

Positive Factors

Brand Portfolio Strength

A robust brand portfolio enables Shanshan to maintain competitive advantages in the lifestyle and fashion industries, ensuring sustained consumer engagement and market presence.

Effective Debt Management

Improved debt-to-equity ratio indicates prudent financial management, enhancing the company's financial stability and ability to invest in growth opportunities.

Strong Gross Profit Margin

Consistently strong gross profit margins reflect effective cost management and pricing power, supporting long-term profitability and operational resilience.

Negative Factors

Revenue Decline

A decline in revenue suggests potential challenges in market demand or increased competition, which could impact future growth and market share.

Cash Flow Challenges

Zero free cash flow highlights potential liquidity issues, affecting the company's ability to fund operations, invest in growth, or return capital to shareholders.

Persistent Liabilities

High liabilities may limit financial flexibility and increase risk, necessitating careful management to ensure long-term financial health.

Shanshan Brand Management Co. Ltd. Class H Business Overview & Revenue Model

Company Description

Shanshan Brand Management Co. Ltd. Class H (1749) is a prominent player in the brand management sector, specializing in the development and promotion of various consumer products, particularly in the lifestyle and fashion industries. The company focuses on leveraging its strong brand portfolio to deliver value-added services, including brand strategy, marketing, and distribution across multiple channels. Shanshan aims to enhance brand visibility and consumer engagement through innovative marketing solutions and partnerships with retailers and manufacturers.

How the Company Makes Money

Shanshan Brand Management Co. Ltd. generates revenue through a diversified model that includes brand licensing, product sales, and service fees from marketing and promotional activities. The company earns income by licensing its brands to third parties, allowing them to produce and sell products under Shanshan's established names, which provides a steady stream of royalty payments. Additionally, Shanshan capitalizes on direct product sales through its own retail channels and e-commerce platforms. The company also engages in strategic partnerships with other brands and businesses, enhancing its market reach and driving collaborative marketing efforts that contribute to its overall earnings.

Shanshan Brand Management Co. Ltd. Class H Financial Statement Overview

Summary

Shanshan Brand Management Co. Ltd. demonstrates stable profitability with effective debt management and consistent profit margins. However, challenges in revenue growth and cash flow generation, particularly the zero free cash flow in 2024, highlight potential operational concerns.

Income Statement

The company has shown a modest revenue growth rate of 4.42% from 2022 to 2023 and a slight decline of 5.04% from 2023 to 2024. Gross profit margin remained strong at around 37.61% for 2024. However, net profit margin slightly improved to 3.30% in 2024, indicating better cost management. Despite this, revenue decline in the latest year indicates potential challenges in market demand or competition.

Balance Sheet

The company's balance sheet reflects a healthy equity ratio of 33.72% in 2024, suggesting stability. Debt-to-equity improved to 0.59 in 2024, showing reduced leverage compared to previous years. However, consistently high total liabilities indicate potential long-term financial commitments. Return on equity stands at a reasonable 12.01% for 2024, highlighting effective use of shareholder funds.

Cash Flow

Cash flow metrics highlight challenges, with a significant drop in operating cash flow to net income ratio from 2023 to 2024. Free cash flow was zero in 2024, indicating a potential inability to generate surplus cash. This reflects potential liquidity constraints or reinvestment strategies. However, previous years showed positive free cash flow, indicating periods of effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	956.16M	1.01B	1.06B	881.20M	993.03M	887.47M
Gross Profit	361.46M	379.20M	397.24M	385.89M	485.22M	423.27M
EBITDA	66.42M	73.22M	84.95M	70.14M	83.53M	24.31M
Net Income	32.03M	33.17M	31.61M	16.01M	12.37M	-68.31M
Balance Sheet
Total Assets	755.67M	819.55M	726.39M	758.58M	825.43M	888.61M
Cash, Cash Equivalents and Short-Term Investments	59.56M	107.10M	143.48M	114.97M	84.27M	111.33M
Total Debt	188.82M	162.68M	145.92M	172.66M	200.68M	245.10M
Total Liabilities	477.99M	543.27M	472.61M	531.07M	613.93M	681.94M
Stockholders Equity	277.67M	276.28M	253.77M	227.51M	211.50M	199.13M
Cash Flow
Free Cash Flow	31.43M	-8.47M	77.79M	64.47M	24.30M	17.64M
Operating Cash Flow	62.29M	38.19M	134.07M	83.23M	56.58M	50.27M
Investing Cash Flow	-17.70M	-52.50M	-51.61M	-3.69M	-26.99M	35.80M
Financing Cash Flow	-14.19M	-22.45M	-53.93M	-49.12M	-56.65M	-112.21M

Shanshan Brand Management Co. Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1749, the sentiment is Negative. The current price of 0.77 is below the 20-day moving average (MA) of 0.78, below the 50-day MA of 0.81, and below the 200-day MA of 0.92, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 17.86 is Positive, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1749.

Shanshan Brand Management Co. Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1433	70 Outperform	HK$192.00M	3.45	23.94%	7.81%	14.30%	125.41%
1749	65 Neutral	HK$102.72M	2.77	11.95%	11.34%	-7.88%	-4.49%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1388	45 Neutral	HK$160.52M	-0.46	-18.57%	―	-6.47%	-118.56%
0122	44 Neutral	HK$155.28M	-2.83	―	―	47.69%	-6.36%
8471	43 Neutral	HK$166.74M	-18.61	-17.00%	―	24.72%	78.31%

Shanshan Brand Management Co. Ltd. Class H Corporate Events

Shanshan Brand Management Faces Mandatory Cash Offer by Major Shareholder

Shanshan Brand Management Co., Ltd. announced a mandatory conditional cash offer by Mr. Luoyefei for all H shares and domestic shares not already owned by him or his concert parties. The acceptance level for the H Share Offer was 1.46% of the total issued H Shares, while there were no valid acceptances for the Domestic Share Offer. Prior to the offer, Mr. Luoyefei held significant shares in the company, and following the completion of the offer period, the concert group owned approximately 39% of the total issued shares. This move could potentially consolidate Mr. Luoyefei’s control over the company, impacting its strategic direction and stakeholder interests.

Shanshan Brand Management Announces Despatch of Composite Document for Cash Offer

Shanshan Brand Management Co., Ltd. has announced the despatch of a Composite Document related to a mandatory conditional cash offer by Mr. Luo Yefei for all the H shares and domestic shares not already owned by him or parties acting in concert with him. This document includes details of the offers, advice from the Independent Board Committee and Financial Adviser, and a property valuation report. The offers opened for acceptance on September 12, 2025, with the first closing date set for October 3, 2025. This move could potentially impact the company’s ownership structure and market positioning.

Shanshan Brand Management Announces Changes in Nomination Committee

Shanshan Brand Management Co., Ltd. announced changes in the composition of its Nomination Committee, effective from 10 September 2025. Mr. LUO Yefei stepped down as chairman of the committee, with Mr. WU Xuekai taking over the role, and Ms. ZHOU Yumei joining as a member. These changes may impact the company’s governance and strategic decision-making processes.

Shanshan Brand Management Announces Board Composition and Committee Roles

Shanshan Brand Management Co., Ltd. has announced the composition of its board of directors, including executive, non-executive, and independent non-executive members. The announcement also details the membership of the board committees, which are crucial for the company’s governance and strategic decision-making processes.