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

• Market Cap: HK$104.05M
• Dividend Yield: 12.12%
• Average Volume (3M): 268.03K
• Price to Earnings (P/E): 3.0
• Beta (1Y): 0.07
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: HK$0.99 ▲(32.00% Upside)

The score is driven mainly by solid financial position and profitability despite weakening cash flow and a recent revenue decline. Valuation is a major positive (very low P/E and high dividend yield). Technicals show an uptrend, but overbought signals (high RSI/Stoch) temper the overall rating.

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. engages in the design, marketing, and sale of formal and casual business menswear in the People's Republic of China. The company primarily offers its products under the Firs and Shanshan brand names. As of December 31, 2021, it had 910 retail outlets, including 502 retail outlets under FIRS brand and 408 retail outlets under SHANSHAN brand. The company is also involved in the sub-licensing of trademark; and distribution of causal and business menswear through e-commerce platforms. The company was founded in 1989 and is headquartered in Ningbo, the People's Republic of China. Shanshan Brand Management Co., Ltd. is a subsidiary of Ningbo Shanshan Co., Ltd.

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: Positive
• Last Price: 0.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1749, the sentiment is Positive. The current price of 0.75 is below the 20-day moving average (MA) of 0.76, below the 50-day MA of 0.79, and below the 200-day MA of 0.91, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 78.68 is Negative, neither overbought nor oversold. The STOCH value of 93.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	3.49	23.94%	7.89%	14.30%	125.41%
1749	70 Outperform	HK$104.05M	3.01	11.95%	12.12%	-7.88%	-4.49%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8471	47 Neutral	HK$114.02M	-13.06	-17.00%	―	24.72%	78.31%
1388	45 Neutral	HK$152.07M	-0.44	-18.57%	―	-6.47%	-118.56%
0122	44 Neutral	HK$151.14M	-2.70	―	―	47.69%	-6.36%