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China Ludao Technology Co. Ltd. (HK:2023)
:2023
Hong Kong Market

China Ludao Technology Co. Ltd. (2023) AI Stock Analysis

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HK

China Ludao Technology Co. Ltd.

(2023)

Rating:63Neutral
Price Target:
China Ludao Technology Co. Ltd. exhibits strong financial performance with impressive revenue growth and improved profitability. However, the company's cash flow management is a concern, which slightly dampens the financial outlook. The technical indicators are mostly bearish, reflecting weak market momentum. Despite this, the stock appears undervalued based on its P/E ratio, which could present a buying opportunity for investors. Overall, the stock is moderately attractive with potential upside if cash flow issues are addressed and market conditions improve.

China Ludao Technology Co. Ltd. (2023) vs. iShares MSCI Hong Kong ETF (EWH)

China Ludao Technology Co. Ltd. Business Overview & Revenue Model

Company DescriptionChina Ludao Technology Company Limited, an investment holding company, researches and develops, manufactures, and sells aerosol, chemical, and related products in Mainland China, the United States, Europe, Japan, Chile, and internationally. It offers aerosol products for household and auto care, air fresheners, personal care products, and insecticides. The company sells its products through distributors under the Green Island, Ludao, JIERJIA, and EAGLEIN KING brand names. In addition, the company is involved in the clean energy business of collection and utilization of sewage source thermal energy; and provision of consultancy services. The company was formerly known as China Ludao Holdings Limited and changed its name to China Ludao Technology Company Limited in July 2012. China Ludao Technology Company Limited was incorporated in 2002 and is headquartered in Taizhou, the People's Republic of China.
How the Company Makes MoneyChina Ludao Technology Co. Ltd. generates revenue through the sale of its aerosol products. The company's revenue streams are primarily derived from its extensive product portfolio, which includes household, personal care, and automotive aerosols. A significant portion of its earnings comes from export markets, where the company has established a robust distribution network. Additionally, the company may engage in strategic partnerships and collaborations to enhance its market presence and expand its product offerings, although specific details on partnerships are not available. The company's focus on research and development allows it to innovate and introduce new products, thereby driving sales and revenue growth.

China Ludao Technology Co. Ltd. Financial Statement Overview

Summary
China Ludao Technology Co. Ltd. demonstrates strong revenue growth and profitability improvements, as shown in the income statement. The balance sheet indicates a stable financial position, although slightly higher leverage could pose risks. Cash flow management appears to be a weak spot, with negative free cash flow and low conversion of income to cash. Overall, the company is on a growth trajectory but should address its cash flow challenges for long-term sustainability.
Income Statement
75
Positive
The company shows impressive revenue growth, with a 28.5% increase from 2022 to 2023, and a further 28.5% growth from 2023 to 2024. Gross profit margin improved from 18.87% in 2022 to 15.16% in 2024, indicating better cost management. Net profit margin also increased from 4.17% in 2022 to 5.66% in 2024. EBIT and EBITDA margins remained stable, showing consistent operational efficiency. Overall, the income statement reflects strong financial performance.
Balance Sheet
70
Positive
The debt-to-equity ratio increased slightly from 1.71 in 2022 to 1.43 in 2024, indicating moderate leverage. The equity ratio remained stable around 26.38% in 2022 to 26.37% in 2024, reflecting a fair balance between equity and total assets. Return on equity improved from 5.99% in 2022 to 11.47% in 2024, demonstrating enhanced profitability. The balance sheet shows a solid financial position with manageable liabilities.
Cash Flow
50
Neutral
Cash flow trends are concerning, with operating cash flow fluctuating and free cash flow remaining negative over recent years. The operating cash flow to net income ratio is low, suggesting challenges in converting income into cash. However, the company has managed its financing activities well, as seen in positive financing cash flows, which helps in sustaining operations. Overall, cash flow management needs improvement.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue906.85M705.75M534.70M476.40M566.29M
Gross Profit141.84M133.11M83.38M128.59M181.02M
EBITDA67.64M76.03M29.39M53.20M100.15M
Net Income51.30M43.58M22.32M35.23M40.52M
Balance Sheet
Total Assets1.69B1.39B1.15B933.76M859.60M
Cash, Cash Equivalents and Short-Term Investments33.90M32.47M53.74M26.50M54.44M
Total Debt640.75M712.97M638.51M360.40M282.99M
Total Liabilities1.25B979.45M775.84M553.99M532.82M
Stockholders Equity447.03M409.18M372.64M377.76M317.25M
Cash Flow
Free Cash Flow87.26M-80.23M-119.92M-124.46M-83.10M
Operating Cash Flow191.69M30.00M41.86M6.44M13.59M
Investing Cash Flow-133.17M-139.95M-157.54M-110.16M-77.50M
Financing Cash Flow-44.65M94.22M142.02M68.61M64.81M

China Ludao Technology Co. Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.85
Price Trends
50DMA
0.86
Negative
100DMA
0.89
Negative
200DMA
0.93
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
47.15
Neutral
STOCH
40.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2023, the sentiment is Negative. The current price of 0.85 is below the 20-day moving average (MA) of 0.87, below the 50-day MA of 0.86, and below the 200-day MA of 0.93, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.15 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2023.

China Ludao Technology Co. Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
HK$506.30M3.9424.41%7.20%22.46%91.73%
73
Outperform
HK$284.74M1.7429.75%4.99%88.39%
69
Neutral
HK$304.30M7.589.60%9.80%12.22%3.67%
63
Neutral
HK$418.03M7.5212.01%25.55%14.47%
63
Neutral
HK$317.91M8.184.83%11.20%3.79%-18.75%
63
Neutral
$33.22B5.73-11.55%1.90%5.54%-20.14%
42
Neutral
HK$316.38M-419.01%28.59%29.79%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2023
China Ludao Technology Co. Ltd.
0.85
0.02
2.41%
HK:1455
Fourace Industries Group Holdings Limited
0.25
0.08
47.06%
HK:1925
Kwung's Holdings Limited
1.29
0.20
18.35%
HK:1962
Evergreen Products Group Ltd.
0.50
0.09
21.95%
HK:0464
China Overseas Nuoxin International Holdings Limited
0.50
0.23
85.19%
HK:8512
Hyfusin Group Holdings Ltd.
0.31
0.03
10.71%

China Ludao Technology Co. Ltd. Corporate Events

China Ludao Technology Enhances Nomination Committee Structure
Jun 27, 2025

China Ludao Technology Co. Ltd. has updated the terms of reference for its Nomination Committee, emphasizing a structure that includes a majority of independent non-executive directors and gender diversity among its members. This move reflects the company’s commitment to robust corporate governance practices, potentially enhancing its operational transparency and appeal to stakeholders.

China Ludao Technology Secures Unanimous Shareholder Support at AGM
May 27, 2025

China Ludao Technology Company Limited announced that all resolutions proposed at their Annual General Meeting (AGM) were successfully passed by shareholders through a poll. The resolutions included the re-election of directors, the re-appointment of auditors, and granting mandates for share issuance and repurchase. The unanimous approval of these resolutions reflects strong shareholder support and positions the company for continued operational stability and strategic flexibility.

China Ludao Technology Announces 2025 AGM and Share Issuance Proposal
Apr 22, 2025

China Ludao Technology Co. Ltd. has announced its upcoming annual general meeting scheduled for May 27, 2025, in Hong Kong. The agenda includes reviewing the financial statements for the year ended December 31, 2024, re-electing directors, appointing auditors, and authorizing the board to manage director remuneration. Additionally, a special resolution will be considered to grant the board the authority to issue new shares, which could impact the company’s capital structure and shareholder value.

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: Apr 23, 2025