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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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
906.85M705.75M534.70M476.40M566.29M
Gross Profit
141.84M133.11M83.38M128.59M181.02M
EBIT
63.93M58.92M18.49M41.95M90.83M
EBITDA
67.64M76.03M29.39M53.20M100.15M
Net Income Common Stockholders
51.30M43.58M22.32M35.23M40.52M
Balance SheetCash, Cash Equivalents and Short-Term Investments
33.90M32.47M53.74M26.50M54.44M
Total Assets
1.69B1.39B1.15B933.76M859.60M
Total Debt
640.75M712.97M638.51M360.40M282.99M
Net Debt
608.67M681.39M587.72M336.14M229.28M
Total Liabilities
1.25B979.45M775.84M553.99M532.82M
Stockholders Equity
447.03M409.18M372.64M377.76M317.25M
Cash FlowFree Cash Flow
0.00-80.23M-119.92M-124.46M-83.10M
Operating Cash Flow
0.0030.00M41.86M6.44M13.59M
Investing Cash Flow
0.00-139.95M-157.54M-110.16M-77.50M
Financing Cash Flow
0.0094.22M142.02M68.61M64.81M

China Ludao Technology Co. Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.90
Price Trends
50DMA
0.87
Positive
100DMA
0.91
Negative
200DMA
0.93
Negative
Market Momentum
MACD
<0.01
Negative
RSI
58.64
Neutral
STOCH
65.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2023, the sentiment is Positive. The current price of 0.9 is above the 20-day moving average (MA) of 0.85, above the 50-day MA of 0.87, and below the 200-day MA of 0.93, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.64 is Neutral, neither overbought nor oversold. The STOCH value of 65.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2023.

China Ludao Technology Co. Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
HK$442.62M7.9612.01%25.55%14.47%
62
Neutral
$11.80B10.31-7.45%2.91%7.43%-7.78%
$122.85B6.00
6.13%
$6.21B12.169.94%4.34%
$35.35M-90.66%
$8.65B22.3311.45%0.36%
56
Neutral
HK$1.90B18.263.10%3.03%9.38%-41.33%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2023
China Ludao Technology Co. Ltd.
0.90
-0.03
-3.23%
PIAIF
Ping An Insurance Company of China
6.01
1.63
37.21%
CRGGF
China Resources Gas Group
2.81
-0.70
-19.94%
ESHDF
Esprit Holdings
0.03
<0.01
50.00%
SNPTF
Sunny Optical Technology (Group) Co
7.70
1.65
27.27%
HK:2199
Regina Miracle International (Holdings) Limited
1.55
-1.09
-41.29%

China Ludao Technology Co. Ltd. Corporate Events

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.

China Ludao Technology Reports Strong 2024 Financial Results
Mar 27, 2025

China Ludao Technology Co. Ltd. reported its audited consolidated results for the year ending December 31, 2024, showing a significant increase in revenue to RMB 906,846,000 from RMB 705,753,000 in 2023. Despite facing higher costs and expenses, the company achieved a profit of RMB 51,283,000, up from RMB 43,558,000 the previous year, indicating strong operational performance and improved financial health.

China Ludao Technology to Review 2024 Financial Results and Dividend
Mar 17, 2025

China Ludao Technology Co. Ltd. has announced that its board of directors will hold a meeting to consider and approve the audited annual results for the year ended December 31, 2024. The meeting will also discuss the potential recommendation of a final dividend for the year 2024. This meeting is a significant step for the company as it will finalize the financial results and potentially impact dividend payouts, which are crucial for stakeholders and investors.

China Ludao Technology Secures Land Use Rights in Strategic Acquisition
Feb 28, 2025

China Ludao Technology Co. Ltd. has completed the acquisition of land use rights for a parcel in Sanmen County, Zhejiang Province, for RMB34,230,000. This transaction, initially misclassified, is now recognized as a discloseable transaction under Hong Kong’s Listing Rules. The acquisition aligns with the company’s strategic expansion plans, leveraging the land’s development potential and market value.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.