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

• Market Cap: HK$359.01M
• Dividend Yield: N/A
• Average Volume (3M): 26.27K
• Price to Earnings (P/E): 6.3
• Beta (1Y): -0.16
• Revenue Growth: 11.10%
• EPS Growth: -4.38%
• Country: HK
• Employees: 486
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.09
• Shares Outstanding: 491,800,000
• 10 Day Avg. Volume: 7,600
• 30 Day Avg. Volume: 26,266
• PEG Ratio: 0.71
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 5.40
• 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: 66 Neutral
• Price Target: HK$1.00 ▲(36.99% Upside)

The overall stock score reflects strong financial performance driven by revenue growth and profitability improvements, despite cash flow challenges. The technical analysis indicates a bearish trend, while the valuation suggests the stock is undervalued, offering potential upside. The absence of earnings call data and corporate events did not impact the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for products and effective market expansion strategies, supporting long-term business sustainability.

Profitability Improvements

Improved profitability margins reflect effective cost management and operational efficiency, enhancing the company's financial health and competitive position.

Market Position

A strong market presence and R&D capabilities ensure competitive advantages and the ability to innovate, securing long-term growth opportunities.

Negative Factors

Cash Flow Management

Negative free cash flow and fluctuating operating cash flow suggest challenges in liquidity management, which could impact future investment and growth potential.

Leverage Concerns

Increased leverage can pose financial risks, potentially limiting the company's ability to manage debt obligations and invest in growth initiatives.

EPS Growth Decline

A decline in EPS growth may indicate challenges in maintaining profitability and shareholder value, potentially affecting investor confidence and stock performance.

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

Company Description

China 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 Money

China Ludao Technology Co. Ltd. generates revenue through multiple streams, primarily by selling its electronic components and systems to manufacturers in the telecommunications and consumer electronics sectors. The company operates on a business-to-business (B2B) model, where it supplies high-quality semiconductors and communication devices to OEMs (Original Equipment Manufacturers) and other large enterprises. Additionally, Ludao Technology benefits from long-term contracts and partnerships with major telecommunications firms, ensuring a steady influx of orders. The company also invests in research and development to innovate new products, which are then marketed to both domestic and international clients, further expanding its revenue base. Collaborations with tech firms for joint ventures or product development initiatives also contribute to its earnings, allowing for shared resources and market access.

China Ludao Technology Co. Ltd. Financial Statement Overview

Summary

The company 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

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	950.80M	906.85M	705.75M	534.70M	476.40M	566.29M
Gross Profit	146.00M	141.84M	133.11M	83.38M	128.59M	181.02M
EBITDA	62.18M	67.64M	76.03M	29.39M	53.20M	100.15M
Net Income	52.87M	51.30M	43.58M	22.32M	35.23M	40.52M
Balance Sheet
Total Assets	1.64B	1.69B	1.39B	1.15B	933.76M	859.60M
Cash, Cash Equivalents and Short-Term Investments	24.90M	33.90M	32.47M	53.74M	26.50M	54.44M
Total Debt	588.24M	640.75M	712.97M	638.51M	360.40M	282.99M
Total Liabilities	1.14B	1.25B	979.45M	775.84M	553.99M	532.82M
Stockholders Equity	500.42M	447.03M	409.18M	372.64M	377.76M	317.25M
Cash Flow
Free Cash Flow	152.28M	87.26M	-80.23M	-119.92M	-124.46M	-83.10M
Operating Cash Flow	180.84M	191.69M	30.00M	41.86M	6.44M	13.59M
Investing Cash Flow	-87.84M	-133.17M	-139.95M	-157.54M	-110.16M	-77.50M
Financing Cash Flow	-76.96M	-44.65M	94.22M	142.02M	68.61M	64.81M

China Ludao Technology Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 0.73 is below the 20-day moving average (MA) of 0.75, below the 50-day MA of 0.76, and below the 200-day MA of 0.82, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.76 is Neutral, neither overbought nor oversold. The STOCH value of 59.26 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1925	74 Outperform	HK$433.39M	4.48	17.17%	8.49%	21.99%	11.36%
8512	73 Outperform	HK$312.29M	2.48	19.34%	―	-3.12%	1.92%
1455	70 Outperform	HK$288.96M	12.72	5.51%	6.61%	-34.28%	-45.72%
2023	66 Neutral	HK$359.01M	6.31	10.92%	―	11.10%	-4.38%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1962	60 Neutral	HK$295.66M	9.85	3.77%	10.32%	-6.67%	-29.55%
0464	53 Neutral	HK$1.07B	-18.26	―	―	-45.11%	-48.30%

China Ludao Technology Co. Ltd. Corporate Events

China Ludao Technology’s Subsidiary Secures Key Safety Licence for Aerosol Production

China Ludao Technology Co. Ltd. announced that its subsidiary, Zhejiang Sinopharm Junyue Aerosol Co., Ltd, has received a Work Safety Licence for Hazardous Chemicals from the Zhejiang Provincial Department of Emergency Management. This development allows the subsidiary to legally manufacture aerosol products across nine categories of hazardous chemicals, marking a significant advancement in the company’s strategic positioning within the aerosol industry. The license is expected to boost the company’s production capacity and competitiveness in global high-end markets, supporting its rapid expansion and commitment to quality development in the industry.