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

• Market Cap: HK$418.03M
• Dividend Yield: N/A
• Average Volume (3M): 39.07K
• Price to Earnings (P/E): 7.5
• Beta (1Y): -0.20
• Revenue Growth: 25.55%
• EPS Growth: 14.47%
• Country: HK
• Employees: 486
• Sector: Technology
• Sector Strength: 88
• Industry: Household & Personal Products
• EPS (TTM): 0.11
• Shares Outstanding: 491,800,000
• 10 Day Avg. Volume: 42,400
• 30 Day Avg. Volume: 39,066
• PEG Ratio: -0.80
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.87
• 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

• Rating: 63 Neutral
• 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. 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 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

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

China Ludao Technology Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.85
• 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 0.85 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1925	74 Outperform	HK$506.30M	3.94	24.41%	7.20%	22.46%	91.73%
8512	73 Outperform	HK$284.74M	1.74	29.75%	―	4.99%	88.39%
1455	69 Neutral	HK$304.30M	7.58	9.60%	9.80%	12.22%	3.67%
2023	63 Neutral	HK$418.03M	7.52	12.01%	―	25.55%	14.47%
1962	63 Neutral	HK$317.91M	8.18	4.83%	11.20%	3.79%	-18.75%
Sector *	63 Neutral	$33.22B	5.73	-11.55%	1.90%	5.54%	-20.14%
0464	42 Neutral	HK$316.38M	―	-419.01%	―	28.59%	29.79%

China Ludao Technology Co. Ltd. Corporate Events

China Ludao Technology Enhances Nomination Committee Structure

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

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

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.