Lifestyle China Group (2136) AI Stock Analysis

• Market Cap: HK$937.25M
• Dividend Yield: N/A
• Average Volume (3M): 508.12K
• Price to Earnings (P/E): 500.0
• Beta (1Y): 0.45
• Revenue Growth: -9.01%
• EPS Growth: -121.53%
• Country: HK
• Employees: 1,078
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Department Stores
• EPS (TTM): -0.05
• Shares Outstanding: 1,464,448,500
• 10 Day Avg. Volume: 443,650
• 30 Day Avg. Volume: 508,116
• PEG Ratio: 0.41
• Price to Book (P/B): 0.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.75
• 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: 44 Neutral
• Price Target: ―

Lifestyle China Group's stock is currently facing significant challenges, primarily due to its declining financial performance with negative profitability and revenue. The technical indicators point to a bearish trend, with the stock trading below major moving averages. Valuation metrics are not favorable due to negative earnings. Improving financial performance and reversing the downward technical trends are crucial for enhancing the stock's attractiveness.

Lifestyle China Group Business Overview & Revenue Model

Company Description

Lifestyle China Group Limited, an investment holding company, operates department stores in the People's Republic of China. The company operates two department stores under the Jiuguang brand name in Shanghai and Suzhou. It also operates supermarkets; and engages in the retailing and property development business. The company was formerly known as Lifestyle China Limited. Lifestyle China Group Limited was incorporated in 2016 and is headquartered in Causeway Bay, Hong Kong.

How the Company Makes Money

Lifestyle China Group makes money through a multi-faceted revenue model centered on retail operations. The company generates income primarily from the sale of consumer goods across its network of department stores and shopping malls. Additionally, it earns rental income from leasing retail space to third-party tenants within its commercial properties. Key revenue streams include direct product sales, lease agreements with retail tenants, and ancillary services such as parking and advertising within its retail environments. Strategic partnerships with popular brands and suppliers enhance its product offerings, contributing to sustained earnings. The company's ability to attract a high footfall through its strategic locations and brand partnerships is a significant factor in its revenue generation.

Lifestyle China Group Financial Statement Overview

Summary

Lifestyle China Group faces challenges with declining revenues and negative profitability, impacting overall financial health. The balance sheet remains stable with manageable leverage, but cash flow uncertainties pose risks. Improving revenue growth and restoring profitability are crucial for future financial stability.

Income Statement

The company's revenue has been inconsistent with a decline in 2024 compared to 2023. Gross profit margin remains healthy at about 56%, but the company is facing profitability challenges with negative EBIT and net income in 2024. The revenue growth rate from 2023 to 2024 is negative (-7.15%), indicating a need for revenue enhancement strategies.

Balance Sheet

The debt-to-equity ratio is moderate, suggesting manageable leverage. However, the return on equity is negative due to net losses, impacting shareholder returns. The equity ratio is strong at around 55%, indicating solid financial stability and a good balance of equity financing.

Cash Flow

The lack of operating and free cash flow data for 2024 presents a concern. Historically, free cash flow has been volatile, and with no current data, the ability to assess operational cash generation is limited. The operating cash flow to net income ratio in prior years was healthy but is not available for the most recent period.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.25B	1.35B	1.13B	1.30B	1.12B
	Gross Profit
702.02M	785.43M	658.10M	790.36M	681.40M
	EBIT
-131.30M	-88.02M	-155.60M	63.17M	116.53M
	EBITDA
141.09M	184.36M	120.95M	200.93M	221.38M
	Net Income Common Stockholders
-20.11M	87.77M	-24.44M	143.39M	212.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.33B	2.82B	1.61B	1.86B	1.99B
	Total Assets
16.99B	17.04B	14.45B	15.03B	14.59B
	Total Debt
4.86B	4.89B	2.43B	2.63B	2.81B
	Net Debt
3.04B	2.65B	819.31M	770.73M	899.52M
	Total Liabilities
5.92B	6.02B	3.65B	4.25B	4.06B
	Stockholders Equity
9.38B	9.40B	9.31B	9.34B	9.19B
Cash Flow		Free Cash Flow
0.00	382.47M	78.89M	143.96M	121.38M
	Operating Cash Flow
0.00	648.34M	268.69M	343.14M	292.42M
	Investing Cash Flow
0.00	-756.27M	-120.33M	-41.19M	393.30M
	Financing Cash Flow
0.00	740.96M	-404.64M	-348.95M	-358.80M

Lifestyle China Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.64
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2136, the sentiment is Negative. The current price of 0.64 is below the 20-day moving average (MA) of 0.65, above the 50-day MA of 0.64, and below the 200-day MA of 0.76, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.90 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2136.

Lifestyle China Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$1.71B	11.51	-0.96%	6.62%	-1.48%	-25.40%
2136	44 Neutral	HK$937.25M	500.00	-0.21%	―	-9.01%	-121.53%
LHUAF		$67.86M	―	-191.67%	―	―	―
NWM		€50.30M	22.00	0.43%	―	―	―
AVK1		€12.04M	―		20.77%	―	―
0312	46 Neutral	HK$251.96M	―	-4.40%	―	3.10%	90.13%
0162	36 Underperform	HK$63.23M	―	-75.85%	―	-3.75%	-18.22%

Lifestyle China Group Corporate Events

Lifestyle China Group Announces 2025 AGM and Share Buyback Proposal

Lifestyle China Group Limited has announced its upcoming annual general meeting, scheduled to be held electronically on May 26, 2025. The meeting will address several key agenda items, including the review of the company’s financial statements for the year ending December 31, 2024, the re-election of directors, and the re-appointment of PricewaterhouseCoopers as the auditor. Additionally, a resolution will be considered to authorize the directors to repurchase up to 10% of the company’s issued shares, which could impact the company’s stock market activities and shareholder value.

Lifestyle China Group Faces Revenue Decline and Reports Loss for 2024

Lifestyle China Group Limited reported a 7.1% decline in revenue to RMB1,252.6 million for the year ended December 31, 2024, resulting in a loss attributable to owners of RMB20.1 million compared to a profit of RMB87.8 million in 2023. The company did not declare a dividend, reflecting a challenging year with decreased earnings per share and a notable impact on stakeholders, as evidenced by the shift from profit to loss.

Lifestyle China Group Issues Profit Warning Amid Sales Decline

Lifestyle China Group Limited has issued a profit warning, indicating an expected loss of up to RMB23.0 million for the year ending December 31, 2024, compared to a profit of RMB87.7 million in 2023. This downturn is attributed to a decline in sales and reduced profits from associates, influenced by cautious consumer sentiment and rational spending behavior. The company is finalizing its annual results, which are anticipated to be announced on March 31, 2025, advising shareholders and potential investors to exercise caution.

Lifestyle China Group’s Privatization Bid Fails

Lifestyle China Group announced that the proposal for privatization by Fortune Spirit Group Limited was not approved at the Court Meeting. Consequently, the amended proposal has lapsed, and the company’s shares will not be withdrawn from the Stock Exchange. The resolutions passed at the General Meeting will not take effect, impacting the company’s immediate operational and strategic plans.