Lifestyle China Group (2136) AI Stock Analysis

• Market Cap: HK$995.82M
• Dividend Yield: N/A
• Average Volume (3M): 879.57K
• Price to Earnings (P/E): 500.0
• Beta (1Y): 0.37
• Revenue Growth: -5.81%
• EPS Growth: -3564.29%
• Country: HK
• Employees: 1,078
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): >-0.01
• Shares Outstanding: 1,464,448,500
• 10 Day Avg. Volume: 1,161,950
• 30 Day Avg. Volume: 879,566
• PEG Ratio: 0.57
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 1.13
• P/FCF Ratio: 4.43
• 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: HK$0.50
• Price Target Upside: -26.47% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 47 Neutral
• Price Target: HK$0.50 ▼(-26.47% Downside)

The overall stock score is primarily impacted by weak financial performance due to declining revenues and negative profitability. Technical analysis indicates a lack of strong momentum, and valuation is unattractive with a negative P/E ratio. These factors collectively suggest caution for potential investors.

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 generates revenue primarily through its department store operations. The company makes money by selling a diverse range of products such as clothing, beauty products, and home appliances. Revenue streams include direct sales in their stores as well as online sales through e-commerce platforms. Additionally, the company may engage in strategic partnerships with various brands to offer exclusive products, enhancing its product offerings and attracting more customers. The company's earnings are further supported by effective cost management and marketing strategies that drive foot traffic and sales.

Lifestyle China Group Financial Statement Overview

Summary

Lifestyle China Group is experiencing declining revenues and negative profitability, which are significant concerns. The balance sheet shows stability with manageable leverage, but cash flow uncertainties due to missing data pose additional 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
EBITDA	141.09M	184.36M	120.95M	200.93M	221.38M
Net Income	-20.11M	87.77M	-24.44M	143.39M	212.75M
Balance Sheet
Total Assets	16.99B	17.04B	14.45B	15.03B	14.59B
Cash, Cash Equivalents and Short-Term Investments	2.33B	2.82B	1.61B	1.86B	1.99B
Total Debt	4.86B	4.89B	2.43B	2.63B	2.81B
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	319.82M	382.47M	78.89M	143.96M	121.38M
Operating Cash Flow	381.22M	648.34M	268.69M	343.14M	292.42M
Investing Cash Flow	201.12M	-756.27M	-120.33M	-41.19M	393.30M
Financing Cash Flow	-338.82M	740.96M	-404.64M	-348.95M	-358.80M

Lifestyle China Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.68
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 0.68 is above the 20-day moving average (MA) of 0.68, below the 50-day MA of 0.69, and below the 200-day MA of 0.74, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.34 is Neutral, neither overbought nor oversold. The STOCH value of 88.89 is Negative, 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
0825	52 Neutral	564.86M	38.51	0.00%	―	-13.06%	0.00%
2136	47 Neutral	HK$995.82M	500.00	-0.70%	―	-5.81%	-3564.29%
0312	45 Neutral	249.46M	-12.66	-4.50%	―	-0.83%	93.83%
0984	42 Neutral	107.90M	-0.28	0.00%	―	-3.03%	-36.45%
0162	41 Neutral	56.34M	-0.09	-109.98%	―	-17.63%	-13.10%
0980	41 Neutral	547.45M	-1.42	0.00%	―	-12.42%	62.88%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Lifestyle China Group Corporate Events

Lifestyle China Group Reports Revenue Decline and Loss in H1 2025

Lifestyle China Group Limited reported a 4.2% decrease in revenue to RMB617.8 million for the first half of 2025, with a loss attributable to owners amounting to RMB3.7 million, compared to a profit of RMB41.7 million in the same period last year. The company did not declare an interim dividend, reflecting a challenging period with reduced earnings per share, impacting its financial performance and stakeholder returns.

Lifestyle China Group Issues Profit Warning Amid Market Challenges

Lifestyle China Group Limited has issued a profit warning, indicating an expected loss of up to RMB5.0 million for the first half of 2025, a significant downturn from the RMB41.7 million profit recorded in the same period last year. This shift from profit to loss is attributed to decreased sales and gross profit margins due to intense market competition, as well as a decline in the share of profits from associates.

Lifestyle China Group Schedules Board Meeting for Interim Results

Lifestyle China Group Limited has announced that its board of directors will meet on August 8, 2025, to approve the interim results for the first half of the year and consider the payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential returns for shareholders, which could impact its market positioning and stakeholder interests.