Lifestyle China Group (2136) AI Stock Analysis

• Market Cap: HK$1.08B
• Dividend Yield: N/A
• Average Volume (3M): 438.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• 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: 655,400
• 30 Day Avg. Volume: 438,516
• 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: 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: 50 Neutral
• Price Target: HK$1.00 ▲(49.25% Upside)

Overall score is held back primarily by weak financial performance (declining revenue, losses, and cash flow uncertainty) and limited valuation support (negative P/E, no dividend yield provided). Technicals are a partial offset due to a strong uptrend, but extremely overbought momentum readings raise near-term pullback risk.

Positive Factors

High gross margin

A roughly 56% gross margin gives the business a durable profitability buffer versus peers. It supports absorption of operating fixed costs, funds store investment and marketing, and improves the chance of returning to operating profitability if revenue stabilizes.

Strong equity ratio

A ~55% equity ratio indicates conservative balance-sheet financing and lower leverage sensitivity. This provides structural stability through retail cycles, better access to financing if needed, and room to restructure or invest without immediate solvency pressure.

Multi-stream retail monetization

Operating department stores with sales, concessionaire counters and space leasing creates diversified cash sources. Concession and leasing income can be more recurring and less margin-volatile, improving resilience against pure merchandise sales declines over the medium term.

Negative Factors

Declining revenue trend

A 7% revenue decline signals structural pressure on foot traffic or sales mix. Persisting top-line erosion reduces economies of scale, harms bargaining power with brands, risks underutilized retail space and impairs the company’s ability to invest in omnichannel or store upgrades.

Negative operating profitability

Operating losses and negative net income indicate the core model isn't covering operating overhead. Continued unprofitability erodes equity, limits reinvestment in store experience or digital initiatives, and increases the likelihood of cost cutting or capital raises that dilute strategic flexibility.

Cash flow uncertainty

Missing 2024 OCF/FCF figures and historically volatile free cash flow make it hard to assess sustainable cash generation. This raises refinancing and liquidity risk for capital-intensive store operations and could force reliance on external funding during downturns.

Lifestyle China Group Business Overview & Revenue Model

Company Description

Lifestyle China Group (2136) is a diversified investment holding company based in Hong Kong, primarily engaged in the retail and distribution of a wide range of lifestyle products, including furniture, home improvement items, and household goods. The company operates through various subsidiaries, focusing on enhancing consumer experiences and lifestyle choices across different sectors. It aims to capitalize on the growing demand for quality lifestyle products in the Chinese market and beyond.

How the Company Makes Money

Lifestyle China Group generates revenue primarily through the sale of its lifestyle products across various retail channels, including online and offline platforms. Key revenue streams include direct sales from its branded retail stores, e-commerce platforms, and wholesale distribution to other retailers. The company also benefits from strategic partnerships with suppliers and manufacturers, which help reduce costs and enhance product offerings. Additionally, Lifestyle China Group may explore collaborations with other brands to co-develop products or enter new markets, further diversifying its income sources.

Lifestyle China Group Financial Statement Overview

Summary

Income statement is weak due to declining revenue in 2024 (-7.15% YoY) and negative EBIT/net income despite a healthy ~56% gross margin. Balance sheet is relatively steadier with a strong ~55% equity ratio and manageable leverage, but negative ROE reflects losses. Cash flow quality is a risk because 2024 operating/free cash flow data is missing and historical free cash flow has been volatile.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.23B	1.25B	1.35B	1.13B	1.30B	1.12B
Gross Profit	667.74M	702.02M	785.43M	658.10M	790.36M	681.40M
EBITDA	112.35M	141.09M	184.36M	120.95M	200.93M	221.38M
Net Income	-65.50M	-20.11M	87.77M	-24.44M	143.39M	212.75M
Balance Sheet
Total Assets	16.81B	16.99B	17.04B	14.45B	15.03B	14.59B
Cash, Cash Equivalents and Short-Term Investments	2.43B	2.33B	2.82B	1.61B	1.86B	1.99B
Total Debt	4.79B	4.86B	4.89B	2.43B	2.63B	2.81B
Total Liabilities	5.67B	5.92B	6.02B	3.65B	4.25B	4.06B
Stockholders Equity	9.37B	9.38B	9.40B	9.31B	9.34B	9.19B
Cash Flow
Free Cash Flow	367.43M	319.82M	382.47M	78.89M	143.96M	121.38M
Operating Cash Flow	376.67M	381.22M	648.34M	268.69M	343.14M	292.42M
Investing Cash Flow	377.82M	201.12M	-756.27M	-120.33M	-41.19M	393.30M
Financing Cash Flow	-336.97M	-338.82M	740.96M	-404.64M	-348.95M	-358.80M

Lifestyle China Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2136, the sentiment is Positive. The current price of 0.67 is above the 20-day moving average (MA) of 0.61, above the 50-day MA of 0.49, and above the 200-day MA of 0.43, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 91.43 is Negative, neither overbought nor oversold. The STOCH value of -178.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0825	57 Neutral	HK$649.17M	25.67	0.76%	―	-12.99%	89.87%
2136	50 Neutral	HK$1.08B	-14.23	-0.70%	―	-5.81%	-3564.29%
0984	46 Neutral	HK$102.70M	-0.27	―	―	-3.03%	-36.45%
0162	42 Neutral	HK$39.09M	-0.06	-110.16%	―	-17.63%	-13.10%
0312	42 Neutral	HK$192.09M	-9.75	-2.41%	―	-0.83%	93.83%
0980	41 Neutral	HK$532.66M	-1.38	-404.43%	―	-12.42%	62.88%

Lifestyle China Group Corporate Events

Lifestyle China Group Announces HK$615 Million Special Dividend Ahead of 10th Listing Anniversary

Lifestyle China Group Limited has declared a special cash dividend of HK$0.42 per share, totaling about HK$615 million (approximately RMB549 million), after assessing its financial position, operating cash flow, working capital needs and capital expenditure plans. Timed to coincide with the 10th anniversary of its Hong Kong listing in 2026, the payout is framed as a reward to shareholders for their continued support and signals management’s confidence in the group’s balance sheet and cash generation, with shareholders on the register as of 9 February 2026 eligible to receive the dividend on 24 February 2026, subject to a brief register closure for share transfers.

The most recent analyst rating on (HK:2136) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Lifestyle China Group stock, see the HK:2136 Stock Forecast page.

Lifestyle China Group Declares Special Dividend of HK$0.42 Per Share

Lifestyle China Group Limited has declared a special cash dividend of HK$0.42 per share, underscoring its current capital position and willingness to return surplus funds to shareholders. The special dividend will go ex-dividend on 4 February 2026, with the record date set for 9 February 2026 and payment scheduled for 24 February 2026, a move that may enhance shareholder yield and signal confidence from the board in the company’s financial health, though it also reduces cash retained for reinvestment and could influence investor perception of the group’s near-term growth and capital allocation priorities.

The most recent analyst rating on (HK:2136) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Lifestyle China Group stock, see the HK:2136 Stock Forecast page.

Lifestyle China Group Sets Board Meeting to Consider Special Dividend

Lifestyle China Group Limited has scheduled a board meeting for 21 January 2026 to consider, among other matters, the declaration and payment of a special dividend to its shareholders. The company will issue a further announcement with specific details if the special dividend is approved, and it has cautioned shareholders and potential investors that the proposed payout may or may not be endorsed, underscoring the uncertainty around the timing and size of any distribution and its potential impact on investor expectations.

The most recent analyst rating on (HK:2136) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Lifestyle China Group stock, see the HK:2136 Stock Forecast page.