China Ting Group Holdings Limited (3398) AI Stock Analysis

• Market Cap: HK$134.39M
• Dividend Yield: N/A
• Average Volume (3M): 42.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.13
• Revenue Growth: 4.98%
• EPS Growth: -3.47%
• Country: HK
• Employees: 5,050
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.04
• Shares Outstanding: 2,099,817,900
• 10 Day Avg. Volume: 79,400
• 30 Day Avg. Volume: 42,733
• PEG Ratio: -0.02
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.19
• P/FCF Ratio: -0.71
• 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: 39 Underperform
• Price Target: HK$0.07 ▲(10.00% Upside)

The overall stock score is primarily driven by poor financial performance, characterized by declining revenues, negative profit margins, and liquidity issues. Technical analysis further supports a bearish outlook, with the stock trading below key moving averages and weak momentum indicators. Valuation metrics are also unfavorable, with a negative P/E ratio and no dividend yield.

Positive Factors

Vertically Integrated Business Model

The vertically integrated model optimizes costs and improves profit margins by controlling production stages, enhancing long-term competitiveness.

Focus on Innovation and Sustainability

Emphasizing innovation and sustainability helps differentiate the company in a competitive market, attracting eco-conscious consumers and partners.

Established Partnerships

Long-term contracts with well-known brands provide stable revenue streams and enhance market credibility, supporting sustained business growth.

Negative Factors

Declining Revenue Trend

A declining revenue trend indicates challenges in maintaining market share and competitiveness, potentially impacting future growth prospects.

Negative Profit Margins

Negative profit margins reflect ongoing operational inefficiencies and cost management issues, threatening long-term financial stability.

Rising Leverage

Increasing leverage raises financial risk and limits flexibility, potentially straining resources and affecting the company's ability to invest in growth.

China Ting Group Holdings Limited Business Overview & Revenue Model

Company Description

China Ting Group Holdings Limited, an investment holding company, manufactures, sells, exports, and retails garments in the People's Republic of China, North America, the European Union, Hong Kong, and internationally. The company operates through three segments: Original Equipment Manufacturer (OEM), Retail, and Property Investment. It manufactures and sells garments on an OEM basis; and manufactures and retails branded fashion apparel. The company is also involved in the manufacture of wool textiles and knitwear; printing and dyeing silk and other fabrics; and weaving silk fabrics, home textile, and spun silk fabrics. In addition, it invests in properties; and trades in garment products. The company retails its products primarily under the FINITY, ELANIE RIESE, RIVERSTONE, CALVIN KLEIN PERFORMANCE, and VINCE CAMUTO brands. It operates approximately 500 retail stores, as well as sells products through e-commerce. China Ting Group Holdings Limited was founded in 1992 and is headquartered in Kwun Tong, Hong Kong. China Ting Group Holdings Limited is a subsidiary of Longerview Investments Limited.

How the Company Makes Money

China Ting Group generates revenue primarily through the sale of garments and textiles. The company operates a vertically integrated business model that allows it to control various stages of production, from fabric manufacturing to garment assembly, thus optimizing costs and improving profit margins. Key revenue streams include wholesale sales to international retailers, direct sales through its own retail outlets, and e-commerce channels. The company has established significant partnerships with renowned brands and retailers, which contribute to its revenues through bulk orders and long-term contracts. Additionally, the focus on high-quality and sustainable products helps differentiate China Ting in a competitive market, enhancing its ability to attract and retain customers.

China Ting Group Holdings Limited Financial Statement Overview

Summary

China Ting Group Holdings Limited is facing significant financial challenges. The income statement shows declining revenues and consistent losses, with a negative net profit margin. The balance sheet indicates increased leverage and reduced equity, while cash flow issues persist with negative free cash flow and zero operating cash flow. These factors reflect a weakening financial position and liquidity constraints.

Income Statement

The company has been experiencing a declining revenue trend over the years, with a negative revenue growth rate from 2020 to 2024. Gross Profit Margin decreased from 18.1% in 2020 to 18.1% in 2024, indicating consistent pressure on cost management. The Net Profit Margin is significantly negative at -30% in 2024, reflecting ongoing losses. EBIT and EBITDA margins are also negative, showing operational challenges and potential inefficiencies.

Balance Sheet

The Debt-to-Equity ratio increased from 0.16 in 2020 to 0.42 in 2024, suggesting rising leverage and potential financial risk. Return on Equity is negative, indicating a lack of profitability relative to equity. The Equity Ratio has decreased from 70.8% to 47.5%, showing a reduction in equity financing relative to total assets. The balance sheet reflects a weakening financial position with rising liabilities and declining equity.

Cash Flow

Free Cash Flow has been consistently negative, indicating cash flow issues. The Operating Cash Flow to Net Income ratio is weak, as operating cash flows have dropped to zero in 2024. Free Cash Flow to Net Income is also unfavorable, reflecting challenges in converting profits into free cash. This indicates liquidity constraints and a potential need for external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.71B	1.61B	1.66B	1.76B	1.61B	1.55B
Gross Profit	309.15M	290.39M	317.44M	228.35M	74.70M	172.70M
EBITDA	-113.76M	-213.79M	-214.08M	-11.30M	-196.54M	414.23M
Net Income	-425.32M	-481.43M	-361.53M	-151.68M	-333.30M	146.04M
Balance Sheet
Total Assets	3.37B	3.28B	3.41B	3.66B	3.99B	4.01B
Cash, Cash Equivalents and Short-Term Investments	217.11M	153.50M	324.00M	552.92M	769.79M	623.38M
Total Debt	802.50M	653.92M	448.49M	413.17M	276.15M	296.88M
Total Liabilities	1.80B	1.71B	1.40B	1.30B	1.27B	1.14B
Stockholders Equity	1.54B	1.56B	1.99B	2.33B	2.68B	2.84B
Cash Flow
Free Cash Flow	-271.52M	-420.24M	-276.58M	-254.06M	-288.71M	-285.86M
Operating Cash Flow	-134.42M	-133.09M	19.26M	35.48M	-150.22M	-107.87M
Investing Cash Flow	-157.90M	-219.29M	-240.20M	-283.81M	341.44M	381.48M
Financing Cash Flow	173.38M	196.39M	37.19M	43.16M	-33.21M	-172.11M

China Ting Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3398, the sentiment is Negative. The current price of 0.06 is below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.07, and below the 200-day MA of 0.10, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 19.66 is Positive, neither overbought nor oversold. The STOCH value of 23.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3398.

China Ting Group Holdings Limited 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%
0540	60 Neutral	HK$112.80M	7.93	17.42%	―	-5.03%	229.17%
0294	52 Neutral	HK$171.60M	-2.11	-8.49%	2.08%	-6.96%	-32.24%
2668	44 Neutral	HK$1.49B	-4.32	-74.13%	―	2.67%	-54.41%
0643	44 Neutral	HK$219.56M	-4.27	-36.27%	―	-13.88%	-210.33%
3398	39 Underperform	HK$134.39M	-0.32	-25.27%	―	4.98%	-3.47%