China Ting Group Holdings Limited (3398) AI Stock Analysis

• Market Cap: HK$220.48M
• Dividend Yield: N/A
• Average Volume (3M): 98.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.10
• Revenue Growth: -3.47%
• EPS Growth: -33.16%
• Country: HK
• Employees: 5,050
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.23
• Shares Outstanding: 2,099,817,900
• 10 Day Avg. Volume: 62,800
• 30 Day Avg. Volume: 98,666
• PEG Ratio: 0.03
• Price to Book (P/B): 0.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.88
• 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: 38 Underperform
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall stock score is heavily influenced by the company's poor financial performance, indicating significant financial challenges and operational inefficiencies. Technical analysis reveals a bearish trend with weak momentum, while valuation metrics are unattractive due to ongoing losses and no dividend yield.

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 Holdings Limited generates revenue through its dual business model. The primary revenue stream comes from the Manufacturing and Sale of Garments segment, where the company designs, manufactures, and sells clothing products. This includes selling its own branded apparel as well as producing garments for international brands under OEM agreements. The company benefits from its established manufacturing facilities and expertise in garment production, allowing it to efficiently meet client demands and maintain competitive pricing. Additionally, the Property Investment and Development segment provides supplementary income, with the company investing in, developing, and leasing out properties. This diversification into real estate helps stabilize the company's financial performance by providing a steady income stream alongside its cyclical garment business.

China Ting Group Holdings Limited Financial Statement Overview

Summary

The company faces significant financial challenges. Declining revenues and consistent losses are evident in the income statement. The balance sheet shows increased leverage and reduced equity, while cash flow issues are apparent with negative free cash flow and zero operating cash flow in the most recent year.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.61B	1.66B	1.76B	1.62B	1.55B
Gross Profit	290.39M	317.44M	228.35M	74.70M	172.70M
EBITDA	-213.79M	-214.08M	-11.30M	-196.54M	414.23M
Net Income	-481.43M	-361.53M	-151.68M	-333.30M	146.04M
Balance Sheet
Total Assets	3.28B	3.41B	3.66B	3.99B	4.01B
Cash, Cash Equivalents and Short-Term Investments	247.58M	324.00M	552.92M	769.79M	623.38M
Total Debt	653.92M	448.49M	413.17M	276.15M	296.88M
Total Liabilities	1.71B	1.40B	1.30B	1.27B	1.14B
Stockholders Equity	1.56B	1.99B	2.33B	2.68B	2.84B
Cash Flow
Free Cash Flow	-420.24M	-276.58M	-254.06M	-288.71M	-285.86M
Operating Cash Flow	-133.09M	19.26M	35.48M	-150.22M	-107.87M
Investing Cash Flow	-219.29M	-240.20M	-283.81M	341.44M	378.15M
Financing Cash Flow	196.39M	37.19M	43.16M	-33.21M	-172.11M

China Ting Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.10
• 50DMA: Negative
• 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:3398, the sentiment is Negative. The current price of 0.1 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.11, and below the 200-day MA of 0.15, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 39.52 is Neutral, neither overbought nor oversold. The STOCH value of 37.04 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 *	63 Neutral	$16.70B	11.33	-6.96%	2.94%	1.73%	-24.85%
0540	53 Neutral	HK$82.20M	5.46	21.72%	―	42.87%	―
0294	46 Neutral	HK$196.41M	―	-6.04%	2.10%	-20.02%	-24.55%
0643	46 Neutral	HK$247.46M	―	-20.75%	―	34.81%	-272.28%
2668	41 Neutral	HK$771.31M	―	-47.70%	―	59.71%	3.93%
3398	38 Underperform	HK$220.48M	―	-27.12%	―	-3.47%	-33.16%
K1H			―		―	―	―

China Ting Group Holdings Limited Corporate Events

China Ting Group Strengthens Governance with New Appointment

China Ting Group Holdings Limited has announced the appointment of Ms. LI Yuet Mui, Xera as a member of its nomination committee, effective from June 27, 2025. This strategic appointment is expected to enhance the governance structure of the company, potentially impacting its operational efficiency and stakeholder confidence.

China Ting Group Updates Board of Directors

China Ting Group Holdings Limited has announced the updated list of its board of directors and their respective roles, effective from June 27, 2025. This update includes the appointment of key executive and independent non-executive directors, which may impact the company’s strategic direction and governance, potentially influencing its market positioning and stakeholder interests.

China Ting Group Enhances Corporate Governance with New Nomination Committee Terms

China Ting Group Holdings Limited has adopted new terms of reference for its Nomination Committee, emphasizing the inclusion of independent non-executive directors and gender diversity. This move aligns with the Hong Kong Stock Exchange’s governance requirements and aims to enhance the company’s corporate governance practices, potentially impacting its industry positioning positively by demonstrating a commitment to diversity and independence.

China Ting Group Approves Key Resolutions at Annual General Meeting

China Ting Group Holdings Limited successfully held its Annual General Meeting on May 27, 2025, where all proposed ordinary resolutions were approved by shareholders. The resolutions included re-election of directors, authorization of board remuneration, re-appointment of the auditor, and granting of share issue and repurchase mandates, indicating strong shareholder support and strategic alignment for future operations.

China Ting Group Holdings Limited Announces Annual General Meeting

China Ting Group Holdings Limited has announced its upcoming annual general meeting scheduled for May 27, 2025. The meeting will address several key resolutions, including the re-election of directors, the appointment of auditors, and the authorization for directors to manage share-related transactions. These decisions are crucial for maintaining corporate governance and ensuring the company’s strategic direction aligns with shareholder interests.