China Ting Group Holdings Limited (3398) AI Stock Analysis

• Market Cap: HK$165.89M
• Dividend Yield: N/A
• Average Volume (3M): 42.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.11
• 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: 43 Neutral
• Price Target: HK$0.08 ▲(26.67% Upside)

The score is primarily dragged down by poor financial performance—ongoing losses, weakening balance-sheet quality, and negative/zero operating cash generation. Technicals show a short-term rebound but with an overbought RSI and weak MACD confirmation, while valuation signals are constrained by losses (negative P/E) and no dividend yield data.

Positive Factors

Vertically integrated model

Vertical integration provides control from fabric manufacture to garment assembly, enabling durable cost management, quality oversight and faster product cycles. Over months this supports margin resilience versus pure-contract peers and improves supply‑chain adaptability.

Established brand partnerships

Long‑term partnerships and bulk contracts with established brands deliver predictable order flow and distribution reach. This structural demand visibility reduces revenue volatility, supports capacity utilization and helps sustain the topline as the company executes customer relationships.

Focus on quality and sustainability

Emphasis on high‑quality, sustainable products aligns with lasting retailer and consumer trends toward ESG and traceability. This differentiation can support pricing power, preferred retail placements and longer contract wins, strengthening competitive positioning over time.

Negative Factors

Deep negative profitability

A -30% net margin indicates persistent operating losses that erode equity and limit internal funding for investment. Continued unprofitability constrains strategic flexibility, forces cost restructuring or capital raises, and undermines the firm's ability to achieve sustainable returns.

Weak cash generation

Consistently negative free cash flow and zero operating cash flow create liquidity strain, limiting reinvestment in working capital and capex. Over the medium term this increases reliance on external financing, raises refinancing risk and can force dilution or higher borrowing costs.

Rising leverage, weaker equity base

Higher debt and a falling equity ratio signal a weakening balance sheet and reduced financial flexibility. Increased leverage raises interest and refinancing exposure, limits capacity to fund downturns or strategic investments, and heightens the business's vulnerability to shocks.

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

Weak fundamentals across statements: declining revenues, deeply negative profitability (net margin -30% in 2024), rising leverage (debt-to-equity up to 0.42) and a deteriorating equity ratio, plus persistent negative free cash flow and zero operating cash flow in 2024.

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: Positive
• Last Price: 0.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3398, the sentiment is Positive. 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 0.09, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 70.82 is Negative, neither overbought nor oversold. The STOCH value of 95.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$120.00M	8.44	17.42%	―	-5.03%	229.17%
0294	52 Neutral	HK$171.60M	-2.11	-8.49%	2.08%	-6.96%	-32.24%
0643	48 Neutral	HK$222.26M	-4.03	-36.27%	―	-13.88%	-210.33%
2668	45 Neutral	HK$1.52B	-3.95	-74.13%	―	2.67%	-54.41%
3398	43 Neutral	HK$165.89M	-0.39	-25.27%	―	4.98%	-3.47%