Clifford Modern Living Holdings Ltd (3686) AI Stock Analysis

• Market Cap: HK$711.02M
• Dividend Yield: 6.43%
• Average Volume (3M): 691.65K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 0.36
• Revenue Growth: -2.42%
• EPS Growth: 49.65%
• Country: HK
• Employees: 618
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 0.08
• Shares Outstanding: 1,015,750,000
• 10 Day Avg. Volume: 549,000
• 30 Day Avg. Volume: 691,654
• PEG Ratio: 0.36
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 1.30
• P/FCF Ratio: 6.03
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: HK$0.50 ▼(-31.51% Downside)

Clifford Modern Living Holdings Ltd scores well due to its solid financial performance and attractive valuation metrics. Strong profitability and low leverage enhance its appeal, although cash flow management is a concern. Technical indicators show bullish momentum, but caution is advised due to overbought signals.

Positive Factors

Strong Profit Margins

High profit margins indicate effective cost management and operational efficiency, supporting long-term profitability and competitive positioning.

Financial Stability

A strong balance sheet with low leverage enhances financial stability, providing resilience against economic fluctuations and enabling strategic investments.

Enhanced Governance

Improved governance structure with a diverse board can lead to better decision-making and increased stakeholder confidence, positively impacting long-term operations.

Negative Factors

Cash Flow Concerns

Lack of recent cash flow data and declining free cash flow growth may strain liquidity and limit the company's ability to invest in growth opportunities.

Declining Asset Base

A shrinking asset base could indicate potential challenges in sustaining growth and maintaining competitive advantages in the long term.

Modest Revenue Growth

Slower revenue growth may signal challenges in expanding market share or penetrating new markets, potentially impacting future profitability.

Clifford Modern Living Holdings Ltd Business Overview & Revenue Model

Company Description

Clifford Modern Living Holdings Limited, an investment holding company, provides retail services in the People's Republic of China. The company operates through six segments: Property Management Services, Renovation and Fitting-Out Services, Retail Services, Off-Campus Training Services, Information Technology Services, and Ancillary Living Services. It operates 18 retail outlets, which include two supermarkets, one wet market, and 15 convenience stores. The company also offers general property management and resident support services to residential communities and commercial properties; renovation and fitting-out services to residents, tenants or owners, and third-party sub-contractors; and off-campus training services, including interest classes and language learning classes. In addition, it provides information technology and related engineering services; security systems, and hardware and software integration services, as well as telecommunication sales outlet services; and catering consultancy, property agency, employment placement, and laundry services. The company offers its services to residents under the Clifford brand. Clifford Modern Living Holdings Limited was founded in 1998 and is headquartered in Guangzhou, the People's Republic of China.

How the Company Makes Money

Clifford Modern Living Holdings Ltd generates revenue primarily through the sale of its furniture and home decor products. The company operates a multi-channel distribution strategy that includes direct sales through retail outlets, online platforms, and partnerships with boutique stores and large retailers. Key revenue streams include the sale of customized furniture solutions, which often come with higher margins due to their bespoke nature. Additionally, the company may engage in strategic partnerships with interior design firms and real estate developers, which can lead to bulk orders and long-term contracts. The focus on sustainable and eco-friendly products has also attracted a niche market willing to pay a premium, further enhancing profitability.

Clifford Modern Living Holdings Ltd Financial Statement Overview

Summary

Clifford Modern Living Holdings Ltd shows strong profitability with robust gross and net profit margins. The income statement and balance sheet reflect financial stability and efficient operations. However, the absence of recent cash flow data suggests an area for potential improvement.

Income Statement

Clifford Modern Living Holdings Ltd has demonstrated consistent growth in key income metrics. The gross profit margin stands strong at 46.1%, and the net profit margin is robust at 26.5%, indicating effective cost management and profitability. Revenue growth is modest at 6.5% year-over-year, and the EBIT margin is healthy at 30.3%. These figures suggest solid operational efficiency and profitability.

Balance Sheet

The balance sheet reflects financial stability with a low debt-to-equity ratio of 0.10 and an impressive equity ratio of 74.8%. Return on equity is high at 21.5%, suggesting efficient use of shareholders' equity to generate profits. Despite the decrease in total assets and equity, the company maintains a strong financial position with significant cash reserves.

Cash Flow

Cash flow metrics indicate some weaknesses, with operating cash flow and free cash flow unavailable for the recent period. Historical data shows declining free cash flow growth, but the free cash flow to net income ratio was previously strong. Cash reserves remain substantial, providing liquidity, but current cash flow generation is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	346.31M	367.38M	345.04M	382.88M	430.84M	420.94M
Gross Profit	167.30M	169.37M	163.61M	177.84M	189.19M	183.75M
EBITDA	119.85M	121.77M	147.66M	154.71M	123.67M	127.87M
Net Income	119.61M	97.54M	85.84M	95.14M	81.12M	128.74M
Balance Sheet
Total Assets	555.18M	605.52M	872.78M	843.10M	763.66M	694.17M
Cash, Cash Equivalents and Short-Term Investments	286.65M	282.91M	711.14M	622.24M	416.67M	358.33M
Total Debt	35.47M	45.14M	49.80M	67.44M	65.89M	44.13M
Total Liabilities	174.04M	152.41M	171.54M	204.50M	201.13M	190.18M
Stockholders Equity	381.14M	453.11M	701.23M	638.60M	562.53M	503.99M
Cash Flow
Free Cash Flow	72.71M	79.06M	115.92M	154.61M	87.51M	95.93M
Operating Cash Flow	73.59M	80.45M	119.09M	156.01M	88.62M	105.23M
Investing Cash Flow	-52.51M	-28.53M	-55.12M	95.43M	-42.74M	-91.64M
Financing Cash Flow	-158.96M	-360.15M	-40.07M	-36.08M	-38.40M	-34.10M

Clifford Modern Living Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3686, the sentiment is Positive. The current price of 0.73 is above the 20-day moving average (MA) of 0.71, above the 50-day MA of 0.69, and above the 200-day MA of 0.59, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 63.41 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3686.

Clifford Modern Living Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3686	74 Outperform	HK$711.02M	5.52	30.11%	6.43%	-2.42%	49.65%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
0021	54 Neutral	HK$373.67M	-10.80	-4.27%	―	1303.01%	-45.00%
2215	53 Neutral	HK$348.79M	9.68	4.11%	―	-7.17%	-22.01%
0727	45 Neutral	HK$238.47M	-35.07	-7.00%	―	-49.07%	94.90%
3913	44 Neutral	HK$431.51M	-0.44	-29.80%	―	-15.03%	-3600.73%

Clifford Modern Living Holdings Ltd Corporate Events

Clifford Modern Living Holdings Ltd Announces Board Composition and Committee Roles

Clifford Modern Living Holdings Ltd, incorporated in the Cayman Islands, has announced the composition of its board of directors and their roles within the company. The board includes executive directors, non-executive directors, and independent non-executive directors, with Ms. Man Lai Hung serving as both Chairman and CEO. The board has also established four committees: Audit, Remuneration, Nomination, and Environmental, Social and Governance, with various directors assigned to these committees. This announcement highlights the company’s governance structure and the roles of its leadership team, which may impact its strategic direction and stakeholder engagement.

Clifford Modern Living Announces Board Restructuring

Clifford Modern Living Holdings Ltd has announced significant changes in its board of directors. Mr. Lau Chun Pong will be appointed as an executive director, Ms. Liang Yuhua has resigned as a non-executive director, and Mr. Liu Xing will be re-designated from an executive director to a non-executive director, all effective from November 2025. These changes are expected to impact the company’s strategic direction and governance structure, potentially influencing its market positioning and stakeholder relationships.