tiprankstipranks
Trending News
More News >
China Dongxiang (Group) Co (HK:3818)
:3818
Advertisement

China Dongxiang (Group) Co (3818) AI Stock Analysis

Compare
1 Followers

Top Page

HK

China Dongxiang (Group) Co

(OTC:3818)

Rating:50Neutral
Price Target:
China Dongxiang's overall stock score reflects significant profitability challenges, despite a strong balance sheet with minimal debt. The technical analysis indicates a neutral trend without strong momentum. Valuation is constrained by negative earnings, but the dividend yield provides some investor return. Strategic improvements are needed to overcome operational and profitability issues.

China Dongxiang (Group) Co (3818) vs. iShares MSCI Hong Kong ETF (EWH)

China Dongxiang (Group) Co Business Overview & Revenue Model

Company DescriptionChina Dongxiang (Group) Co., Ltd. is a leading sportswear brand enterprise in China, primarily engaged in the design, development, marketing, and distribution of branded sportswear products. The company operates in the sports and fashion sectors, with a strong focus on the Chinese market. It is known for its flagship brand, Kappa, which offers a wide range of sports apparel, footwear, and accessories for men, women, and children.
How the Company Makes MoneyChina Dongxiang makes money through the sale of its branded sportswear products, primarily under the Kappa brand. The company's revenue model is based on wholesale and retail sales channels, where it distributes products through a combination of self-operated retail stores, e-commerce platforms, and third-party distributors. Key revenue streams include the sale of apparel, footwear, and accessories. Significant partnerships with retailers and e-commerce platforms enhance its market reach. Additionally, the company invests in marketing and brand promotion to maintain and grow its customer base, which contributes to its earnings.

China Dongxiang (Group) Co Financial Statement Overview

Summary
China Dongxiang is facing significant challenges, particularly in profitability, with negative net income and operating losses. While the balance sheet is strong with minimal debt and high equity, the company's ability to generate consistent cash flows and profits remains a critical concern. Strategic improvements are necessary to turn around profitability and leverage the strong equity base effectively.
Income Statement
40
Negative
The company has experienced a decline in revenue over the last year, with the revenue growth rate at 3.87%. Gross profit margin is relatively high at 68.36%, but the company is suffering significant losses, with a net profit margin of -36.65% and a negative EBIT margin of -44.61%. The EBITDA margin also stands at -37.60%, indicating operational challenges.
Balance Sheet
65
Positive
The balance sheet shows strong equity with an equity ratio of 93.19%, indicating a low reliance on debt. The debt-to-equity ratio is very low at 0.004, demonstrating minimal leverage. However, the return on equity is negative at -7.05%, reflecting poor profitability and a potential concern for investors.
Cash Flow
55
Neutral
The company has a positive free cash flow of 143.48 million, signaling some strength in generating cash. However, the operating cash flow to net income ratio is negative, suggesting cash flow challenges in relation to earnings. Free cash flow to net income ratio is also negative, which could imply difficulty in converting income into free cash flow.
BreakdownMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue1.74B1.68B1.92B1.97B1.84B
Gross Profit1.19B1.06B1.12B1.32B1.11B
EBITDA-655.84M176.17M-1.86B2.12B562.68M
Net Income-639.36M115.00M-1.73B1.81B366.33M
Balance Sheet
Total Assets9.74B10.58B10.49B12.64B11.69B
Cash, Cash Equivalents and Short-Term Investments3.83B3.97B3.86B5.38B5.46B
Total Debt38.90M57.56M232.81M216.24M339.41M
Total Liabilities665.80M911.38M1.13B1.10B1.07B
Stockholders Equity9.07B9.67B9.35B11.53B10.61B
Cash Flow
Free Cash Flow143.47M30.27M-262.57M62.77M-113.82M
Operating Cash Flow198.90M101.60M-211.19M66.74M-110.04M
Investing Cash Flow-923.98M1.18B276.79M475.94M1.69B
Financing Cash Flow-109.81M-307.86M-334.57M-673.20M-325.08M

China Dongxiang (Group) Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.42
Price Trends
50DMA
0.40
Positive
100DMA
0.40
Positive
200DMA
0.37
Positive
Market Momentum
MACD
<0.01
Negative
RSI
62.09
Neutral
STOCH
90.48
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3818, the sentiment is Positive. The current price of 0.42 is above the 20-day moving average (MA) of 0.41, above the 50-day MA of 0.40, and above the 200-day MA of 0.37, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 62.09 is Neutral, neither overbought nor oversold. The STOCH value of 90.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3818.

China Dongxiang (Group) Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$1.50T43.6314.98%38.46%72.44%
77
Outperform
$41.01B12.5211.92%2.84%1.85%-6.19%
77
Outperform
HK$10.44B8.4212.43%3.96%17.21%15.90%
73
Outperform
$126.66B17.8020.60%2.89%14.60%24.66%
73
Outperform
$250.22B14.9128.11%2.57%11.51%47.88%
56
Neutral
HK$25.22B4.10-2.03%6.15%-0.31%-67.64%
50
Neutral
HK$2.49B11.152.27%14.31%-0.16%-189.58%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3818
China Dongxiang (Group) Co
0.43
0.12
39.80%
HK:1913
Prada SpA
49.25
-2.17
-4.22%
HK:1361
361 Degrees International
5.07
1.60
46.28%
HK:1810
Xiaomi
56.15
39.31
233.43%
HK:2020
ANTA Sports Products
92.45
19.89
27.41%
HK:2331
Li Ning Company
16.14
1.41
9.55%

China Dongxiang (Group) Co Corporate Events

China Dongxiang Reports Decline in Kappa Store Performance for FY2024/25
Apr 25, 2025

China Dongxiang (Group) Co., Ltd. announced a mid-to-high single-digit decrease in the retail performance of its Kappa-branded stores for both the fourth quarter and the entire fiscal year 2024/25. The announcement is based on preliminary unaudited operational data, and stakeholders are advised to exercise caution as the information is subject to change.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 29, 2025