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

• Market Cap: HK$2.76B
• Dividend Yield: 4.85%
• Average Volume (3M): 6.71M
• Price to Earnings (P/E): 9.0
• Beta (1Y): 1.24
• Revenue Growth: -2.56%
• EPS Growth: N/A
• Country: HK
• Employees: 350
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.04
• Shares Outstanding: 5,895,073,000
• 10 Day Avg. Volume: 3,848,700
• 30 Day Avg. Volume: 6,705,406
• PEG Ratio: -0.08
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 1.29
• P/FCF Ratio: 29.54
• 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: 68 Neutral
• Price Target: HK$0.50 ▲(6.38% Upside)

The overall stock score of 68 reflects strong technical indicators and a favorable valuation, with a reasonable P/E ratio and high dividend yield. Financial performance is solid, with strong gross profitability and a low debt-to-equity ratio, though challenges in revenue growth and cash flow generation persist.

Positive Factors

Strong Gross Profitability

A high gross profit margin indicates efficient production and pricing strategies, which can support long-term profitability and competitive positioning.

Solid Balance Sheet

A strong balance sheet with low leverage reduces financial risk and provides flexibility for future investments and growth opportunities.

Operational Efficiency

Improved operational efficiency, as shown by rising EBIT and EBITDA margins, suggests better cost management and potential for enhanced profitability.

Negative Factors

Negative Revenue Growth

Declining revenue growth indicates challenges in market expansion and product demand, which could impact long-term business sustainability.

Cash Flow Challenges

Negative free cash flow growth suggests difficulties in generating cash for reinvestment and dividends, potentially limiting future strategic initiatives.

Low Cash Conversion

A low cash conversion rate indicates inefficiencies in turning profits into cash, which could constrain liquidity and operational flexibility.

China Dongxiang (Group) Co Business Overview & Revenue Model

Company Description

China Dongxiang (Group) Co., Ltd., together with its subsidiaries, designs, develops, markets, and sells sport-related apparel, footwear, and accessories in the People's Republic of China and internationally. The company offers its products under the Kappa and Phenix brands. It is also involved in the retail sale of sportswear through a network of retail shops and outlets, as well as online. In addition, the company invests in various financial assets and treasury products issued by commercial banks; designs and sells children's clothing products; engages in the hotel management and tourism; and develops and operates real estate properties. As of March 31, 2022, the company had 1,375 Kappa stores. China Dongxiang (Group) Co., Ltd. was founded in 2002 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

China Dongxiang generates revenue through multiple streams, primarily by selling its branded apparel and footwear under the Kappa label. The company operates a wholesale distribution model, supplying products to retail partners and their own branded stores across China and other regions. A significant portion of revenue also comes from direct-to-consumer sales through e-commerce platforms, which have been increasingly important in reaching tech-savvy consumers. Additionally, Dongxiang benefits from licensing agreements that allow third parties to produce and sell Kappa-branded products, thus expanding its market footprint without significant capital investment. Strategic partnerships with various retailers and online marketplaces further enhance its distribution capabilities and revenue potential.

China Dongxiang (Group) Co Financial Statement Overview

Summary

China Dongxiang (Group) Co demonstrates strong gross profitability and a solid balance sheet with low leverage. However, challenges remain in revenue growth and cash flow generation. The company has improved operational efficiency, as seen in the positive EBIT and EBITDA margins, but needs to focus on enhancing revenue growth and cash conversion to strengthen its financial position further.

Income Statement

The company shows a strong gross profit margin of 68.58% in the latest year, indicating efficient production and pricing strategies. However, the net profit margin is relatively low at 12.32%, reflecting challenges in controlling other expenses. Revenue growth has been negative at -2.14%, suggesting a need for strategic initiatives to boost sales. The EBIT and EBITDA margins have improved significantly from negative values in the previous year to 14.88% and 20.90%, respectively, indicating better operational efficiency.

Balance Sheet

The balance sheet is strong with a very low debt-to-equity ratio of 0.51%, indicating minimal leverage and financial risk. The return on equity is modest at 2.25%, suggesting room for improvement in generating returns for shareholders. The equity ratio is healthy, reflecting a solid capital structure with equity financing being the primary source of funding.

Cash Flow

Cash flow performance is mixed. The free cash flow growth rate is negative, indicating a decline in cash available for reinvestment and dividends. The operating cash flow to net income ratio is low at 0.21, suggesting challenges in converting profits into cash. However, the free cash flow to net income ratio is relatively strong at 51.62%, showing some ability to generate cash relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.74B	1.68B	1.74B	1.68B	1.92B	1.97B
Gross Profit	1.19B	1.15B	1.19B	1.06B	1.12B	1.32B
EBITDA	304.97M	351.21M	-655.84M	46.44M	-1.86B	2.12B
Net Income	291.32M	207.00M	-639.36M	115.00M	-1.78B	1.81B
Balance Sheet
Total Assets	10.25B	10.04B	9.74B	10.58B	10.49B	12.64B
Cash, Cash Equivalents and Short-Term Investments	5.50B	4.70B	3.83B	3.97B	3.86B	5.38B
Total Debt	44.65M	47.22M	38.90M	57.56M	232.81M	216.24M
Total Liabilities	1.04B	832.42M	665.80M	911.38M	1.13B	1.10B
Stockholders Equity	10.18B	9.21B	9.07B	9.67B	9.35B	11.53B
Cash Flow
Free Cash Flow	156.38M	73.12M	143.47M	30.27M	-262.57M	62.77M
Operating Cash Flow	232.07M	141.65M	198.90M	101.60M	-211.19M	66.74M
Investing Cash Flow	31.15M	-141.10M	-923.98M	1.18B	276.79M	475.94M
Financing Cash Flow	-173.28M	-133.21M	-109.81M	-307.86M	-334.57M	-673.20M

China Dongxiang (Group) Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.47 is above the 20-day moving average (MA) of 0.47, above the 50-day MA of 0.47, and above the 200-day MA of 0.42, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.58 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1234	69 Neutral	HK$4.10B	8.94	10.67%	8.16%	3.23%	-21.82%
3818	68 Neutral	HK$2.76B	8.99	2.91%	4.85%	-2.56%	―
2199	67 Neutral	HK$2.89B	11.72	8.10%	4.24%	3.40%	151.24%
1982	64 Neutral	HK$2.39B	6.18	14.74%	11.90%	-0.95%	2.58%
2368	63 Neutral	HK$2.02B	8.45	12.21%	7.98%	13.52%	4.95%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1382	59 Neutral	$1.72B	12.33	4.73%	8.06%	-2.44%	-5.98%

China Dongxiang (Group) Co Corporate Events

China Dongxiang Declares Interim Dividend for 2025

China Dongxiang (Group) Co., Ltd. has announced an interim cash dividend of RMB 0.0104 per share for the six months ending September 30, 2025. The dividend will be paid in Hong Kong dollars at a rate of HKD 0.0114 per share, with the payment scheduled for December 23, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders.

China Dongxiang Declares Interim Special Dividend

China Dongxiang (Group) Co., Ltd. has announced an interim special dividend for the six months ending September 30, 2025, amounting to RMB 0.0104 per share. This dividend reflects the company’s financial performance and commitment to returning value to shareholders, with the payment scheduled for December 23, 2025.

China Dongxiang Reports Strong Interim Profit Growth Despite Revenue Dip

China Dongxiang (Group) Co., Ltd. reported its interim results for the six months ending September 30, 2025, showing a slight decrease in revenue by 0.1% to RMB 748 million. However, the company experienced a notable increase in operating profit by 27.8% to RMB 207 million, driven by a 30% rise in the operating profit of its sporting goods business in China. The profit attributable to the company’s owners increased by 48.9%, reflecting strong financial performance and resulting in a 48.6% increase in interim dividends per share. These results indicate a robust operational performance despite a slight dip in revenue, suggesting strong strategic positioning in the sporting goods market.

China Dongxiang Enhances Investment Strategy with RMB Fund Subscription

China Dongxiang (Group) Co., Ltd. has announced a supplemental disclosure regarding its subscription of interests in an RMB Fund. The RMB Fund focuses on fixed income assets, such as government and policy bonds, and aims to provide stable returns with low default risk. The fund aligns with the company’s strategy of capital preservation and steady income generation, offering diversification and liquidity benefits. The RMB Fund Manager, established in 2018, is a licensed private securities investment fund manager with significant experience and assets under management, ensuring effective fund management.

China Dongxiang Schedules Board Meeting for Interim Results and Dividend Consideration

China Dongxiang (Group) Co., Ltd. has announced that its board of directors will convene on 26 November 2025 to approve the interim results for the six months ending 30 September 2025 and to consider the payment of an interim dividend for 2025/2026. This meeting could have significant implications for the company’s financial strategy and stakeholder interests, as it will address key financial outcomes and potential shareholder returns.