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

• Market Cap: $2.88B
• Dividend Yield: 4.24%
• Average Volume (3M): 9.40M
• Price to Earnings (P/E): 12.9
• Beta (1Y): 1.20
• Revenue Growth: -4.65%
• EPS Growth: N/A
• Country: HK
• Employees: 350
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.01
• Shares Outstanding: 5,893,271,000
• 10 Day Avg. Volume: 6,514,000
• 30 Day Avg. Volume: 9,403,733
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: -0.91
• Enterprise Value/Revenue: -1.52
• Enterprise Value/Gross Profit: -2.22
• Enterprise Value/Ebitda: 12.05
• 1Y Price Target: $0.47
• Price Target Upside: -3.88% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: HK$0.50 ▲(2.04% Upside)

The stock's overall score is driven by strong technical momentum and reasonable valuation, supported by a solid financial performance despite challenges in revenue growth and cash flow. The absence of earnings call data and corporate events does not impact the score.

China Dongxiang (Group) Co Business Overview & Revenue Model

Company Description

China Dongxiang (Group) Co., Ltd. is a leading apparel company based in China, primarily engaged in the design, manufacture, and sale of sportswear and fashion apparel. The company operates under various brands, including the well-known 'Kappa', which is recognized for its sports and lifestyle clothing. Dongxiang focuses on both the domestic and international markets, capitalizing on the growing demand for athletic wear and casual fashion.

How the Company Makes Money

China Dongxiang generates revenue through several key streams, mainly from the sale of branded apparel and accessories under its various labels, including Kappa. The company operates a multi-channel distribution strategy, which encompasses direct sales through retail stores, e-commerce platforms, and wholesale partnerships with other retailers. Additionally, Dongxiang benefits from licensing agreements that allow third-party manufacturers to produce and sell products under its brands, further diversifying its income sources. Key partnerships with sports teams and sponsorship of events also enhance brand visibility and drive sales. The company's ability to adapt to consumer trends and expand its product lines contributes significantly to its revenue growth.

China Dongxiang (Group) Co Financial Statement Overview

Summary

China Dongxiang shows strong gross profitability and a solid balance sheet with low leverage. However, challenges in revenue growth and cash flow generation persist. Operational efficiency has improved, but focus is needed on enhancing revenue growth and cash conversion.

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.72B	1.68B	1.74B	1.68B	1.92B	1.97B
Gross Profit	1.17B	1.15B	1.19B	1.06B	1.12B	1.32B
EBITDA	-216.23M	351.21M	-655.84M	176.17M	-1.86B	2.12B
Net Income	-92.68M	207.00M	-639.36M	115.00M	-1.73B	1.81B
Balance Sheet
Total Assets	9.98B	10.04B	9.74B	10.58B	10.49B	12.64B
Cash, Cash Equivalents and Short-Term Investments	4.23B	4.70B	3.83B	3.97B	3.86B	5.38B
Total Debt	47.10M	47.22M	38.90M	57.56M	232.81M	216.24M
Total Liabilities	840.97M	832.42M	665.80M	911.38M	1.13B	1.10B
Stockholders Equity	9.14B	9.21B	9.07B	9.67B	9.35B	11.53B
Cash Flow
Free Cash Flow	-17.65M	73.12M	143.47M	30.27M	-262.57M	62.77M
Operating Cash Flow	40.82M	141.65M	198.90M	101.60M	-211.19M	66.74M
Investing Cash Flow	-424.84M	-141.10M	-923.98M	1.18B	276.79M	475.94M
Financing Cash Flow	-105.25M	-133.21M	-109.81M	-307.86M	-334.57M	-673.20M

China Dongxiang (Group) Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.49
• 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 0.49 is above the 20-day moving average (MA) of 0.46, above the 50-day MA of 0.43, and above the 200-day MA of 0.38, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 65.27 is Neutral, neither overbought nor oversold. The STOCH value of 74.07 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	74 Outperform	€4.59B	9.17	11.40%	9.19%	1.38%	-14.80%
1982	72 Outperform	HK$1.89B	5.53	14.40%	13.95%	-0.61%	-5.36%
2368	72 Outperform	HK$2.30B	10.37	13.04%	7.50%	17.99%	-20.83%
1382	71 Outperform	$2.06B	12.32	5.75%	8.11%	8.41%	0.84%
3818	69 Neutral	$2.88B	12.86	2.27%	4.24%	-4.65%	―
Sector *	56 Neutral	HK$24.71B	3.78	-3.23%	5.89%	0.25%	-59.97%
2199	56 Neutral	HK$2.14B	11.65	5.63%	1.35%	11.73%	28.38%

China Dongxiang (Group) Co Corporate Events

China Dongxiang Announces RMB Fund Subscription

China Dongxiang has announced a subscription of Class B Units in a RMB Fund, amounting to RMB300 million. This transaction, classified as discloseable under Hong Kong’s Listing Rules, is significant as it exceeds certain percentage thresholds, impacting the company’s financial strategy and potentially influencing its market positioning.

China Dongxiang Announces 2025 AGM with Key Resolutions

China Dongxiang (Group) Co., Ltd. has announced its annual general meeting scheduled for August 20, 2025, where key resolutions will be considered, including the adoption of financial statements, declaration of dividends, re-election of directors, and re-appointment of auditors. The meeting will also address a general mandate for directors to issue additional shares, potentially impacting the company’s capital structure and shareholder value.

China Dongxiang Announces Final Dividend for FY 2025

China Dongxiang (Group) Co., Ltd. announced a final cash dividend of RMB 0.0035 per share for the financial year ending 31 March 2025, with payment to be made in Hong Kong dollars. This dividend declaration reflects the company’s ongoing commitment to returning value to its shareholders and may influence investor sentiment positively, impacting its market positioning and stakeholder relations.

China Dongxiang Declares Final Special Dividend for FY2025

China Dongxiang (Group) Co., Ltd. has announced a final special dividend of RMB 0.0071 per share for the financial year ending 31 March 2025, with the payment to be made in Hong Kong dollars. This announcement reflects the company’s financial strategy and commitment to providing returns to its shareholders, potentially strengthening its market position and investor confidence.

China Dongxiang Releases 2024/2025 Annual Results

China Dongxiang (Group) Co., Ltd. has released its audited annual results for the fiscal year ending March 31, 2025, in compliance with the Hong Kong Stock Exchange’s listing rules. The announcement provides stakeholders with access to the company’s financial performance and operations insights, available on both the Hong Kong Exchanges and Clearing Limited and the company’s website.

China Dongxiang Announces US$20 Million Fund Subscription

China Dongxiang (Group) Co., Ltd. has announced a subscription of US$20 million for Class A Shares in the CPE Fixed Income Investment Fund. This transaction, combined with a previous subscription in March 2025, qualifies as a discloseable transaction under Hong Kong’s Listing Rules, requiring notification and announcement but not shareholder approval. This strategic investment is expected to enhance the company’s financial portfolio and strengthen its market position in the investment sector.

China Dongxiang Announces Board Composition and Roles

China Dongxiang (Group) Co., Ltd. has announced the composition of its Board of Directors, highlighting the roles and functions of each member. The announcement details the executive and independent non-executive directors and their participation in various board committees, which include the Executive, Audit, Remuneration, Nomination, and Environmental, Social, and Governance Committees. This organizational update may impact the company’s governance and strategic decision-making processes.

China Dongxiang Updates Nomination Committee Terms

China Dongxiang (Group) Co., Ltd. has revised the terms of reference for its Nomination Committee, which is responsible for overseeing the appointment and composition of the company’s board of directors. The committee is tasked with ensuring diversity and independence among board members and is authorized to seek necessary resources and professional advice to fulfill its duties. This revision aims to align the company’s governance practices with strategic goals and regulatory requirements, potentially impacting its corporate strategy and stakeholder relations.

China Dongxiang Announces Leadership Change in Nomination Committee

China Dongxiang (Group) Co., Ltd. announced a change in the composition of its Nomination Committee, with Ms. Chen Chen taking over as chairman and member, replacing Mr. Chen Yihong. This leadership change is expected to impact the company’s strategic direction and governance, potentially influencing its market positioning and stakeholder relationships.

China Dongxiang Schedules Board Meeting to Approve Fiscal Year Results

China Dongxiang (Group) Co., Ltd. has announced a board meeting scheduled for June 25, 2025, to approve the company’s final results for the fiscal year ending March 31, 2025, and to consider a final dividend payment. This meeting is crucial for stakeholders as it will provide insights into the company’s financial performance and potential shareholder returns.