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

• Market Cap: HK$2.94B
• Dividend Yield: 6.07%
• Average Volume (3M): 7.23M
• Price to Earnings (P/E): 13.1
• Beta (1Y): 1.25
• Revenue Growth: -4.65%
• EPS Growth: N/A
• Country: HK
• Employees: 350
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.01
• Shares Outstanding: 5,895,073,000
• 10 Day Avg. Volume: 4,777,518
• 30 Day Avg. Volume: 7,229,272
• 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): 0.16
• Revenue Forecast (FY): HK$14.81B

• Rating: 68 Neutral
• Price Target: HK$0.50 ▲(4.17% 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.

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 (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	1.68B	1.68B	1.74B	1.68B	1.92B	1.97B
Gross Profit	1.15B	1.15B	1.19B	1.06B	1.12B	1.32B
EBITDA	166.02M	351.21M	-655.84M	46.44M	-1.86B	2.12B
Net Income	207.00M	207.00M	-639.36M	115.00M	-1.78B	1.81B
Balance Sheet
Total Assets	10.04B	10.04B	9.74B	10.58B	10.49B	12.64B
Cash, Cash Equivalents and Short-Term Investments	4.70B	4.70B	3.83B	3.97B	3.86B	5.38B
Total Debt	47.22M	47.22M	38.90M	57.56M	232.81M	216.24M
Total Liabilities	832.42M	832.42M	665.80M	911.38M	1.13B	1.10B
Stockholders Equity	9.21B	9.21B	9.07B	9.67B	9.35B	11.53B
Cash Flow
Free Cash Flow	75.77M	73.12M	143.47M	30.27M	-262.57M	62.77M
Operating Cash Flow	141.65M	141.65M	198.90M	101.60M	-211.19M	66.74M
Investing Cash Flow	-141.10M	-141.10M	-923.98M	1.18B	276.79M	475.94M
Financing Cash Flow	-133.21M	-133.21M	-109.81M	-307.86M	-334.57M	-673.20M

China Dongxiang (Group) Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.48
• 50DMA: Negative
• 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:3818, the sentiment is Neutral. The current price of 0.48 is below the 20-day moving average (MA) of 0.49, below the 50-day MA of 0.50, and above the 200-day MA of 0.42, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.31 is Neutral, neither overbought nor oversold. The STOCH value of 24.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
1982	72 Outperform	HK$2.03B	5.93	14.40%	12.70%	-0.61%	-5.36%
1234	69 Neutral	€4.07B	8.91	10.67%	8.43%	3.23%	-21.82%
3818	68 Neutral	HK$2.94B	13.12	2.27%	6.07%	-4.65%	―
2199	67 Neutral	HK$2.45B	13.32	5.63%	2.15%	11.73%	28.38%
1382	63 Neutral	HK$1.96B	11.74	5.75%	8.57%	8.41%	0.84%
2368	63 Neutral	HK$2.08B	9.41	13.04%	7.07%	17.99%	-20.83%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

China Dongxiang (Group) Co Corporate Events

China Dongxiang Announces Approval of AGM Resolutions

China Dongxiang (Group) Co., Ltd. announced that all resolutions proposed at its annual general meeting held on August 20, 2025, were approved by shareholders. Key resolutions included the adoption of audited financial statements, the declaration of final and special dividends, and the re-election of directors. This approval reflects strong shareholder support and may positively impact the company’s governance and financial strategies.

The most recent analyst rating on (HK:3818) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Dongxiang (Group) Co stock, see the HK:3818 Stock Forecast page.