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

• Market Cap: HK$2.49B
• Dividend Yield: 14.31%
• Average Volume (3M): 10.04M
• Price to Earnings (P/E): 11.2
• Beta (1Y): 1.20
• Revenue Growth: -0.16%
• EPS Growth: -189.58%
• Country: HK
• Employees: 350
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.01
• Shares Outstanding: 5,887,561,000
• 10 Day Avg. Volume: 8,647,800
• 30 Day Avg. Volume: 10,037,566
• PEG Ratio: -0.32
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -127.46
• 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

• Rating: 50 Neutral
• 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 Business Overview & Revenue Model

Company Description

China 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 Money

China 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

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

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

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.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	1.74B	1.68B	1.92B	1.97B	1.84B
Gross Profit	1.19B	1.06B	1.12B	1.32B	1.11B
EBITDA	-655.84M	176.17M	-1.86B	2.12B	562.68M
Net Income	-639.36M	115.00M	-1.73B	1.81B	366.33M
Balance Sheet
Total Assets	9.74B	10.58B	10.49B	12.64B	11.69B
Cash, Cash Equivalents and Short-Term Investments	3.83B	3.97B	3.86B	5.38B	5.46B
Total Debt	38.90M	57.56M	232.81M	216.24M	339.41M
Total Liabilities	665.80M	911.38M	1.13B	1.10B	1.07B
Stockholders Equity	9.07B	9.67B	9.35B	11.53B	10.61B
Cash Flow
Free Cash Flow	143.47M	30.27M	-262.57M	62.77M	-113.82M
Operating Cash Flow	198.90M	101.60M	-211.19M	66.74M	-110.04M
Investing Cash Flow	-923.98M	1.18B	276.79M	475.94M	1.69B
Financing Cash Flow	-109.81M	-307.86M	-334.57M	-673.20M	-325.08M

China Dongxiang (Group) Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1810	78 Outperform	$1.50T	43.63	14.98%	―	38.46%	72.44%
2331	77 Outperform	$41.01B	12.52	11.92%	2.84%	1.85%	-6.19%
1361	77 Outperform	HK$10.44B	8.42	12.43%	3.96%	17.21%	15.90%
1913	73 Outperform	$126.66B	17.80	20.60%	2.89%	14.60%	24.66%
2020	73 Outperform	$250.22B	14.91	28.11%	2.57%	11.51%	47.88%
Sector *	56 Neutral	HK$25.22B	4.10	-2.03%	6.15%	-0.31%	-67.64%
3818	50 Neutral	HK$2.49B	11.15	2.27%	14.31%	-0.16%	-189.58%

China Dongxiang (Group) Co Corporate Events

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

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.