J-Long Group Limited (JL) AI Stock Analysis

• Market Cap: $17.62M
• Dividend Yield: N/A
• Average Volume (3M): 61.67K
• Price to Earnings (P/E): 52.8
• Beta (1Y): 0.84
• Revenue Growth: 30.48%
• EPS Growth: 30.06%
• Country: US
• Employees: 62
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): N/A
• Shares Outstanding: 1,652,701
• 10 Day Avg. Volume: 76,857
• 30 Day Avg. Volume: 61,667
• PEG Ratio: 0.02
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 1.95
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 4.57
• Enterprise Value/Gross Profit: 19.49
• Enterprise Value/Ebitda: 77.06
• 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: 60 Neutral
• Price Target: $5.00 ▼(-19.87% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is primarily supported by improving fundamentals—especially the major 2025 revenue step-up and stronger cash generation with manageable leverage. Offsetting this, current margins are thin and historically volatile, the technical setup remains below key longer-term moving averages, and valuation is elevated (high P/E with no dividend yield provided).

Positive Factors

Revenue Growth

A ~149% YoY revenue step-up in 2025 reflects durable demand expansion and successful scaling of J-Long's apparel trims solutions. Such a structural top-line increase improves operating leverage potential and provides a larger base for margin improvement and reinvestment over the medium term.

Cash Generation

Conversion of earnings into operating and free cash flow in 2025 demonstrates improving cash-generation capacity and liquidity. Sustained positive FCF supports capex, working capital needs and potential debt reduction, enhancing financial flexibility over multiple quarters.

Manageable Leverage

A low debt-to-equity (~0.21) and material equity growth provide a conservative capital structure that limits interest burden and supports investment. Manageable leverage increases resilience to demand cycles and gives management room to fund growth without excessive refinancing risk.

Negative Factors

Thin Profitability

Current profitability is thin, leaving limited cushion against cost inflation, customer price pressure or execution setbacks. Sustained low margins demand continued high revenue growth to deliver meaningful earnings gains, and small margin contractions could materially erode returns.

Volatile Cash Flow & Debt Profile

Large year-to-year swings in cash flow and an historically variable debt profile increase operational and financing risk. This volatility complicates planning, raises the likelihood of episodic refinancing or covenant pressure, and undermines confidence in sustained cash conversion.

Rising SG&A and Share-Based Costs

A sharp rise in SG&A, driven by share-based awards, structurally increases operating expense and can dilute per-share results. If elevated, these costs can persistently pressure margins and reduce the cash available for reinvestment unless revenue growth sustainably outpaces expense inflation.

J-Long Group Limited Business Overview & Revenue Model

Company Description

J-Long Group Limited distributes reflective and non-reflective garment trims in Asia, Hong Kong, the People's Republic of China, and internationally. The company offers heat transfers, fabrics, woven labels and tapes, sewing badges, piping, zipper pullers, and drawcords. J-Long Group Limited also sells through online. The company was incorporated in 1985 and is based in Tsuen Wan, Hong Kong.

How the Company Makes Money

J-Long Group Limited generates revenue primarily through the sale of its tools and equipment across multiple sectors. The company's key revenue streams include direct sales to retailers and wholesalers, online sales through e-commerce platforms, and contractual agreements with large industrial clients. Significant partnerships with distributors and retailers enhance its market reach and sales volume. Additionally, the company invests in research and development to introduce new, innovative products, thereby maintaining a competitive edge and driving sales growth. Its international operations and strategic marketing initiatives further contribute to its revenue generation.

J-Long Group Limited Financial Statement Overview

Summary

Strong 2025 revenue acceleration (~149% YoY) and a sharp improvement in operating/free cash flow, with leverage currently manageable (debt-to-equity ~0.21). The key constraint is thin current profitability (net margin ~2.8%, EBIT margin ~3.7%) and historical volatility in both cash flow and leverage, which raises execution and consistency risk.

Income Statement

Revenue scaled sharply in 2025 (up ~149% YoY after ~5% in 2024), showing strong demand momentum. Profitability, however, is thin at the current scale (2025 net margin ~2.8% and EBIT margin ~3.7%), and margins are notably lower than earlier years (2022–2023 net margins were much higher). Overall: strong top-line trajectory, but execution risk remains because current profits are modest relative to sales.

Balance Sheet

Leverage appears manageable in the most recent periods, with debt-to-equity around ~0.21 in 2024–2025 and equity growing materially alongside the business. Returns on equity are positive but moderate in 2024–2025 (~7.7%), down from unusually high levels in 2021–2023. Key watch-out: the debt profile has been volatile historically (e.g., elevated debt in 2022 versus assets/equity), suggesting financing structure may shift meaningfully year to year.

Cash Flow

Cash generation improved substantially in 2025, with operating cash flow (~$7.2M) and free cash flow (~$6.2M) turning strongly positive after negative results in 2024. Free cash flow relative to net income is solid in 2025 (above 1x), indicating earnings are being converted into cash. The main weakness is volatility—cash flow swung from negative to strongly positive in one year—so consistency through the cycle remains to be proven.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.63M	39.08M	28.38M	38.29M	38.29M	3.03M
Gross Profit	849.68K	11.26M	6.80M	1.26M	1.11M	596.72K
EBITDA	214.86K	3.52M	1.20M	1.03M	5.73M	291.46K
Net Income	-454.56K	2.59M	783.66K	6.66M	4.48M	290.47K
Balance Sheet
Total Assets	16.89M	23.45M	16.89M	2.62M	2.46M	2.01M
Cash, Cash Equivalents and Short-Term Investments	4.16M	10.67M	4.16M	6.20M	7.90M	569.01K
Total Debt	2.13M	2.41M	2.13M	3.10M	4.33M	3.77M
Total Liabilities	6.72M	8.41M	6.72M	9.26M	12.23M	10.07M
Stockholders Equity	10.17M	14.64M	10.17M	11.35M	7.06M	713.59K
Cash Flow
Free Cash Flow	-1.70M	6.20M	-1.70M	243.45K	746.93K	451.25K
Operating Cash Flow	-1.50M	7.23M	-1.50M	249.83K	757.65K	457.79K
Investing Cash Flow	18.00	-1.02M	17.00	2.06M	-83.45K	13.45K
Financing Cash Flow	701.97K	-669.87K	701.97K	-5.42M	-2.18M	-1.89K

J-Long Group Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JL, the sentiment is Neutral. The current price of 6.24 is above the 20-day moving average (MA) of 4.08, above the 50-day MA of 4.91, and above the 200-day MA of 5.50, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 62.70 is Neutral, neither overbought nor oversold. The STOCH value of 92.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JL.

J-Long Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GIII	71 Outperform	$1.29B	9.21	8.61%	―	-2.61%	-11.87%
RL	69 Neutral	$21.96B	24.68	33.85%	0.93%	12.32%	29.40%
ZGN	68 Neutral	$4.61B	27.56	10.58%	1.33%	-1.88%	-5.94%
KTB	66 Neutral	$3.63B	16.78	49.11%	3.36%	9.90%	-12.67%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JL	60 Neutral	$17.62M	52.82	17.80%	―	30.48%	30.06%
VNCE	46 Neutral	$41.35M	-2.09	-33.24%	―	2.58%	-502.04%

J-Long Group Limited Corporate Events

J-Long Group Posts 19% Revenue Gain and Strong Cash Position in First-Half 2025 Results

On December 23, 2025, J-Long Group Limited reported unaudited interim results for the six months ended September 30, 2025, showing revenue of about US$22.7 million, up 19.3% year on year, driven by stronger demand from key customers. Adjusted EBITDA rose 40.3% to roughly US$3.9 million, reflecting improved operating performance despite a 59.5% jump in selling, general and administrative expenses to about US$4.6 million, largely due to share-based awards. Net income attributable to ordinary shareholders held steady at approximately US$2.3 million, but basic and diluted EPS declined to US$0.62 per share from US$0.74 a year earlier, partly reflecting share-related changes, while a higher tax charge accompanied increased pre-tax earnings. The balance sheet as of September 30, 2025, showed cash of US$11.4 million, net current assets of about US$13.1 million, a working capital ratio of 2.8, shareholders’ equity of roughly US$17.0 million and a modest gearing ratio of 6.2%, underscoring a solid liquidity position that supports the company’s growth trajectory in apparel trims solutions.