SEHK:1234

Stock Analysis Report

Executive Summary

China Lilang Limited, together with its subsidiaries, engages in the manufacture and wholesale of branded menswear and related accessories in the People’s Republic of China.


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

How has China Lilang's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1234's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.3%

1234

8.4%

HK Luxury

4.0%

HK Market


1 Year Return

-49.0%

1234

-20.0%

HK Luxury

-20.1%

HK Market

Return vs Industry: 1234 underperformed the Hong Kong Luxury industry which returned -20% over the past year.

Return vs Market: 1234 underperformed the Hong Kong Market which returned -20.1% over the past year.


Shareholder returns

1234IndustryMarket
7 Day-1.3%8.4%4.0%
30 Day-13.9%-14.6%-11.3%
90 Day-27.8%-24.1%-15.6%
1 Year-45.0%-49.0%-17.7%-20.0%-17.2%-20.1%
3 Year6.8%-12.6%11.7%-1.5%-2.9%-12.7%
5 Year0.3%-28.6%10.7%-6.9%-6.8%-21.8%

Price Volatility Vs. Market

How volatile is China Lilang's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Lilang undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1234 (HK$4.52) is trading below our estimate of fair value (HK$9.84)

Significantly Below Fair Value: 1234 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1234 is good value based on its PE Ratio (6.1x) compared to the Luxury industry average (7.4x).

PE vs Market: 1234 is good value based on its PE Ratio (6.1x) compared to the Hong Kong market (9x).


Price to Earnings Growth Ratio

PEG Ratio: 1234 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 1234 is overvalued based on its PB Ratio (1.4x) compared to the HK Luxury industry average (0.7x).


Next Steps

Future Growth

How is China Lilang forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

8.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1234's forecast earnings growth (8.3% per year) is above the savings rate (1.6%).

Earnings vs Market: 1234's earnings (8.3% per year) are forecast to grow slower than the Hong Kong market (12.8% per year).

High Growth Earnings: 1234's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1234's revenue (7.4% per year) is forecast to grow slower than the Hong Kong market (9.1% per year).

High Growth Revenue: 1234's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1234's Return on Equity is forecast to be high in 3 years time (21.6%)


Next Steps

Past Performance

How has China Lilang performed over the past 5 years?

7.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1234 has high quality earnings.

Growing Profit Margin: 1234's current net profit margins (22.2%) are lower than last year (23.7%).


Past Earnings Growth Analysis

Earnings Trend: 1234's earnings have grown by 7.7% per year over the past 5 years.

Accelerating Growth: 1234's earnings growth over the past year (8.1%) exceeds its 5-year average (7.7% per year).

Earnings vs Industry: 1234 earnings growth over the past year (8.1%) exceeded the Luxury industry -1.7%.


Return on Equity

High ROE: 1234's Return on Equity (22.5%) is considered high.


Next Steps

Financial Health

How is China Lilang's financial position?


Financial Position Analysis

Short Term Liabilities: 1234's short term assets (CN¥3.5B) exceed its short term liabilities (CN¥935.2M).

Long Term Liabilities: 1234's short term assets (CN¥3.5B) exceed its long term liabilities (CN¥21.8M).


Debt to Equity History and Analysis

Debt Level: 1234 is debt free.

Reducing Debt: 1234 has no debt compared to 5 years ago when its debt to equity ratio was 31.7%.

Debt Coverage: 1234 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1234 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1234 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1234's debt is not covered by short term assets (assets are -40582.1x debt).


Next Steps

Dividend

What is China Lilang's current dividend yield, its reliability and sustainability?

12.55%

Current Dividend Yield


Upcoming Dividend Payment

TodayMar 29 2020Ex Dividend DateMay 05 2020Dividend Pay DateMay 20 202015 days from Ex DividendBuy in the next 37 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 1234's dividend (12.55%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.67%).

High Dividend: 1234's dividend (12.55%) is in the top 25% of dividend payers in the Hong Kong market (7.33%)


Stability and Growth of Payments

Stable Dividend: 1234's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1234's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.4%), 1234's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1234's dividends in 3 years are forecast to be covered by earnings (69.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.2yrs

Average management tenure


CEO

Liang Wang (57yo)

no data

Tenure

CN¥1,313,000

Compensation

Mr. Liang Xing Wang co-founded China Lilang Ltd. in April 1995 and serves as its Chief Executive Officer. Mr. Wang is responsible for China Lilang’s overall business development, strategic planning and cor ...


CEO Compensation Analysis

Compensation vs Market: Liang's total compensation ($USD185.04K) is below average for companies of similar size in the Hong Kong market ($USD493.10K).

Compensation vs Earnings: Liang's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Dong Wang
Founder & Chairmanno dataCN¥1.05m1.92% CN¥103.7m
Liang Wang
Vice Chairman & CEOno dataCN¥1.31m2.17% CN¥117.7m
Cong Wang
Vice Chairmanno dataCN¥793.00k1.92% CN¥103.7m
Cheng Hu
Executive Director11.75yrsCN¥585.00k0.38% CN¥20.3m
Rong Cai
Executive Director11.75yrsCN¥598.00k0.75% CN¥40.7m
Rong Pan
Executive Director11.75yrsCN¥1.22m0.25% CN¥13.8m
Yuk Ko
CFO & Company Secretary9yrsno datano data
Mei Shi
Head of the Production Management Department11.33yrsno datano data
Yu Zhang
Head of Group Strategy Development Department4.17yrsno datano data
Wei Chen
Head of Group Ordering Departmentno datano datano data

10.2yrs

Average Tenure

50yo

Average Age

Experienced Management: 1234's management team is seasoned and experienced (10.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dong Wang
Founder & Chairmanno dataCN¥1.05m1.92% CN¥103.7m
Liang Wang
Vice Chairman & CEOno dataCN¥1.31m2.17% CN¥117.7m
Cong Wang
Vice Chairmanno dataCN¥793.00k1.92% CN¥103.7m
Cheng Hu
Executive Director11.75yrsCN¥585.00k0.38% CN¥20.3m
Rong Cai
Executive Director11.75yrsCN¥598.00k0.75% CN¥40.7m
Rong Pan
Executive Director11.75yrsCN¥1.22m0.25% CN¥13.8m
Xing Nie
Independent Non-Executive Director11.75yrsCN¥200.00kno data
Hong Te Lu
Independent Non-Executive Director11.75yrsCN¥200.00kno data
Shixian Lai
Independent Non-Executive Director7.25yrsCN¥200.00kno data

11.8yrs

Average Tenure

54yo

Average Age

Experienced Board: 1234's board of directors are seasoned and experienced ( 11.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

China Lilang Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Lilang Limited
  • Ticker: 1234
  • Exchange: SEHK
  • Founded: 1987
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$5.413b
  • Shares outstanding: 1.20b
  • Website: https://www.lilanz.com

Number of Employees


Location

  • China Lilang Limited
  • Lilang Industrial Park
  • 200 Chang Xing Road
  • Jinjiang
  • Fujian Province
  • 362200
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1234SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 2009
5LXDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 2009
1234SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDSep 2009
1234SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDSep 2009

Biography

China Lilang Limited, together with its subsidiaries, engages in the manufacture and wholesale of branded menswear and related accessories in the People’s Republic of China. The company designs, sources, manufactures, and sells business and casual apparel for men under the LILANZ brand name across a distribution network covering 31 provinces, autonomous regions, and municipalities. It also provides management services. As of December 31, 2019, it had a total of 2,815 retail stores operated through distributors and sub-distributors. The company was founded in 1987 and is headquartered in Jinjiang, the People’s Republic of China. China Lilang Limited is a subsidiary of Xiao Sheng International Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 13:09
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.