Company Overview
J-Long Group Limited operates within the consumer cyclical sector, specifically focusing on the apparel manufacturing industry, where it serves as a distributor for various garment components. The company's core business involves distributing reflective and non-reflective garment trims across key markets including Asia, Hong Kong, the People's Republic of China, and international regions, offering a comprehensive range of products such as reflective materials, heat transfers, workwear trims, patches, packaging, fabrics, woven labels, tapes, sewing badges, piping, and zipper pulls. As a publicly traded entity with the ticker JL, the company maintains a market capitalization of $25.05M and employs a workforce of 167 individuals to support its operational needs. With a trailing twelve-month revenue of $42.75M, J-Long Group Limited occupies a niche position in the global supply chain for specialized textile trims, reflecting a modest but established footprint in the apparel manufacturing ecosystem.
Financial Health
The company generated revenue of $42.75M over the trailing twelve months, resulting in a net income of $2.60M and an EBITDA of $2.72M. The significant gap between the total revenue of $42.75M and the net income of $2.60M reveals a cost structure where operating expenses, including cost of goods sold and administrative costs, consume approximately 93.9% of top-line revenue before arriving at the bottom line. While the company reports a Free Cash Flow of N/A, the presence of $11.36M in cash assets suggests a substantial liquidity buffer relative to its operational requirements. The gross margin stands at 30.5%, indicating that the company retains roughly one-third of its revenue after direct production costs, while the operating margin of 10.8% demonstrates the efficiency of its overhead management, and the profit margin of 6.1% reflects the final portion of revenue attributable to shareholders after all expenses. In terms of leverage, the company holds $11.36M in cash against $3.05M in debt, resulting in a debt-to-equity ratio of 17.91 which indicates a balance sheet that is net cash positive despite the specific leverage ratio metric. The current ratio is reported at 2.79, a figure that indicates strong short-term liquidity and the ability to cover current liabilities with current assets more than twice over. Furthermore, the Return on Equity is 17.0% and the Return on Assets is 6.7%, metrics that reveal management's effectiveness in generating returns from shareholder capital and utilizing its total asset base to produce profits.
Valuation Assessment
The trailing P/E ratio is 9.79, while the forward P/E is listed as N/A, implying that analyst expectations for future earnings growth are either not modeled or the market does not anticipate a significant change in the earnings trajectory relative to the current run rate. The price-to-book ratio is 1.50, suggesting that the market values the company at one and a half times its book value, which indicates a slight premium over the net asset value of the equity. Alternative valuation metrics such as the price-to-sales ratio of 0.59 and the EV/EBITDA of 6.29 provide additional context, suggesting the company trades at a discount relative to its sales and earnings power compared to higher multiples often seen in mature sectors. Regarding price volatility, the 52-week high is $8.22 and the 52-week low is $1.50, placing the current trading environment within a wide historical range that reflects significant price discovery or correction over the past year. The beta value is listed as N/A, meaning that the specific volatility relative to the broader market cannot be quantified from the available data points for this specific security.
Growth & Income
The company reports a revenue growth of 19.3% year-over-year, contrasted with an earnings growth of -16.1% year-over-year. This divergence implies that while the top line is expanding rapidly, the bottom line is contracting, suggesting that costs are rising faster than revenue or that one-time charges are impacting the net income calculation. As a non-dividend payer, the company maintains a dividend yield of N/A and a payout ratio of 0.0%, indicating that it reinvests its earnings back into the business rather than distributing cash to shareholders. The overall growth and income profile is characterized by robust sales expansion offset by declining profitability, with no reliance on dividend income for investors.