Breaking Down Lancy Co., Ltd. Financial Health: Key Insights for Investors

Dive into Lancy Co., Ltd.'s financial snapshot where 2024 revenue stood at 5.69 billion CNY (a slight decline of 0.24% year-over-year) while TTM revenue as of March 31, 2025 was 5.57 billion CNY (down 6.58% YoY) and Q1 2025 revenue hit 1.40 billion CNY (-7.77% YoY); segment performance shows women's apparel revenue of 1.925 billion CNY with a 63.45% gross margin, medical beauty revenue of 2.784 billion CNY (+3.47% YoY) with a 54.42% gross margin, and children's clothing revenue of 921 million CNY with a 61.76% gross margin; profitability metrics include 2024 net income attributable to shareholders of 257.20 million CNY (+1.38% YoY), a TTM net profit margin of 18.05%, ROE of 27.49%, FY2024 EPS of 0.5813 CNY and TTM EPS of 2.34 CNY, plus a dividend yield of 2.04% (annualized payout 0.40 CNY); the balance sheet shows total assets of 8.62 billion CNY, liabilities of 4.56 billion CNY and equity of 4.05 billion CNY, with a debt-to-equity ratio of 0.52, interest coverage of 4.94, current ratio of 0.85 and quick ratio of 0.42, while cash and short-term investments rose 75.24% to 1.13 billion CNY; valuation and capital metrics as of November 2025 include market cap of 9.72 billion CNY, enterprise value of 11.34 billion CNY, TTM P/E of 9.40 (forward P/E 31.98), P/S 1.70, P/B 2.40, EV/EBITDA 16.89, EV/FCF 25.66 and ROIC of 4.23%, and strategic growth initiatives include plans to open 94 new direct-operated stores (17 women's, 77 children's) plus expansion in medical aesthetics under the Jingfu and Gao Yisheng brands and new children's labels like Agabang and ETTOI to leverage online channels and a rising medical beauty segment.

Lancy Co., Ltd. (002612.SZ) - Revenue Analysis

• Total revenue in 2024: 5.69 billion CNY (down 0.24% vs. 2023).
• Trailing twelve months (TTM) revenue as of 2025-03-31: 5.57 billion CNY (down 6.58% YoY).
• Quarter ending 2025-03-31 revenue: 1.40 billion CNY (down 7.77% YoY).

• Medical beauty is the fastest-growing segment in 2024 (+3.47%), contributing the largest single-segment revenue (2.784 billion CNY).
• High gross margins across apparel segments: women's clothing 63.45% and children's clothing 61.76%, indicating strong pricing or cost control in apparel lines.
• Overall revenue compression into early 2025: both Q1 and TTM figures show steeper declines (7.77% and 6.58% respectively) versus the modest full-year 2024 decline (0.24%).

Lancy Co., Ltd. (002612.SZ) - Profitability Metrics

Lancy Co., Ltd. reported net income attributable to shareholders of 257.20 million CNY in 2024, a 1.38% year-over-year increase. Key profitability indicators show a company with strong margins and shareholder returns on a trailing twelve months (TTM) basis.

• Net income attributable (2024): 257.20 million CNY (+1.38% YoY)
• Net profit margin (TTM): 18.05%
• Return on equity (ROE, TTM): 27.49%
• Earnings per share (EPS, FY2024): 0.5813 CNY
• Earnings per share (EPS, TTM): 2.34 CNY
• Dividend yield: 2.04% (annualized payout 0.40 CNY/share)

For context on Lancy's broader strategic direction and how profitability aligns with corporate goals, see: Mission Statement, Vision, & Core Values (2026) of Lancy Co., Ltd.

Lancy Co., Ltd. (002612.SZ) - Debt vs. Equity Structure

• Capital structure: Equity (4.05bn) accounts for ~47.0% of total assets; liabilities (4.56bn) ~53.0%, producing a debt-to-equity of 0.52 - a conservative-to-moderate leverage position versus many peers.
• Coverage capability: Interest coverage of 4.94x implies earnings before interest and taxes (EBIT) are nearly five times interest expense, reducing default risk from interest burden under normal operating conditions.
• Liquidity constraints: Current ratio 0.85 and quick ratio 0.42 point to potential short-term cash-stress scenarios if receivables slow or inventories cannot be converted quickly.

• Refinancing risk: With a sub-1 current ratio, maturing short-term debt or supplier payment demands could necessitate rollover/refinancing or use of cash reserves.
• Balance-sheet flexibility: Moderate debt-to-equity (0.52) provides headroom to raise additional debt for growth or capital expenditures without becoming highly leveraged.
• Interest sensitivity: Interest coverage near 5x offers a buffer, but a material decline in operating profit would rapidly tighten coverage.

Lancy Co., Ltd. (002612.SZ) - Liquidity and Solvency

Key liquidity and solvency metrics for Lancy Co., Ltd. (002612.SZ) reveal strengthened short-term cash positions alongside modest growth in the balance sheet. The figures below reflect latest reported amounts and trailing twelve-month (TTM) profitability ratios.

• Cash & short-term investments (Sep 2025): 1.13 billion CNY - +75.24% YoY
• Total assets: increased by 4.19% YoY
• Total liabilities: increased by 1.84% YoY
• Return on assets (TTM): 3.23%
• Return on capital employed (ROCE): 7.90%
• Effective tax rate: 17.07%

• Liquidity profile: markedly improved due to +75.24% YoY cash increase to 1.13B CNY, reducing short-term funding risk.
• Solvency trend: assets grew faster than liabilities (4.19% vs. 1.84%), expanding equity buffer.
• Profitability context: ROA 3.23% and ROCE 7.90% indicate moderate conversion of assets/capital into returns.
• Tax impact: an effective rate of 17.07% supports higher post-tax margins relative to higher-tax peers.

For background on corporate structure, history and business model: Lancy Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Lancy Co., Ltd. (002612.SZ) Valuation Analysis

Key market and valuation metrics for Lancy Co., Ltd. (002612.SZ) as of November 2025 provide a snapshot of how the market prices the business relative to earnings, sales, book value and cash flow.

• Market Capitalization: 9.72 billion CNY
• Enterprise Value (EV): 11.34 billion CNY
• TTM Price-to-Earnings (P/E): 9.40
• Forward P/E: 31.98
• Price-to-Sales (P/S): 1.70
• Price-to-Book (P/B): 2.40
• EV/EBITDA: 16.89
• EV/FCF: 25.66
• Return on Invested Capital (ROIC): 4.23%

The following points summarize actionable angles investors often consider when reconciling these metrics:

• Gap between TTM P/E (9.40) and forward P/E (31.98) suggests recent earnings were stronger than near-term consensus expectations or that anticipated dilution/earnings headwinds are priced in.
• EV/EBITDA of 16.89 and EV/FCF of 25.66 indicate the market is attaching a premium to operating cash flow and EBITDA relative to the company's ROIC of 4.23%.
• P/B of 2.40 and P/S of 1.70 reflect moderate goodwill/earnings power priced into equity vs. book and revenue bases.
• ROIC at 4.23% versus an implied cost of capital (typically higher) signals potential pressure on long-term value creation unless returns improve.

For further context on ownership, trading activity and investor composition related to these valuation dynamics, see: Exploring Lancy Co., Ltd. Investor Profile: Who's Buying and Why?

Lancy Co., Ltd. (002612.SZ) - Risk Factors

• Current ratio: 0.85 (below the industry standard of 1.0) - indicates potential difficulty covering short-term liabilities with current assets.
• Quick ratio: 0.42 - suggests limited immediate liquidity when inventories are excluded.
• Debt-to-equity ratio: 0.52 - a moderate leverage level that constrains balance-sheet flexibility if earnings weaken.

• Business mix: Apparel and medical services - both sectors carry distinct cyclicality and regulatory risk.
• Apparel exposure: Vulnerable to shifts in consumer preferences, seasonality, and competitive pricing pressure.
• Medical services exposure: Subject to healthcare regulation, reimbursement changes, and margin compression from policy shifts.

• Revenue trend: A gradual decline from ¥1,200m → ¥1,150m → ¥1,100m suggests either market-share loss or pricing/volume pressure that can strain margins.
• Valuation signal: P/E of 9.40 may reflect market discounting of growth prospects or elevated execution risk; low P/E is not automatically a value opportunity without addressing operational trends.
• Liquidity stress tests: With a quick ratio of 0.42, any working-capital shock (delayed receivables, inventory write-downs) could force short-term financing or asset sales.

Lancy Co., Ltd. (002612.SZ) - Growth Opportunities

• New store rollout: 94 direct-operated stores planned - 17 women's clothing stores and 77 children's clothing stores, with priority markets in South Korea and Beijing.
• Medical beauty revenue: 2.784 billion CNY in the latest reporting period, up 3.47% year-over-year.
• Brand and service expansion: introduction of medical rejuvenation services under Jingfu and medical cosmetology centers under Gao Yisheng.
• Children's brand additions: launch of Agabang and ETTOI to broaden the customer base across age cohorts and price points.
• Channel strategy: increased emphasis on online sales to capture shifting consumer behavior and omnichannel synergies.

• Geographic focus: Concentrating new stores in South Korea and Beijing targets high-density, higher-spend catchments for both children's and women's apparel; useful for brand visibility and testing new concepts.
• Medical aesthetics trajectory: 2.784 billion CNY and +3.47% YoY signals a mature but growing vertical-rolling out Jingfu rejuvenation and Gao Yisheng centers can capture higher-margin procedures and recurring-service revenue.
• Portfolio diversification: Agabang and ETTOI increase product breadth and help mitigate single-brand concentration risk, especially in the cyclical apparel market.
• Channel mix optimization: Scaling online sales reduces dependency on brick-and-mortar and supports national reach for newly opened stores and medical services.