J-Long Group Limited (JL) AI Stock Analysis
JL AI stock analysis summary
AI ResearchJ-Long Group Limited (JL) is a Hong Kong-based distributor of garment trims and apparel solutions. For FY2026, revenue dropped 86.2% to $5.4M while net income declined to $354,359. The company maintains a net cash position of $1.3M alongside a trailing P/E ratio of 5.9x.
- Market cap
- $15.8M
- Revenue (TTM)
- $42.2M
- P/E
- 5.9x
- 1Y return
- -25.3% S&P 500 16.8%
- Avg. target
- —
Bull case
- Gross margin improved to 33.3% in FY2026, rising from 28.8% in FY2025 and 24.0% in FY2024.
- The balance sheet maintains net cash of $1.3M with cash and short-term investments of $1.9M exceeding total debt of $590,578.
- Valuation multiples are discounted relative to the sector, with a trailing P/E of 5.9x versus the US-listed Consumer Cyclical peer median of 18.0x.
Bear case
- Revenue contracted by 86.2% to $5.4M in FY2026, falling sharply from $39.1M in FY2025.
- The stock has experienced weak market momentum, posting a 1-year return of -25.3% while the S&P 500 gained 16.8%.
- In the latest quarter ended June 30, 2026, quarterly earnings growth fell 16.1% year-over-year.
What J-Long does
J-Long Group Ltd, based in Hong Kong, specializes as a distributor of garment trims, focusing on both reflective and non-reflective products. Its inventory includes heat transfers, fabrics, woven labels and tapes, sewing badges, piping, zipper pullers, and drawcords. The company offers comprehensive apparel solution services tailored to meet client specifications. These services encompass market trend analysis, product design and development, production oversight, and quality control measures. Operating within apparel manufacturing, the company delivers solutions catering to evolving customer demands with an employee base of 167 people.
Growth and profitability
J-Long Group generated FY2026 revenue of $5.4M, representing a revenue decline of 86.2% compared to $39.1M in FY2025. Despite lower revenue, gross margin expanded to 33.3% from 28.8% in FY2025 and 24.0% in FY2024. Operating margin stood at 7.0% in FY2026, up from 6.1% in FY2025 and 1.3% in FY2024. Net income reached $354,359 in FY2026 with a net margin of 6.5%, down from $2.6M in FY2025. For the latest quarter ended June 30, 2026, quarterly revenue growth declined 2.6% year-over-year, while quarterly earnings growth dropped 16.1% year-over-year. Revenue TTM was $42.2M.
Balance sheet and cash flow
As of June 30, 2026, J-Long Group held cash and short-term investments of $1.9M against total debt of $590,578, resulting in net cash of $1.3M. The company reported shareholders' equity of $2.1M and total assets of $3.6M, yielding a debt-to-equity ratio of 0.28 and a current ratio of 2.84. In FY2026, operating cash flow was $499,897 and free cash flow was $411,000. Capital expenditures were $88,897, while share buybacks totaled $146,532.
Valuation and performance
J-Long Group trades at a trailing P/E of 5.9x, well below the 18.0x median of its US-listed Consumer Cyclical peers. Its EV to EBITDA ratio of 1.7x compares to 11.1x for the peer median, and its price-to-sales multiple is 0.4x compared to the peer median of 0.7x. The company's enterprise value is $7.1M with a market cap of $15.8M. Over the past year, the stock fell 25.3%, trailing the S&P 500 (SPY) return of 16.8%.
What analysts expect
There are no analyst rating counts, price targets, or earnings estimates published for J-Long Group Limited. The company has a next earnings date scheduled for October 27, 2026. Without formal consensus estimates or an established earnings track record, investor focus remains on historical reported figures such as the trailing twelve months EPS of $0.75 and trailing twelve months revenue of $42.2M.
Key risks and what to watch
- Annual revenue contracted 86.2% in FY2026 to $5.4M, showing significant top-line volatility.
- The company's total assets stand at $3.6M with shareholders' equity of $2.1M, reflecting a small capital base.
- Quarterly revenue growth declined 2.6% year-over-year for the quarter ended June 30, 2026, indicating ongoing sales pressure.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this JL AI stock analysis
This page is an AI-written research summary of J-Long Group Limited (JL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: JL income statement, JL balance sheet, JL key metrics, JL chart. See the JL stock overview for the latest quote and news.
JL AI stock analysis FAQ
What does J-Long Group Limited do?
J-Long Group Limited is a Hong Kong-based distributor of garment trims, supplying reflective and non-reflective products like heat transfers, fabrics, labels, badges, piping, zipper pullers, and drawcords. It also provides apparel solutions including trend analysis, product design, production oversight, and quality control.
When is J-Long Group Limited's next earnings date?
The company's next earnings date is October 27, 2026.
Does J-Long Group Limited have net debt or net cash?
As of June 30, 2026, J-Long Group had net cash of $1.3M, supported by $1.9M in cash and short-term investments against total debt of $590,578.
How does JL stock valuation compare to its peer group?
JL trades at a trailing P/E of 5.9x and an EV to EBITDA of 1.7x, both lower than the US-listed Consumer Cyclical peer medians of 18.0x and 11.1x, respectively.
What was J-Long Group's revenue and profit in FY2026?
In FY2026, J-Long Group generated revenue of $5.4M and net income of $354,359, reflecting a net margin of 6.5%.