J-Long Group Limited Overview
There has been one material change to the listed security. Since August 13, 2025 the listed instrument has been the Class A Ordinary Share, under a new CUSIP (G5191U120). It followed a dual-class re-designation approved at an extraordinary general meeting on August 7, 2025.
J-Long Group is a Hong Kong-headquartered apparel-trims solutions house with roughly US$42M of revenue. It has built its franchise on a long-standing role as an authorized distributor and converter of 3M™ Scotchlite™ reflective materials, a status it has held since 2000. Its products sit at the high-visibility end of garment trims: reflective heat transfers, logos, tapes, piping, fabrics, woven labels, badges, zipper pullers and drawcords. These go to sportswear, outerwear, uniform/safety workwear and outdoor gear brands and their contract manufacturers across Asia, Europe and North America. Heat transfers generate roughly 70% of revenue. The company combines distribution of a branded input with design, development and quality-control services, and outsources most conversion to manufacturing-services suppliers. A young Vietnam subsidiary extends it into Southeast Asia's shifting garment supply chain. JL is founder-controlled through 20-vote Class B shares, carries net cash of about US$10M and trades at a low single-digit EV/EBIT. Its liquidity is thin, and its governance and dependence on a single licensor are its defining risks.
Company's own description (paraphrased from the FY2025 and FY2026 Forms 20-F)
J-Long describes itself as an established Hong Kong distributor of reflective and non-reflective garment trims. The range includes heat transfers, fabrics, woven labels and tapes, sewing badges, piping, zipper pullers and drawcords. The company says it offers a full suite of supporting services that span market-trend analysis, product design and development, production and quality control.
Its products are aimed at four end-uses:
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consumer apparel and sportswear;
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uniforms and safety workwear;
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outerwear accessories;
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outdoor gear and related products.
The company states that it is the authorized distributor of reflective materials and products of its licensed U.S. partner, identified in IPO-period materials as 3M (Scotchlite). It claims a reputation as one of the leading authorized distributors of those materials. It also states that, despite the importance of its top five customers, its revenue is not heavily concentrated on any single customer.
For non-branded reflective trims and heat transfers, it relies on materials suppliers and manufacturing-services suppliers. Its five largest suppliers have relationships of three to more than ten years (FY2026 20-F).
IPO-period materials (Renaissance Capital summary of the F-1, October 2023) add two claims:
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J-Long had served more than 100 international brands.
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It had a relationship of more than 25 years with a leading U.S. multinational conglomerate (3M), which is also its primary supplier of materials.
Operating structure
| Entity | Jurisdiction | Role | Source |
|---|---|---|---|
| J-Long Group Limited | Cayman Islands | Listed holding company | FY2026 20-F |
| Stratum Star Limited | BVI | Intermediate holding company; no operations | FY2026 20-F |
| Alpine Eagle Limited | BVI | Intermediate holding company; no operations | FY2026 20-F |
| J-Long Limited ("JLHK") | Hong Kong | Principal operating subsidiary: distribution, design, procurement, QC | FY2026 20-F |
| Sun Choice Enterprises Limited | Hong Kong | Currently no business operations | FY2026 20-F |
| J-Long Trims Vietnam Co., Ltd ("JLVN") | Vietnam | Operating subsidiary (Vietnam operations) | FY2025/FY2026 20-F |
The balance sheet showed a non-controlling interest of US$405,122 at March 31, 2025 and US$388,585 at September 30, 2025. This indicates that at least one subsidiary, most plausibly JLVN, is not wholly owned. The identity and size of the minority holder were not publicly disclosed in the sources reviewed.
Business and revenue model
Product versus service mix: Revenue is almost entirely product revenue from sales of trims. Design, development and QC services are bundled into product pricing. No separate service, subscription or licensing revenue is reported.
Branded versus non-branded: Revenue mixes branded reflective products (3M Scotchlite-licensed materials sold or converted under the authorized-distributor relationship) with non-branded trims and heat transfers sourced from third-party materials and manufacturing-services suppliers.
Value-chain position: J-Long sits between materials makers and apparel production. Upstream are reflective film and fabric manufacturers, with 3M the key one. Downstream are apparel brands, their buying offices and garment factories. Its value added is specification ("design-in" with brands), conversion (custom shapes and adhesive solutions on reflective materials), sourcing, QC and logistics.
Asset intensity: The model is asset-light. Net PP&E including right-of-use assets was only US$4.74M at March 31, 2026, and annual capex has been US$0.05M to US$1.02M.
Customer types: Global apparel and sportswear brands that specify trims; contract garment manufacturers and buying offices that place orders; uniform and safety-workwear suppliers; and outdoor gear makers.
Channels: Direct sales, regional consultants and third-party logistics across Asia, Europe and North America, per an EDGAR-based summary of the FY2025 20-F. Some online sales are referenced in S&P profiles.
Contract structure: There are no long-term sales agreements; demand is order-by-order (20-F risk factors). Revenue is therefore highly sensitive to brand inventory cycles. This was seen in the FY2024 destocking year, when revenue fell 25.9%.
Independent characterization
J-Long is best understood as a specialist reflective-trim converter and sourcing agent, not a manufacturer. Its economic moat comes from two things:
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A 25-plus-year authorized position with the dominant reflective-materials brand. Brand customers specify "3M Scotchlite" on safety and performance garments, which pulls volume through authorized channels.
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Embedded design relationships with sportswear and outerwear brands.
Gross margin rose from 23–26% in FY2022–FY2024 to 34.0% in FY2026, which suggests the mix is improving toward higher-value heat-transfer and design work. At the same time the business has the classic features of a small Hong Kong trims house:
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dependence on one supplier;
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cyclicality driven by brand orders;
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founder control;
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an operating footprint that is moving toward Southeast Asia as garment production leaves mainland China.
Strategy
Stated strategic themes (paraphrased from the 20-F and IPO materials)
The company's competitive strengths and strategies sections emphasize:
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Its established position in reflective materials, with nearly 30 years of history and 3M authorized-distributor status since 2000.
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A diversified portfolio of reflective and non-reflective trims.
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Stringent quality control that keeps it a core supplier to major customers.
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A strong, stable network of materials and manufacturing-services suppliers.
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Long-standing customer relationships across a diverse base.
IPO materials indicated that proceeds would go toward strategic acquisitions and investment in reflective materials, among other uses (ROIC.ai summary of the prospectus).
Initiatives in the last 24 months (October 2024 – October 2026)
| Initiative | Date | Detail | Status |
|---|---|---|---|
| Vietnam expansion (JLVN) | By FY2025 | Vietnam operating subsidiary, positioned close to Southeast Asian garment production | Operating; scale not disclosed |
| Reverse split / Nasdaq compliance | December 2024 – January 2025 | 1-for-10 consolidation | Completed; compliance regained |
| Dual-class recapitalization | August 2025 | Entrenches founder control (20-vote Class B) | Completed |
| Share repurchase program | September 15, 2025 | Up to US$5.0M of Class A over six months. Cash cost of US$0.245M by September 30, 2025; 196,500 shares in treasury by March 31, 2026 | Executed in part (program sized at about 30% of the market cap) |
| Share-based incentive awards | H1 FY2026 | About US$0.96M of awards to five individuals | Granted |
| Finance-function upgrade | August 2025 | Capital-markets-experienced CFO appointed | Completed |
| HQ relocation | FY2026 | Move to Cheung Sha Wan, Kowloon | Completed |
| Commercial investment | FY2026 | Selling and marketing expense rose from US$0.92M to US$1.98M in H1 | Ongoing |
| New product development | FY2026 | The CEO cited favorable feedback on recent product developments (H1 FY2026 release); products unnamed | Ongoing |
Sustainability and ESG commitments: none publicly disclosed.
Cost programs with targets: none publicly disclosed.
Medium-term targets and guidance
J-Long issues no quantitative guidance. The only forward commentary is qualitative. In the December 23, 2025 release, the CEO said management anticipated continued strong performance through fiscal year-end and positioning for future revenue growth, citing robust demand and a healthy pipeline of inquiries.
H2 FY2026 revenue in fact declined about 2.6% year on year (derived). The qualitative outlook was therefore only partly delivered: full-year growth was 8.1%, against 19.3% in H1.
Products & Services
The company does not publish SKU-level pricing, launch dates or version histories. Pricing is quotation-based per order, and the pricing model is not otherwise publicly disclosed.
Reflective products (branded, 3M™ Scotchlite™-based)
| Product | Description and capabilities | Target customer | Notes |
|---|---|---|---|
| 3M™ Scotchlite™ reflective materials (distribution) | Retroreflective films, fabrics and tapes that return light to its source for high-visibility performance | Safety-workwear, uniform, sportswear and outerwear brands and factories | Authorized distributor since 2000. 3M is the "U.S. licensor" on which the 20-F says most products depend |
| Converted reflective trims | Custom-shaped, die-cut reflective pieces with adhesive solutions. The company describes itself as a converter of 3M Scotchlite materials | Brands needing logo-shaped or panel-shaped reflectivity | Converter status described in the FY2024 20-F MD&A |
| Reflective heat transfers | Heat-applied reflective logos, stripes and graphics | Sportswear, running, cycling, outdoor apparel | Heat transfers overall are about 70% of revenue |
| Reflective piping and tapes | Reflective inserts for seams and edges | Outerwear, workwear | — |
| Hi-vis safety workwear trims | Reflective striping for construction and government workwear. Hong Kong recruitment materials cite service to the Hong Kong government market and construction workers | Uniform and safety-workwear suppliers | — |
Non-reflective and non-branded trims
| Product | Description | Target customer | Notes |
|---|---|---|---|
| Heat transfers (non-reflective) | Printed, silicone, glitter and other decorative or branding transfers | Fashion, sportswear and outerwear brands | Sourced via materials and manufacturing-services suppliers |
| Fabrics | Technical and decorative fabrics, including reflective fabrics | Garment makers | 12–13% of revenue (FY2023–FY2024) |
| Woven labels and tapes | Brand labels, jacquard tapes | Brands and factories | — |
| Sewing badges and patches | Embroidered and woven badges, patches | Uniform, fashion, outdoor | — |
| Piping | Decorative and functional edge piping | Outerwear, sportswear | — |
| Zipper pullers | Branded pulls (rubber, silicone, cord) | Outerwear, bags, outdoor gear | — |
| Drawcords and elastics | Cords, toggles, elastic tapes | Sportswear, outerwear | — |
| Webbings | Narrow-fabric straps | Outdoor gear, bags | Listed in S&P profile |
| Packaging | Garment packaging accessories | Brands | Listed in S&P profile |
| Construction products | Products for the construction sector | Construction | Listed in S&P profile; scope not detailed |
Services (bundled; not separately priced)
| Service | Description |
|---|---|
| Market trend analysis | Advising brands on trim trends for upcoming seasons |
| Product design and development | Co-design of trims and sample development |
| Production management | Coordinating outsourced conversion and manufacturing |
| Quality control | In-house QC team supervising supplier output against brand specifications (FY2025 20-F competitive strengths) |
| Logistics | Delivery via third-party logistics |
Flagship offering: 3M™ Scotchlite™-based reflective heat transfers and converted trims for global sportswear and outerwear brands. Named brand customers are not publicly disclosed.
Financial Narrative
Income statement
Source notes for 6.1:
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Revenue through net income: S&P Global via StockAnalysis.com.
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Pre-tax income for FY2022, FY2023 and FY2026 is derived from reported pre-tax margins. FY2024 (US$0.91M) and FY2025 (US$3.17M) are confirmed by Equibles and AlphaQuery.
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FY2022 EPS is shown as US$1.49 by StockAnalysis and US$1.43 by ROIC.ai; FY2023 as US$2.22 versus US$2.12. The discrepancy likely reflects weighted-share differences.
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FY2026 EPS of US$0.77 is an aggregator TTM diluted figure (Edgen) and is not confirmed from the 20-F.
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Dividends are from the FY2025 20-F.
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Annual EBITDA is not reported by the company. Only H1 EBITDA is disclosed (see 6.6).
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FY2025 consolidated net income including the non-controlling interest is shown by AlphaQuery as US$2.51M, against US$2.59M attributable.
Source: StockAnalysis.com. ROIC.ai shows a FY2026 operating margin of 8.33%, a source conflict.
Revenue CAGR.
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FY2022 to FY2026, four years: about 2.5% per year (derived).
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FY2021 to FY2026, using ROIC.ai's FY2021 revenue of about US$24M: about 12% per year (derived). FY2021 is aggregator data only.
FY2022 versus FY2023 revenue. Two aggregator datasets report an identical US$38.29M for both years. The geographic splits sum to US$38.30M in both years, while gross profit differs (US$8.86M versus US$10.04M). The analyst treats the coincidence as genuine but recommends a check against the F-1 audited statements.
Commentary: drivers and inflections
FY2022 (+62.8%). This was a post-COVID restocking boom. Brands rebuilt sportswear and outerwear inventories, and J-Long earned a 14.4% operating margin on a lean cost base.
FY2023 (flat revenue, record profit). Revenue held at about US$38.3M. Gross margin expanded 3.1 points and pre-tax income was lifted by non-operating gains (pre-tax margin of 20.3% versus 16.3% operating). Net income peaked at US$6.66M. The founders took US$2.42M of dividends.
FY2024 (-25.9%). This was the destocking year. The FY2024 20-F MD&A attributes the decline mainly to customers cutting orders while they worked through existing inventory. Revenue to Hong Kong, China and non-Asian markets all fell, a combined decline of about US$9.9M.
Operating income collapsed to US$0.38M as fixed costs, including new listing costs, met lower volume. The IPO (US$7.0M gross) and the US$6.0M special dividend were nearly offsetting capital events in the same quarter. Most of the dividend went to the pre-IPO holders, and US$3.9M of it was settled against shareholder receivables.
FY2025 (+37.7%). Demand recovered. Gross margin rose to 28.8% and operating income rebuilt to US$2.40M. Operating cash flow was exceptional at US$7.23M, helped by a US$1.4M inventory release and a US$1.2M rise in payables.
FY2026 (+8.1%). The year had two very different halves:
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H1 revenue rose 19.3% to US$22.7M.
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H2 revenue fell about 2.6%: US$19.53M against US$20.06M in H2 FY2025 (derived).
Gross margin reached a five-year high of 34.0%. Operating margin, however, rose only to 7.0% because selling, general and administrative costs jumped. The jump was driven by about US$0.96M of share-based awards to five individuals in H1 and by roughly doubled selling and marketing spend. Net income rose only 6.6% to US$2.77M.
The quality of growth is mixed. Pricing and mix power is evident in the gross margin, but it is being absorbed by stock compensation and commercial investment.
Balance sheet
Source notes for 6.3:
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Balance sheet lines: StockAnalysis.com (S&P Global).
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FY2025 equity and working capital: company H1 FY2026 release (March 31, 2025 audited comparative).
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Equity for FY2022–FY2024 and FY2026, and working capital for FY2022–FY2024 and FY2026, are ROIC.ai rounded figures.
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Goodwill and intangibles are inferred as nil because tangible book value per share equals book value per share in ROIC.ai data.
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The FY2025 short-term debt of US$0.20M corresponds to a related-party loan in the company balance sheet.
Commentary. The balance sheet is clean and net-cash, with no goodwill. Cash rose from US$4.2M after the special dividend in FY2024 to US$14.7M by FY2026.
Total debt including leases rose from US$2.61M to US$4.63M in FY2026. Most of the increase is lease liabilities, consistent with the right-of-use asset rising from US$0.98M to US$1.53M by September 2025 and with the headquarters move.
A notable feature is the size of trade payables owed to related parties: US$2.30M of US$4.27M total payables at March 31, 2025. This points to sourcing from founder-affiliated suppliers or landlords.
Cash flow
Source notes for 6.4:
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OCF, capex and FCF: StockAnalysis.com.
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Dividends: FY2025 20-F. For FY2024, US$1.68M was paid in cash in FY2024, US$3.92M was settled by offset and US$0.40M was paid in April 2024 (FY2025).
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Treasury shares: FY2026 20-F cover.
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Buyback cash cost: US$0.245M as of September 30, 2025 per the H1 FY2026 balance sheet. The full-year FY2026 cash cost is not publicly disclosed in the sources reviewed.
Commentary. Cash generation is lumpy and driven by working capital. FY2024 was negative, as inventory built ahead of the demand slump unwound slowly. FY2025 benefited from inventory release.
FY2026 operating cash flow of US$3.9M was about 1.4x net income. That is respectable given inventory rebuilt by US$1.2M. Capex has stepped up from under US$0.2M a year to US$0.7–1.0M, consistent with the Vietnam build-out and new office fit-out, but remains small.
Capital returns have shifted from dividends, which were concentrated in founders' hands before the IPO, to buybacks of Class A shares. Buybacks mechanically increase the founders' economic share.
Ratios
Source notes for 6.5:
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ROE and ROIC: ROIC.ai.
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ROA, debt/equity, asset turnover and cash conversion cycle: derived from the balance sheet and income statement above, using average balances.
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Current ratio for FY2025 from company balance sheet (18.98 / 7.09). The H1 FY2026 current ratio was 2.8x per the company.
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Net debt/EBITDA is not meaningful because the company is in a net cash position. Interest coverage was about 42x in H1 FY2025 and about 70x in H1 FY2026, derived from operating income over interest expense.
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Dividend.watch reports a debt/equity of 0.18x and interest coverage of 180.5x on a TTM basis, a source conflict.
Cash conversion cycle detail (derived):
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FY2025: about 49 inventory days plus 26 receivable days minus 48 payable days, giving about 27 days.
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FY2026: about 48 inventory days plus 24 receivable days minus 60 payable days, giving about 12 days.
The short cycle reflects significant supplier credit, including from related parties.
Half-year detail (the company reports semi-annually)
Source: company H1 FY2026 release (December 23, 2025), unaudited.
Source: derived as full year (StockAnalysis.com) minus H1 (company releases).
Commentary. Profits are heavily H1-weighted. H1 covers April to September, when autumn/winter and outerwear trims are ordered. In both FY2025 and FY2026, H2 operating income was close to break-even.
The H2 FY2026 gross margin of about 37% is striking. It suggests mix or pricing gains, possibly including year-end inventory or rebate effects, but it was offset by continued opex growth.
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View Subscription PlansFinancial Detail
Revenue by Segment (%)
| Product category (% of revenue) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Heat transfer products (%) | 69 | 71 | 73 |
Fabric products (%) | 13 | 12 | — |
All other trims (%), derived as remainder | 18 | 17 | — |
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View Subscription PlansRevenue by Segment
| Product category (USD Mn) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Heat transfer products (USD Mn) | 26.42 | 20.15 | 28.48 |
Fabric products (USD Mn) | 4.98 | 3.41 | — |
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View Subscription PlansResults by Segment and Segment Margins & Growth (%)
| Metric | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Total revenue (USD Mn) | 28.38 | 39.08 | 42.23 |
YoY revenue growth (%) | -25.89 | 37.69 | 8.07 |
Gross profit (USD Mn) | 6.80 | 11.26 | 14.34 |
Operating income (USD Mn) | 0.38 | 2.40 | 2.96 |
Operating margin (%) | 1.34 | 6.14 | 7.00 |
Pre-tax income (USD Mn) | 0.91 | 3.17 | 3.60 |
Income Statement and Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Revenue (USD Mn) | 38.29 | 38.29 | 28.38 | 39.08 | 42.23 |
Revenue growth YoY (%) | 62.82 | 0.00 | -25.89 | 37.69 | 8.07 |
Gross profit (USD Mn) | 8.86 | 10.04 | 6.80 | 11.26 | 14.34 |
Operating income (USD Mn) | 5.53 | 6.23 | 0.38 | 2.40 | 2.96 |
Pre-tax income (USD Mn) | 5.36 | 7.75 | 0.91 | 3.17 | 3.60 |
Net income attributable (USD Mn) | 4.48 | 6.66 | 0.78 | 2.59 | 2.77 |
EPS basic (USD, split-adjusted) | 1.49 | 2.22 | 0.26 | 0.80 | 0.77 |
Effective tax rate (%) | 16.35 | 14.16 | 13.93 | 20.74 | 22.00 |
Dividends declared (USD Mn) | — | 2.42 | 6.00 | 0 | 0 |
Dividend per share (USD) | — | — | 1.90 | 0 | 0 |
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View Subscription PlansMargin
| Margin | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Gross margin (%) | 23.13 | 26.22 | 23.95 | 28.81 | 33.96 |
Operating margin (%) | 14.44 | 16.28 | 1.34 | 6.14 | 7.00 |
Pre-tax margin (%) | 14.00 | 20.25 | 3.21 | 8.11 | 8.52 |
Net margin (%) | 11.71 | 17.38 | 2.76 | 6.64 | 6.55 |
Balance Sheet
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Total assets (USD Mn) | 19.29 | 20.61 | 16.89 | 23.45 | 27.97 |
Cash and equivalents (USD Mn) | 7.36 | 5.96 | 4.16 | 10.67 | 14.73 |
Cash and short-term investments (USD Mn) | 7.80 | 6.20 | 4.16 | 10.67 | 14.73 |
Accounts receivable (USD Mn) | 3.05 | 2.10 | 2.38 | 3.10 | 2.50 |
Inventory (USD Mn) | 2.51 | 5.79 | 4.45 | 3.07 | 4.28 |
Total current assets (USD Mn) | 15.76 | 16.72 | 14.28 | 18.98 | 22.92 |
Net PP&E incl. right-of-use (USD Mn) | 3.45 | 2.81 | 2.51 | 4.21 | 4.74 |
Accounts payable (USD Mn) | 7.33 | 5.48 | 3.07 | 4.27 | 4.88 |
Total debt incl. leases (USD Mn) | 4.33 | 3.10 | 2.13 | 2.61 | 4.63 |
Current portion of LT debt (USD Mn) | 1.35 | 0.63 | 0.66 | 0.69 | 0.54 |
Short-term debt (USD Mn) | 0 | 0 | 0 | 0.20 | 0.44 |
Net cash (USD Mn) | 3.57 | 3.18 | 2.09 | 8.07 | 10.15 |
Total equity (USD Mn) | 7 | 11 | 10 | 15.04 | 17 |
Goodwill and intangibles (USD Mn) | 0 | 0 | 0 | 0 | 0 |
Working capital (USD Mn) | 6 | 10 | 9 | 11.89 | 15 |
Financial Analysis
| Item | Amount |
|---|---|
Cash | US$11.36M |
Total assets | US$25.66M |
Total liabilities | US$8.63M |
Equity | US$17.04M |
Bank loans | US$1.05M (current 0.70, non-current 0.35) |
Loans from related parties | US$0.43M |
Accounts payable to related parties | US$1.78M |
Current ratio | 2.8x |
Gearing (bank loans / equity) | 6.2% |
Cash Flow and Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Operating cash flow (USD Mn) | 5.66 | 1.96 | -1.50 | 7.23 | 3.90 |
Capital expenditure (USD Mn) | 0.08 | 0.05 | 0.20 | 1.02 | 0.69 |
Free cash flow (USD Mn) | 5.58 | 1.91 | -1.70 | 6.20 | 3.21 |
FCF margin (%) | 14.58 | 4.98 | -5.99 | 15.88 | 7.60 |
Dividends paid in cash (USD Mn) | — | — | 1.68 | 0.40 | 0 |
Shares repurchased into treasury (thousand shares) | 0 | 0 | 0 | 0 | 196.5 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
ROE (%) | 71.11 | 72.31 | 7.28 | 20.90 | 17.88 |
ROIC (%) | 44.70 | 41.63 | 3.91 | 14.01 | 14.09 |
ROA (%) | — | 33.4 | 4.2 | 12.8 | 10.8 |
Current ratio (x) | — | — | — | 2.68 | — |
Debt / equity (x) | 0.62 | 0.28 | 0.21 | 0.17 | 0.27 |
Asset turnover (x) | — | 1.92 | 1.51 | 1.94 | 1.64 |
Cash conversion cycle (days) | — | — | — | 27 | 12 |
Income Statement and Margin Analysis (%) (H1FY2025–H1FY2026)
| Metric | H1FY2025 | H1FY2026 |
|---|---|---|
Revenue (USD Mn) | 19.02 | 22.70 |
Gross profit (USD Mn) | 5.29 | 7.08 |
Gross margin (%) | 27.8 | 31.2 |
Selling and marketing (USD Mn) | 0.92 | 1.98 |
General and administrative (USD Mn) | 1.98 | 2.64 |
Income from operations (USD Mn) | 2.39 | 2.46 |
Other income, net (USD Mn) | 0.39 | 0.52 |
Pre-tax income (USD Mn) | 2.78 | 2.98 |
Income tax (USD Mn) | 0.47 | 0.68 |
Net income attributable to ordinary shareholders (USD Mn) | 2.31 | 2.30 |
EBITDA (USD Mn) | 2.81 | 2.98 |
Share-based awards (USD Mn) | 0 | 0.96 |
Adjusted EBITDA (USD Mn) | 2.81 | 3.94 |
EPS basic and diluted (USD) | 0.74 | 0.62 |
Weighted average shares (M) | 3.14 | 3.76 |
Income Statement and Margin Analysis (%) (H2FY2025–H2FY2026)
| Derived H2 metric | H2FY2025 | H2FY2026 |
|---|---|---|
Revenue (USD Mn) | 20.06 | 19.53 |
Gross profit (USD Mn) | 5.97 | 7.26 |
Gross margin (%) | 29.8 | 37.2 |
Operating income (USD Mn) | 0.01 | 0.50 |
Net income (USD Mn) | 0.28 | 0.47 |
Revenue by Region
| Region (USD Mn) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Asia excl. Hong Kong and China (USD Mn) | 13.68 | 13.62 | 12.48 | 13.35 | 17.89 |
Hong Kong (USD Mn) | 14.82 | 12.54 | 8.12 | 9.72 | 8.14 |
China (USD Mn) | 5.10 | 3.90 | 2.77 | 7.76 | 7.06 |
Non-Asia (USD Mn) | 4.70 | 8.24 | 5.01 | 8.25 | 9.14 |
Total (USD Mn) | 38.30 | 38.30 | 28.38 | 39.08 | 42.23 |
Region growth YoY (%)
| Region growth YoY (%) | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
Asia excl. HK and China (%) | -0.4 | -8.4 | 7.0 | 34.0 |
Hong Kong (%) | -15.4 | -35.2 | 19.7 | -16.3 |
China (%) | -23.5 | -29.0 | 180.1 | -9.0 |
Non-Asia (%) | 75.3 | -39.2 | 64.7 | 10.8 |
Region share of revenue (%)
| Region share of revenue (%) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Asia excl. HK and China (%) | 35.7 | 35.6 | 44.0 | 34.2 | 42.4 |
Hong Kong (%) | 38.7 | 32.7 | 28.6 | 24.9 | 19.3 |
China (%) | 13.3 | 10.2 | 9.8 | 19.9 | 16.7 |
Non-Asia (%) | 12.3 | 21.5 | 17.7 | 21.1 | 21.6 |
Share Price History
| Date | Price (USD) | Note | Source |
|---|---|---|---|
January 24, 2024 | 50.00 | IPO price of US$5.00 pre-split, equal to US$50.00 post 1-for-10 split (derived) | Renaissance Capital |
January 1, 2025 | 3.66 | Start of calendar 2025 | MarketBeat |
July 18, 2025 | 6.43 | — | MarketBeat |
January 26, 2026 | 3.42 | — | Trendlyne |
February 20, 2026 | 4.19 | — | iocharts |
June 5, 2026 | 6.32 | +46% day | Quantisnow |
June 26, 2026 | 5.38 | — | Edgen |
August 14, 2026 | 4.80 | — | StockAnalysis |
September 18, 2026 | 4.60 | Latest verified close | StockAnalysis |
Performance metric | Value | — | — |
52-week range (as of September 2026) | US$1.50 – US$8.22 (StockAnalysis/Yahoo) | — | — |
Return since IPO (split-adjusted, to September 18, 2026) | About -91% (derived). The 1.4M-share IPO represented only about 4.5% of shares, so the IPO print was set in a very thin float | — | — |
Year to September 2026 (from about US$3.4 in late January) | Roughly +35% (derived, approximate) | — | — |
3-year and 5-year returns | Not applicable (listed January 2024) | — | — |
Valuation Multiples
| Multiple | JL | Basis | Source |
|---|---|---|---|
Market cap | About US$16.4M | 3,565,201 shares | Derived |
Enterprise value | About US$6.3M | Market cap minus net cash of US$10.15M | Derived |
P/E (TTM) | 6.26x | — | StockAnalysis |
P/S | 0.41x | — | StockAnalysis |
P/FCF | 5.39x | — | StockAnalysis |
EV/Sales | About 0.15x | — | Derived |
EV/EBIT | About 2.1x | FY2026 operating income US$2.96M | Derived |
EV/EBITDA | Not computable precisely (annual D&A not disclosed); approaches EV/EBIT given small D&A | — | — |
P/B | About 0.95–1.0x | Equity of about US$17M | Derived. Dividend.watch's 11.7x and Simply Wall St-type 12.7x figures appear to be data errors |
Capital Markets
| Item | Status |
|---|---|
Sell-side coverage / consensus | None. No analysts, no price target (StockAnalysis, MarketBeat) |
Dividend policy | Retain earnings for operations and expansion; no dividends anticipated in the foreseeable future (FY2026 20-F) |
Dividend history | FY2023: about US$2.42M to founders (pre-IPO). February 2024: US$6.0M special (about US$1.90/share), paid March–April 2024. None since |
Buyback authorization | US$5.0M over six months from September 15, 2025. 196,500 Class A shares repurchased into treasury by March 31, 2026. Remaining authorization and extension status not publicly disclosed |
Credit ratings (Moody's / S&P / Fitch) | Not rated |
Debt maturity profile | Bank loans of US$1.05M at September 30, 2025 (US$0.70M due within 12 months, US$0.35M thereafter), plus lease liabilities and US$0.43M related-party loans. |
Analyst Conclusions
Guidance and consensus
There is no quantitative management guidance and no consensus estimates. The last qualitative outlook (December 2025) anticipated continued strong performance. Delivery was mixed: H1 FY2026 revenue rose 19%, while H2 declined about 3% (derived).
Bull case
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Valuation asymmetry. Net cash of US$10.15M covers about 62% of the market cap. The operating business (US$2.96M EBIT, US$3.2M FCF) is therefore priced at an EV of about US$6M, around 2x EBIT.
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Margin structure has improved. Gross margin rose about 10 points in two years (24.0% to 34.0%). If the share-based award step-up (about US$1M) does not recur, operating margin could move toward 9–10% on flat sales. Analyst sensitivity: the FY2026 operating margin of 7.0% plus about 2.3 points of non-recurring stock compensation equals about 9.3%.
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Structural growth in Southeast Asia. The "Asia excluding Hong Kong and China" region grew 34% in FY2026 to US$17.9M. The Vietnam subsidiary positions J-Long on the right side of the China+1 sourcing shift.
Bear case
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Single-licensor fragility. Most products depend on one U.S. licensor. Any change in 3M's channel strategy, pricing or authorization would hit the core of the franchise, and no contractual protections are disclosed.
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Minority shareholders are structurally subordinated. About 97% of votes sit with the founders. Material related-party flows exist (payables, leases, loans). There is a history of dividends routed to founders and settled by offset. The board declared an EGM invalid in 2025. Value creation may not accrue pro rata to Class A holders.
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Low-quality earnings momentum. Growth decelerated sharply in H2 FY2026. H2 operating profit is structurally near zero. Opex is rising faster than revenue: H1 FY2026 S&M +116%, G&A +33%. FY2024 showed that one destocking cycle can erase about 94% of operating income.
Catalysts and monitorables (next 12 months)
| Item | Expected timing |
|---|---|
| H1 FY2027 results (six months to September 30, 2026); first test of whether H1 FY2026's growth persists | About December 2026 |
| Buyback: extension or renewal of the US$5M program, and the cumulative execution figure | Any time |
| Any change to the 3M authorization or new reflective brand partnerships | Any time |
| JLVN scale-up disclosures: revenue, headcount, capex | FY2027 20-F |
| U.S. tariff developments affecting Hong Kong/China-routed apparel, and the resulting China and Hong Kong revenue trend | Ongoing |
| Related-party balances and any further dual-class or capital-structure actions | Each filing |
| Recurrence of share-based awards in FY2027 opex | H1 FY2027 |
| Nasdaq listing-standard compliance (bid price above US$1, market value of publicly held shares) | Ongoing |
| Any first use of IPO proceeds for acquisitions | Any time |
Analyst verdict
J-Long Group is a small but real business. It is a profitable, cash-generative, asset-light trims specialist whose franchise rests on a quarter-century authorized relationship with 3M's Scotchlite reflective platform and on design-in ties with sportswear and outerwear brands.
The fundamental trajectory since the FY2024 destocking trough is positive:
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Revenue recovered to a record US$42.2M in FY2026.
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Gross margin reached 34%.
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Net cash nearly quintupled from US$2.1M to US$10.2M.
The geographic mix is migrating toward Southeast Asia, where apparel production is moving. On the numbers alone, an EV of about US$6M for roughly US$3M of EBIT looks anomalously cheap.
The numbers are not the whole story. The discount is not irrational. It reflects four compounding risks:
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Dependence on one licensor and supplier the company does not control.
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Revenue that is order-driven and has proven cyclical, with operating income near zero in two consecutive second halves.
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A governance regime that minority investors must underwrite: father/son leadership, 20-vote founder shares carrying about 97% of votes, material related-party trade and lending, a pre-IPO dividend history favoring insiders, and a 2025 EGM irregularity.
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Domicile and listing risks attached to Hong Kong-based Nasdaq micro-caps, made worse by very thin liquidity and episodic price spikes.
On balance, JL screens as a deep-value, high-governance-risk special situation rather than a quality compounder. A constructive stance requires evidence on three fronts:
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FY2027 H1 results showing that the FY2026 gross-margin gains are durable and that opex growth normalizes once stock awards stop.
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Capital allocation that treats the US$14.7M cash pile as belonging to all shareholders, through executed buybacks or transparent M&A.
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Shrinking related-party balances.
Absent those, the net-cash cushion limits downside, but there is little mechanism to close the valuation gap. The analyst's stance is neutral, with an asymmetric watch-list status. Re-rating catalysts are identifiable but depend on governance behavior that the structure does not compel.
Primary sources consulted: J-Long Group Forms 20-F for FY2024 (SEC accession 0001013762-24-003327), FY2025 (0001213900-25-068049, filed July 28, 2025) and FY2026 (0001213900-26-082287); Forms F-1/A (2023) and 424B4 (January 2024); Forms 6-K and GlobeNewswire releases dated March 25, 2024, February 21, 2025, August 1, 2025, August 2025 (EGM), September 2025 (buyback) and December 23, 2025.
Secondary sources: Renaissance Capital IPO notes (October 19, 2023; January 24, 2024); S&P Global Market Intelligence data via StockAnalysis.com (financials, geography, valuation; data last updated July 28, 2026); ROIC.ai; AlphaQuery; Barchart; Equibles; Edgen; Simply Wall St; MarketBeat; TipRanks; Stock Titan (6-K and 13G summaries); Benzinga; Yahoo Finance; Morningstar; Trendlyne; Quantisnow; CTgoodjobs (JLHK recruitment listing).
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Title | Age (FY2026 20-F) | Tenure | Background | Source |
|---|---|---|---|---|---|
Danny Tze Ching Wong | Chairman of the Board (executive director) | 69 | Chairman since July 2022; founder of JLHK | More than 35 years in apparel, specializing in reflective and non-reflective trims. Founded and was managing director of JLHK, one of the first authorized 3M Scotchlite distributors in Asia Pacific. Father of the CEO | FY2026 20-F |
Edwin Chun Yin Wong | Executive Director and CEO | 38 | CEO and director since July 2022; JLHK director since June 2012 | BBA, University of Southern California Marshall School of Business (January 2009). Son of the Chairman | FY2026 20-F |
Terence Chung Sing Mak | Chief Financial Officer | 37 | Since August 1, 2025 | SFC-licensed corporate finance and asset management professional. Director and responsible officer at Apastron Capital (2018–2019, IPO advisory); executive director at Yango International Capital (2021–2022); director at China Ease Capital (2022–2023); director and responsible officer (Type 6) at Sprout Asset Management (Asia) since 2024. No family relationship with directors | 6-K, August 1, 2025; FY2026 20-F |
Wai Ha Tang | Former CFO | 62 (FY2025 20-F) | December 2022 – August 31, 2025 | Former group CFO of Vershold Group (2017–2019); executive director and CFO of Aquales International (2015–2017); CFO, company secretary and COO of Native Union (2012–2015). Auditor and advisor experience in China, UK, Vietnam and Cambodia | F-1/A; FY2025 20-F; 6-K |
Pun Yiu Candy Alice | Independent director; Audit Committee Chair | — | Appointed on the resignation of Suen To Wai (date not confirmed) | More than 14 years in finance and accounting | TipRanks 6-K summary |
Suen To Wai | Former independent director; former Audit Committee Chair | — | Resigned for personal reasons; the company stated there was no disagreement | — | TipRanks 6-K summary |
Two further independent non-executive directors | INEDs | — | — | — | FY2026 20-F states 3 INEDs |
“—” = not publicly disclosed.
Directors' Remuneration
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
CEO total compensation (USD K) | 61 | 850 | 928 |
CEO salary (USD K) | 59 | 464 | 668 |
Major Shareholders
| Holder | Shares | Class | Approx. % economic (of 3,565,201) | Approx. % voting | Source |
|---|---|---|---|---|---|
Danny Tze Ching Wong | 1,809,000 | Class B (20 votes) | 50.7 | 82.9 | 6-K, August 2025; derived |
Edwin Chun Yin Wong | 300,000 | Class B (20 votes) | 8.4 | 13.7 | 6-K, August 2025; derived |
GTS Securities LLC / Patrick J. Romanello | 511,167 | Class A | 14.3 | 1.2 | Schedule 13G/13G-A, 2026 |
Susquehanna International Group | 14,166 | Class A | 0.4 | 0.03 | 13F, February 17, 2026 |
Treasury (excluded from outstanding) | 196,500 | Class A | — | — | FY2026 20-F |
Governance Overview
| Item (USD) | March 31, 2025 | September 30, 2025 |
|---|---|---|
Accounts payable to related parties | 2,302,962 | 1,779,196 |
Operating lease liabilities to related parties (current + non-current) | 273,184 | 149,188 |
Loans from related parties | 200,000 | 429,175 |
Due from related parties | 4,634 | 0 |
Competitive Landscape
Key Competitors
| Competitor | HQ | Overlap with JL | Approx. scale (latest FY, indicative) | Relative positioning |
|---|---|---|---|---|
3M (Safety and Industrial; Scotchlite) | USA | Supplier/licensor, but also sells reflective materials through other authorized converters | Group sales of about US$24–25B (2024) | Controls the brand and technology; JL is one of its channel partners |
Avery Dennison (Retail Branding and Information Solutions; heat transfers, labels, embellishments) | USA | Heat transfers, woven labels, brand embellishments | Group sales of about US$8.8B (2024) | Global scale leader in apparel labels and transfers |
ORAFOL (Oralite reflective) | Germany | Reflective films and fabrics | Private; not disclosed | Alternative reflective brand |
Nippon Carbide Industries (Nikkalite) | Japan | Reflective sheeting and fabrics | — | Alternative reflective brand |
Zhejiang Daoming Optics & Chemical | China | Retroreflective materials | — | Low-cost Chinese reflective producer |
Zhejiang Yeshili / other Chinese reflective makers | China | Reflective tapes and transfers | Private | Price competition |
Reflomax | South Korea | Reflective fabrics and transfers | Private | Regional competitor |
Coats Group | UK | Threads, zips, trims for the same brand base | Revenue of about US$1.5B (2024) | Global trims platform |
YKK | Japan | Zippers and pullers | Private group; very large | Dominant in zippers |
SML Group | Hong Kong | Labels, tags, RFID, heat transfers | Private | Direct Hong Kong peer in brand-specified trims |
Trimco Group / regional Hong Kong trims houses | Hong Kong/Global | Labels, transfers, packaging | Private | Direct peers |
Peer Comparison FY2026
| Metric | J-Long (FY2026) | Avery Dennison (2024) | Coats Group (2024) | 3M (2024) |
|---|---|---|---|---|
Revenue | US$42.2M | about US$8.8B | about US$1.5B | about US$24.6B |
Revenue growth | +8.1% | low single digit | low single digit | about flat (organic) |
Gross margin | 34.0% | about 29% | about 37% | about 41% |
Operating margin | 7.0% | about 13% | about 15% (adjusted) | about 20% (adjusted) |
R&D intensity | — | about 1–2% | — | about 5–6% |
“—” = not publicly disclosed.
