Stelux Holdings International Limited (0084) AI Stock Analysis

• Market Cap: HK$80.45M
• Dividend Yield: N/A
• Average Volume (3M): 60.82K
• Price to Earnings (P/E): 0.2
• Beta (1Y): 0.42
• Revenue Growth: -8.35%
• EPS Growth: N/A
• Country: HK
• Employees: 685
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Luxury Goods
• EPS (TTM): 0.43
• Shares Outstanding: 1,044,758,000
• 10 Day Avg. Volume: 41,350
• 30 Day Avg. Volume: 60,819
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Stelux Holdings International Limited displays strengths in profitability improvements, but is challenged by declining revenue and cash flow issues. Technical analysis indicates neutral to positive momentum, while an extremely low P/E ratio suggests undervaluation. The absence of a dividend yield and earnings call data provides limited guidance for future outlook.

Stelux Holdings International Limited Business Overview & Revenue Model

Company Description

Stelux Holdings International Limited (0084) is a Hong Kong-based investment holding company primarily engaged in the retail and wholesale of watches and optical products. The company operates through two main segments: the Watch Retail segment and the Optical Retail segment. It is known for its Time City and Optical 88 retail chains, which are prominent in the Asia-Pacific region. Stelux Holdings is dedicated to providing a wide range of high-quality products, catering to various consumer needs in the lifestyle and luxury sectors.

How the Company Makes Money

Stelux Holdings International Limited generates revenue primarily through its two key segments: Watch Retail and Optical Retail. The Watch Retail segment earns money by selling a variety of branded watches through its retail chain, Time City, which is strategically located in high-traffic shopping areas. Similarly, the Optical Retail segment operates under the Optical 88 brand, offering eyewear products, including prescription glasses, sunglasses, and related accessories. The company benefits from a broad network of retail outlets across the Asia-Pacific region, which enhances its market reach and customer base. Additionally, Stelux Holdings may engage in partnerships with well-known international brands to expand its product offerings and attract more customers. The company also leverages its established brand reputation and retail expertise to maintain competitive pricing and customer loyalty, contributing to its overall earnings.

Stelux Holdings International Limited Financial Statement Overview

Summary

Stelux Holdings International Limited shows progress in profitability metrics, with improvements in net income and margins. However, revenue decline and cash flow challenges present risks. The company has reduced leverage but still carries a relatively high debt level.

Income Statement

The company has shown improvement in its EBIT and EBITDA margins over the years, with EBITDA turning positive recently. The net profit margin has also improved significantly, moving from negative to a positive 61.64% in the most recent year. However, the revenue growth rate has been negative recently, indicating a decline in sales.

Balance Sheet

The debt-to-equity ratio has improved, indicating reduced leverage, but remains relatively high, suggesting potential financial risk. The company's ROE has turned positive, showing profitable use of equity. The equity ratio is stable, indicating a solid equity base relative to assets.

Cash Flow

The operating cash flow to net income ratio has been volatile, with recent negative operating cash flow raising concerns. Free cash flow has decreased, but the company has managed to reduce capital expenditures. The free cash flow to net income ratio is negative, highlighting cash flow challenges.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
767.56M	805.45M	692.51M	706.27M	1.03B
	Gross Profit
385.67M	365.14M	323.74M	324.73M	505.39M
	EBIT
-17.31M	-42.08M	-71.49M	-103.41M	-216.47M
	EBITDA
595.82M	155.33M	28.98M	109.05M	-83.67M
	Net Income Common Stockholders
473.15M	50.80M	-106.72M	-81.89M	-402.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
67.71M	85.43M	112.12M	170.34M	181.59M
	Total Assets
1.43B	1.06B	1.18B	1.36B	1.71B
	Total Debt
347.18M	435.62M	564.90M	669.32M	947.01M
	Net Debt
279.47M	350.19M	452.78M	498.97M	765.41M
	Total Liabilities
516.34M	633.06M	797.28M	863.24M	1.17B
	Stockholders Equity
906.58M	424.05M	378.15M	487.52M	530.45M
Cash Flow		Free Cash Flow
-31.02M	54.36M	83.33M	181.47M	149.49M
	Operating Cash Flow
-593.00K	61.58M	92.45M	185.62M	160.94M
	Investing Cash Flow
147.25M	112.85M	-9.11M	104.07M	-10.55M
	Financing Cash Flow
-174.10M	-198.46M	-138.31M	-330.51M	-229.12M

Stelux Holdings International Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0084, the sentiment is Positive. The current price of 0.08 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.08, and below the 200-day MA of 0.08, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.26 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0084.

Stelux Holdings International Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0590	78 Outperform	HK$10.49B	8.33	9.79%	6.29%	-4.33%	-19.79%
0331	78 Outperform	HK$2.49B	5.20	49.10%	7.69%	3.11%	-2.34%
1910	69 Neutral	$19.83B	7.86	23.28%	5.67%	-2.87%	-18.65%
1177	66 Neutral	HK$70.68B	37.23	6.14%	1.49%	7.63%	-24.23%
Sector *	61 Neutral	$6.59B	11.77	3.06%	3.98%	2.56%	-20.85%
0084	60 Neutral	HK$80.45M	0.18	70.23%	―	-8.35%	―

Stelux Holdings International Limited Corporate Events

Stelux Holdings Announces New Tenancy and Service Agreements

Stelux Holdings International Limited has announced new tenancy and service agreements involving its subsidiaries and connected parties. These agreements, which include leasing office spaces and renewing service provisions, are classified as continuing connected transactions under Hong Kong’s Listing Rules. The transactions are subject to specific reporting and review requirements but are exempt from the need for circulars and shareholder approval due to their financial scale.

Stelux Holdings Ceases Mainland China Operations Amid Strategic Shift

Stelux Holdings International Limited has announced the cessation of its business operations in Mainland China, where it currently operates five retail stores and online platforms, due to unprofitability in recent years and a 22.4% year-over-year decrease in retail sales. The company, which derives only 3% of its total revenue from Mainland China, will focus on strengthening its core operations in Hong Kong, Macau, and Southeast Asia, while exploring new business opportunities.