Stelux Holdings International Limited (0084) AI Stock Analysis

• Market Cap: HK$67.91M
• Dividend Yield: N/A
• Average Volume (3M): 176.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: -13.06%
• EPS Growth: -120.76%
• Country: HK
• Employees: 685
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): -0.04
• Shares Outstanding: 1,044,758,000
• 10 Day Avg. Volume: 264,500
• 30 Day Avg. Volume: 176,843
• PEG Ratio: <0.01
• Price to Book (P/B): 0.08
• Price to Sales (P/S): 0.13
• P/FCF Ratio: 4.64
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: HK$0.09 ▲(22.86% Upside)
• Action: Reiterated Date: 10/31/25
• Date: Action: Reiterated 10/31/25

Stelux Holdings International Limited faces significant financial challenges, with declining revenues and profitability issues being the most impactful factors. Technical analysis also indicates bearish momentum, further weighing down the stock's attractiveness. The negative P/E ratio and lack of dividend yield contribute to a poor valuation score.

Positive Factors

Diversified revenue streams

Stelux's revenue mix—retail, wholesale and licensing—provides structural diversification across channels and income types. Licensing and partnerships can deliver recurring, lower-capex revenue while retail and wholesale offer scale benefits and procurement synergies that support margin resilience over months.

Stable gross profit margin

A relatively stable gross margin indicates product-level profitability remains intact despite top-line pressures. This durability helps preserve core cash generation and gives management time to fix operating leverage and reduce SG&A without immediate margin collapse, supporting medium-term recovery options.

Improving leverage position

An improved debt-to-equity ratio reduces financial risk and interest burden, increasing flexibility for necessary investments or restructuring. Lower leverage strengthens the balance sheet and lengthens the runway to address profitability issues, a structural plus for solvency and strategic options over months.

Negative Factors

Declining revenue trend

A double-digit revenue decline is a durable red flag: shrinking scale reduces fixed-cost absorption, weakens negotiating leverage with suppliers, and limits resources for marketing or store investment. Persistent revenue contraction undermines any quick recovery in operating profitability over the medium term.

Negative profitability metrics

Negative EBIT and net margins alongside a negative ROE signal that core operations are not generating economic returns. This erodes shareholder equity and restricts internal capital formation, forcing trade-offs between reinvestment, cost cutting, and potential external financing needs over the coming quarters.

Weak cash flow conversion

Declining free cash flow growth and poor OCF-to-income conversion reduce liquidity available for inventory, store operations and capex. Even if free cash flow remains positive, worsening conversion increases reliance on external funding and constrains the company's ability to execute turnaround measures reliably.

Stelux Holdings International Limited Business Overview & Revenue Model

Company Description

Stelux Holdings International Limited, an investment holding company, engages in the wholesale and retail of watches. It is involved in the distribution of clocks and watches, including the Seiko and Grand Seiko brands; watch supply chain management activities; manufacture of watch movement related to its house brands, such as Solvil et Titus and CYMA; and operation of online stores under City Chain and Solvil et Titus brands. The company also engages in the property investment, management, and agency activities; and holds trademarks, as well as provides licensing services. It operates in Hong Kong, Macau, Mainland China, Europe, and rest of Asia. Stelux Holdings International Limited was founded in 1963 and is based in San Po Kong, Hong Kong.

How the Company Makes Money

Stelux Holdings generates revenue primarily through the retail and wholesale of eyewear products. Its key revenue streams include sales from its branded retail outlets and online platforms, where it offers a wide range of eyewear products. The company also earns income from licensing agreements and partnerships with other eyewear brands, enhancing its portfolio and market reach. Additionally, Stelux may benefit from economies of scale in procurement and distribution, which can contribute to improved profit margins. Strategic collaborations with optical chains and suppliers further bolster its revenue generation capabilities.

Stelux Holdings International Limited Financial Statement Overview

Summary

Stelux Holdings International Limited is experiencing financial difficulties, with declining revenues and profitability issues. While there are signs of improved leverage, the company continues to face challenges in generating positive returns and cash flow.

Income Statement

Stelux Holdings International Limited has faced declining revenue over the past year, with a significant drop of 12.3% in the latest period. The company is struggling with profitability, as indicated by negative net and EBIT margins. The gross profit margin remains relatively stable, but the overall financial health is impacted by consistent losses.

Balance Sheet

The company's debt-to-equity ratio has improved, indicating a reduction in leverage compared to previous years. However, the return on equity is negative, reflecting ongoing challenges in generating profits from shareholders' equity. The equity ratio suggests a moderate level of financial stability.

Cash Flow

Cash flow performance is weak, with a significant decline in free cash flow growth. The operating cash flow to net income ratio is low, indicating inefficiencies in converting income into cash. Despite these challenges, the company maintains a positive free cash flow to net income ratio.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	609.90M	615.22M	767.56M	805.45M	692.51M	706.27M
Gross Profit	265.56M	280.86M	385.67M	365.14M	323.74M	324.73M
EBITDA	-3.60M	-4.93M	595.82M	155.33M	28.98M	109.05M
Net Income	-92.02M	-107.00M	473.15M	50.80M	-106.72M	-81.89M
Balance Sheet
Total Assets	1.45B	1.43B	1.43B	1.06B	1.18B	1.36B
Cash, Cash Equivalents and Short-Term Investments	90.91M	83.34M	67.71M	85.43M	112.12M	170.34M
Total Debt	315.39M	326.62M	347.18M	435.62M	564.90M	669.32M
Total Liabilities	526.51M	506.70M	516.34M	633.06M	797.28M	863.24M
Stockholders Equity	913.91M	913.23M	906.58M	424.05M	378.15M	487.52M
Cash Flow
Free Cash Flow	69.09M	16.59M	-31.02M	54.36M	83.33M	181.47M
Operating Cash Flow	73.18M	24.79M	-593.00K	61.58M	92.45M	185.62M
Investing Cash Flow	40.11M	54.57M	147.25M	112.85M	-9.11M	104.07M
Financing Cash Flow	-89.73M	-61.75M	-174.10M	-198.46M	-138.31M	-330.51M

Stelux Holdings International Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0084, the sentiment is Negative. The current price of 0.07 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.07, and above the 200-day MA of 0.07, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.23 is Neutral, neither overbought nor oversold. The STOCH value of 14.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
0887	77 Outperform	HK$2.39B	4.06	5.10%	4.05%	6.60%	-14.32%
0280	73 Outperform	HK$463.75M	2.83	11.02%	6.00%	14.52%	15.74%
0398	70 Outperform	HK$1.64B	4.06	10.00%	9.67%	-9.00%	-21.55%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8537	61 Neutral	HK$68.76M	66.32	0.34%	―	22.40%	84.62%
0084	46 Neutral	HK$67.91M	-0.48	-10.19%	―	-13.06%	-120.76%
0444	38 Underperform	HK$60.44M	-0.28	―	―	―	―

Stelux Holdings International Limited Corporate Events

Stelux Clarifies Plan to Use 7.8 Million Treasury Shares for Future Capital Raising

Stelux Holdings International has issued a supplemental announcement to clarify the intended use of 7,839,000 treasury shares it held as at 31 March 2025 and 30 September 2025. The company now states that these treasury shares are earmarked for potential sale from time to time to raise capital, provided the board considers any such transactions to be in the best interests of shareholders and compliant with Hong Kong Listing Rules and the Companies Ordinance. This move signals that Stelux is keeping an additional funding lever available to support its financial and strategic needs, while confirming that all other information in its latest annual and interim reports remains unchanged.

The most recent analyst rating on (HK:0084) stock is a Hold with a HK$0.06 price target. To see the full list of analyst forecasts on Stelux Holdings International Limited stock, see the HK:0084 Stock Forecast page.