National Electronics Holdings (0213) AI Stock Analysis

• Market Cap: HK$343.12M
• Dividend Yield: 3.04%
• Average Volume (3M): 134.71K
• Price to Earnings (P/E): 3.7
• Beta (1Y): 0.21
• Revenue Growth: -13.13%
• EPS Growth: 128.79%
• Country: HK
• Employees: 200
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Luxury Goods
• EPS (TTM): 0.08
• Shares Outstanding: 914,998,960
• 10 Day Avg. Volume: 60,374
• 30 Day Avg. Volume: 134,708
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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

• Rating: 54 Neutral
• Price Target: ―

National Electronics Holdings faces significant challenges with its financial performance, particularly in terms of profitability and cash flow, which are concerning. The technical analysis suggests a bearish trend, although the stock appears undervalued with a low P/E ratio and a decent dividend yield. However, liquidity and leverage risks weigh heavily on the overall score.

National Electronics Holdings Business Overview & Revenue Model

Company Description

National Electronics Holdings (0213) is a diversified investment holding company with interests primarily in the electronics manufacturing sector and property development. The company is involved in the design, production, and distribution of electronic consumer products and components, catering to a global clientele. Additionally, the company engages in property development and investment, contributing to its diversified business portfolio.

How the Company Makes Money

National Electronics Holdings generates revenue through several key streams. The primary source of income is its electronics manufacturing segment, where the company designs and produces a range of consumer electronics and components for various industries. This segment generates revenue through both direct sales to end-users and business-to-business transactions with other manufacturers and retailers. Additionally, National Electronics Holdings has a property development and investment division, which contributes to its earnings through the sale and leasing of residential and commercial properties. The company's revenue is further supplemented by strategic partnerships and joint ventures in both its electronics and property sectors, which expand its market reach and enhance its financial performance.

National Electronics Holdings Financial Statement Overview

Summary

National Electronics Holdings shows a mixed financial performance. While there is some improvement in operational efficiency in the income statement, the company faces profitability challenges. The balance sheet is stable but highly leveraged, which could pose future risks. The cash flow statement highlights liquidity issues, with negative operating cash flow and free cash flow, indicating the need for better cash management strategies.

Income Statement

The company has shown a decline in revenue over recent years, with a significant drop from 2021 to 2022 but a slight recovery in 2023. Gross profit margin improved slightly in the latest year to 20.9%, indicating some efficiency in cost management. However, the net profit margin fell to 7.1% in 2024 from 9.7% in 2023, suggesting declining profitability. The EBIT and EBITDA margins have improved in 2024, showing better operational performance compared to negative EBIT in previous years.

Balance Sheet

The company maintains a high debt-to-equity ratio of 1.94, which poses a risk of financial leverage. Return on equity has decreased to 1.6% in 2024 from 1.9% in 2023, reflecting lower profitability. The equity ratio is stable at 29.7%, indicating a reasonable level of equity financing. Overall, the balance sheet shows stability but carries leverage risks.

Cash Flow

The company has faced negative operating cash flow for several years, with a marginal improvement in free cash flow in 2024 compared to 2023. The free cash flow growth rate remains negative, and the operating cash flow to net income ratio is unfavorable, indicating cash efficiency issues. This cash flow position suggests potential liquidity concerns.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	560.26M	578.22M	501.31M	694.56M	1.44B	673.88M
Gross Profit	121.75M	120.93M	107.80M	87.82M	160.60M	114.03M
EBITDA	11.19M	299.10M	9.61M	96.69M	223.66M	211.27M
Net Income	42.23M	41.13M	48.87M	91.36M	116.26M	120.82M
Balance Sheet
Total Assets	9.12B	8.58B	8.51B	8.34B	7.36B	7.16B
Cash, Cash Equivalents and Short-Term Investments	604.83M	568.33M	1.00B	1.30B	1.33B	1.32B
Total Debt	5.39B	4.94B	4.91B	4.70B	4.14B	4.06B
Total Liabilities	6.56B	6.03B	5.96B	5.72B	4.80B	4.75B
Stockholders Equity	2.56B	2.55B	2.54B	2.62B	2.56B	2.40B
Cash Flow
Free Cash Flow	-193.39M	-229.32M	-291.20M	-369.58M	529.59M	-525.17M
Operating Cash Flow	-184.88M	-220.81M	-289.59M	-368.36M	534.93M	-518.44M
Investing Cash Flow	112.60M	115.75M	-155.69M	-69.65M	-396.79M	732.70M
Financing Cash Flow	44.03M	-275.74M	167.74M	451.12M	-81.06M	106.82M

National Electronics Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0213, the sentiment is Positive. The current price of 0.39 is above the 20-day moving average (MA) of 0.39, above the 50-day MA of 0.38, and below the 200-day MA of 0.42, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.68 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0213.

National Electronics Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0175	76 Outperform	$194.03B	11.74	17.07%	1.72%	―	―
Sector *	61 Neutral	$17.23B	11.50	-5.97%	3.09%	1.49%	-16.00%
0213	54 Neutral	HK$343.12M	3.66	3.66%	3.04%	-13.13%	128.79%
0323	54 Neutral	HK$29.90B	―	-17.87%	―	-17.35%	-278.88%
0604	51 Neutral	HK$8.36B	―	-4.50%	9.68%	-1.22%	-596.60%
0711	49 Neutral	HK$803.75M	―	-11.69%	5.01%	3.14%	-480.05%