National Electronics Holdings (0213) AI Stock Analysis

• Market Cap: HK$338.55M
• Dividend Yield: 1.35%
• Average Volume (3M): 52.19K
• Price to Earnings (P/E): 3.6
• Beta (1Y): 0.22
• Revenue Growth: -13.13%
• EPS Growth: 128.79%
• Country: HK
• Employees: 200
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Luxury Goods
• EPS (TTM): 0.08
• Shares Outstanding: 914,998,960
• 10 Day Avg. Volume: 37,200
• 30 Day Avg. Volume: 52,191
• 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: HK$0.50
• Price Target Upside: 35.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: HK$0.50 ▲(35.14% Upside)

The stock's score is primarily impacted by financial performance concerns, including declining revenue and high leverage. Technical indicators show neutral momentum, while a low P/E ratio suggests potential undervaluation.

National Electronics Holdings Business Overview & Revenue Model

Company Description

National Electronics Holdings Limited, an investment holding company, manufactures, assembles, and sells electronic watches and watch parts in the Hong Kong, People's Republic of China, North America, Europe, and internationally. It operates through Manufacture of Watches and Trading of Watch Movements; Property Development and Investment; and Hotel Operation segments. The company is also involved in trading watch movements, watch parts, and electronic products; and the investment, development, management, leasing, and sale of properties. In addition, it manages and operates hotels. Further, the company manufactures and sells metal and plastic products, and liquid crystal display and quartz analogue watches, as well as electronic products; develops and sells smart watches and wearables; subcontracts electronic products; and provides inspection and liaison services. The company was incorporated in 1989 and is based in Central, Hong Kong.

How the Company Makes Money

National Electronics Holdings generates revenue primarily through the sale of electronic components and consumer electronics. The company operates a multi-faceted revenue model that includes wholesale distribution to retailers and manufacturers, direct sales to consumers through its retail outlets, and contract manufacturing services for third-party brands. Key revenue streams include margins on electronic component sales, service fees from contract manufacturing agreements, and retail sales of consumer electronics. Additionally, strategic partnerships with major electronics brands enhance its product offerings and market reach, contributing to consistent earnings growth.

National Electronics Holdings Financial Statement Overview

Summary

The company shows strong profit margins but faces declining revenue and high leverage, posing financial risks. Negative cash flows further highlight financial instability.

Income Statement

The income statement shows a declining revenue trend with a negative growth rate of -10.35% in the latest year. Despite this, the company maintains a strong gross profit margin of 25.29% and a net profit margin of 18.69%, indicating efficient cost management. However, the EBIT margin is notably high at 55.00%, which may suggest non-operational income or cost adjustments. Overall, the income statement reflects mixed performance with profitability but declining revenue.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.20, indicating significant leverage, which could pose financial risk. The return on equity is modest at 3.64%, suggesting limited efficiency in generating returns from equity. The equity ratio stands at 27.12%, showing a moderate level of equity financing. The balance sheet highlights potential risks due to high leverage, despite stable equity levels.

Cash Flow

The cash flow statement indicates negative operating cash flow and free cash flow, with a significant free cash flow growth of 114.92% due to prior negative values. The operating cash flow to net income ratio is negative, suggesting cash flow challenges. The free cash flow to net income ratio is slightly above 1, indicating that free cash flow covers net income. Overall, the cash flow situation is concerning due to negative cash flows and reliance on non-operational income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	560.26M	502.31M	578.22M	501.31M	694.56M	1.44B
Gross Profit	121.75M	127.02M	120.93M	107.80M	87.82M	160.60M
EBITDA	11.19M	294.59M	299.10M	9.61M	96.69M	223.66M
Net Income	42.23M	93.90M	41.13M	48.87M	91.36M	116.26M
Balance Sheet
Total Assets	9.12B	9.51B	8.58B	8.51B	8.34B	7.36B
Cash, Cash Equivalents and Short-Term Investments	604.83M	316.00M	568.33M	1.00B	1.30B	1.33B
Total Debt	5.39B	5.67B	4.94B	4.91B	4.70B	4.14B
Total Liabilities	6.56B	6.93B	6.03B	5.96B	5.72B	4.80B
Stockholders Equity	2.56B	2.58B	2.55B	2.54B	2.62B	2.56B
Cash Flow
Free Cash Flow	-193.39M	-415.64M	-229.32M	-291.20M	-369.58M	529.59M
Operating Cash Flow	-184.88M	-405.37M	-220.81M	-289.59M	-368.36M	534.93M
Investing Cash Flow	112.60M	32.27M	115.75M	-155.69M	-69.65M	-396.79M
Financing Cash Flow	44.03M	437.45M	-275.74M	167.74M	451.12M	-81.06M

National Electronics Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.37
• 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:0213, the sentiment is Negative. The current price of 0.37 is below the 20-day moving average (MA) of 0.38, below the 50-day MA of 0.38, and below the 200-day MA of 0.40, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.74 is Neutral, neither overbought nor oversold. The STOCH value of 3.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0213.

National Electronics Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0280	80 Outperform	HK$450.11M	5.10	11.22%	11.20%	14.24%	3.63%
Sector *	61 Neutral	$18.02B	12.77	-0.74%	3.01%	1.30%	-13.03%
0213	52 Neutral	HK$338.55M	3.61	3.66%	1.35%	-13.13%	128.79%
HENGF	―	$72.39M	24.00	-1.15%	―	―	―
0789	51 Neutral	HK$410.43M	49.21	5.25%	―	111.72%	1.61%
1856	43 Neutral	HK$443.12M	35.26	-51.81%	―	-20.65%	-616.18%
8026	37 Underperform	HK$566.14M	58.82	3.06%	―	17.66%	―