National Electronics Holdings (0213) AI Stock Analysis

• Market Cap: HK$356.55M
• Dividend Yield: 1.47%
• Average Volume (3M): 60.15K
• Price to Earnings (P/E): 3.8
• Beta (1Y): 0.21
• Revenue Growth: -4.32%
• EPS Growth: 127.77%
• Country: HK
• Employees: 200
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 0.03
• Shares Outstanding: 914,222,960
• 10 Day Avg. Volume: 63,900
• 30 Day Avg. Volume: 60,149
• PEG Ratio: 0.03
• Price to Book (P/B): 0.14
• Price to Sales (P/S): 0.74
• P/FCF Ratio: -0.89
• 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: 45 Neutral
• Price Target: HK$0.38 ▲(5.56% Upside)
• Action: Reiterated Date: 11/07/25
• Date: Action: Reiterated 11/07/25

The overall stock score reflects significant financial challenges, including declining revenue and high leverage, which are the most impactful factors. Technical indicators suggest a bearish trend, though the stock may be oversold. The valuation is relatively attractive, offering potential upside if financial stability improves.

Positive Factors

High reported profit margins

Sustained gross (25.29%) and net (18.69%) margins imply the company retains pricing power or cost control in its luxury segment. Durable margins provide a buffer against revenue volatility, supporting cash generation and reinvestment capacity if revenue stabilizes or recovers over months.

Free cash flow covers net income

FCF slightly above net income indicates the business can convert reported profits into cash at current levels, a durable sign of underlying cash conversion ability. If sustained, this supports operational funding, reduces reliance on external financing, and underpins medium-term stability.

Low historical volatility / lean workforce

A low beta (~0.21) signals historically lower stock volatility and potentially steadier operational performance. Combined with a small employee base (200), this suggests lean operations and controllable fixed costs, which can help preserve margins and execute restructuring or strategic adjustments over months.

Negative Factors

Declining revenue trend

A multi-period revenue decline (latest year -10.35%, recent revenue growth -4.32%) indicates shrinking market traction or volume. Over 2–6 months this compresses scale benefits, limits cross-selling, and makes sustaining fixed-cost-intensive margins more difficult absent a credible top-line recovery plan.

High leverage and limited equity buffer

A D/E of 2.20 and low equity ratio (27.12%) reflect significant leverage that reduces financial flexibility. High leverage heightens refinancing and interest-rate risk and limits ability to fund working capital or capex internally, constraining strategic moves and increasing vulnerability to shocks.

Negative operating and free cash flows

Persistent negative operating and free cash flows show the core business currently fails to produce sufficient cash. This structural cash shortfall forces reliance on financing or non-operational sources, undermining sustainability and increasing default or restructuring risk over the medium term.

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.

National Electronics Holdings Financial Statement Overview

Summary

The company shows mixed financial performance with strong profit margins but declining revenue and high leverage. Cash flow challenges are evident due to negative operating and free cash flows, indicating 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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	502.31M	578.22M	501.31M	694.56M	1.44B
Gross Profit	127.02M	120.93M	107.80M	87.82M	160.60M
EBITDA	294.59M	280.49M	9.61M	96.69M	223.66M
Net Income	93.90M	41.13M	48.87M	91.36M	116.26M
Balance Sheet
Total Assets	9.51B	8.58B	8.51B	8.34B	7.36B
Cash, Cash Equivalents and Short-Term Investments	316.00M	568.33M	1.00B	1.30B	1.33B
Total Debt	5.67B	4.94B	4.91B	4.70B	4.14B
Total Liabilities	6.93B	6.03B	5.96B	5.72B	4.80B
Stockholders Equity	2.58B	2.55B	2.54B	2.62B	2.56B
Cash Flow
Free Cash Flow	-415.64M	-229.32M	-291.20M	-369.58M	529.59M
Operating Cash Flow	-405.37M	-220.81M	-289.59M	-368.36M	534.93M
Investing Cash Flow	32.27M	115.75M	-155.69M	-69.65M	-396.79M
Financing Cash Flow	437.45M	-275.74M	167.74M	451.12M	-81.06M

National Electronics Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 0.36 is below the 20-day moving average (MA) of 0.39, below the 50-day MA of 0.38, and below the 200-day MA of 0.37, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.65 is Neutral, neither overbought nor oversold. The STOCH value of 14.29 is Positive, 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
0280	73 Outperform	HK$472.84M	2.83	11.02%	6.00%	14.52%	15.74%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8026	59 Neutral	HK$463.84M	42.17	2.84%	―	-1.93%	―
0789	51 Neutral	HK$450.15M	-91.13	2.72%	―	60.75%	-63.30%
3389	50 Neutral	HK$832.36M	4.39	-1.15%	―	-41.44%	-209.76%
0213	45 Neutral	HK$356.55M	3.84	3.69%	1.47%	-4.32%	127.77%
1856	45 Neutral	HK$601.63M	-3.93	-65.71%	―	-20.65%	-616.18%