Tse Sui Luen Jewellery (International) Ltd (0417) AI Stock Analysis

• Market Cap: HK$229.25M
• Dividend Yield: N/A
• Average Volume (3M): 496.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• Revenue Growth: -27.28%
• EPS Growth: 47.40%
• Country: HK
• Employees: 1,325
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): -0.14
• Shares Outstanding: 249,182,040
• 10 Day Avg. Volume: 328,011
• 30 Day Avg. Volume: 496,125
• PEG Ratio: 0.02
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.10
• P/FCF Ratio: 0.83
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: HK$1.00 ▲(8.70% Upside)

The overall stock score of 44 reflects significant financial challenges, particularly in revenue growth and profitability, as well as bearish technical indicators. The negative P/E ratio and lack of dividend yield further weaken the stock's valuation. While there are some improvements in cash flow, the company's high leverage and operational inefficiencies remain major concerns.

Positive Factors

Cash Flow Improvement

Improved cash flow indicates better cash management and operational efficiency, enhancing the company's ability to fund operations and reduce debt.

Revenue Model Diversification

Diversified revenue streams through retail, wholesale, and partnerships provide resilience against market fluctuations and support long-term growth.

Commitment to Craftsmanship

Strong brand reputation for quality and craftsmanship can drive customer loyalty and competitive advantage in the luxury goods market.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, particularly in economic downturns, impacting long-term financial stability.

Negative Profit Margins

Sustained negative profit margins highlight operational inefficiencies and challenge the company's ability to generate sustainable profits.

Declining Revenue Growth

Declining revenue growth suggests challenges in market demand and competitive positioning, potentially impacting long-term business viability.

Tse Sui Luen Jewellery (International) Ltd Business Overview & Revenue Model

Company Description

Tse Sui Luen Jewellery (International) Limited, an investment holding company, manufactures, sells, and markets jewelry products in Hong Kong, Macau, Mainland China, Malaysia, and other countries. It operates through Retail Business, Wholesale Business, E-Business, and Other Businesses segments. The company is also involved in the retail, wholesale, trading, and franchising of jewelry; sells jewelry products through e-commerce platforms; property holding and investment businesses; trademarks holding and investment; and management and administrative services, as well as logistic and supply chain management activities. It operates approximately 480 jewelry boutiques. The company was founded in 1960 and is headquartered in Hung Hom, Hong Kong. Tse Sui Luen Jewellery (International) Limited operates as a subsidiary of Partner Logistics Limited.

How the Company Makes Money

Tse Sui Luen generates revenue primarily through its retail sales of jewellery in both physical stores and online channels. The company employs a multi-channel retail strategy, which allows it to reach a broad customer base. Key revenue streams include the sale of gold and diamond jewellery, which often carries significant markups due to brand reputation and quality craftsmanship. Additionally, Tse Sui Luen may engage in wholesale distribution of jewellery to other retailers, further diversifying its income. The company also benefits from seasonal promotions and special collections, which can drive sales during peak shopping periods. Strategic partnerships with suppliers and collaborations with designers may enhance their product offerings and attract more customers, contributing positively to their earnings.

Tse Sui Luen Jewellery (International) Ltd Financial Statement Overview

Summary

Tse Sui Luen Jewellery (International) Ltd faces significant financial challenges, particularly in revenue growth and profitability. High leverage and negative returns on equity are concerning, though cash flow improvements provide some optimism. The company needs to address operational inefficiencies and improve its financial stability to enhance its overall financial health.

Income Statement

The company has faced significant challenges in maintaining revenue growth, with a notable decline of 21.18% in the latest year. Gross profit margins have decreased over time, and the net profit margin remains negative, indicating ongoing profitability issues. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows high leverage with a debt-to-equity ratio of 2.28, indicating significant reliance on debt financing. Return on equity is negative, highlighting challenges in generating returns for shareholders. The equity ratio is low, suggesting limited financial stability.

Cash Flow

Cash flow performance shows improvement, with a 40.38% growth in free cash flow. The operating cash flow to net income ratio is positive, indicating some ability to convert income into cash. However, the free cash flow to net income ratio suggests that cash generation is still constrained by negative net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.58B	1.71B	2.65B	2.59B	2.77B	2.65B
Gross Profit	514.47M	583.51M	785.66M	908.84M	1.06B	959.72M
EBITDA	-38.25M	-16.63M	-121.90M	168.27M	248.35M	254.56M
Net Income	-189.25M	-197.75M	-374.20M	-71.54M	15.55M	-44.09M
Balance Sheet
Total Assets	1.56B	1.68B	2.36B	2.84B	2.71B	2.53B
Cash, Cash Equivalents and Short-Term Investments	96.44M	129.38M	179.97M	714.50M	737.23M	697.08M
Total Debt	721.03M	806.05M	1.19B	1.33B	1.07B	1.12B
Total Liabilities	1.23B	1.33B	1.81B	1.95B	1.66B	1.59B
Stockholders Equity	333.62M	354.02M	553.73M	894.06M	1.05B	942.21M
Cash Flow
Free Cash Flow	180.50M	210.28M	68.31M	-43.25M	253.94M	338.34M
Operating Cash Flow	190.33M	236.68M	146.04M	86.59M	310.05M	360.56M
Investing Cash Flow	266.84M	212.78M	-5.12M	-132.28M	-94.39M	-79.67M
Financing Cash Flow	-436.27M	-501.01M	-299.49M	58.55M	-250.67M	-248.92M

Tse Sui Luen Jewellery (International) Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.92
• 50DMA: Negative
• 100DMA: Negative
• 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:0417, the sentiment is Negative. The current price of 0.92 is below the 20-day moving average (MA) of 0.98, below the 50-day MA of 1.10, and below the 200-day MA of 0.94, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 36.84 is Neutral, neither overbought nor oversold. The STOCH value of 25.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0417.

Tse Sui Luen Jewellery (International) Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0590	77 Outperform	$14.27B	11.11	9.54%	4.43%	10.89%	2.02%
0887	69 Neutral	HK$1.76B	6.45	5.10%	4.05%	6.60%	-14.32%
1929	64 Neutral	HK$126.47B	21.57	23.74%	4.21%	-9.49%	32.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0116	61 Neutral	HK$8.45B	7.16	9.13%	4.60%	-10.41%	67.25%
1815	57 Neutral	HK$2.95B	43.59	3.54%	―	-23.48%	―
0417	44 Neutral	HK$229.25M	-1.21	-43.66%	―	-27.28%	47.40%

Tse Sui Luen Jewellery (International) Ltd Corporate Events

Tse Sui Luen Jewellery Reports Interim Financial Results with Strategic Adjustments

Tse Sui Luen Jewellery reported a decline in turnover and an increase in operational losses for the six months ending September 2025. Despite the financial downturn, the company achieved significant cost savings and improved same-store sales growth. The company is focusing on operational efficiency through shop closures and enhancing its product assortment towards 24-karat gold. Additionally, the franchised store network continues to grow, and banking facilities have been extended for three more years, indicating a strategic effort to stabilize and improve financial performance.

Tse Sui Luen Jewellery Secures Three-Year Extension of HK$496 Million Facilities Agreement

Tse Sui Luen Jewellery (International) Ltd has successfully extended its Facilities Agreement with Hang Seng Bank Limited, securing HK$496 million in extended facilities for an additional three years. This agreement provides the company with increased financial flexibility, reduced financing costs, and aligns with its strategic business transformation, reinforcing confidence in its operational stability and long-term prospects. The agreement also includes specific performance covenants related to the control and ownership by the Tse family, and imposes restrictions on dividend and capital distribution to preserve capital within the group.

Tse Sui Luen Jewellery to Review Interim Results and Dividend

Tse Sui Luen Jewellery (International) Ltd has announced that its board of directors will hold a meeting on November 18, 2025, to review and approve the unaudited interim results for the six months ending September 30, 2025. The meeting will also consider the possibility of declaring an interim dividend, which could impact the company’s financial strategy and shareholder returns.

Tse Sui Luen Jewellery Announces Key Leadership Changes

Tse Sui Luen Jewellery (International) Ltd announced a change in its company secretary and authorized representative roles, effective November 4, 2025. Ms. Chang Hang Yee Florence and Mr. Alex Chan have resigned from their respective positions, with Mr. Wong Ying Kit appointed as the new company secretary and authorized representative. Mr. Wong brings over 23 years of experience in auditing, accounting, and company secretarial fields, which is expected to support the company’s governance and operational efficiency. The board expressed gratitude to the outgoing members and welcomed Mr. Wong, indicating a smooth transition with no disagreements reported.

Leadership Changes at Tse Sui Luen Jewellery

Tse Sui Luen Jewellery announced the resignation of Mr. Yeung Yuk Lun from his roles as Chief Financial Officer, Company Secretary, and Authorized Representative, effective October 5, 2025, to focus on other business commitments. The company has appointed Ms. Chang Hang Yee Florence as the new Company Secretary and Mr. Alex Chan as the Authorized Representative, both effective the same date, signaling a smooth transition in its leadership team.