Eminence Enterprise Limited (0616) AI Stock Analysis

• Market Cap: HK$215.06M
• Dividend Yield: N/A
• Average Volume (3M): 27.32M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: 40.24%
• EPS Growth: 68.53%
• Country: HK
• Employees: 42
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -0.12
• Shares Outstanding: 1,014,444,340
• 10 Day Avg. Volume: 23,155,261
• 30 Day Avg. Volume: 27,316,296
• 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: 138.10% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: HK$0.50 ▲(138.10% Upside)

The stock's overall score is primarily impacted by financial performance challenges, including negative profitability and cash flow issues. Technical analysis provides some positive momentum, but the valuation remains unattractive due to a negative P/E ratio and lack of dividend yield. The absence of earnings call data and notable corporate events limits additional insights.

Eminence Enterprise Limited Business Overview & Revenue Model

Company Description

Eminence Enterprise Limited, an investment holding company, engages in the property investment and development activities in Hong Kong, the People's Republic of China, and Singapore. It operates through Property Investment, Property Development, Investment in Securities and Others, and Loan Financing segments. It owns and invests in residential, commercial, and industrial properties. The company is also involved in investing in listed securities; and loan financing businesses. The company was formerly known as Easyknit Enterprises Holdings Limited and changed its name to Eminence Enterprise Limited in March 2016. Eminence Enterprise Limited was founded in 1981 and is based in Cheung Sha Wan, Hong Kong. Eminence Enterprise Limited is a subsidiary of Goodco Development Limited.

How the Company Makes Money

Eminence Enterprise Limited generates revenue through multiple streams, including the sale of manufactured goods, provision of technology solutions, and trading activities. The company benefits from direct sales to consumers and businesses, as well as partnerships with distributors and retailers to expand its market reach. Significant revenue comes from long-term contracts with industrial clients, which provide a steady income. Additionally, strategic collaborations with technology firms enhance its service offerings, attracting more customers and increasing overall profitability.

Eminence Enterprise Limited Financial Statement Overview

Summary

Eminence Enterprise Limited shows strong revenue growth but struggles with profitability and cash flow management. The balance sheet is relatively stable, with a moderate debt-to-equity ratio. However, negative returns on equity and cash flow issues pose significant risks. The company needs to focus on improving operational efficiency and cash flow generation to enhance financial stability.

Income Statement

The company has experienced significant revenue growth of 38.58% in the latest year, which is a positive indicator. However, profitability metrics such as the net profit margin (-8.14%) and EBIT margin (-6.21%) are negative, indicating operational challenges. The gross profit margin remains relatively strong at 59.82%, but overall profitability is hindered by high expenses.

Balance Sheet

The debt-to-equity ratio is moderate at 0.69, suggesting a balanced approach to leveraging. However, the return on equity is negative (-12.98%), reflecting poor profitability and potential inefficiencies in using equity capital. The equity ratio stands at a healthy level, indicating a solid asset base relative to equity.

Cash Flow

The company faces challenges with negative operating cash flow and free cash flow, indicating liquidity issues. The free cash flow growth rate is significantly negative (-60.96%), and the operating cash flow to net income ratio is also negative, highlighting cash flow management concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.37M	44.86M	30.69M	28.86M	37.28M	80.70M
Gross Profit	30.38M	26.83M	27.17M	24.24M	32.61M	75.03M
EBITDA	-95.91M	-275.36M	-140.84M	13.54M	49.66M	-73.61M
Net Income	-298.25M	-365.30M	-213.15M	63.57M	116.45M	-180.79M
Balance Sheet
Total Assets	5.15B	4.84B	5.41B	5.62B	4.88B	4.61B
Cash, Cash Equivalents and Short-Term Investments	127.31M	121.27M	435.45M	394.04M	190.14M	246.97M
Total Debt	1.02B	1.94B	2.24B	2.03B	1.73B	1.58B
Total Liabilities	2.21B	2.03B	2.36B	2.39B	1.86B	1.73B
Stockholders Equity	2.94B	2.81B	3.05B	3.24B	3.02B	2.88B
Cash Flow
Free Cash Flow	-259.64M	-101.37M	-389.67M	-203.91M	-164.92M	-97.49M
Operating Cash Flow	-258.98M	-101.36M	-388.99M	-200.51M	-153.18M	-97.19M
Investing Cash Flow	80.81M	116.59M	243.78M	188.23M	-38.20M	-199.86M
Financing Cash Flow	-38.33M	-263.93M	102.30M	265.97M	144.81M	80.66M

Eminence Enterprise Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.21
• 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:0616, the sentiment is Positive. The current price of 0.21 is above the 20-day moving average (MA) of 0.19, above the 50-day MA of 0.12, and above the 200-day MA of 0.10, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 55.30 is Neutral, neither overbought nor oversold. The STOCH value of 8.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0616.

Eminence Enterprise Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0616	53 Neutral	HK$215.06M	―	-12.21%	―	40.24%	68.53%
1941	48 Neutral	90.79M	-5.26	-10.32%	―	1.60%	22.83%
0313	47 Neutral	94.51M	-0.38	-11725.37%	―	285.89%	-12.45%
1417	45 Neutral	99.20M	-1.71	-33.06%	―	12.37%	25.67%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Eminence Enterprise Limited Corporate Events

Eminence Enterprise Completes Amendment to 2023 Convertible Note

Eminence Enterprise Limited has completed the amendment to the 2023 Convertible Note and the proposed grant of a specific mandate to issue conversion shares, as all conditions precedent under the Deed of Amendment have been fulfilled. This completion marks a significant step in the company’s financial strategy, potentially impacting its market positioning and providing new opportunities for stakeholders.

Eminence Enterprise Limited Reduces Stake in Pacific Legend

Eminence Enterprise Limited announced the disposal of 1,700,000 shares of Pacific Legend, representing approximately 0.41% of the total issued shares, for HK$803,250. This transaction, alongside a previous disposal, constitutes a discloseable transaction under Hong Kong’s Listing Rules. The disposal reduces Eminence’s stake in Pacific Legend from 3.97% to 3.56%, with the counterparties being independent third parties. Pacific Legend, a Cayman Islands-incorporated company listed on the GEM, is primarily engaged in selling and leasing home furniture and providing design consultancy services. Despite a challenging previous year, Pacific Legend reported a profit in 2024, indicating a potential recovery.

Eminence Enterprise to Discuss Potential Share Disposal at SGM

Eminence Enterprise Limited has announced a special general meeting to discuss the potential disposal of shares in Best Food Holding Company Limited. The resolution, if passed, will allow the company to sell these shares within a specified period, subject to certain conditions, potentially impacting its investment portfolio and financial strategy.

Eminence Enterprise Faces Further Delay in Circular Dispatch

Eminence Enterprise Limited has announced a further delay in the dispatch of a circular related to a possible major transaction involving the disposal of listed securities. The circular, which was initially expected to be sent to shareholders by August 25, 2025, will now be postponed to on or before September 1, 2025, as additional time is needed to finalize the necessary information. This delay may impact stakeholders’ ability to make informed decisions regarding the potential transaction.

Eminence Enterprise Limited’s AGM Resolutions Approved

Eminence Enterprise Limited announced that all ordinary resolutions proposed at its Annual General Meeting on 21 August 2025 were approved. The resolutions included the adoption of financial statements, re-election of directors, and granting of mandates for share issuance and repurchase. The approval of these resolutions ensures the company’s continued operational stability and strategic flexibility, positively impacting its governance and shareholder relations.

Eminence Enterprise Secures Shareholder Approval for Convertible Note Amendment

Eminence Enterprise Limited announced that its shareholders approved an ordinary resolution at a special general meeting held on August 21, 2025. The resolution involved the amendment of a 2023 Convertible Note and the grant of a specific mandate for the issuance of Conversion Shares. The approval was achieved through a poll, with a significant majority of votes in favor, indicating strong shareholder support for the company’s strategic financial maneuvers.

Eminence Enterprise Limited Sells Stake in Pacific Legend

Eminence Enterprise Limited, through its subsidiary Gainever, has disposed of 15,100,000 shares of Pacific Legend, representing approximately 3.68% of the total issued shares, for HK$4,800,000. This transaction, classified as a discloseable transaction under Hong Kong’s Listing Rules, reduces the company’s stake in Pacific Legend to 3.97% and reflects a strategic adjustment in its investment portfolio.

Eminence Enterprise Delays Circular Dispatch for Major Transaction

Eminence Enterprise Limited has announced a delay in the dispatch of a circular related to a possible major transaction involving the disposal of listed securities. The circular, which was initially expected to be sent to shareholders by 15 August 2025, will now be postponed to on or before 25 August 2025 due to the need for additional time to finalize the information. This delay may impact the timeline for shareholder engagement and decision-making regarding the transaction.

Eminence Enterprise Seeks Approval for Major Disposal of Best Food Shares

Eminence Enterprise Limited has announced its intention to seek shareholder approval for the potential disposal of its holdings in Best Food Shares, which could qualify as a major transaction under Hong Kong’s Listing Rules. The company plans to sell its 16,126,000 shares, representing 1.02% of Best Food’s issued share capital, at a minimum price of HK$0.80 per share, a 17.5% discount to the last trading price. This move is aimed at optimizing its investment portfolio and requires shareholder approval, with no current contractual arrangements in place.

Eminence Enterprise Limited Announces Special General Meeting for Share Issuance

Eminence Enterprise Limited has announced a special general meeting (SGM) to be held on August 21, 2025, in Hong Kong, where shareholders will vote on a resolution to authorize the directors to issue up to 1,000,000,000 conversion shares related to the 2023 Convertible Note. This move is aimed at facilitating the company’s strategic financial maneuvers, potentially impacting its capital structure and shareholder value.