Eminence Enterprise Limited (0616) AI Stock Analysis

• Market Cap: HK$565.91M
• Dividend Yield: N/A
• Average Volume (3M): 13.45M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: 79.76%
• EPS Growth: 88.69%
• Country: HK
• Employees: 42
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -0.03
• Shares Outstanding: 1,664,444,300
• 10 Day Avg. Volume: 10,466,005
• 30 Day Avg. Volume: 13,453,515
• PEG Ratio: <0.01
• Price to Book (P/B): 0.02
• Price to Sales (P/S): 0.97
• P/FCF Ratio: -0.43
• 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: 54 Neutral
• Price Target: HK$0.38 ▲(10.88% Upside)

The overall stock score is primarily influenced by the company's strong technical momentum, which is offset by poor financial performance and valuation concerns. While the stock shows bullish trends, the negative profitability and cash flow issues present significant risks. Investors should be cautious of the overbought technical indicators and the lack of earnings call data to provide further insights.

Positive Factors

Revenue Growth

Substantial revenue growth indicates strong market demand and effective sales strategies, enhancing the company's competitive position.

Market Presence

A robust market presence across multiple regions supports long-term growth potential and reduces dependency on any single market.

Gross Profit Margin

A strong gross profit margin reflects efficient production and pricing strategies, providing a buffer against cost fluctuations.

Negative Factors

Profitability Challenges

Negative profitability metrics indicate operational inefficiencies, which could hinder long-term financial health if not addressed.

Cash Flow Issues

Persistent cash flow challenges can limit the company's ability to invest in growth opportunities and meet financial obligations.

Negative Return on Equity

A negative return on equity suggests inefficient use of equity capital, which could deter investors and affect future capital raising.

Eminence Enterprise Limited Business Overview & Revenue Model

Company Description

Eminence Enterprise Limited (0616) is a diversified company engaged primarily in the manufacturing and distribution of high-quality consumer products, including electronics, home appliances, and personal care items. Operating in multiple sectors, the company focuses on innovation and sustainability, aiming to cater to a wide range of customer needs. With a strong presence in both domestic and international markets, Eminence Enterprise Limited emphasizes quality, reliability, and customer satisfaction in its offerings.

How the Company Makes Money

Eminence Enterprise Limited generates revenue through various channels, primarily by selling its consumer products directly to retailers and through e-commerce platforms. The company employs a multi-tiered pricing strategy, allowing it to cater to different market segments while maximizing profit margins. Key revenue streams include wholesale distribution to large retailers, direct sales to consumers via its online store, and licensing agreements for its proprietary technologies. Additionally, strategic partnerships with leading distributors and collaborators in the electronics and home appliance sectors enhance its market reach and contribute significantly to its earnings.

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	44.86M	44.86M	30.69M	28.86M	37.28M	80.70M
Gross Profit	26.83M	26.83M	27.17M	24.24M	32.61M	75.03M
EBITDA	-165.98M	-275.36M	-147.07M	13.54M	49.66M	-73.61M
Net Income	-365.30M	-365.30M	-213.15M	63.57M	116.45M	-180.79M
Balance Sheet
Total Assets	4.84B	4.84B	5.41B	5.62B	4.88B	4.61B
Cash, Cash Equivalents and Short-Term Investments	121.27M	121.27M	435.45M	394.04M	190.14M	246.97M
Total Debt	1.94B	1.94B	2.24B	2.03B	1.73B	1.58B
Total Liabilities	2.03B	2.03B	2.36B	2.39B	1.86B	1.73B
Stockholders Equity	2.81B	2.81B	3.05B	3.24B	3.02B	2.88B
Cash Flow
Free Cash Flow	-101.36M	-101.37M	-389.67M	-203.91M	-164.92M	-97.49M
Operating Cash Flow	-101.36M	-101.36M	-388.99M	-200.51M	-153.18M	-97.19M
Investing Cash Flow	110.19M	116.59M	243.78M	188.23M	-38.20M	-199.86M
Financing Cash Flow	-131.73M	-263.93M	102.30M	265.97M	144.81M	80.66M

Eminence Enterprise Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 0.34 is above the 20-day moving average (MA) of 0.27, above the 50-day MA of 0.22, and above the 200-day MA of 0.14, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 71.00 is Negative, neither overbought nor oversold. The STOCH value of 64.47 is Neutral, 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
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0616	54 Neutral	HK$565.91M	-2.35	-5.14%	―	79.76%	88.69%
0313	51 Neutral	HK$131.85M	-0.46	-304.65%	―	230.64%	-14.21%
1417	49 Neutral	HK$87.29M	-1.50	-30.16%	―	12.37%	25.67%
1941	48 Neutral	HK$95.25M	-5.49	-6.82%	―	1.53%	22.83%
0864	42 Neutral	HK$51.75M	-0.16	-55.99%	―	-8.18%	-212.59%

Eminence Enterprise Limited Corporate Events

Eminence Enterprise Clarifies Financial Figures in Acquisition Announcement

Eminence Enterprise Limited has issued a clarification regarding a very substantial acquisition and connected transaction, along with the issuance of a convertible note under a specific mandate. The company has corrected the net loss figures for Mark Profit for the year ended 31 March 2024, stating that these changes do not affect the assessment of the acquisition.

The most recent analyst rating on (HK:0616) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Eminence Enterprise Limited stock, see the HK:0616 Stock Forecast page.

Eminence Enterprise Limited Announces Major Acquisition of Mark Profit

Eminence Enterprise Limited has announced a very substantial acquisition involving the purchase of the entire issued share capital of Mark Profit, a subsidiary of Easyknit. This acquisition includes significant property assets and equity securities, with the purchase price expected to be approximately HK$268.4 million, settled through the issuance of a convertible note. The transaction is classified as a connected transaction and requires approval under the Listing Rules due to the substantial percentage ratios involved.

The most recent analyst rating on (HK:0616) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Eminence Enterprise Limited stock, see the HK:0616 Stock Forecast page.

Eminence Enterprise Approves Disposal of Best Food Shares

Eminence Enterprise Limited announced that an ordinary resolution regarding the possible disposal of shares in Best Food Holding Company Limited was passed at their Special General Meeting held on September 17, 2025. The resolution received 77.94% of the votes in favor, allowing the company to proceed with the disposal at a price equal to or exceeding HK$0.80 per share. This decision is expected to impact the company’s financial strategy and may influence its market positioning.

The most recent analyst rating on (HK:0616) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Eminence Enterprise Limited stock, see the HK:0616 Stock Forecast page.

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.