Elegance Optical International Holdings Limited (0907) AI Stock Analysis

• Market Cap: €36.66M
• Dividend Yield: N/A
• Average Volume (3M): 3.33M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• Revenue Growth: -39.73%
• EPS Growth: 65.88%
• Country: HK
• Employees: 24
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): >-0.01
• Shares Outstanding: 872,863,700
• 10 Day Avg. Volume: 7,923,500
• 30 Day Avg. Volume: 3,328,833
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 37 Underperform
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is heavily influenced by the company's poor financial performance, which is the most significant factor. Technical analysis also indicates a bearish trend, and valuation metrics are unattractive due to negative earnings and lack of dividends. These factors collectively result in a low overall stock score.

Elegance Optical International Holdings Limited Business Overview & Revenue Model

Company Description

Elegance Optical International Holdings Limited (0907) is a leading player in the optical retail industry, primarily engaged in the design, manufacture, and sale of eyewear products, including prescription glasses, sunglasses, and contact lenses. The company operates through various retail outlets and online platforms, catering to a diverse clientele across different markets. With a commitment to quality and innovation, Elegance Optical offers a wide range of stylish and functional eyewear solutions that meet the needs of its customers.

How the Company Makes Money

Elegance Optical generates revenue primarily through the sale of eyewear products, which includes both prescription glasses and sunglasses, as well as contact lenses. The company profits from direct retail sales in its physical stores and online, leveraging e-commerce platforms to reach a broader audience. Key revenue streams include high-margin branded eyewear and customized optical solutions. Additionally, Elegance Optical may benefit from partnerships with eyewear brands and optical technology providers, enabling them to offer exclusive products and promotions. Seasonal sales, marketing campaigns, and customer loyalty programs further contribute to the company's earnings by driving repeat business and attracting new customers.

Elegance Optical International Holdings Limited Financial Statement Overview

Summary

The company is experiencing severe financial difficulties, with significant revenue declines and negative profit margins. The balance sheet shows negative equity, indicating liabilities exceed assets, and cash flow issues persist despite minor improvements in free cash flow growth.

Income Statement

The company has been experiencing a significant decline in revenue, with a 30.46% drop in the most recent year. Gross profit margin is low at 7.15%, and net profit margin is deeply negative at -139.76%, indicating substantial losses. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies and high costs relative to revenue.

Balance Sheet

The balance sheet shows a concerning financial structure with a negative stockholders' equity, leading to a negative debt-to-equity ratio. This indicates that liabilities exceed assets, posing a high financial risk. The equity ratio is also negative, further highlighting the financial instability.

Cash Flow

Cash flow analysis reveals a negative operating cash flow and free cash flow, although there is a slight improvement in free cash flow growth. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is positive, suggesting some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.79M	14.46M	23.99M	21.70M	15.28M	53.93M
Gross Profit	4.51M	1.03M	4.87M	6.37M	-48.91M	7.76M
EBITDA	-45.94M	-28.30M	-51.65M	-33.14M	-163.96M	-22.56M
Net Income	-63.65M	-20.20M	-59.36M	-84.80M	-177.08M	-15.27M
Balance Sheet
Total Assets	102.45M	76.17M	91.82M	148.35M	263.01M	400.51M
Cash, Cash Equivalents and Short-Term Investments	4.02M	8.73M	7.05M	24.74M	38.52M	122.03M
Total Debt	42.91M	44.71M	13.15M	0.00	34.26M	43.44M
Total Liabilities	98.35M	79.23M	73.92M	61.95M	116.22M	128.02M
Stockholders Equity	4.10M	-3.06M	17.90M	86.40M	163.20M	283.45M
Cash Flow
Free Cash Flow	-20.79M	-26.18M	-19.63M	-352.00K	-50.82M	-31.57M
Operating Cash Flow	-20.40M	-784.00K	-8.29M	132.00K	-50.82M	-30.99M
Investing Cash Flow	-16.39M	-26.29M	-5.46M	4.37M	16.80M	19.34M
Financing Cash Flow	32.62M	28.70M	12.55M	-16.68M	-9.79M	50.17M

Elegance Optical International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0907, the sentiment is Negative. The current price of 0.04 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.08, and below the 200-day MA of 0.09, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 24.88 is Positive, neither overbought nor oversold. The STOCH value of 8.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0907.

Elegance Optical International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2276	67 Neutral	HK$19.52B	33.78	27.01%	0.83%	13.58%	24.59%
1134	44 Neutral	HK$91.50M	-6.49	-13.83%	―	26.06%	13.23%
0907	37 Underperform	€36.66M	―	-274.02%	―	-39.73%	65.88%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Elegance Optical International Holdings Limited Corporate Events

Elegance Optical Expands into Liquor and Food Seasonings with New Subsidiary

Elegance Optical International Holdings Limited has announced the incorporation of DongChuang Xintou Limited, a wholly-owned subsidiary in Hong Kong. This strategic move aims to diversify and expand the company’s business operations into liquor, food seasonings, and other related sectors, potentially enhancing shareholder returns and market presence.