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Elegance Optical International Holdings Limited (HK:0907)
:0907

Elegance Optical International Holdings Limited (0907) AI Stock Analysis

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HK:0907

Elegance Optical International Holdings Limited

(0907)

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Neutral 42 (OpenAI - 4o)
Rating:42Neutral
Price Target:
HK$0.05
▼(-4.00% Downside)
The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenues, negative profit margins, and a precarious balance sheet. Technical analysis indicates bearish momentum, further weighing down the score. The valuation is moderate but overshadowed by the company's financial instability.
Positive Factors
Strategic Partnerships
These partnerships expand market reach and diversify revenue streams, strengthening the company's competitive position in the global market.
Product Quality and Innovation
Emphasizing quality and innovation supports brand reputation and customer loyalty, enabling sustained revenue generation and market differentiation.
Revenue Growth
Significant revenue growth indicates strong demand and effective market strategies, potentially leading to improved financial stability over time.
Negative Factors
Negative Profit Margins
Persistent negative profit margins highlight operational inefficiencies and cost management issues, threatening long-term profitability and sustainability.
Declining Revenue
A substantial revenue decline suggests weakening demand or competitive pressures, posing risks to future growth and financial health.
Negative Equity
Negative equity indicates liabilities exceed assets, raising concerns about financial stability and the ability to meet long-term obligations.

Elegance Optical International Holdings Limited (0907) vs. iShares MSCI Hong Kong ETF (EWH)

Elegance Optical International Holdings Limited Business Overview & Revenue Model

Company DescriptionElegance Optical International Holdings Limited (0907) is a Hong Kong-based investment holding company primarily engaged in the design, manufacture, and distribution of eyewear products. The company operates within the optical sector, offering a wide range of products including prescription glasses, sunglasses, and optical accessories. With a focus on quality and innovation, Elegance Optical serves both retail and wholesale markets, catering to a diverse global clientele.
How the Company Makes MoneyElegance Optical generates revenue through multiple streams, primarily from the sale of eyewear products, including prescription lenses and frames, sunglasses, and optical accessories. The company sells its products both directly to consumers through retail channels and indirectly through wholesale partnerships with optical chains and independent retailers. Additionally, Elegance Optical benefits from strategic partnerships with various international brands, which enhances its product offerings and market reach. The company's focus on high-quality manufacturing and design allows it to command premium pricing, contributing to its overall profitability. Seasonal trends and marketing initiatives also play a significant role in driving sales and revenue growth.

Elegance Optical International Holdings Limited Financial Statement Overview

Summary
The company is facing severe financial challenges with declining revenues, substantial losses, and a precarious balance sheet. Negative equity and cash flow issues highlight significant financial instability.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue14.46M14.46M23.99M21.70M15.28M53.93M
Gross Profit1.03M1.03M4.87M6.37M-48.91M7.76M
EBITDA-22.08M-28.30M-53.83M-33.14M-170.60M-22.56M
Net Income-20.20M-20.20M-59.36M-84.80M-177.08M-15.27M
Balance Sheet
Total Assets76.17M76.17M91.82M148.35M263.01M400.51M
Cash, Cash Equivalents and Short-Term Investments8.73M8.73M7.05M24.74M38.52M122.03M
Total Debt44.71M44.71M13.15M0.0034.26M43.44M
Total Liabilities79.23M79.23M73.92M61.95M116.22M128.02M
Stockholders Equity-3.06M-3.06M17.90M86.40M163.20M283.45M
Cash Flow
Free Cash Flow-784.00K-26.18M-19.63M-352.00K-50.82M-31.57M
Operating Cash Flow-784.00K-784.00K-8.29M132.00K-50.82M-30.99M
Investing Cash Flow-26.29M-26.29M-5.46M4.37M16.80M19.34M
Financing Cash Flow28.70M28.70M12.55M-16.68M-9.79M50.17M

Elegance Optical International Holdings Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.05
Price Trends
50DMA
0.06
Negative
100DMA
0.06
Negative
200DMA
0.09
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
40.12
Neutral
STOCH
31.11
Neutral
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 0.05 is below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.06, and below the 200-day MA of 0.09, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.12 is Neutral, neither overbought nor oversold. The STOCH value of 31.11 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
HK$26.13B45.2224.57%0.63%13.58%24.59%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
49
Neutral
HK$125.00M-8.87-8.72%26.06%13.23%
42
Neutral
HK$43.64M16.6740.65%198.46%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0907
Elegance Optical International Holdings Limited
0.05
>-0.01
-9.09%
HK:1134
Kelfred Holdings Limited
0.25
-0.03
-10.71%
HK:1942
MOG Holdings Limited
0.30
-0.60
-66.85%
HK:2276
Shanghai Conant Optical Co. Ltd. Class H
54.45
30.06
123.25%

Elegance Optical International Holdings Limited Corporate Events

Elegance Optical Seeks Review of HKEX Decision Over Insufficient Operations
Dec 29, 2025

Elegance Optical International Holdings Limited has requested a review of a decision by the Listing Division of the Hong Kong Stock Exchange to suspend trading of its shares on the grounds that the company has failed to maintain a sufficient level of operations required for continued listing. After obtaining professional advice, the board submitted a written request on 29 December 2025 for the matter to be referred to the exchange’s Review Committee, and has warned shareholders and potential investors that the outcome is uncertain and that trading in the shares may still be suspended if the original decision is upheld. Under the relevant listing rules, if the Stock Exchange ultimately finds the company non-compliant, Elegance Optical would have an 18‑month remedial period to restore adequate operations or risk cancellation of its listing, a process that could have significant implications for shareholder liquidity and the company’s ability to access capital markets.

The most recent analyst rating on (HK:0907) stock is a Hold with a HK$0.05 price target. To see the full list of analyst forecasts on Elegance Optical International Holdings Limited stock, see the HK:0907 Stock Forecast page.

Elegance Optical Announces Change in Hong Kong Business Address
Dec 17, 2025

Elegance Optical International Holdings Limited has announced a change in its principal place of business in Hong Kong to Room 3302, 33/F, West Tower, Shun Tak Centre, 200 Connaught Road Central, effective December 17, 2025. This shift reflects the company’s ongoing operational adjustments and may have implications for its business logistics and corporate presence, underscoring its commitment to sustaining growth and catering to stakeholder needs in the highly competitive eyewear industry.

The most recent analyst rating on (HK:0907) stock is a Hold with a HK$0.07 price target. To see the full list of analyst forecasts on Elegance Optical International Holdings Limited stock, see the HK:0907 Stock Forecast page.

Elegance Optical Faces Trading Suspension Amid Operational Challenges
Dec 16, 2025

Elegance Optical International Holdings Limited faces a suspension of trading in its shares following a decision by the Hong Kong Stock Exchange’s Listing Committee. The company has been unable to maintain sufficient operations and asset value as required by listing rules, with its eyewear, liquor trading, and film businesses all showing minimal revenue and lack of competitive advantage. The company’s financial instability is further highlighted by net losses and concerns over its ability to continue as a going concern.

The most recent analyst rating on (HK:0907) stock is a Hold with a HK$0.07 price target. To see the full list of analyst forecasts on Elegance Optical International Holdings Limited stock, see the HK:0907 Stock Forecast page.

Elegance Optical Faces Board Resignation and Compliance Challenge
Dec 1, 2025

Elegance Optical International Holdings Limited announced the resignation of Mr. Law, Michael Ka Ming from his position as an independent non-executive director, effective December 1, 2025, due to other business commitments. This resignation has resulted in non-compliance with the Hong Kong Stock Exchange’s listing rules, specifically regarding the minimum number of independent non-executive directors required on the board and audit committee. The company is actively seeking suitable candidates to fill these vacancies to restore compliance.

The most recent analyst rating on (HK:0907) stock is a Hold with a HK$0.07 price target. To see the full list of analyst forecasts on Elegance Optical International Holdings Limited stock, see the HK:0907 Stock Forecast page.

Elegance Optical Announces Board Composition and Committee Roles
Dec 1, 2025

Elegance Optical International Holdings Limited has announced the composition of its board of directors and their roles within the company. The board consists of executive, non-executive, and independent non-executive directors, with three committees established to oversee audit, remuneration, and nomination functions. This structure is likely to enhance corporate governance and operational oversight, potentially impacting the company’s strategic direction and stakeholder confidence.

The most recent analyst rating on (HK:0907) stock is a Hold with a HK$0.07 price target. To see the full list of analyst forecasts on Elegance Optical International Holdings Limited stock, see the HK:0907 Stock Forecast page.

Elegance Optical Reports Strong Interim Results for 2025
Nov 28, 2025

Elegance Optical International Holdings Limited reported a significant improvement in its financial performance for the six months ended 30 September 2025, with a revenue increase to HK$54,686,000 from HK$7,096,000 in the same period in 2024. The company achieved a profit of HK$9,059,000 compared to a loss of HK$13,787,000 in the previous year, indicating a positive turnaround in its operations.

The most recent analyst rating on (HK:0907) stock is a Hold with a HK$0.07 price target. To see the full list of analyst forecasts on Elegance Optical International Holdings Limited stock, see the HK:0907 Stock Forecast page.

Elegance Optical Announces Positive Profit Turnaround
Nov 25, 2025

Elegance Optical International Holdings Limited has announced a positive profit alert, expecting a net profit of approximately HK$8.8 million to HK$9.6 million for the six months ending September 2025. This marks a significant turnaround from a net loss in the previous year, driven by strong performance in its trading business and successful strategic shifts in its eyewear and liquor trading segments.

Elegance Optical Announces Upcoming Board Meeting for Interim Results
Nov 17, 2025

Elegance Optical International Holdings Limited has announced a board meeting scheduled for November 28, 2025, to approve the interim results for the six months ending September 30, 2025, and to consider the payment of any interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.

Elegance Optical Enhances Board with New Independent Director Appointment
Nov 11, 2025

Elegance Optical International Holdings Limited announced the appointment of Ms. Li as an independent non-executive director, confirming her compliance with the independence criteria set by the Hong Kong Stock Exchange. This appointment is expected to strengthen the company’s governance structure, potentially enhancing its market position and stakeholder confidence.

Elegance Optical Appoints New Executive Director to Strengthen Leadership
Nov 7, 2025

Elegance Optical International Holdings Limited announced the appointment of Mr. Wang Yichuan as an executive director and a member of its Remuneration and Nomination Committees, effective November 7, 2025. Mr. Wang, who has extensive experience in finance and corporate governance, is also a substantial shareholder of the company, holding approximately 11.95% of its shares. This strategic appointment is expected to strengthen the company’s leadership and governance, potentially impacting its market positioning and stakeholder relations positively.

Elegance Optical Announces Board Composition and Roles
Nov 7, 2025

Elegance Optical International Holdings Limited has announced the composition of its board of directors and their respective roles within the company. The board consists of executive, non-executive, and independent non-executive directors, with various members assigned to the audit, remuneration, and nomination committees. This announcement may impact the company’s governance and strategic direction, potentially influencing stakeholder confidence and market positioning.

Elegance Optical Seeks Review of Trading Suspension Decision
Sep 30, 2025

Elegance Optical International Holdings Limited has announced that it has requested a review of a decision by The Stock Exchange of Hong Kong Limited to suspend trading of its shares. The suspension is due to the company’s failure to maintain the required level of operations as per the listing rules. The company has sought professional advice and submitted a request for a review, but the outcome remains uncertain. If the decision is upheld, the company will have an 18-month remedial period to comply with the listing requirements, or risk having its shares delisted.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 19, 2025