Elegance Optical International Holdings Limited (0907) AI Stock Analysis

• Market Cap: €62.85M
• Dividend Yield: N/A
• Average Volume (3M): 654.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: 198.46%
• EPS Growth: N/A
• 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: 270,000
• 30 Day Avg. Volume: 654,958
• PEG Ratio: 0.05
• Price to Book (P/B): -23.92
• Price to Sales (P/S): 5.07
• P/FCF Ratio: -2.80
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: HK$0.07 ▼(-10.00% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, which poses significant risks. While there is some positive technical momentum, the overbought RSI and negative valuation metrics limit the stock's appeal.

Positive Factors

E-commerce Expansion

The company's use of e-commerce platforms enhances its market reach and customer base, supporting long-term revenue growth and resilience against market fluctuations.

Product Innovation

A focus on innovation in product offerings can drive customer loyalty and differentiate the company in a competitive market, supporting sustained growth.

High-Margin Products

High-margin products contribute to profitability and provide a buffer against cost increases, supporting financial stability and long-term growth.

Negative Factors

Declining Revenue

A substantial decline in revenue indicates challenges in market demand or competitive positioning, which can impact long-term growth and financial health.

Negative Equity

Negative equity suggests financial instability, limiting the company's ability to raise capital and invest in growth opportunities, affecting long-term viability.

Cash Flow Challenges

Persistent cash flow issues constrain the company's ability to fund operations and growth initiatives, posing risks to financial sustainability.

Elegance Optical International Holdings Limited Business Overview & Revenue Model

Company Description

Elegance 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 Money

Elegance 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 experiencing severe financial difficulties, with a significant decline in revenue and deeply 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	-53.83M	-33.14M	-170.60M	-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: Positive
• Last Price: 0.08
• 50DMA: Positive
• 100DMA: Positive
• 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:0907, the sentiment is Positive. The current price of 0.08 is above the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.05, and below the 200-day MA of 0.09, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 68.19 is Neutral, neither overbought nor oversold. The STOCH value of 53.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	72 Outperform	HK$22.89B	39.61	24.57%	0.61%	13.58%	24.59%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
0907	49 Neutral	€62.85M	―	40.65%	―	198.46%	―
1134	43 Neutral	HK$110.00M	―	-8.72%	―	26.06%	13.23%

Elegance Optical International Holdings Limited Corporate Events

Elegance Optical Seeks Review of Trading Suspension Decision

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.

Elegance Optical Announces Board Composition and Committee Roles

Elegance Optical International Holdings Limited has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive directors. The board has established three committees: Audit, Remuneration, and Nomination, with specific directors assigned as members or chairpersons. This announcement reflects the company’s governance structure and may influence its strategic direction and decision-making processes.

Elegance Optical Announces New Board Appointments

Elegance Optical International Holdings Limited has announced key changes in its board of directors. Ms. Li Wanyu has been appointed as an independent non-executive director and chairlady of the Audit Committee, bringing extensive financial expertise to the role. Additionally, Mr. Kwok Chi Lap has been appointed as a non-executive director, succeeding Mr. Lam Wing Yiu, who resigned to pursue other business interests. These appointments are expected to enhance the company’s governance and strategic oversight.

Elegance Optical Faces Potential Delisting Due to Insufficient Operations

Elegance Optical International Holdings Limited has been informed by the Hong Kong Stock Exchange that it has failed to maintain sufficient operations and asset value to justify its continued listing. Despite diversifying into liquor trading and other sectors, the company’s business segments have remained small and unprofitable, prompting the exchange to question the viability and sustainability of its operations. This decision could lead to a suspension of trading in the company’s shares, impacting its market presence and stakeholders.

Elegance Optical International Successfully Passes All AGM Resolutions

Elegance Optical International Holdings Limited announced the successful passing of all proposed resolutions during its Annual General Meeting held on August 29, 2025. The resolutions included the adoption of financial statements, re-election of directors, and granting of mandates for share issuance and repurchase, reflecting strong shareholder support and potentially impacting the company’s governance and financial strategies.

Elegance Optical Announces Relocation of Hong Kong Office

Elegance Optical International Holdings Limited has announced a change in its principal place of business in Hong Kong to a new address at 21/F, Low Block, Grand Millenium Plaza, 181 Queen’s Road Central, effective from 28 July 2025. This relocation is part of the company’s strategic operational adjustments, potentially impacting its business operations and stakeholder engagements in Hong Kong.