Elegance Optical International Holdings Limited (0907) AI Stock Analysis

• Market Cap: HK$80.30M
• Dividend Yield: N/A
• Average Volume (3M): 4.83M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 24
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Instruments & Supplies
• EPS (TTM): >-0.01
• Shares Outstanding: 872,863,700
• 10 Day Avg. Volume: 1,786,200
• 30 Day Avg. Volume: 4,834,566
• PEG Ratio: 0.06
• Price to Book (P/B): 2.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -694.32
• 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

• Rating: 42 Neutral
• Price Target: ―

The overall stock score reflects significant financial weaknesses and valuation concerns, which are only partially offset by moderate technical indicators. The company's negative profitability and high leverage present substantial risks, requiring careful consideration by investors.

Elegance Optical International Holdings Limited Business Overview & Revenue Model

Company Description

Elegance Optical International Holdings Limited (0907) is a company engaged in the design, manufacture, and distribution of optical products. The company operates in the eyewear sector, offering a wide range of optical frames, sunglasses, and related accessories to an international clientele. Its core products are characterized by their unique designs and high-quality craftsmanship, catering to both fashion-forward consumers and practical users.

How the Company Makes Money

Elegance Optical International Holdings Limited generates revenue primarily through the sale of its eyewear products. The company's key revenue streams include wholesale distribution to retailers, partnerships with fashion brands, and direct sales to consumers through various channels. Significant partnerships with well-known fashion brands enhance its product offerings and market reach, allowing the company to leverage brand recognition and expand its customer base. Additionally, Elegance Optical continues to innovate in design and materials, which contributes to maintaining a competitive edge in the market and driving sales.

Elegance Optical International Holdings Limited Financial Statement Overview

Summary

Elegance Optical International Holdings Limited faces significant financial challenges. The company struggles with profitability, high leverage, and negative cash flows, posing substantial risks. It requires strategic restructuring to improve operational efficiency and financial health.

Income Statement

The income statement shows significant challenges. Gross profit margin has decreased over the years, and the net profit margin remains negative due to substantial net losses. Although there was a slight revenue increase in the current year, the company continues to report negative EBIT and EBITDA margins, indicating ongoing operational inefficiencies and cost challenges.

Balance Sheet

The balance sheet reflects a weak financial position with declining stockholders' equity and high debt levels. The debt-to-equity ratio has been increasing, and the equity ratio has deteriorated over time, indicating reduced financial stability. However, the company has managed to maintain some level of cash reserves, which partially offsets the high leverage and risk.

Cash Flow

Cash flow analysis reveals negative free cash flow, driven by substantial operating losses and capital expenditures. The operating cash flow to net income ratio indicates severe cash flow issues, as operating activities are not generating sufficient cash. While there was a positive financing cash flow, it raises concerns about the company's reliance on external funding.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	20.79M	23.99M	21.70M	15.28M	53.93M	66.25M
Gross Profit	4.51M	4.87M	6.37M	-48.91M	7.76M	7.61M
EBITDA	-45.94M	-51.65M	-33.14M	-163.96M	-22.56M	-88.04M
Net Income	-63.65M	-59.36M	-84.80M	-177.08M	-15.27M	-98.40M
Balance Sheet
Total Assets	102.45M	91.82M	148.35M	263.01M	400.51M	379.66M
Cash, Cash Equivalents and Short-Term Investments	4.02M	7.05M	24.74M	38.52M	122.03M	79.46M
Total Debt	42.91M	13.15M	0.00	34.26M	43.44M	55.85M
Total Liabilities	98.35M	73.92M	61.95M	116.22M	128.02M	159.11M
Stockholders Equity	4.10M	17.90M	86.40M	163.20M	283.45M	229.40M
Cash Flow
Free Cash Flow	-20.79M	-19.63M	-352.00K	-50.82M	-31.57M	18.54M
Operating Cash Flow	-20.40M	-8.29M	132.00K	-50.82M	-30.99M	19.91M
Investing Cash Flow	-16.39M	-5.46M	4.37M	16.80M	19.34M	8.61M
Financing Cash Flow	32.62M	12.55M	-16.68M	-9.79M	50.17M	42.06M

Elegance Optical International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 Negative. The current price of 0.09 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.13, and below the 200-day MA of 0.09, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 41.29 is Neutral, neither overbought nor oversold. The STOCH value of 26.79 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1618	80 Outperform	€63.73B	5.68	5.56%	4.70%	-19.10%	-30.15%
1044	72 Outperform	HK$26.79B	10.55	11.12%	6.58%	-6.53%	-18.43%
0732	69 Neutral	$3.40B	11.40	3.20%	9.09%	14.45%	15.04%
1881	62 Neutral	$1.47B	9.38	-1.57%	―	13.96%	-176.96%
Sector *	60 Neutral	HK$15.58B	5.65	-7.43%	4.32%	11.60%	-21.06%
2389	51 Neutral	HK$527.11M	―	-6.45%	―	6.84%	-88.24%
0907	42 Neutral	HK$80.30M	―	-274.02%	―	―	―

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.