Veeko International Holdings Limited (1173) AI Stock Analysis

• Market Cap: HK$83.09M
• Dividend Yield: N/A
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: -17.91%
• EPS Growth: -32.66%
• Country: HK
• Employees: 880
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): -0.02
• Shares Outstanding: 2,518,001,500
• 10 Day Avg. Volume: 768,000
• 30 Day Avg. Volume: 1,074,745
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 3.16
• 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: 40 Underperform
• Price Target: HK$0.03 ▲(3.33% Upside)

Veeko International Holdings Limited's overall stock score is primarily impacted by its poor financial performance, characterized by high leverage and negative profitability. Technical analysis indicates bearish momentum, and the valuation is unattractive due to negative earnings and lack of dividend yield. These factors collectively suggest a high-risk investment with limited upside potential.

Positive Factors

Strong Gross Profit Margin

A strong gross profit margin indicates efficient production and pricing strategies, providing a buffer against operational inefficiencies and supporting long-term profitability.

Strategic Partnerships

Strategic partnerships enhance supply chain efficiency and product offerings, which can lead to improved competitive positioning and sustained revenue growth.

Retail Network and Brand Visibility

A robust retail network and online presence enhance brand visibility and customer reach, supporting long-term sales growth and market penetration.

Negative Factors

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities and weather economic downturns.

Declining Revenue

Declining revenue signals potential challenges in market demand or competitive positioning, which could affect long-term growth prospects and financial stability.

Negative Profitability

Negative profitability undermines the company's ability to reinvest in the business, pay down debt, and return value to shareholders, posing a risk to long-term sustainability.

Veeko International Holdings Limited Business Overview & Revenue Model

Company Description

Veeko International Holdings Limited, an investment holding company, engages in the cosmetics and fashion businesses. It manufactures and sells ladies fashion products. In addition, the company is involved in property holding business and retail and wholesale of garments. It also sells its products online. As of March 31, 2022, the comany had 58 Colourmix and MORIMOR stores, including 52 stores in Hong Kong and 6 stores in Macau; and 82 fashion stores comprising 63 stores in Hong Kong, 5 stores in Macau, and 14 stores in China under the Veeko and Wanko brand names. The company was founded in 1984 and is headquartered in Kwai Chung, Hong Kong. Veeko International Holdings Limited is a subsidiary of Silver Crown Profits Limited.

How the Company Makes Money

Veeko International Holdings Limited generates revenue primarily through the retail sales of its fashion apparel and accessories. The company operates a chain of retail stores and online platforms, allowing it to reach a broad customer base. Key revenue streams include direct sales from its branded merchandise, as well as commissions and royalties from third-party brand collaborations. The company also benefits from strategic partnerships with suppliers and manufacturers that enable cost efficiencies and product variety. Seasonal promotions, marketing campaigns, and an emphasis on customer experience further contribute to its sales growth. Additionally, the company may explore international markets to expand its revenue potential.

Veeko International Holdings Limited Financial Statement Overview

Summary

Veeko International Holdings Limited is facing significant financial challenges, with declining revenues, high leverage, and negative profitability. The company has a high debt-to-equity ratio and deeply negative return on equity, indicating financial instability. Despite a strong gross profit margin, the overall financial health is poor due to high operating expenses and negative net income.

Income Statement

Veeko International Holdings Limited has experienced declining revenue over the past year, with a revenue growth rate of -11.54%. The company is facing profitability challenges, as indicated by a negative net profit margin of -25.91% and an EBIT margin of -17.49%. Although the gross profit margin is relatively healthy at 45.93%, the overall profitability is significantly impacted by high operating expenses and negative net income.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 8.19, indicating significant leverage and potential financial risk. The return on equity is deeply negative at -157.38%, reflecting substantial losses relative to shareholder equity. The equity ratio is low, suggesting limited equity financing compared to total assets, which may pose risks in terms of financial stability.

Cash Flow

Veeko International Holdings Limited's cash flow statement reveals a decline in free cash flow growth by -17.60%. The operating cash flow to net income ratio is 0.08, indicating that operating cash flow is not sufficient to cover net losses. However, the free cash flow to net income ratio is relatively strong at 0.90, suggesting some ability to generate cash despite negative earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	544.32M	481.48M	586.71M	472.63M	499.85M	517.25M
Gross Profit	231.60M	221.17M	259.32M	229.76M	196.22M	195.89M
EBITDA	-48.26M	12.34M	94.41M	101.71M	31.62M	-49.80M
Net Income	-87.88M	-124.77M	-40.04M	5.03M	-53.37M	-184.88M
Balance Sheet
Total Assets	893.45M	811.95M	867.60M	772.59M	759.45M	812.02M
Cash, Cash Equivalents and Short-Term Investments	12.06M	13.13M	8.54M	38.10M	10.26M	47.11M
Total Debt	657.39M	649.20M	566.51M	488.68M	477.58M	544.81M
Total Liabilities	734.86M	732.68M	664.28M	572.38M	560.04M	615.61M
Stockholders Equity	158.59M	79.28M	203.32M	200.21M	199.41M	196.42M
Cash Flow
Free Cash Flow	26.07M	21.48M	75.88M	110.63M	101.67M	208.59M
Operating Cash Flow	28.93M	23.98M	82.01M	112.24M	102.89M	213.70M
Investing Cash Flow	-19.66M	-11.36M	-8.01M	-1.58M	-1.12M	-3.02M
Financing Cash Flow	-13.76M	-5.82M	-105.15M	-79.00M	-142.37M	-193.17M

Veeko International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.03
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1173, the sentiment is Neutral. The current price of 0.03 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.04, and above the 200-day MA of 0.03, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.25 is Neutral, neither overbought nor oversold. The STOCH value of 17.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1173.

Veeko International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1925	74 Outperform	HK$502.25M	5.14	17.17%	7.56%	21.99%	11.36%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1962	60 Neutral	HK$289.30M	9.85	3.77%	10.32%	-6.67%	-29.55%
8436	55 Neutral	HK$90.80M	19.74	1.89%	―	-20.10%	-74.16%
8281	50 Neutral	HK$110.00M	16.67	2.37%	―	-1.65%	230.00%
6893	49 Neutral	HK$283.87M	―	-23.55%	―	10.42%	11.14%
1173	40 Underperform	HK$83.09M	―	-117.03%	―	-17.91%	-32.66%

Veeko International Holdings Limited Corporate Events

Veeko International Holdings Schedules Board Meeting for Interim Results

Veeko International Holdings Limited has announced a forthcoming board meeting scheduled for November 27, 2025. During this meeting, the board will approve the interim results for the six months ending September 30, 2025, and consider the payment of an interim dividend. This announcement indicates the company’s ongoing financial management and potential shareholder returns, reflecting its operational focus and strategic planning.

Veeko International Holdings Announces Board and Committee Changes

Veeko International Holdings Limited announced significant changes in its board of directors and committee compositions. Mr. Au-Yeung Hau Cheong has resigned as an independent non-executive director to focus on other commitments, while Mr. Lam Man Tin has been re-designated from a non-executive director to an independent non-executive director. These changes will affect the Audit, Nomination, and Remuneration Committees, with Mr. Lam taking over Mr. Au-Yeung’s roles in these committees. This reshuffling may impact the company’s governance and strategic direction.

Veeko International Holdings Announces Board Composition and Committee Roles

Veeko International Holdings Limited has announced the composition of its board of directors and their respective roles. The board includes executive directors responsible for strategic planning and daily management, as well as independent non-executive directors. Additionally, the board has established three committees: Audit, Nomination, and Remuneration, with specific directors assigned as members or chairpersons. This announcement highlights the company’s structured governance and oversight, potentially impacting its operational efficiency and stakeholder confidence.

Veeko International Renews Key Retail License Agreement

Veeko International Holdings Limited, through its subsidiary Colourmix Cosmetics, has renewed a license agreement with MTR Corporation Limited for the use of retail premises at Sha Tin Station. This agreement, effective from October 2025 to September 2028, allows Colourmix to continue its operations under the trade name ‘Colourmix Deluxe’. The transaction is classified as a discloseable transaction under Hong Kong’s Listing Rules, impacting the company’s financial statements as a right-of-use asset.

Veeko International Holdings Secures Shareholder Approval for Key Resolutions at 2025 AGM

Veeko International Holdings Limited announced that all resolutions proposed at its 2025 Annual General Meeting were passed by shareholders. These resolutions included the re-election of directors, authorization of directors’ remuneration, re-appointment of auditors, and granting mandates for share repurchase and issuance, indicating strong shareholder support and strategic continuity for the company.

Veeko International Announces Contingency Plan for AGM Amid Weather Concerns

Veeko International Holdings Limited has announced a contingency plan for its Annual General Meeting (AGM) scheduled on 23 September 2025 due to the potential impact of a tropical cyclone in Hong Kong. If severe weather conditions persist, the AGM will be postponed to 30 September 2025, with all resolutions and proxy forms remaining valid for the rescheduled meeting. Shareholders are advised to assess the weather situation and exercise caution if attending.