Veeko International Holdings Limited (1173) AI Stock Analysis

• Market Cap: HK$80.58M
• Dividend Yield: N/A
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• 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: 39 Underperform
• Price Target: HK$0.03 ▼(-25.00% Downside)
• Action: Downgraded Date: 03/14/26
• Date: Action: Downgraded 03/14/26

The score is primarily pressured by weak financial performance (declining revenue, substantial losses, and very high leverage). Technical indicators also point to ongoing downside momentum. Valuation provides limited support because the company is loss-making (negative P/E) and no dividend yield is available.

Positive Factors

Healthy gross margin

A gross margin near 46% indicates the company retains significant value after direct costs, reflecting product pricing power or manufacturing efficiency. That structural margin provides a durable buffer to absorb SG&A cuts or scale benefits, enabling potential profit recovery over months if top-line stabilizes.

Free cash flow conversion

A FCF-to-net-income ratio close to 1.0 shows the business can convert reported losses into near-parity cash flow, implying non-cash charges or working-capital timing. Durable cash generation supports creditor confidence and gives the company runway to restructure or invest without immediate equity raises.

Defensive sector exposure

Operating in household and personal products typically means steadier, inelastic end-market demand versus cyclical sectors. Structural demand stability supports baseline revenue and cash flow over the medium term, reducing existential revenue volatility while management addresses margin and leverage issues.

Negative Factors

Declining revenue

Sustained double-digit top-line decline signals loss of demand or market share, which materially impairs the business's ability to leverage fixed costs and the healthy gross margin. Over months this constrains reinvestment, makes margin recovery harder, and raises the bar for management turnaround plans.

Very high leverage

Extremely high debt-to-equity magnifies downside risk: interest burden and refinancing needs limit strategic flexibility and increase default or covenant stress. Over a multi-month horizon, leverage hampers investments, forces tighter liquidity management, and can block restructuring unless reduced or refinanced.

Deep negative profitability

Large negative margins and deeply negative ROE show the company is destroying shareholder value. Persistent operating losses erode equity and creditworthiness, requiring material cost cuts, revenue stabilization, or capital actions. Without structural fixes, losses will impair long-term viability.

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

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Veeko International Holdings Limited Financial Statement Overview

Summary

Financials indicate significant stress: revenue declined (-11.54%), profitability is deeply negative (net margin -25.91%, EBIT margin -17.49%), and leverage is very high (debt-to-equity 8.19) with sharply negative ROE (-157.38%). Cash flow metrics provide only limited support, with falling free cash flow (-17.60%) and weak operating cash flow vs. losses (OCF/net income 0.08).

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

Veeko International Holdings Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1173, the sentiment is Negative. The current price of 0.04 is above the 20-day moving average (MA) of 0.04, above 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 11.19 is Positive, neither overbought nor oversold. The STOCH value of 35.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$518.45M	5.29	17.17%	8.33%	21.99%	11.36%
1962	69 Neutral	HK$295.66M	5.20	3.77%	10.32%	-6.67%	-29.55%
8436	65 Neutral	HK$102.00M	13.10	1.89%	―	-20.10%	-74.16%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
6893	49 Neutral	HK$210.72M	-5.88	-23.55%	―	10.42%	11.14%
8281	45 Neutral	HK$95.00M	-9.02	2.37%	―	-1.65%	230.00%
1173	39 Underperform	HK$80.58M	-0.50	-117.03%	―	-17.91%	-32.66%

Veeko International Holdings Limited Corporate Events

Veeko Seeks Waiver as Dispatch of Major-Transaction Circular Delayed

Veeko International Holdings has announced a delay in sending a shareholder circular related to a major transaction involving the disposal of a property. As Silver Crown, the controlling shareholder, has already provided written approval in lieu of a general meeting, the company is now focused on completing required documentation under Hong Kong listing rules.

The delay stems from the need for more time to finalise key information, including the group’s statement of indebtedness, a valuation report on the property, and a working capital sufficiency letter. Veeko has applied to the Hong Kong Stock Exchange for a waiver from the strict dispatch deadline and now expects to deliver the circular to shareholders on or before 27 March 2026, which could modestly impact the timetable but not the substance of the disposal transaction.

The most recent analyst rating on (HK:1173) stock is a Hold with a HK$0.03 price target. To see the full list of analyst forecasts on Veeko International Holdings Limited stock, see the HK:1173 Stock Forecast page.

Veeko Clarifies Purchaser Ownership and Timeline for Property Disposal Circular

Veeko International Holdings has issued a supplemental and clarification announcement regarding a major transaction involving the disposal of a property. The company disclosed that the purchaser of the property is ultimately owned in equal parts by two individual investors from mainland China, providing greater transparency on the counterparty’s ownership.

The company also clarified that it expects to send a shareholder circular detailing the disposal agreement and related transactions by 10 March 2026. If more time is needed to finalize the circular, Veeko plans to seek a waiver from the Stock Exchange to extend the dispatch deadline, signaling a focus on regulatory compliance and full information disclosure to shareholders.

The most recent analyst rating on (HK:1173) stock is a Sell with a HK$0.03 price target. To see the full list of analyst forecasts on Veeko International Holdings Limited stock, see the HK:1173 Stock Forecast page.

Veeko International to Sell Shantou Industrial Property in Major Transaction

Veeko International Holdings has agreed to dispose of an industrial property comprising the 9th to 11th floors of Wei Gao Building in Shantou, Guangdong, for RMB25.15 million, equivalent to about HK$27.95 million. The transaction, made with an independent third-party purchaser, involves a gross floor area of 8,384.34 square metres designated for industrial use.

The deal qualifies as a major transaction under Hong Kong Listing Rules, triggering reporting, announcement, circular and shareholder approval requirements. Majority shareholder Silver Crown has provided written approval in lieu of a general meeting, and Veeko plans to dispatch the circular by 31 March 2026, while cautioning investors that completion remains subject to conditions precedent.

The most recent analyst rating on (HK:1173) stock is a Sell with a HK$0.04 price target. To see the full list of analyst forecasts on Veeko International Holdings Limited stock, see the HK:1173 Stock Forecast page.