Veeko International Holdings Limited (1173) AI Stock Analysis

• Market Cap: HK$78.06M
• Dividend Yield: N/A
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• 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: 44 Neutral
• Price Target: HK$0.03 ▼(-25.00% Downside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is held down primarily by weak financial performance—declining revenue, sustained losses, and very high leverage—along with mixed cash-flow quality. Technicals provide only modest support (mildly positive momentum but below key moving averages), and valuation is not attractive given the negative P/E and lack of dividend support.

Positive Factors

Gross margin resilience

A ~46% gross margin signals durable unit-level profitability and pricing power in core products. Even with top-line pressure, a strong gross margin provides room to cover fixed costs, supports margin recovery if sales stabilize, and underpins long-term cash generation.

Free cash flow conversion

High free cash flow conversion despite negative earnings indicates the business can translate reported losses into meaningful cash inflows. That cash resilience eases near-term liquidity needs, supports operations, and reduces dependence on new external financing over the medium term.

Defensive industry exposure

Operating in household and personal products provides structurally steady demand and repeat purchasing patterns. This defensive industry profile helps stabilize revenue streams over economic cycles and offers a foundation for recovery if product-market fit and distribution are restored.

Negative Factors

Very high leverage

Extremely high debt-to-equity (8.19) creates persistent interest and refinancing pressure, limiting strategic flexibility. Elevated leverage heightens solvency risk if cash generation falters, constrains investment in growth or restructuring, and raises vulnerability to rising rates.

Declining revenue trend

Sustained revenue decline reduces scale economics and weakens negotiating leverage with suppliers and distributors. Continued top-line contraction makes fixed-cost absorption harder, prolongs margin recovery, and forces reliance on cost cuts or restructuring to restore profitability.

Sustained operating losses

Deep, persistent negative margins indicate the current cost structure and pricing do not cover operating expenses. Continued losses erode equity (ROE -157.38%), impede reinvestment, and increase dependence on external capital—undermining long-term viability without structural change.

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

Weak fundamentals dominate: revenue is declining (-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 ROE at -157.38%). Cash generation is mixed, with free cash flow also declining (-17.60%) and operating cash flow not covering losses (OCF/net income 0.08), despite a relatively healthy gross margin (45.93%).

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 42.22 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$292.48M	5.20	3.77%	10.32%	-6.67%	-29.55%
8436	65 Neutral	HK$104.00M	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$251.11M	-5.88	-23.55%	―	10.42%	11.14%
8281	45 Neutral	HK$95.00M	-9.02	2.37%	―	-1.65%	230.00%
1173	44 Neutral	HK$78.06M	-0.50	-117.03%	―	-17.91%	-32.66%

Veeko International Holdings Limited Corporate Events

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.