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Stella International Holdings Limited (HK:1836)
:1836
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Stella International Holdings Limited (1836) AI Stock Analysis

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HK:1836

Stella International Holdings Limited

(1836)

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Outperform 82 (OpenAI - 4o)
Rating:82Outperform
Price Target:
HK$18.00
▲(10.77% Upside)
Stella International Holdings Limited scores highly due to its strong financial performance, characterized by robust profitability, low leverage, and excellent cash flow generation. The valuation is attractive with a high dividend yield, appealing to income investors. Technical analysis indicates stability with no significant bullish or bearish trends. The absence of earnings call and corporate events data did not impact the overall score.
Positive Factors
Cash Generation
Strong cash generation supports operational and financial activities, ensuring the company can invest in growth and manage obligations efficiently.
Balance Sheet Health
A strong balance sheet with low leverage enhances financial stability and flexibility, positioning the company well for future growth opportunities.
Profitability
High profitability margins indicate efficient operations and the ability to generate significant earnings, supporting long-term business sustainability.
Negative Factors
Revenue Growth
While there is positive growth, revenue levels remain below the 2019 peak, suggesting challenges in fully recovering market position.
Revenue Growth Decline
The decline in revenue growth rate indicates potential market or operational challenges that could impact long-term growth prospects.
EPS Growth
A significant drop in EPS growth suggests pressure on earnings, which could affect investor confidence and the company's ability to reinvest in growth.

Stella International Holdings Limited (1836) vs. iShares MSCI Hong Kong ETF (EWH)

Stella International Holdings Limited Business Overview & Revenue Model

Company DescriptionStella International Holdings Limited designs, develops, manufactures, and sells footwear products and leather goods in North America, the People's Republic of China, Europe, Asia, and internationally. It operates in two segments, Manufacturing; and Retailing and Wholesaling. The company is also involved in the holding of intellectual property rights; and the provision of secretary and accounting services. In addition, it manufactures and sells handbags. The company offers its products under the Stella Luna and What For brands names. Stella International Holdings Limited was founded in 1982 and is based in Kowloon, Hong Kong.
How the Company Makes MoneyStella International generates revenue primarily through the manufacturing and sale of footwear, which constitutes a significant portion of its business. The company operates on a business-to-business model, supplying products to well-known international brands and retailers. Key revenue streams include direct sales from footwear manufacturing, licensing agreements, and partnerships with global brands for exclusive product lines. Additionally, the company benefits from economies of scale and a diversified product portfolio, which help to stabilize earnings. Strategic partnerships with major retailers further enhance its market reach, while investments in advanced manufacturing technologies contribute to cost efficiency and improved profit margins.

Stella International Holdings Limited Earnings Call Summary

Earnings Call Date:Aug 21, 2025
(Q4-2023)
|
% Change Since: |
Next Earnings Date:Mar 19, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted solid performance in the fourth quarter, with increased revenue and shipment volumes. The company is focusing on operational efficiency and has a strong order book for 2024. However, there are challenges such as a decline in annual revenue, issues in the retail segment, and a weaker luxury market. Overall, the highlights and expectations for efficiency improvements and full order books for 2024 create a balanced sentiment.
Q4-2023 Updates
Positive Updates
Fourth Quarter Revenue Increase
The group's unaudited consolidated revenue increased by 13.5% to $389.5 million for the fourth quarter of 2023.
Positive ASP and Operating Margin Trends
The ASP increased by 2.1% for the fourth quarter and by 4.2% for the full year. The company also reported enhanced gross profit margins, better production efficiency, and cost controls supporting the operating margin.
Shipment Volume Growth in Q4
Shipment volume for the fourth quarter increased by about 10.9% year-on-year.
Strong Order Book for 2024
The non-sports side of the business is fully booked for 2024, with some orders turned down due to capacity limitations.
Operational Efficiency Improvements
The company has been enhancing internal structures, which is expected to improve operating margins in 2024.
Negative Updates
Annual Revenue Decline
For the year ended 31st December 2023, the group's unaudited consolidated revenue decreased by approximately 8.5% to $1,492.7 million.
Full Year Shipment Volume Decrease
Shipment volumes for the full year decreased by about 12.5% due to product and customer mix reshaping and destocking by customers.
Retail Segment Challenges
The company is in the process of shutting down most of its retail operations, which has been a challenge over the past few years.
Luxury Segment Weakness
The luxury market is weaker than before, within expectations, but still presents challenges.
Company Guidance
During the earnings call for Stella International Holdings Limited, the company provided detailed guidance for the fourth quarter and the full year of 2023. The group's unaudited consolidated revenue for the fourth quarter increased by 13.5% to $389.5 million, while the full year revenue decreased by 8.5% to $1,492.7 million. The manufacturing business experienced a similar pattern, with a 13.5% revenue increase in the fourth quarter to $380.3 million and an 8.9% decrease for the full year to $1,044.3 million. Shipment volumes rose by 10.9% year-on-year in the fourth quarter but fell by 12.5% for the year. The average selling price (ASP) saw an increase of 2.1% in the fourth quarter and 4.2% for the year, attributed to changes in the customer and product mix. The company remains optimistic about its medium-term goals, aiming for a 10% operating margin and a low teens annualized growth rate in profit after tax over its three-year plan. For 2024, the company anticipates volume growth to be flat to mid-single digits, with ASP likely remaining flat, supported by gross margin improvements, better production efficiency, and cost controls.

Stella International Holdings Limited Financial Statement Overview

Summary
Stella International Holdings Limited presents a strong financial profile characterized by steady revenue growth, high profitability, low leverage, and robust cash flow generation. The company's strategic management and financial health position it well for sustained growth. While revenue has not yet returned to its 2019 peak, the consistent improvement in profit margins and cash flow metrics highlights a positive trajectory. Overall, Stella International Holdings is financially sound with a promising outlook.
Income Statement
85
Very Positive
The income statement reveals strong profitability with a Gross Profit Margin of 24.8% and a notable Net Profit Margin of 11.1% for the latest year. Revenue has grown by 3.5% year-over-year, indicating positive growth trends. The EBIT Margin stands at 11.9%, demonstrating efficient operational performance. Overall, Stella International Holdings exhibits solid revenue growth and profitability metrics, though the revenue levels are still lower than peak levels seen in 2019.
Balance Sheet
88
Very Positive
The balance sheet is robust with a low Debt-to-Equity Ratio of 0.01, indicating minimal leverage risk. The Return on Equity is strong at 15.5%, showcasing effective management of shareholder capital. Additionally, the company maintains a high Equity Ratio of 77.4%, suggesting financial stability. With increasing equity and low debt levels, Stella International Holdings is well-positioned for future growth.
Cash Flow
90
Very Positive
Cash flow analysis shows a healthy Free Cash Flow Growth Rate of 22.0%, with Free Cash Flow reaching $197 million. The Operating Cash Flow to Net Income Ratio is 1.54, underscoring excellent cash generation capabilities. Furthermore, the Free Cash Flow to Net Income Ratio of 1.15 indicates efficient cash conversion from profits. Stella International Holdings demonstrates strong cash flow performance, supporting its operational and financial activities.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.16B1.55B1.49B1.63B1.54B1.14B
Gross Profit272.65M383.96M366.73M352.13M316.85M201.66M
EBITDA153.13M220.01M218.50M192.62M160.62M54.14M
Net Income118.42M171.05M141.07M118.03M89.69M1.69M
Balance Sheet
Total Assets1.45B1.42B1.36B1.26B1.30B1.15B
Cash, Cash Equivalents and Short-Term Investments350.80M423.55M294.48M213.65M135.69M109.31M
Total Debt67.72M12.00M15.24M22.17M29.00M22.55M
Total Liabilities357.47M305.83M292.24M242.13M281.49M225.72M
Stockholders Equity1.08B1.10B1.05B998.86M998.60M924.59M
Cash Flow
Free Cash Flow107.42M197.09M161.51M182.14M64.55M119.37M
Operating Cash Flow166.84M264.07M229.15M240.08M120.26M170.46M
Investing Cash Flow-28.30M-31.35M-56.57M-53.77M-71.35M-71.30M
Financing Cash Flow-84.30M-102.64M-90.79M-106.41M-22.62M-51.90M

Stella International Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price16.25
Price Trends
50DMA
15.66
Positive
100DMA
15.09
Positive
200DMA
14.99
Positive
Market Momentum
MACD
0.23
Negative
RSI
60.33
Neutral
STOCH
76.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1836, the sentiment is Positive. The current price of 16.25 is above the 20-day moving average (MA) of 15.73, above the 50-day MA of 15.66, and above the 200-day MA of 14.99, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 60.33 is Neutral, neither overbought nor oversold. The STOCH value of 76.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1836.

Stella International Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$13.66B10.9514.55%9.72%-0.14%-14.24%
HK$12.18B9.3712.52%5.12%14.63%15.55%
HK$355.50M5.5323.19%7.27%21.82%125.68%
$20.90B7.098.72%9.09%5.75%0.93%
HK$490.98M-2.76-10.55%11.54%-1.38%-275.02%
$18.38B12.79-2.54%3.03%1.52%-15.83%
$324.56M-3.04%4.32%-9.20%-268.90%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1836
Stella International Holdings Limited
16.25
3.03
22.90%
HK:1170
Kingmaker Footwear Holdings
0.49
-0.16
-24.85%
HK:1361
361 Degrees International
5.89
2.10
55.57%
HK:0551
Yue Yuen Industrial (Holdings)
14.30
-0.35
-2.38%
HK:1023
Sitoy Group Holdings Limited
0.53
-0.04
-7.02%
HK:2683
Wah Sun Handbags International Holdings Ltd.
0.87
0.55
171.88%

Stella International Holdings Limited Corporate Events

Stella International Holdings Sees Revenue Growth in Q3 2025
Oct 16, 2025

Stella International Holdings Limited reported a 3.7% increase in consolidated revenue for the third quarter of 2025, driven by a rise in shipment volumes, particularly in the sports segment. The company is addressing challenges in expanding its production facilities in Indonesia and the Philippines, which will aid future operations. Stella plans to return up to US$60 million annually to shareholders through share repurchases and special dividends in 2025 and 2026.

The most recent analyst rating on (HK:1836) stock is a Buy with a HK$17.50 price target. To see the full list of analyst forecasts on Stella International Holdings Limited stock, see the HK:1836 Stock Forecast page.

Stella International Reports Modest Revenue Growth
Aug 22, 2025

Stella International Holdings, a prominent player in the footwear manufacturing industry, is known for its high-quality craftsmanship and diverse manufacturing capabilities across Asia. The company recently reported its interim financial results for the first half of 2025, highlighting a modest increase in revenue and shipment volumes despite facing some operational challenges. Key financial metrics showed a 0.7% rise in revenue to $775.1 million and a 3.8% increase in shipment volume, driven primarily by the sports category. However, the company experienced a decline in gross profit and net profit due to temporary inefficiencies in new production facilities and a high base effect from the previous year. Looking ahead, Stella International remains optimistic about achieving its strategic goals, including expanding production capacity and enhancing its product mix, while maintaining a strong cash position and commitment to shareholder returns.

Stella International Forms Nomination Committee for Transparent Board Appointments
Aug 21, 2025

Stella International Holdings Limited has established a Nomination Committee to ensure a fair and transparent process for Board appointments. This committee, composed mainly of independent non-executive directors, is tasked with identifying suitable candidates and making recommendations to the Board and shareholders. The Nomination Committee is empowered to obtain independent advice and resources to fulfill its duties and may delegate authority to subcommittees or its chairman as necessary.

The most recent analyst rating on (HK:1836) stock is a Buy with a HK$17.00 price target. To see the full list of analyst forecasts on Stella International Holdings Limited stock, see the HK:1836 Stock Forecast page.

Stella International Declares Interim Dividend for 2025
Aug 21, 2025

Stella International Holdings Limited announced an interim cash dividend of HKD 0.52 per share for the six months ending June 30, 2025. The dividend will be paid on September 19, 2025, with the ex-dividend date set for September 3, 2025. This announcement reflects the company’s stable financial performance and commitment to returning value to its shareholders.

The most recent analyst rating on (HK:1836) stock is a Buy with a HK$17.00 price target. To see the full list of analyst forecasts on Stella International Holdings Limited stock, see the HK:1836 Stock Forecast page.

Stella International Reports Modest Revenue Growth Amid Strong Sports Category Performance
Aug 21, 2025

Stella International Holdings Limited reported a modest revenue increase of 0.7% to US$775.1 million for the six months ended June 30, 2025, with a notable 3.8% rise in shipment volume driven by the sports category. The company maintained a solid net cash position of US$291.3 million and declared an interim dividend of HK52 cents per share, reflecting a payout ratio of over 70%. Despite a slight decline in operating profit compared to the previous year, Stella’s financial performance remains robust, with a net profit of US$78.1 million, indicating stable operations and a strong market position.

The most recent analyst rating on (HK:1836) stock is a Buy with a HK$17.00 price target. To see the full list of analyst forecasts on Stella International Holdings Limited stock, see the HK:1836 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 21, 2025