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Stella International Holdings Limited
(1836)
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Rating:74Outperform
Price Target:
HK$17.00
â–²(10.97% Upside)
Action:Reiterated
Date:03/23/26
The score is supported primarily by strong financial strength (especially the low-leverage balance sheet) and attractive valuation/income (low P/E and high dividend yield). These positives are tempered by weak technicals (below major moving averages with negative MACD) and some deterioration in 2025 margins and cash conversion.
Positive Factors
Conservative balance sheet
Extremely low leverage materially reduces refinancing and downturn risk, giving the company durable financial flexibility. This supports sustained operations through cyclical demand, funds working-capital needs, and enables strategic investments or contract fulfilment without reliance on external credit.
Negative Factors
Margin compression
A notable step-down in margins reflects cost or pricing pressure that can persist if input costs, labor, or mix shifts remain. Sustained margin erosion would reduce cash flow conversion and return on capital, requiring structural cost improvements or pricing power to restore prior profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Extremely low leverage materially reduces refinancing and downturn risk, giving the company durable financial flexibility. This supports sustained operations through cyclical demand, funds working-capital needs, and enables strategic investments or contract fulfilment without reliance on external credit.
Read all positive factors
Stella International Holdings Limited (1836) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$10.88B
Dividend Yield10.16%
Average Volume (3M)1.48M
Price to Earnings (P/E)13.6
Beta (1Y)0.33
Revenue Growth1.53%
EPS Growth-21.76%
CountryHK
Employees42,600
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Footwear & Accessories
Share Statistics
EPS (TTM)0.12
Shares Outstanding843,971,500
10 Day Avg. Volume1,094,403
30 Day Avg. Volume1,475,751
Financial Highlights & Ratios
PEG Ratio-0.62
Price to Book (P/B)1.48
Price to Sales (P/S)1.04
P/FCF Ratio14.02
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$16.37Price Target Upside6.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.16
Revenue Forecast (FY)HK$1.57B
Stella International Holdings Limited Business Overview & Revenue Model
Company Description
Stella International Holdings Limited is a globally active company primarily engaged in the conceptualization, development, production, and sale of footwear and leather accessories. Its market reach spans North America, the People's Republic of Ch...
How the Company Makes Money
Stella International primarily makes money by manufacturing footwear and related products for brand owners and earning revenue from the sale of finished goods produced to customer specifications. Its core revenue stream is the contract production ...
Stella International Holdings Limited Earnings Call Summary
Earnings Call Date:Mar 21, 2024
(Q4-2023)
| % Change Since: |
Next Earnings Date:Aug 20, 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.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.
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.
Read all updates
Q4-2023 Updates
Positive
Negative
Fourth Quarter Revenue Increase
The group's unaudited consolidated revenue increased by 13.5% to $389.5 million for the fourth quarter of 2023.
Read all positive updates
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
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.57B | 1.55B | 1.49B | 1.63B | 1.54B |
| Gross Profit | 342.33M | 383.96M | 366.73M | 352.13M | 316.85M |
| EBITDA | 198.90M | 220.01M | 218.50M | 192.62M | 160.62M |
| Net Income | 137.99M | 171.05M | 141.07M | 118.03M | 89.69M |
Balance Sheet | |||||
| Total Assets | 1.44B | 1.42B | 1.36B | 1.26B | 1.30B |
| Cash, Cash Equivalents and Short-Term Investments | 373.24M | 423.55M | 294.48M | 213.65M | 135.69M |
| Total Debt | 16.33M | 12.00M | 15.24M | 22.17M | 29.00M |
| Total Liabilities | 329.57M | 305.83M | 292.24M | 242.13M | 281.49M |
| Stockholders Equity | 1.10B | 1.10B | 1.05B | 998.86M | 998.60M |
Cash Flow | |||||
| Free Cash Flow | 115.97M | 197.09M | 161.51M | 182.14M | 64.55M |
| Operating Cash Flow | 207.31M | 264.07M | 229.15M | 240.08M | 120.26M |
| Investing Cash Flow | -95.25M | -31.35M | -56.57M | -53.77M | -71.35M |
| Financing Cash Flow | -155.95M | -102.64M | -90.79M | -106.41M | -22.62M |
Stella International Holdings Limited Technical Analysis
Neutral
15.32
Price Trends
13.52
Negative
13.63
Negative
14.12
Negative
Market Momentum
-0.28
Positive
47.62
Neutral
48.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1836, the sentiment is Neutral. The current price of 15.32 is above the 20-day moving average (MA) of 13.04, above the 50-day MA of 13.52, and above the 200-day MA of 14.12, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 47.62 is Neutral, neither overbought nor oversold. The STOCH value of 48.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1836.
Stella International Holdings Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | HK$682.62M | 5.13 | 16.16% | 4.60% | 12.73% | 9.25% | |
76 Outperform | HK$9.04B | 5.60 | 13.00% | 5.22% | 10.65% | 13.67% | |
74 Outperform | HK$10.88B | 13.56 | 9.06% | 10.16% | 1.53% | -21.76% | |
66 Neutral | HK$20.36B | 6.36 | 7.40% | 7.69% | -1.93% | -1.36% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | HK$457.28M | -4.41 | -6.20% | 11.54% | -1.47% | -420.10% | |
49 Neutral | HK$281.51M | -10.24 | -2.53% | 4.15% | -2.99% | -111.49% |
* Consumer Cyclical Sector Average
HK:1836
Stella International Holdings Limited
12.94
-0.60
-4.40%
HK:0210
Daphne International Holdings
0.35
-0.08
-19.01%
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Kingmaker Footwear Holdings
0.43
-0.14
-24.78%
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361 Degrees International
4.17
-0.70
-14.30%
HK:0551
Yue Yuen Industrial (Holdings)
12.70
1.36
11.98%
HK:1023
Sitoy Group Holdings Limited
0.48
0.04
8.70%
Stella International Holdings Limited Corporate Events
Stella International Lifts Q1 Revenue, Ramps Up Capacity in Investment Year
Apr 16, 2026
Stella International reported a 1.9% year-on-year rise in unaudited consolidated revenue to US$337.4 million for the first quarter of 2026, driven mainly by its footwear manufacturing business, where revenue grew 2.2%. Shipment volumes dipped 1.7%...
Stella International Sets 2026 AGM, Proposes Dividend Payouts and Share Issuance Mandate
Apr 15, 2026
Stella International Holdings has called its 2026 annual general meeting to be held electronically on 14 May, where shareholders will review and approve the audited consolidated financial statements for the year ended 31 December 2025. The agenda ...
Stella International Declares HKD 0.37 Final Dividend for 2025
Mar 19, 2026
Stella International Holdings Limited has declared a final ordinary cash dividend of HKD 0.37 per share for the financial year ended 31 December 2025, subject to shareholder approval at the annual general meeting on 14 May 2026. The record date fo...
Stella International Declares Special Cash Dividend for FY2025
Mar 19, 2026
Stella International Holdings Limited has declared a special cash dividend of HKD 0.56 per share for the financial year ended 31 December 2025, subject to shareholder approval at a meeting scheduled for 14 May 2026. The dividend will be paid in Ho...
Stella International Lifts Revenue, Expands into Handbags and Boosts Dividends
Mar 19, 2026
Stella International Holdings reported a 3.8% rise in shipment volume for 2025, driven largely by its Sports footwear category, with revenue edging up 1.6% to US$1.57 billion. Despite higher cost of sales compressing gross profit, the group mainta...
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.