NVC International Holdings Ltd. (2222) AI Stock Analysis

• Market Cap: HK$375.38M
• Dividend Yield: N/A
• Average Volume (3M): 24.36K
• Price to Earnings (P/E): 1.3
• Beta (1Y): 0.59
• Revenue Growth: -0.07%
• EPS Growth: -148.33%
• Country: HK
• Employees: 2,163
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.27
• Shares Outstanding: 507,273,680
• 10 Day Avg. Volume: 41,720
• 30 Day Avg. Volume: 24,356
• PEG Ratio: 5.56
• Price to Book (P/B): 7.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -161.71
• Enterprise Value/Market Cap: 9.33
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: 7.30
• Enterprise Value/Ebitda: -54.12
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: ―

NVC International Holdings Ltd. faces significant challenges, primarily due to its weak profitability and cash flow issues. Despite a robust balance sheet, the stock's technical indicators suggest bearish sentiment, and its valuation metrics are unattractive. The lack of earnings call data or notable corporate events leaves these issues unaddressed, resulting in a low overall score.

NVC International Holdings Ltd. Business Overview & Revenue Model

Company Description

NVC International Holdings Ltd. (2222) is a leading company in the lighting industry, primarily engaged in the design, development, manufacturing, and distribution of a wide range of lighting products. The company serves various sectors including residential, commercial, and industrial markets, offering a comprehensive portfolio of lighting solutions such as LED lighting, smart lighting systems, and conventional lighting products.

How the Company Makes Money

NVC International Holdings Ltd. generates revenue through the sale of its lighting products to a diverse customer base. The company's primary revenue streams include the manufacturing and distribution of LED lighting products, which are in demand for their energy efficiency and long lifespan, and smart lighting systems, which offer advanced technological features for enhanced user experience. The company also sells conventional lighting products, catering to traditional lighting needs. NVC International Holdings Ltd. partners with distributors and retailers to expand its market reach and also directly supplies products to large-scale projects in commercial and industrial sectors, contributing significantly to its earnings.

NVC International Holdings Ltd. Financial Statement Overview

Summary

NVC International Holdings Ltd. displays a strong equity position with low leverage but faces challenges with profitability and cash flow. The revenue trend is volatile, and the company posted a net loss recently. Improving cash management and revenue stabilization are critical for future success.

Income Statement

NVC International Holdings Ltd. has shown a volatile revenue trend with significant fluctuations. The gross profit margin for the latest year is approximately 31.56%, indicating reasonable efficiency in production. However, the company reported a net loss in the most recent year with a net profit margin of -7.38%, reflecting concerns over profitability. The EBIT and EBITDA margins were also low, at 1.37% and 6.56% respectively, suggesting operational challenges.

Balance Sheet

The company maintains a strong equity position with a debt-to-equity ratio of 0.01, indicating low leverage. The equity ratio is 81.29%, showcasing a strong reliance on equity financing. Return on equity is negative due to net losses, but the overall stability of the balance sheet is supported by high equity levels, reducing financial risk.

Cash Flow

The cash flow statement reveals zero operating, investing, and free cash flows, which raises concerns regarding liquidity and cash management. This lack of cash flow data limits the ability to assess the company's cash generation capabilities and sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.68B	1.73B	235.98M	275.82M	2.37B	2.35B
Gross Profit	480.15M	544.88M	67.32M	63.02M	662.43M	672.52M
EBITDA	24.03M	113.29M	56.39M	―	29.20M	141.50M
Net Income	256.97M	-127.37M	35.71M	―	33.47M	-20.00M
Balance Sheet
Total Assets	592.10M	4.10B	592.10M	599.17M	4.35B	4.37B
Cash, Cash Equivalents and Short-Term Investments	133.37M	1.09B	133.37M	90.92M	987.98M	1.25B
Total Debt	6.93M	45.06M	6.93M	44.44M	85.28M	91.76M
Total Liabilities	89.50M	682.38M	89.50M	119.64M	1.06B	1.06B
Stockholders Equity	483.77M	3.33B	483.77M	462.32M	3.20B	3.22B
Cash Flow
Free Cash Flow	225.33M	0.00	28.11M	-21.93M	-196.51M	-250.23M
Operating Cash Flow	251.30M	0.00	35.09M	―	-122.66M	-188.00M
Investing Cash Flow	177.65M	0.00	25.21M	-83.44M	-70.38M	-34.89M
Financing Cash Flow	-217.41M	0.00	-30.92M	29.45M	-49.12M	-29.50M

NVC International Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2222, the sentiment is Negative. The current price of 0.74 is below the 20-day moving average (MA) of 0.79, below the 50-day MA of 0.82, and below the 200-day MA of 0.88, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 32.59 is Neutral, neither overbought nor oversold. The STOCH value of 5.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2222.

NVC International Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0950	67 Neutral	HK$830.26M	8.92	5.04%	3.55%	32.95%	456.69%
6865	59 Neutral	HK$39.19B	62.02	1.56%	2.79%	-22.88%	-89.15%
Sector *	56 Neutral	HK$23.37B	3.96	-1.56%	6.69%	0.06%	-64.88%
1165	46 Neutral	$111.81M	―		―	-34.52%	5.78%
2222	46 Neutral	HK$375.38M	1.33	-3.70%	―	-0.07%	-148.33%
3800	44 Neutral	HK$31.90B	―	-11.91%	―	-56.32%	-272.70%
1799	41 Neutral	HK$8.52B	―	-11.29%	―	-32.63%	-185.82%

NVC International Holdings Ltd. Corporate Events

NVC International Holdings to Hold Annual General Meeting with Key Resolutions

NVC International Holdings Limited has announced its upcoming annual general meeting, scheduled for June 13, 2025, in Hong Kong. The agenda includes the adoption of the company’s audited financial statements for 2024, re-election of directors, and re-appointment of Deloitte Touche Tohmatsu as auditors. Additionally, a resolution will be considered to grant the board a mandate to buy back up to 10% of the company’s shares, highlighting a strategic move to potentially enhance shareholder value.

NVC International Reports 2024 Annual Results with Revenue Growth but Significant Loss

NVC International Holdings Ltd. reported its annual results for the year ending December 31, 2024, showing a slight increase in revenue to US$236.6 million, but a significant drop in profitability, with a loss of US$15.4 million compared to a profit of US$37.7 million the previous year. The company faced increased gross profit but incurred losses due to higher impairment losses and reduced share of results from associates, leading the board to propose no final dividend for the year.

NVC International CEO Resigns to Focus on Personal Commitments

NVC International Holdings Limited announced the resignation of its Chief Executive Officer, Ms. Chan Kim Yung, effective April 1, 2025, as she intends to focus more on her personal commitments. Despite stepping down from the CEO role, Ms. Chan will continue to serve as an executive director, vice-chairman, and member of the remuneration and strategy and planning committees. The company is actively seeking a replacement for the CEO position and will make further announcements when a suitable candidate is identified. The board expressed gratitude for Ms. Chan’s contributions and confirmed there are no disagreements or issues related to her resignation.

NVC International Issues Profit Warning Amid Expected Losses

NVC International Holdings Limited has issued a profit warning, indicating a significant shift from a profit of approximately US$37.7 million in 2023 to an expected loss of no more than US$16.9 million for the year ending December 31, 2024. This anticipated loss is primarily attributed to impairment losses of up to US$27.5 million related to an interest in an associate, highlighting potential challenges in the company’s financial performance and signaling caution for shareholders and investors.