NVC International Holdings Ltd. (2222) AI Stock Analysis

• Market Cap: HK$339.87M
• Dividend Yield: N/A
• Average Volume (3M): 84.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.43
• Revenue Growth: -4.69%
• EPS Growth: -123.25%
• Country: HK
• Employees: 2,163
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.23
• Shares Outstanding: 507,273,680
• 10 Day Avg. Volume: 41,810
• 30 Day Avg. Volume: 84,520
• PEG Ratio: <0.01
• Price to Book (P/B): 0.14
• Price to Sales (P/S): 0.27
• P/FCF Ratio: -33.12
• 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: 48 Neutral
• Price Target: HK$0.50 ▼(-23.08% Downside)

NVC International Holdings Ltd. faces significant challenges, primarily due to its financial performance and technical indicators. The strong equity position is overshadowed by profitability issues and negative cash flows. Technical analysis indicates a bearish trend, and the valuation is unattractive due to a negative P/E ratio and lack of dividend yield.

Positive Factors

Strong Equity Position

A strong equity position with low leverage reduces financial risk and enhances stability, providing a solid foundation for future growth.

Energy Efficiency Focus

Focus on energy-efficient products aligns with global sustainability trends, potentially driving demand and benefiting from regulatory support.

Market Reach and Partnerships

Strategic partnerships expand market access and customer base, supporting revenue growth and competitive positioning in the lighting sector.

Negative Factors

Profitability Issues

Ongoing profitability challenges and net losses indicate operational inefficiencies, which could hinder long-term financial health and growth prospects.

Negative Cash Flows

Negative cash flows suggest liquidity issues, limiting the company's ability to invest in growth opportunities and manage financial obligations effectively.

Volatile Revenue Trends

Volatile revenue trends can create uncertainty, complicating financial planning and potentially impacting investor confidence and strategic execution.

NVC International Holdings Ltd. Business Overview & Revenue Model

Company Description

NVC International Holdings Limited, together with its subsidiaries, engages in the manufacture and sale of lamps, luminaries, lighting electronic products, and related products in China, the United States, Japan, the Netherlands, the United Kingdom, and internationally. It offers interior lighting products, including strips, spotlights, downlights, track lights, panel lights, fluorescent luminaires, ceiling and wall lights, lamps, linear lights, and drivers; and exterior lighting products, such as flood lights, in-ground lights, underwater lights, bollard lights, post top lights, surface and recessed wall lights, under-canopy lights, and lighting controllers and drivers. Its products are used for commercial, emergency, industrial, office, traditional, and residential lighting applications. The company was formerly known as NVC Lighting Holding Limited and changed its name to NVC International Holdings Limited in January 2020. NVC International Holdings Limited was founded in 1998 and is headquartered in Tai Po, Hong Kong.

How the Company Makes Money

NVC International Holdings Ltd. generates revenue through multiple streams, primarily from the sale of its energy-efficient lighting products to both wholesale and retail markets. The company has established key partnerships with distributors and retailers, which enhance its market reach and customer base. Additionally, NVC benefits from government incentives and subsidies focused on energy conservation, boosting sales of its LED products. The company may also generate income through providing customized lighting solutions and consulting services to large-scale projects, contributing to its overall earnings.

NVC International Holdings Ltd. Financial Statement Overview

Summary

NVC International Holdings Ltd. shows a mixed financial picture. The company benefits from a strong equity position and low leverage, but faces profitability issues and cash flow deficiencies. The net loss and negative cash flows highlight significant challenges.

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	1.27B	1.73B	1.67B	1.93B	2.37B	2.35B
Gross Profit	608.56M	544.88M	67.32M	63.02M	662.43M	672.52M
EBITDA	-95.68M	113.29M	56.39M	-22.16M	29.20M	186.14M
Net Income	-76.95M	-127.37M	35.71M	-67.49M	5.81M	-20.00M
Balance Sheet
Total Assets	4.12B	4.10B	592.10M	599.17M	4.35B	4.37B
Cash, Cash Equivalents and Short-Term Investments	1.28B	1.09B	133.37M	90.92M	987.98M	1.25B
Total Debt	137.82M	45.06M	6.93M	282.99M	85.28M	91.76M
Total Liabilities	739.16M	682.38M	89.50M	119.64M	1.06B	1.06B
Stockholders Equity	3.36B	3.33B	483.77M	454.49M	3.20B	3.22B
Cash Flow
Free Cash Flow	148.36M	-13.96M	28.11M	-21.93M	-196.51M	-250.23M
Operating Cash Flow	327.69M	133.64M	35.09M	-8.56M	-122.66M	-188.00M
Investing Cash Flow	-719.89M	-214.85M	25.21M	-83.44M	-70.38M	-34.89M
Financing Cash Flow	113.62M	-28.63M	-30.92M	29.45M	-49.12M	-29.50M

NVC International Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.65
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 0.65 is below the 20-day moving average (MA) of 0.66, below the 50-day MA of 0.66, and below the 200-day MA of 0.76, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.20 is Neutral, neither overbought nor oversold. The STOCH value of 11.71 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
1418	73 Outperform	HK$355.25M	3.45	10.72%	7.76%	-1.05%	-2.97%
0229	69 Neutral	HK$471.25M	9.26	7.53%	12.90%	-12.47%	-26.29%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6822	51 Neutral	HK$287.00M	-12.73	-4.25%	9.76%	8.85%	-18.82%
2222	48 Neutral	HK$339.87M	-4.42	-2.05%	―	-4.69%	-123.25%
0684	44 Neutral	HK$189.84M	-2.23	-11.32%	31.48%	4.60%	-9.42%
0776	41 Neutral	HK$492.68M	-10.29	―	―	-15.28%	71.04%