Eagle Nice (International) Holdings Ltd. (2368) AI Stock Analysis

• Market Cap: HK$1.91B
• Dividend Yield: 7.98%
• Average Volume (3M): 61.00K
• Price to Earnings (P/E): 2.6
• Beta (1Y): 0.19
• Revenue Growth: 13.52%
• EPS Growth: 4.95%
• Country: HK
• Employees: 18,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.36
• Shares Outstanding: 574,180,000
• 10 Day Avg. Volume: 62,600
• 30 Day Avg. Volume: 61,000
• PEG Ratio: -0.52
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 0.48
• P/FCF Ratio: -9.37
• 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: 63 Neutral
• Price Target: HK$3.50 ▲(0.29% Upside)
• Action: Reiterated Date: 11/13/25
• Date: Action: Reiterated 11/13/25

Eagle Nice (International) Holdings Ltd. scores moderately due to its stable revenue growth and attractive valuation with a low P/E ratio and high dividend yield. However, declining profitability margins and significant cash flow management issues pose risks. The technical analysis indicates a positive trend but warns of potential overbought conditions.

Positive Factors

Stable revenue base

Consistent revenue growth provides durable demand visibility and supports production planning and fixed-cost absorption across the manufacturing network. Over 2-6 months this stability underpins contractual relationships with buyers and reduces execution risk compared with cyclical peers.

Manageable balance sheet

A stable equity ratio and leverage still within manageable ranges preserve financial flexibility to fund working capital and capex. This structural balance allows the company to service obligations and invest selectively without immediate refinancing pressure over the medium term.

Scale & manufacturing network

Large-scale manufacturing and an established supply-chain footprint give durable operational advantages: cost efficiency, capacity to service large customers, and the ability to reallocate production across sites. Scale supports competitive positioning in contract apparel supply.

Negative Factors

Weak cash generation

Persistent negative operating cash flow and declining free cash flow undermine liquidity and constrain reinvestment or dividend sustainability. Structurally weak cash generation heightens reliance on external funding and reduces resilience to prolonged cost or demand shocks.

Declining profitability margins

Trend-level margin erosion signals pressure on pricing power or rising input and operating costs. Reduced margins lower earnings convertibility and limit ability to self-fund growth, making the business more vulnerable to cost inflation and customer margin demands over several months.

Rising leverage and lower ROE

Increasing leverage combined with falling ROE indicates weaker capital efficiency and higher financial risk. Structurally, this raises interest burden and reduces strategic flexibility, potentially forcing cost cutting or asset sales if margins or cash flows do not recover.

Eagle Nice (International) Holdings Ltd. Business Overview & Revenue Model

Company Description

Eagle Nice (International) Holdings Limited, an investment holding company, manufactures and trades in sportswear and garments in Mainland China, the United States, Europe, Japan, and internationally. Its sportswear, such as down jackets, tracksuits, sweaters, sports pants, etc. Eagle Nice (International) Holdings Limited was founded in 1993 and is headquartered in Kwai Chung, Hong Kong.

How the Company Makes Money

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Eagle Nice (International) Holdings Ltd. Financial Statement Overview

Summary

Eagle Nice (International) Holdings Ltd. demonstrates moderate financial performance with stable revenue growth but declining profitability margins. The balance sheet is relatively stable, though increased leverage poses a risk. Cash flow management is a significant concern, with negative free cash flow growth and operating cash flow. The company should focus on improving operational efficiency and cash flow generation to enhance financial stability.

Income Statement

Eagle Nice (International) Holdings Ltd. shows a moderate revenue growth rate of 6% in the latest year, with a declining trend in gross and net profit margins over the past few years. The EBIT and EBITDA margins have also decreased, indicating some pressure on operational efficiency. However, the company maintains a stable revenue base, which is a positive sign.

Balance Sheet

The company's debt-to-equity ratio has increased, indicating higher leverage, but it remains within a manageable range. Return on equity has decreased, reflecting reduced profitability. The equity ratio is stable, suggesting a balanced asset structure. Overall, the balance sheet shows moderate financial health with some leverage concerns.

Cash Flow

The cash flow statement reveals negative free cash flow growth and a negative operating cash flow, indicating cash management challenges. The free cash flow to net income ratio is unusually high due to negative free cash flow, suggesting potential liquidity issues. The company needs to improve its cash flow generation to support operations and growth.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	4.81B	4.07B	4.05B	3.67B	3.25B
Gross Profit	772.71M	748.69M	727.03M	617.27M	619.94M
EBITDA	546.92M	546.10M	546.67M	459.27M	535.13M
Net Income	217.20M	263.51M	292.64M	274.63M	313.56M
Balance Sheet
Total Assets	3.97B	3.17B	3.07B	3.13B	2.57B
Cash, Cash Equivalents and Short-Term Investments	387.39M	490.06M	516.53M	456.46M	442.99M
Total Debt	1.47B	913.15M	634.63M	670.37M	437.53M
Total Liabilities	2.15B	1.54B	1.39B	1.40B	1.02B
Stockholders Equity	1.75B	1.58B	1.63B	1.67B	1.51B
Cash Flow
Free Cash Flow	-245.21M	-22.09M	413.82M	-29.06M	391.75M
Operating Cash Flow	-146.00K	229.27M	561.13M	182.72M	417.36M
Investing Cash Flow	-321.77M	-271.70M	-198.48M	-197.13M	18.79M
Financing Cash Flow	234.93M	42.54M	-271.82M	15.04M	-317.12M

Eagle Nice (International) Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.49
• 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:2368, the sentiment is Negative. The current price of 3.49 is above the 20-day moving average (MA) of 3.43, above the 50-day MA of 3.48, and below the 200-day MA of 3.51, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 31.51 is Neutral, neither overbought nor oversold. The STOCH value of 1.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2368.

Eagle Nice (International) Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3818	68 Neutral	HK$2.64B	3.44	3.61%	5.01%	-2.56%	―
2199	67 Neutral	HK$2.86B	4.54	8.52%	4.00%	3.40%	151.24%
1982	64 Neutral	HK$2.60B	1.52	14.74%	12.14%	-0.95%	2.58%
2030	63 Neutral	HK$902.60M	14.36	2.22%	1.28%	-14.05%	20.05%
2368	63 Neutral	HK$1.91B	2.63	12.81%	7.98%	13.52%	4.95%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1382	59 Neutral	HK$1.76B	6.53	4.73%	8.06%	-2.44%	-5.98%

Eagle Nice (International) Holdings Ltd. Corporate Events

Eagle Nice Details Cost-Plus Pricing Safeguards for Renewed Li Ning Connected Deals

Eagle Nice (International) Holdings Ltd. has issued a supplemental announcement detailing the pricing policies and procedures governing renewed continuing connected transactions with Li Ning Group at the subsidiary level. Under new framework agreements, the company will use a cost-plus pricing method, calculating a base cost for sportswear products and then adding processing fees and a negotiated profit margin that is benchmarked against average gross margins earned from comparable independent Chinese brand customers, with reference to market conditions and payment terms. The group’s sales department will regularly collect market price data and compare Li Ning’s prices with at least two independent buyers for similar products to ensure that transaction terms remain on normal commercial terms and are no less favourable than those offered to independent third parties. The board, including independent non-executive directors, believes these mechanisms ensure that the renewed connected transactions are fair, conducted on an arm’s length basis, and not prejudicial to the interests of the company or its shareholders.

The most recent analyst rating on (HK:2368) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Eagle Nice (International) Holdings Ltd. stock, see the HK:2368 Stock Forecast page.

Eagle Nice Renews Connected Transactions Framework with Li Ning Through 2027

Eagle Nice (International) Holdings has announced that its previous framework agreements governing sales of sportswear products to Li Ning Group expired on 31 December 2025 and will be renewed via new framework agreements effective from 1 January 2026 to 31 December 2027, with sales to continue through its subsidiaries Dongneng, EN (Foshan), EN (Yifeng) and LN Kidswear. As Li Ning holds a 20% stake in Dongneng, these renewed agreements are classified as continuing connected transactions under Hong Kong listing rules, requiring disclosure, annual reporting and review but exempt from circular and independent shareholders’ approval, thereby allowing Eagle Nice to maintain a key customer relationship and revenue stream while operating under defined regulatory oversight; historical sales to Li Ning under the existing caps reached RMB577.7 million in FY2024/25 and RMB465.3 million in the nine months to 31 December 2025 against annual caps of RMB850 million.

The most recent analyst rating on (HK:2368) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Eagle Nice (International) Holdings Ltd. stock, see the HK:2368 Stock Forecast page.