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

• Market Cap: HK$2.18B
• Dividend Yield: 7.92%
• Average Volume (3M): 66.29K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.10
• Revenue Growth: 12.67%
• EPS Growth: -25.28%
• Country: HK
• Employees: 18,600
• Sector: Consumer Cyclical
• Sector Strength: 62
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.33
• Shares Outstanding: 574,180,000
• 10 Day Avg. Volume: 30,669
• 30 Day Avg. Volume: 66,289
• PEG Ratio: -0.86
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -111.89
• 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

• Rating: 63 Neutral
• Price Target: ―

The overall stock score for Eagle Nice (International) Holdings Ltd. is primarily influenced by its solid financial performance, with consistent revenue growth and operational efficiency. However, challenges in profitability margins, increased leverage, and cash flow management pose risks. The technical analysis indicates bearish trends, reflecting market caution. Nonetheless, the stock's attractive valuation with a low P/E ratio and high dividend yield provides a compensatory upside potential, making it appealing to value investors seeking dividend income.

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

Company Description

Eagle Nice (International) Holdings Ltd. (2368) is a Hong Kong-based company engaged in the manufacturing and trading of sportswear and apparel. The company primarily focuses on the production of high-quality garments for various international brands. With a vertically integrated business model, Eagle Nice manages operations from design and development to production and distribution, catering to a diverse clientele in the sports and casual wear sectors.

How the Company Makes Money

Eagle Nice (International) Holdings Ltd. makes money through the manufacturing and sale of sportswear and apparel products. The company's revenue model is primarily based on producing garments for internationally recognized brands, which involves securing contracts and fulfilling large-scale orders. Key revenue streams include the design, production, and distribution of these products. The company benefits significantly from its partnerships with leading sportswear brands, leveraging its manufacturing capabilities to meet the demands of global markets. Additionally, its vertically integrated operations allow for cost efficiencies and quality control, further enhancing profitability.

Eagle Nice (International) Holdings Ltd. Financial Statement Overview

Summary

Eagle Nice (International) Holdings Ltd. demonstrates stable revenue growth and operational efficiency but faces challenges in maintaining profitability margins and managing cash flow. The increased leverage and declining ROE highlight potential risks, though asset growth provides a cushion. The company needs to focus on improving cash flow generation and managing debt levels to ensure sustainable growth.

Income Statement

Eagle Nice (International) Holdings Ltd. shows consistent revenue growth with a compound annual growth rate of approximately 7.6% over the past five years. The gross profit margin remains stable, slightly improving to 18.4% in 2024 from 16.9% in 2020. However, the net profit margin has decreased from 10.4% in 2021 to 6.5% in 2024, indicating increased operational costs or pricing pressures. EBIT and EBITDA margins have been relatively stable, reflecting decent operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased from 0.34 in 2020 to 0.58 in 2024, suggesting a rise in leverage. The equity ratio has decreased from 54.8% in 2020 to 49.7% in 2024, indicating a higher reliance on debt financing. Return on equity has been declining from 24.1% in 2021 to 16.7% in 2024, reflecting reduced profitability. The company's assets have grown moderately, yet the equity position has weakened.

Cash Flow

Free cash flow has experienced volatility, with a significant decline from a positive $312 million in 2020 to negative $22 million in 2024, mainly due to increased capital expenditures. The operating cash flow to net income ratio has decreased, indicating less cash generation relative to net income. Cash flow management appears to be a concern, which might impact future investments and growth.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
4.54B	4.07B	4.05B	3.67B	3.25B	3.02B
	Gross Profit
739.70M	748.69M	727.03M	617.27M	619.94M	508.79M
	EBIT
372.49M	412.58M	426.89M	344.67M	387.01M	262.16M
	EBITDA
487.59M	546.10M	546.67M	459.27M	494.43M	365.43M
	Net Income Common Stockholders
217.49M	263.51M	292.64M	274.63M	313.56M	223.46M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
249.07M	490.06M	516.53M	456.46M	442.99M	341.70M
	Total Assets
2.43B	3.17B	3.07B	3.13B	2.57B	2.37B
	Total Debt
572.15M	913.15M	634.63M	670.37M	437.53M	544.83M
	Net Debt
378.32M	423.09M	118.10M	213.91M	-5.46M	203.13M
	Total Liabilities
1.11B	1.54B	1.39B	1.40B	1.02B	1.05B
	Stockholders Equity
1.30B	1.58B	1.63B	1.67B	1.51B	1.30B
Cash Flow		Free Cash Flow
-291.16M	-22.09M	413.82M	-29.06M	391.75M	312.24M
	Operating Cash Flow
-159.41M	229.27M	561.13M	182.72M	417.36M	404.33M
	Investing Cash Flow
-372.78M	-271.70M	-198.48M	-197.13M	18.79M	-112.28M
	Financing Cash Flow
307.01M	42.54M	-271.82M	15.04M	-317.12M	-187.10M

Eagle Nice (International) Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.79
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2368, the sentiment is Positive. The current price of 3.79 is above the 20-day moving average (MA) of 3.65, above the 50-day MA of 3.59, and below the 200-day MA of 3.92, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 64.82 is Neutral, neither overbought nor oversold. The STOCH value of 91.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
3998	80 Outperform	$50.28B	13.39	25.72%	5.97%	32.49%	37.50%
2388	78 Outperform	$361.59B	9.46	11.58%	5.04%	8.61%	16.84%
2313	75 Outperform	$80.35B	11.87	18.17%	4.37%	12.76%	34.50%
1910	70 Outperform	$19.14B	8.32	20.15%	7.04%	-4.83%	-27.83%
2368	63 Neutral	HK$2.18B	9.58	11.95%	7.92%	12.67%	-25.28%
Sector *	62 Neutral	$6.88B	11.32	2.90%	3.87%	2.70%	-24.57%
2038	56 Neutral	HK$7.06B	―	-1.35%	―	-11.86%	83.13%

Eagle Nice (International) Holdings Ltd. Corporate Events

Eagle Nice Appoints New Executive Director to Boost Operations

Eagle Nice (International) Holdings Ltd. announced the appointment of Ms. Lai Yin-Han as an executive director, effective March 3, 2025. Ms. Lai, who has a background in business management and experience in a sports garment factory in Vietnam, will oversee the general operations of the Group. Her appointment is expected to enhance the company’s operational efficiency and strengthen its market positioning.