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Eagle Nice (International) Holdings Ltd. (HK:2368)
:2368
Hong Kong Market

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

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HK

Eagle Nice (International) Holdings Ltd.

(2368)

Rating:63Neutral
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. (2368) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionEagle 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 MoneyEagle 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
75
Positive
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
70
Positive
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
60
Neutral
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.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue4.54B4.07B4.05B3.67B3.25B3.02B
Gross Profit739.70M748.69M727.03M617.27M619.94M508.79M
EBITDA487.59M546.10M546.67M459.27M494.43M365.43M
Net Income217.49M263.51M292.64M274.63M313.56M223.46M
Balance Sheet
Total Assets4.33B3.17B3.07B3.13B2.57B2.37B
Cash, Cash Equivalents and Short-Term Investments486.45M490.06M516.53M456.46M442.99M341.70M
Total Debt1.40B913.15M634.63M670.37M437.53M544.83M
Total Liabilities2.32B1.54B1.39B1.40B1.02B1.05B
Stockholders Equity1.94B1.58B1.63B1.67B1.51B1.30B
Cash Flow
Free Cash Flow-291.16M-22.09M413.82M-29.06M391.75M312.24M
Operating Cash Flow-159.41M229.27M561.13M182.72M417.36M404.33M
Investing Cash Flow-372.78M-271.70M-198.48M-197.13M18.79M-112.28M
Financing Cash Flow307.01M42.54M-271.82M15.04M-317.12M-187.10M

Eagle Nice (International) Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.65
Price Trends
50DMA
3.58
Positive
100DMA
3.76
Negative
200DMA
3.87
Negative
Market Momentum
MACD
<0.01
Positive
RSI
49.11
Neutral
STOCH
29.21
Neutral
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 3.65 is below the 20-day moving average (MA) of 3.68, above the 50-day MA of 3.58, and below the 200-day MA of 3.87, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.11 is Neutral, neither overbought nor oversold. The STOCH value of 29.21 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
HK$2.10B9.4713.04%24.11%12.67%-25.28%
62
Neutral
C$5.25B11.0718.94%3.79%5.08%6.52%
$302.58M5.122.27%31.26%
$246.43M10.455.75%20.14%
73
Outperform
HK$1.05B35.282.07%1.09%-14.59%29.36%
68
Neutral
HK$1.82B5.3314.40%24.50%4.95%94.03%
56
Neutral
HK$2.61B14.185.63%1.17%9.38%-41.33%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2368
Eagle Nice (International) Holdings Ltd.
3.65
-0.53
-12.68%
CDGXF
China Dongxiang (Group) Co
0.02
>-0.01
-33.33%
PTEXF
Pacific Textiles Holdings
0.16
0.02
14.29%
HK:1982
Nameson Holdings Ltd.
0.80
0.16
25.00%
HK:2030
Cabbeen Fashion Limited
1.53
0.67
77.91%
HK:2199
Regina Miracle International (Holdings) Limited
2.13
-0.16
-6.99%

Eagle Nice (International) Holdings Ltd. Corporate Events

Eagle Nice Appoints New Executive Director to Boost Operations
Mar 3, 2025

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.

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.Date of analysis: Apr 22, 2025