EEKA Fashion Holdings Limited (3709) AI Stock Analysis

• Market Cap: HK$5.25B
• Dividend Yield: 4.93%
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.22
• Revenue Growth: -6.46%
• EPS Growth: -45.94%
• Country: HK
• Employees: 10,313
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Apparel - Retail
• EPS (TTM): 0.74
• Shares Outstanding: 704,050,200
• 10 Day Avg. Volume: 1,287,516
• 30 Day Avg. Volume: 1,084,771
• PEG Ratio: -0.53
• Price to Book (P/B): 1.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.37
• 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: HK$8.00
• Price Target Upside: 5.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: HK$8.50 ▲(11.84%Upside)

EEKA Fashion Holdings Limited exhibits solid valuation metrics, with a low P/E ratio and high dividend yield providing strong investment appeal. Financial performance shows strengths in cost management and stability, though declining revenue and profitability present challenges. Technical analysis indicates a stable but neutral position, with no strong momentum in either direction.

EEKA Fashion Holdings Limited Business Overview & Revenue Model

Company Description

EEKA Fashion Holdings Limited (3709) is a prominent player in the fashion industry, primarily engaged in the design, production, and retail of women's apparel. The company operates a portfolio of well-recognized brands that cater to various segments of the women's fashion market. EEKA Fashion is renowned for its stylish, high-quality clothing products that appeal to modern female consumers, offering a wide range of products from casual wear to formal attire.

How the Company Makes Money

EEKA Fashion Holdings Limited generates revenue through multiple streams, primarily from the sale of women's fashion apparel. The company's primary revenue model is based on retail sales through its extensive network of physical stores and online platforms. By maintaining a strong brand presence and offering a diverse range of products, EEKA Fashion attracts a broad customer base. Additionally, the company may engage in strategic partnerships and collaborations with other brands or designers to expand its market reach and enhance its product offerings. These efforts are supported by targeted marketing campaigns and a focus on customer experience to drive sales growth and profitability.

EEKA Fashion Holdings Limited Financial Statement Overview

Summary

EEKA Fashion Holdings Limited displays strong cost management and financial stability, with low leverage and high equity ratios. However, declining revenue and profitability, along with reduced free cash flow, pose risks to future performance. The company may need to focus on reviving growth and improving operational efficiency to enhance shareholder value.

Income Statement

EEKA Fashion Holdings Limited shows mixed income statement results. The company has a strong gross profit margin consistently above 75%, indicating efficient cost management. However, recent revenue growth has been negative, with a decline of about 4.7% from 2023 to 2024. Additionally, the net profit margin decreased to 7.1% from 12.1% in the previous year, reflecting reduced profitability.

Balance Sheet

The balance sheet of EEKA Fashion is robust, with a debt-to-equity ratio consistently below 0.3, indicating low leverage. The equity ratio is strong at approximately 65.7%, showcasing financial stability. However, the return on equity has decreased from 18.3% to 10.4%, suggesting declining efficiency in generating returns on shareholders' equity.

Cash Flow

EEKA Fashion's cash flow statement reveals a decline in free cash flow by 42.4% in 2024, indicating potential cash management challenges. The operating cash flow to net income ratio is strong at 2.1, suggesting efficient conversion of net income into cash, but the free cash flow to net income ratio has decreased, reflecting reduced cash generation relative to net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.59B	6.91B	5.66B	6.35B	5.33B
Gross Profit	5.04B	5.20B	4.25B	4.74B	3.91B
EBITDA	606.50M	2.02B	572.80M	871.91M	587.58M
Net Income	468.50M	838.17M	382.43M	564.02M	452.84M
Balance Sheet
Total Assets	6.86B	7.03B	6.26B	6.23B	5.75B
Cash, Cash Equivalents and Short-Term Investments	892.50M	1.47B	880.02M	931.08M	915.97M
Total Debt	1.32B	1.27B	1.19B	1.25B	970.11M
Total Liabilities	2.36B	2.47B	2.27B	2.30B	2.27B
Stockholders Equity	4.51B	4.58B	4.00B	3.94B	3.46B
Cash Flow
Free Cash Flow	836.15M	1.45B	1.53B	1.03B	1.31B
Operating Cash Flow	996.24M	1.57B	1.70B	1.20B	1.42B
Investing Cash Flow	398.19M	-446.05M	-571.50M	-485.58M	-812.99M
Financing Cash Flow	-1.43B	-1.01B	-1.27B	-818.64M	-718.73M

EEKA Fashion Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.60
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3709, the sentiment is Negative. The current price of 7.6 is above the 20-day moving average (MA) of 7.58, above the 50-day MA of 7.57, and below the 200-day MA of 7.86, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.22 is Neutral, neither overbought nor oversold. The STOCH value of 37.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3709.

EEKA Fashion Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1368	80 Outperform	$14.52B	10.37	14.95%	44.09%	-7.00%	16.26%
3709	74 Outperform	HK$5.25B	10.40	10.33%	4.93%	-6.46%	-45.94%
0709	71 Outperform	$2.31B	10.69	10.30%	8.39%	1.19%	-38.04%
Sector *	63 Neutral	$16.62B	10.98	-6.98%	2.96%	1.73%	-24.23%
1817	54 Neutral	HK$380.00M	9.41	4.29%	―	-4.28%	-25.99%
1657	46 Neutral	HK$313.60M	―	-18.04%	―	-42.38%	28.61%

EEKA Fashion Holdings Limited Corporate Events

EEKA Fashion Holdings Strengthens Governance with Nomination Committee Terms

EEKA Fashion Holdings Limited has outlined the terms of reference for its Nomination Committee, which is tasked with overseeing the nomination process for directors. The committee is composed of at least three members, primarily independent non-executive directors, and aims to ensure compliance with the Listing Rules of the Hong Kong Stock Exchange. This move is expected to enhance the governance structure of the company, potentially impacting its operational transparency and stakeholder confidence positively.

EEKA Fashion Holdings Limited Successfully Passes All AGM Resolutions

EEKA Fashion Holdings Limited announced that all proposed resolutions were passed at their Annual General Meeting held on June 6, 2025. The resolutions included approving the financial statements, declaring a final dividend, re-electing directors, and granting mandates to issue and repurchase shares. This outcome reflects shareholder support for the company’s strategic decisions and governance, potentially strengthening its market position and operational stability.

EEKA Fashion Holdings Announces Annual General Meeting and Strategic Resolutions

EEKA Fashion Holdings Limited has announced its annual general meeting scheduled for June 6, 2025, where it will discuss key business matters including the approval of financial statements, declaration of a final dividend, re-election of directors, and re-appointment of auditors. The meeting will also consider resolutions to authorize the board to manage share allotments and other related powers, reflecting the company’s strategic focus on maintaining operational flexibility and shareholder value.

EEKA Fashion Holdings Announces Share Purchase for Award Scheme

EEKA Fashion Holdings Limited has announced a voluntary share purchase as part of its Share Award Scheme. The company purchased 1,398,000 shares, representing approximately 0.1986% of the total shares in issue, at an average price of HK$7.21 per share. This move is intended to benefit selected participants and reflects the company’s commitment to rewarding its stakeholders, potentially enhancing employee motivation and aligning interests with shareholders.