EEKA Fashion Holdings Limited (3709) AI Stock Analysis

• Market Cap: HK$5.46B
• Dividend Yield: 4.89%
• Average Volume (3M): 2.55M
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.34
• Revenue Growth: -7.34%
• EPS Growth: -28.66%
• Country: HK
• Employees: 10,313
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 0.46
• Shares Outstanding: 708,650,200
• 10 Day Avg. Volume: 1,453,103
• 30 Day Avg. Volume: 2,547,170
• PEG Ratio: -0.26
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.84
• P/FCF Ratio: 6.66
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: HK$9.00 ▲(14.36% Upside)

EEKA Fashion Holdings Limited's stock is supported by strong technical indicators and attractive valuation metrics, including a reasonable P/E ratio and a high dividend yield. However, financial performance is mixed, with declining revenue and profitability posing potential risks. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Strong Gross Profit Margin

A consistently high gross profit margin indicates efficient cost management and the ability to maintain pricing power, which supports long-term profitability.

Low Leverage

Low leverage enhances financial stability and flexibility, allowing the company to navigate economic downturns and invest in growth opportunities without excessive financial risk.

Efficient Cash Conversion

Efficient conversion of net income into cash flow indicates strong operational efficiency, providing the company with liquidity to fund operations and strategic initiatives.

Negative Factors

Declining Revenue

Declining revenue growth suggests challenges in market demand or competitive positioning, which could affect long-term growth prospects and market share.

Reduced Profitability

A decrease in net profit margin indicates reduced profitability, which may impact the company's ability to reinvest in growth and maintain shareholder returns.

Decline in Free Cash Flow

A significant decline in free cash flow suggests potential cash management issues, limiting the company's ability to invest in growth or return capital to shareholders.

EEKA Fashion Holdings Limited Business Overview & Revenue Model

Company Description

EEKA Fashion Holdings Limited, together with its subsidiaries, engages in the design, promotion, marketing, retail, and wholesale of self-owned branded ladies' wear products in the People's Republic of China. The company offers dresses, skirts, trousers, shirts, knitwear, vests, jackets, overcoats, scarves, and accessories under the Koradior, La Koradior, Koradior elsewhere, FUUNNY FEELLN, CADIDL, NAERSI, NAERSILING, and NEXY.CO brand names. It is also involved in the trading of garments and ladies-wear; manufacturing and trading of ladies-wear; and provision of brand promotion, software design, and property leasing services, as well as operates EEKA Fashion Mall, a social e-commerce platform. The company offers its products through retail stores and third party e-commerce platforms; and distributors, as well as direct sales through promotional activities. As of December 31, 2021, it had 2,041 retail stores. The company was formerly known as Koradior Holdings Limited and changed its name to EEKA Fashion Holdings Limited in June 2019. EEKA Fashion Holdings Limited was founded in 2007 and is headquartered in Shenzhen, China.

How the Company Makes Money

EEKA Fashion Holdings Limited generates revenue primarily through the sale of fashion apparel and accessories across its retail and online channels. Key revenue streams include direct sales from their retail stores, online sales through their e-commerce platform, and wholesale distribution to third-party retailers. The company also benefits from strategic partnerships with various brands and designers, which enhance its product offerings and market reach. Additionally, EEKA may leverage seasonal promotions and marketing campaigns to drive sales, while also exploring opportunities in international markets to expand its customer base.

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.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.39B	6.59B	6.91B	5.66B	6.35B	5.33B
Gross Profit	4.88B	5.04B	5.20B	4.25B	4.74B	3.91B
EBITDA	639.40M	606.50M	2.02B	572.80M	871.91M	587.58M
Net Income	477.40M	468.50M	838.17M	382.43M	564.02M	452.84M
Balance Sheet
Total Assets	6.85B	6.86B	7.03B	6.26B	6.23B	5.75B
Cash, Cash Equivalents and Short-Term Investments	1.08B	892.50M	1.47B	971.00M	848.42M	813.93M
Total Debt	1.33B	1.32B	1.27B	1.19B	1.25B	970.11M
Total Liabilities	2.33B	2.36B	2.47B	2.27B	2.30B	2.27B
Stockholders Equity	4.53B	4.51B	4.58B	4.00B	3.94B	3.46B
Cash Flow
Free Cash Flow	1.29B	836.15M	1.45B	1.53B	1.03B	1.31B
Operating Cash Flow	1.44B	996.24M	1.57B	1.70B	1.20B	1.42B
Investing Cash Flow	91.11M	398.19M	-446.05M	-571.50M	-485.58M	-812.99M
Financing Cash Flow	-1.36B	-1.43B	-1.01B	-1.27B	-818.64M	-718.73M

EEKA Fashion Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.87
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 7.87 is below the 20-day moving average (MA) of 8.02, below the 50-day MA of 8.06, and above the 200-day MA of 7.58, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 44.02 is Neutral, neither overbought nor oversold. The STOCH value of 31.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
3709	80 Outperform	HK$5.46B	10.49	10.59%	4.89%	-7.34%	-28.66%
1368	74 Outperform	HK$15.24B	9.86	15.27%	4.88%	-12.29%	21.00%
0709	67 Neutral	HK$2.36B	10.87	10.57%	9.18%	3.78%	-21.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1817	54 Neutral	HK$304.00M	8.42	4.51%	―	-7.95%	98.95%
1657	44 Neutral	HK$523.20M	-86.60	-7.01%	―	25.11%	64.76%

EEKA Fashion Holdings Limited Corporate Events

EEKA Fashion Holdings Limited Announces Share Purchase Under Award Scheme

EEKA Fashion Holdings Limited has announced a share purchase under its Share Award Scheme, acquiring 220,000 shares, which represents approximately 0.031% of the total shares in issue. This move is part of the company’s strategy to incentivize and reward selected participants, potentially impacting its market operations and stakeholder engagement.

EEKA Fashion Holdings Limited Executes Share Purchase Under Award Scheme

EEKA Fashion Holdings Limited has announced a voluntary share purchase under its Share Award Scheme, acquiring 475,000 shares, which represents approximately 0.067% of the total shares in issue. This move is part of the company’s strategy to benefit selected participants and reflects its ongoing commitment to enhancing shareholder value through strategic share management.

EEKA Fashion Holdings Enhances Share Award Scheme with New Purchase

EEKA Fashion Holdings Limited announced the purchase of 460,000 shares as part of its Share Award Scheme, representing approximately 0.0649% of the existing total number of shares. This move is aimed at benefiting selected participants and reflects the company’s ongoing commitment to enhancing its share award strategy.

EEKA Fashion Implements Share Purchase Under Award Scheme

EEKA Fashion Holdings Limited has announced a voluntary share purchase under its Share Award Scheme, acquiring 460,000 shares, which represents approximately 0.0649% of the total shares in issue. This move is part of the company’s strategy to benefit selected participants and reflects its ongoing commitment to reviewing and determining share awards in alignment with the scheme’s terms.

EEKA Fashion Announces Share Purchase Under Award Scheme

EEKA Fashion Holdings Limited announced a voluntary share purchase under its Share Award Scheme, acquiring 400,000 shares to benefit selected participants. This move, representing approximately 0.0564% of the total shares, reflects the company’s ongoing commitment to rewarding its stakeholders and potentially enhancing its market position.

EEKA Fashion Holdings Implements Share Award Scheme with New Share Purchase

EEKA Fashion Holdings Limited announced the purchase of 440,000 shares as part of its Share Award Scheme, representing approximately 0.0621% of the total shares in issue. This move is aimed at benefiting selected participants and reflects the company’s ongoing commitment to its share award strategy, potentially impacting its market positioning and stakeholder interests.

EEKA Fashion Holdings Enhances Shareholder Value with Strategic Share Purchase

EEKA Fashion Holdings Limited announced a voluntary share purchase under its Share Award Scheme, acquiring 436,500 shares, which constitutes approximately 0.0616% of the total shares in issue. This move is part of the company’s strategy to benefit selected participants and demonstrates its commitment to enhancing shareholder value through strategic share acquisitions.

EEKA Fashion Holdings Enhances Share Award Scheme with New Purchase

EEKA Fashion Holdings Limited has announced a voluntary share purchase under its Share Award Scheme, acquiring 473,000 shares, which represents approximately 0.0667% of the total shares in issue. This move is part of the company’s strategy to reward selected participants and potentially enhance stakeholder value, reflecting its ongoing commitment to aligning employee interests with company performance.

EEKA Fashion Holdings Enhances Shareholder Value with Share Purchase

EEKA Fashion Holdings Limited announced the purchase of 1,108,500 shares as part of its Share Award Scheme, representing approximately 0.1564% of the total shares in issue. This strategic move aims to benefit selected participants and demonstrates the company’s commitment to enhancing shareholder value and incentivizing stakeholders.

EEKA Fashion Holdings Executes Share Purchase for Award Scheme

EEKA Fashion Holdings Limited announced a voluntary share purchase under its Share Award Scheme, acquiring 360,000 shares to benefit selected participants. This move, representing approximately 0.0508% of the total shares, reflects the company’s commitment to rewarding its stakeholders and potentially enhancing its market position.

EEKA Fashion Executes Share Purchase for Award Scheme

EEKA Fashion Holdings Limited announced that its trustee has purchased 460,000 shares from the market as part of its Share Award Scheme. This purchase, representing approximately 0.0649% of the total shares in issue, is intended to benefit selected participants and reflects the company’s ongoing commitment to its share award strategy.

EEKA Fashion Holdings Implements Strategic Share Purchase

EEKA Fashion Holdings Limited announced a voluntary share purchase under its Share Award Scheme, acquiring 454,500 shares, which represents approximately 0.0641% of the total shares in issue. This strategic move is intended to benefit selected participants and reflects the company’s ongoing commitment to enhancing shareholder value and incentivizing key stakeholders.

EEKA Fashion Holdings Executes Share Purchase Under Award Scheme

EEKA Fashion Holdings Limited has announced a voluntary share purchase under its Share Award Scheme, acquiring 426,000 shares from the market. This purchase, representing approximately 0.0601% of the total shares in issue, is part of the company’s ongoing strategy to manage its share distribution and incentivize selected participants, potentially impacting its market positioning and stakeholder interests.

EEKA Fashion Holdings Enhances Share Award Scheme with New Purchase

EEKA Fashion Holdings Limited announced that the trustee of its Share Award Scheme purchased 381,500 shares from the market on October 31, 2025. This purchase, which represents approximately 0.0538% of the total shares in issue, was made to benefit selected participants of the scheme. The board will continue to review and determine the number of shares to be awarded and purchased under the scheme, indicating a strategic move to incentivize and retain key participants.

EEKA Fashion Holdings Limited Enhances Share Award Scheme with New Purchase

EEKA Fashion Holdings Limited announced the purchase of 475,000 shares as part of its Share Award Scheme, aimed at benefiting selected participants. This move, representing approximately 0.067% of the total shares, reflects the company’s strategy to incentivize its stakeholders and potentially strengthen its market position.

EEKA Fashion Holdings Implements Share Purchase for Award Scheme

EEKA Fashion Holdings Limited has announced the purchase of 1,079,500 shares as part of its Share Award Scheme, representing approximately 0.1523% of the total shares in issue. This move is intended to benefit selected participants under the scheme, with the board retaining discretion over future share awards and purchases, potentially impacting the company’s market positioning and stakeholder interests.

EEKA Fashion Completes Share Subscription with DL Holdings

EEKA Fashion Holdings Limited has completed a subscription agreement with DL Holdings Group Limited, resulting in the issuance of 4,600,000 new shares. This transaction allows DL Group to hold approximately 0.7% of EEKA’s enlarged share capital. The proceeds of HK$29.6 million from this subscription will be used by EEKA to repay a loan facility due in December 2025, impacting its financial obligations positively.

EEKA Fashion Holdings Partners with DLH for Strategic Growth

EEKA Fashion Holdings Limited announced a strategic partnership with DLH through the issuance of new shares, raising approximately HK$29.6 million. This move aims to repay an upcoming loan while maintaining operational liquidity, and it positions the company for future growth by leveraging DLH’s expertise and strategic value.

EEKA Fashion and DL Holdings Enter Strategic Cooperation with Share Subscription

EEKA Fashion Holdings Limited and DL Holdings Group Limited have entered into a Strategic Cooperation and Investment Agreement, where DL Holdings will subscribe to new EEKA shares, representing approximately 0.65% of EEKA’s enlarged share capital. The proceeds from this subscription, amounting to HK$29.6 million, will be used for EEKA’s general working capital. Additionally, the agreement includes a plan to tokenize a portion of EEKA’s distributable profit for shareholder distribution, based on 10% of the audited revenue from NEXY.CO for the financial year ending December 2025.