Luxey International (Holdings) Limited (8041) AI Stock Analysis

• Market Cap: HK$639.24M
• Dividend Yield: N/A
• Average Volume (3M): 1.51M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.15
• Revenue Growth: -14.95%
• EPS Growth: -633.33%
• Country: HK
• Employees: 95
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): >-0.01
• Shares Outstanding: 819,535,640
• 10 Day Avg. Volume: 352,000
• 30 Day Avg. Volume: 1,512,133
• PEG Ratio: 7.55
• Price to Book (P/B): 3.71
• Price to Sales (P/S): 3.25
• P/FCF Ratio: 39.31
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: HK$1.00 ▲(29.87% Upside)

The overall score is primarily hindered by poor financial performance and extreme valuation concerns. Although the stock shows strong technical momentum, which bolsters its score, the financial and valuation issues are significant risks that overshadow the positive market momentum.

Positive Factors

Low Leverage

A low debt-to-equity ratio indicates financial stability and reduces the risk of financial distress, providing flexibility for future investments.

Revenue Growth

Slight revenue growth suggests the company is expanding its market presence, which can lead to improved economies of scale and long-term profitability.

Gross Profit Margin Improvement

Improvement in gross profit margin indicates better cost management and pricing strategies, which can enhance long-term profitability.

Negative Factors

Negative Net Income

Negative net income reflects operational inefficiencies and challenges in achieving profitability, which can hinder long-term growth and investment potential.

Negative Cash Flows

Negative cash flows indicate potential liquidity issues, limiting the company's ability to reinvest in growth opportunities and meet financial obligations.

Poor Return on Equity

A negative return on equity suggests inefficient use of shareholder funds, impacting investor confidence and long-term capital raising capabilities.

Luxey International (Holdings) Limited Business Overview & Revenue Model

Company Description

Luxey International (Holdings) Limited (8041) is a diversified investment holding company based in Hong Kong. The company operates primarily in the fashion and apparel industry, focusing on the design, manufacture, and distribution of a broad range of clothing and accessory products. Luxey International is committed to delivering high-quality, stylish products that cater to a wide consumer base, leveraging its expertise in fashion trends and market demands.

How the Company Makes Money

Luxey International (Holdings) Limited generates revenue through the sale of its fashion and apparel products. The company's revenue streams include wholesale and retail distribution channels, where it markets its products to various retailers and direct consumers globally. Additionally, the company may engage in strategic partnerships and collaborations with other fashion brands or distributors to expand its market reach and enhance brand visibility. These efforts are complemented by its investments in marketing and brand development, which help drive sales and sustain revenue growth.

Luxey International (Holdings) Limited Financial Statement Overview

Summary

Luxey International faces significant financial challenges. Despite a slight revenue increase, profitability remains a challenge with negative net income and EBIT/EBITDA margins. The balance sheet is solid with low leverage, but poor return on equity and negative cash flows highlight operational inefficiencies.

Income Statement

Over the TTM, Luxey International's revenue shows a slight increase, but profitability remains a challenge with a negative net income and negative EBIT and EBITDA margins. The gross profit margin improved to 21.52%, but net profit margin stayed negative at -0.65%, indicating significant operational challenges.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 69.63% and a very low debt-to-equity ratio of 0.003. However, the return on equity remains negative at -0.83% over the TTM, reflecting poor earnings performance relative to shareholder equity.

Cash Flow

Luxey International's cash flow situation is concerning, with negative operating and free cash flows over the TTM. The free cash flow to net income ratio is negative, indicating cash flow issues exacerbate earnings challenges.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	63.32M	58.54M	71.91M	57.80M	71.21M	77.81M
Gross Profit	13.63M	14.92M	14.85M	8.24M	6.62M	3.96M
EBITDA	-605.00K	669.00K	504.00K	-13.13M	-1.69M	-29.71M
Net Income	-409.00K	-1.20M	-1.48M	-15.26M	-5.17M	-33.95M
Balance Sheet
Total Assets	70.46M	60.83M	64.50M	65.35M	80.73M	148.00M
Cash, Cash Equivalents and Short-Term Investments	10.68M	17.04M	13.24M	6.84M	18.21M	19.62M
Total Debt	157.00K	762.00K	3.70M	5.86M	8.43M	70.47M
Total Liabilities	41.38M	29.60M	31.72M	32.31M	32.33M	102.42M
Stockholders Equity	49.07M	51.21M	52.70M	52.75M	67.78M	64.14M
Cash Flow
Free Cash Flow	354.00K	4.84M	6.45M	-8.49M	47.31M	-86.62M
Operating Cash Flow	1.13M	4.84M	7.43M	-8.29M	47.43M	-85.14M
Investing Cash Flow	-642.00K	403.00K	-974.00K	-197.00K	4.18M	-1.32M
Financing Cash Flow	-266.00K	-1.20M	-1.53M	-3.41M	-54.08M	55.99M

Luxey International (Holdings) Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.77
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8041, the sentiment is Positive. The current price of 0.77 is above the 20-day moving average (MA) of 0.76, below the 50-day MA of 0.78, and above the 200-day MA of 0.56, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.26 is Neutral, neither overbought nor oversold. The STOCH value of 59.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8041.

Luxey International (Holdings) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2298	60 Neutral	HK$767.70M	6.96	4.94%	5.16%	0.72%	2.24%
8041	53 Neutral	HK$639.24M	-70.91	-19.17%	―	-14.95%	-633.33%
1520	46 Neutral	HK$1.09B	―	-60.17%	―	90.88%	29.21%
3778	46 Neutral	HK$375.71M	-18.52	-2.76%	4.69%	-1.24%	5.98%
1906	46 Neutral	HK$809.12M	-30.90	-6.24%	―	5.88%	16.82%
8107	44 Neutral	HK$432.54M	-6.35	-253.51%	―	-82.69%	-200.61%