E Lighting Group Holdings Ltd (8222) AI Stock Analysis

• Market Cap: HK$17.14M
• Dividend Yield: N/A
• Average Volume (3M): 225.47K
• Price to Earnings (P/E): 1.3
• Beta (1Y): 0.21
• Revenue Growth: -7.75%
• EPS Growth: 37.65%
• Country: HK
• Employees: 45
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): <0.01
• Shares Outstanding: 451,035,700
• 10 Day Avg. Volume: 101,200
• 30 Day Avg. Volume: 225,466
• PEG Ratio: 0.07
• Price to Book (P/B): 4.71
• Price to Sales (P/S): 0.27
• P/FCF Ratio: 1.28
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: HK$0.04 ▲(26.67% Upside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

The score is held down mainly by weak financial performance (losses, declining revenue, and high leverage). Technicals add some support due to price strength and a positive MACD, but the extremely overbought RSI signals elevated reversal risk. Valuation is also constrained because the company is loss-making and no dividend yield is provided.

Positive Factors

Positive free cash flow generation

Reported positive free cash flow growth and a high free-cash-flow to net-income ratio indicate the company can generate cash despite accounting losses. Durable cash generation supports working capital, funds selective capex or servicing of obligations, and reduces immediate liquidity stress over months.

Diversified revenue model across products and services

A mix of product sales, B2B channels, installation services and maintenance contracts provides multiple revenue touchpoints and recurring-revenue elements. This structural diversification reduces dependence on any single channel and supports steadier cash flow over the medium term.

Product mix aligned with LED and smart-lighting trends

Offering LEDs, energy-efficient systems and smart lighting ties the business to multi-year structural demand for energy savings and IoT-enabled fixtures. This secular alignment supports sustained product relevance and opportunities for upgrades, retrofit projects and technology partnerships.

Negative Factors

High financial leverage (debt-to-equity 2.92)

A debt-to-equity ratio near 2.92 signals elevated leverage that heightens refinancing and interest-rate risk. With limited equity cushion, recurring interest and principal demands constrain strategic flexibility and increase solvency sensitivity to revenue shortfalls over the medium term.

Declining revenue and negative margins

Sustained revenue declines combined with shrinking gross margins and negative net margins reflect structural demand or execution issues. Persistent top-line contraction undermines operating leverage and makes it harder to restore profitability, pressuring cash flows and long-term viability.

Negative ROE and low equity ratio

Negative ROE indicates the firm is not generating returns on shareholder capital, eroding investor value. A low equity ratio reduces the balance-sheet buffer against shocks and increases the probability that further external financing will be dilutive or costly, constraining growth options.

E Lighting Group Holdings Ltd Business Overview & Revenue Model

Company Description

E Lighting Group Holdings Limited, an investment holding company, engages in the retail sale of lighting, designer label furniture, and household products in Hong Kong and North America. It operates through two segments, Lighting and Furniture Business; and Tableware, Giftware and Other Business. The company offers generic and commonplace products, such as ceiling lights and decoration lamps; lighting appliance products; and luminaries and accessories, as well as management services. It is also involved in the wholesale and retail sale of tableware and giftware; and sourcing of lighting products and household furniture. The company was founded in 2003 and is headquartered in Wan Chai, Hong Kong.

How the Company Makes Money

E Lighting Group Holdings Ltd generates revenue through the sale of its lighting products and solutions. The company has a diversified revenue model that includes direct sales to consumers, business-to-business (B2B) transactions with retailers and contractors, and partnerships with construction and development firms. Key revenue streams consist of product sales, installation services, and maintenance contracts. Additionally, E Lighting may benefit from strategic partnerships with technology companies to integrate smart lighting solutions, thereby enhancing its product offerings and creating new revenue opportunities.

E Lighting Group Holdings Ltd Financial Statement Overview

Summary

Weak fundamentals driven by declining revenue, negative margins and ongoing losses, plus high leverage (debt-to-equity 2.92) and negative ROE. Cash flow is a relative bright spot with positive free cash flow dynamics, but not enough to offset profitability and balance-sheet risk.

Income Statement

The company has faced declining revenue over the past few years, with a negative revenue growth rate of -2.93% in the latest year. Gross profit margins have decreased slightly, and net profit margins are negative, indicating ongoing losses. The EBIT and EBITDA margins are also low, reflecting operational challenges.

Balance Sheet

The balance sheet shows high leverage with a debt-to-equity ratio of 2.92, indicating significant financial risk. Return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. The equity ratio is low, suggesting limited financial stability.

Cash Flow

Cash flow metrics are relatively stronger, with positive free cash flow growth and a high free cash flow to net income ratio, indicating efficient cash management despite net losses. However, the operating cash flow to net income ratio is below 1, suggesting challenges in converting income into cash.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	69.74M	74.35M	78.93M	83.89M	82.23M
Gross Profit	35.35M	39.15M	42.31M	46.24M	44.05M
EBITDA	4.53M	6.15M	10.52M	15.91M	19.19M
Net Income	-4.67M	-11.51M	-6.84M	2.40M	8.16M
Balance Sheet
Total Assets	24.49M	31.25M	49.60M	54.35M	53.97M
Cash, Cash Equivalents and Short-Term Investments	5.39M	5.89M	9.94M	13.86M	17.56M
Total Debt	11.75M	14.29M	21.60M	20.35M	20.65M
Total Liabilities	20.47M	22.56M	29.40M	27.30M	29.32M
Stockholders Equity	4.02M	8.69M	20.20M	27.05M	24.65M
Cash Flow
Free Cash Flow	14.82M	13.52M	12.49M	11.14M	21.69M
Operating Cash Flow	14.82M	13.57M	13.10M	11.70M	21.72M
Investing Cash Flow	-3.00K	-46.00K	-615.00K	-557.00K	-31.00K
Financing Cash Flow	-15.32M	-17.57M	-16.41M	-14.84M	-11.88M

E Lighting Group Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8222, the sentiment is Positive. The current price of 0.03 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.03, and below the 200-day MA of 0.04, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 96.56 is Negative, neither overbought nor oversold. The STOCH value of 77.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8222.

E Lighting Group Holdings Ltd 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%
0396	52 Neutral	HK$214.15M	7.23	31.57%	8.93%	-13.44%	―
8222	49 Neutral	HK$17.14M	1.28	-104.51%	―	-7.75%	37.65%
8118	48 Neutral	HK$70.00M	131.25	-277.45%	―	-20.21%	-39.66%
8392	43 Neutral	HK$43.00M	5.27	-7.78%	―	19.09%	90.00%
8547	42 Neutral	HK$50.84M	-0.27	―	―	-21.85%	-98.18%
1575	39 Underperform	HK$230.84M	-1.29	10.31%	―	-50.43%	79.67%