Neo-Concept International Group Holdings Limited (NCI) AI Stock Analysis

• Market Cap: $4.84M
• Dividend Yield: N/A
• Average Volume (3M): 19.38K
• Price to Earnings (P/E): 4.3
• Beta (1Y): 0.71
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 24
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): N/A
• Shares Outstanding: 3,464,000
• 10 Day Avg. Volume: 10,847
• 30 Day Avg. Volume: 19,378
• PEG Ratio: 0.79
• Price to Book (P/B): 9.17
• Price to Sales (P/S): 2.21
• P/FCF Ratio: -27.80
• Enterprise Value/Market Cap: 4.52
• 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: 55 Neutral
• Price Target: $1.00 ▼(-42.86% Downside)

The overall stock score of 55 reflects a company with potential for profitability improvements but facing significant financial and technical challenges. The low valuation score suggests the stock may be undervalued, but weak technical indicators and financial performance concerns weigh heavily on the overall score.

Positive Factors

Profitability Improvements

Improved profitability in 2024 suggests enhanced operational efficiency and potential for sustained earnings growth, benefiting long-term stability.

Recurring Revenue Model

The subscription-based revenue model provides predictable cash flow and enhances financial stability, supporting long-term growth prospects.

Stable Governance

Stable governance and shareholder confidence, as evidenced by AGM outcomes, ensure consistent strategic direction and management quality.

Negative Factors

High Debt Levels

High debt levels increase financial risk and may limit the company's ability to invest in growth opportunities, affecting long-term sustainability.

Cash Flow Challenges

Weak cash flow from operations indicates potential liquidity issues, which could hinder the company's ability to fund operations and growth initiatives.

Volatile Revenue Growth

Volatile revenue growth reflects market uncertainties and may challenge the company's ability to maintain consistent financial performance.

Neo-Concept International Group Holdings Limited Business Overview & Revenue Model

Company Description

Neo-Concept International Group Holdings Limited provides one-stop apparel solution in Hong Kong. The company offers a suite of services in the apparel supply chain, including market trend analysis, product design and development, raw material sourcing, production and quality control, and logistics management. It sells knitwear/apparel products under the les 100 ciels brand. The company serves brand owners, apparel sourcing agents, and online fashion retailers primarily located in North America, the United Kingdom, and Europe. Neo-Concept International Group Holdings Limited was incorporated in 2021 and is based in Kwun Tong, Hong Kong. Neo-Concept International Group Holdings Limited operates as a subsidiary of Neo-concept (BVI) Limited.

How the Company Makes Money

NCI generates revenue through multiple streams, including software licensing fees from its proprietary technology solutions, service fees from healthcare and financial consulting services, and revenue from strategic investments in technology startups. The company's software solutions are sold on a subscription basis, providing a recurring revenue model. Additionally, NCI has established key partnerships with industry leaders, enhancing its market reach and enabling collaborative projects that contribute to its earnings. Significant contracts with government and private sector clients further bolster its financial performance, providing a stable foundation for growth.

Neo-Concept International Group Holdings Limited Financial Statement Overview

Summary

Neo-Concept International Group Holdings Limited's financial performance reflects a company in transition. While there are positive indicators of profitability improvements in 2024, the balance sheet remains leveraged, and cash flow challenges persist. The company needs to maintain revenue growth and improve cash flow generation to stabilize its financial position and reduce risks associated with high debt levels.

Income Statement

The company shows a fluctuating revenue trend with a significant decrease in total revenue from 2022 to 2023, but a rebound in 2024. Gross profit and net income margins have improved in 2024 compared to 2023, indicating a positive trajectory in profitability. However, the revenue growth rate remains volatile, and historical EBIT and EBITDA margins have been inconsistent.

Balance Sheet

The company's balance sheet highlights a challenging financial structure with high debt levels. The debt-to-equity ratio is concerning, given the negative equity in previous years, though it has turned positive in 2024. The equity ratio is improving but still indicates a high reliance on debt, posing potential risks.

Cash Flow

Cash flow from operations remains weak, with negative free cash flow in recent years. While operating cash flow has shown improvements in 2024, the free cash flow growth remains negative. The ratio of operating and free cash flow to net income indicates potential cash flow management issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	235.67M	174.20M	347.45M	240.54M	182.58M
Gross Profit	49.44M	35.05M	41.83M	22.59M	11.65M
EBITDA	18.94M	14.90M	21.53M	9.72M	-4.94K
Net Income	8.06M	4.41M	12.40M	5.45M	-3.33M
Balance Sheet
Total Assets	135.65M	90.62M	41.87M	40.23M	64.04M
Cash, Cash Equivalents and Short-Term Investments	9.17M	5.85M	8.59M	1.43M	421.50K
Total Debt	69.60M	54.64M	84.99M	28.00M	64.26M
Total Liabilities	78.82M	93.00M	102.55M	115.82M	142.71M
Stockholders Equity	56.83M	-2.39M	-60.68M	-75.59M	-78.66M
Cash Flow
Free Cash Flow	-18.74M	-50.50M	-42.83M	10.19M	6.17M
Operating Cash Flow	428.24K	-49.23M	-42.76M	10.27M	6.28M
Investing Cash Flow	-19.17M	-1.28M	-73.53K	-78.19K	-115.89K
Financing Cash Flow	21.89M	47.55M	50.00M	-9.19M	-6.48M

Neo-Concept International Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NCI, the sentiment is Negative. The current price of 1.75 is above the 20-day moving average (MA) of 1.19, above the 50-day MA of 1.57, and below the 200-day MA of 1.91, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 42.54 is Neutral, neither overbought nor oversold. The STOCH value of 88.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NCI.

Neo-Concept International Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GIII	71 Outperform	$1.25B	7.31	11.32%	―	1.19%	1.62%
JRSH	63 Neutral	$41.53M	50.39	0.99%	6.44%	12.25%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NCI	55 Neutral	$4.84M	4.34	16.17%	―	―	―
VNCE	49 Neutral	$32.16M	―	-32.91%	―	-0.49%	-1427.68%
CULP	48 Neutral	$50.55M	-4.16	-19.05%	―	-7.91%	32.31%
UFI	41 Neutral	$61.69M	―	-9.61%	―	-5.26%	42.84%

Neo-Concept International Group Holdings Limited Corporate Events

Neo-Concept International Reports First Half 2025 Financial Results

On November 21, 2025, Neo-Concept International Group Holdings Limited announced its unaudited financial results for the first half of 2025, revealing a 24% decrease in revenue compared to the same period in 2024, primarily due to reduced sales of private-labelled apparel products affected by customs policies between China and the USA. Despite this, the company saw a significant increase in retail sales of its owned-branded apparel products and a rise in net income to HK$2.0 million, driven by increased gross profit. However, selling, general, and administrative expenses rose by 48.33%, influenced by higher staff costs and legal fees, while other income and agency fees decreased due to reduced sales activity in the UK.