Eminence Enterprise Limited (0616) AI Stock Analysis

• Market Cap: HK$77.10M
• Dividend Yield: N/A
• Average Volume (3M): 1.77M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: 13.11%
• EPS Growth: 43.09%
• Country: HK
• Employees: 42
• Sector: Real Estate
• Sector Strength: 62
• Industry: Real Estate - Services
• EPS (TTM): -1.30
• Shares Outstanding: 1,014,444,340
• 10 Day Avg. Volume: 3,266,000
• 30 Day Avg. Volume: 1,773,000
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.40
• 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

• Rating: 45 Neutral
• Price Target: ―

Eminence Enterprise Limited faces significant financial and valuation challenges, primarily due to declining revenues, net losses, and negative cash flow. These issues lead to a low valuation score, compounded by a negative P/E ratio. On the technical front, the stock shows weak momentum, trading below key moving averages. Despite a stable balance sheet, the overall financial health and valuation concerns weigh heavily on the stock's attractiveness.

Eminence Enterprise Limited Business Overview & Revenue Model

Company Description

Eminence Enterprise Limited, an investment holding company, engages in the property investment and development activities in Hong Kong, the People's Republic of China, and Singapore. It operates through Property Investment, Property Development, Investment in Securities and Others, and Loan Financing segments. It owns and invests in residential, commercial, and industrial properties. The company is also involved in investing in listed securities; and loan financing businesses. The company was formerly known as Easyknit Enterprises Holdings Limited and changed its name to Eminence Enterprise Limited in March 2016. Eminence Enterprise Limited was founded in 1981 and is based in Cheung Sha Wan, Hong Kong. Eminence Enterprise Limited is a subsidiary of Goodco Development Limited.

How the Company Makes Money

Eminence Enterprise Limited Financial Statement Overview

Summary

Eminence Enterprise Limited is experiencing financial challenges, characterized by declining revenues and significant net losses impacting profitability and cash flow. The balance sheet remains relatively stable with a balanced debt-to-equity ratio, but the negative cash flow and profitability metrics pose substantial risks. The company needs to address operational inefficiencies and find ways to improve its cash generation to enhance its financial health.

Income Statement

Eminence Enterprise Limited has faced declining revenue over the past year, with the total revenue decreasing from 2022 to 2023. The net profit margin is negative, indicating the company is operating at a loss, which is concerning. The EBIT and EBITDA margins also display negative trends, reflecting operational inefficiencies. Although gross profit margin remains high, the overall performance is weak due to significant net losses.

Balance Sheet

The company's balance sheet shows a moderate financial position with a debt-to-equity ratio of approximately 0.74, signifying a balanced approach to leveraging. The equity ratio stands at around 56.3%, indicating a stable asset foundation. However, the return on equity is negative due to net losses, which is a significant drawback. While the company maintains sufficient equity, the profitability issues are concerning.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, which raises concerns about the firm's ability to generate cash from operations. The free cash flow to net income ratio is not favorable due to persistent losses, and there is a negative trend in operating cash flow. Despite some positive movements in investing cash flow, the overall cash flow situation reflects financial stress.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
32.37M	30.69M	28.86M	37.28M	80.70M	81.11M
	Gross Profit
30.38M	27.17M	24.24M	32.61M	75.03M	76.88M
	EBIT
-18.90M	-31.31M	10.25M	46.16M	-77.48M	16.67M
	EBITDA
-95.91M	-140.84M	13.54M	49.66M	-73.61M	20.39M
	Net Income Common Stockholders
-298.25M	-213.15M	63.57M	116.45M	-180.79M	-206.19M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
435.45M	435.45M	394.04M	190.14M	246.97M	423.53M
	Total Assets
5.41B	5.41B	5.62B	4.88B	4.61B	4.60B
	Total Debt
2.24B	2.24B	2.03B	1.73B	1.58B	1.52B
	Net Debt
1.94B	1.94B	1.68B	1.65B	1.47B	1.16B
	Total Liabilities
2.36B	2.36B	2.39B	1.86B	1.73B	1.66B
	Stockholders Equity
3.05B	3.05B	3.24B	3.02B	2.88B	2.94B
Cash Flow		Free Cash Flow
-259.64M	-389.67M	-203.91M	-164.92M	-97.49M	-415.62M
	Operating Cash Flow
-258.98M	-388.99M	-200.51M	-153.18M	-97.19M	-410.96M
	Investing Cash Flow
80.81M	243.78M	188.23M	-38.20M	-199.86M	-148.48M
	Financing Cash Flow
-109.06M	102.30M	265.97M	144.81M	80.66M	780.22M

Eminence Enterprise Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0616, the sentiment is Negative. The current price of 0.1 is above the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.10, and below the 200-day MA of 0.11, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 19.94 is Positive, neither overbought nor oversold. The STOCH value of 21.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0616.

Eminence Enterprise Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0548	71 Outperform	HK$27.38B	12.34	5.52%	9.14%	-5.91%	-54.35%
1109	69 Neutral	$181.48B	6.54	9.66%	6.59%	9.97%	-19.80%
Sector *	60 Neutral	$2.75B	10.29	0.33%	8508.22%	5.95%	-17.48%
0272	57 Neutral	$5.37B	27.46	0.47%	20.91%	-18.65%	-78.51%
0230	52 Neutral	€1.46B	―	-102.67%	―	-21.75%	-246.70%
0616	45 Neutral	HK$77.10M	―	-10.21%	―	13.11%	43.09%
0124	41 Neutral	€371.40M	―	-31.96%	48.46%	74.15%	43.44%

Eminence Enterprise Limited Corporate Events

Eminence Enterprise Limited Announces Change in Share Registrar

Eminence Enterprise Limited has announced a change in its Hong Kong branch share registrar and transfer office, effective from March 31, 2025. The new registrar will be Tricor Investor Services Limited, and this change requires stakeholders to lodge applications for share transfers with the new office from the effective date. This transition aims to streamline the company’s share registration process, potentially impacting how shareholders manage their share certificates.