EEKA Fashion Holdings Limited (3709) AI Stock Analysis

• Market Cap: HK$5.58B
• Dividend Yield: 4.73%
• Average Volume (3M): 2.55M
• Price to Earnings (P/E): 10.7
• 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: HK$11.00
• Price Target Upside: 35.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: HK$9.00 ▲(10.70% 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.

EEKA Fashion Holdings Limited Business Overview & Revenue Model

Company Description

EEKA Fashion Holdings Limited (3709) is a leading fashion company based in China, specializing in the design, production, and retail of women's clothing. The company operates a broad range of fashion brands that cater to various consumer preferences, primarily focusing on high-end, stylish women's apparel. EEKA Fashion is renowned for its high-quality fabrics and innovative designs, which have established its reputation in the competitive fashion industry.

How the Company Makes Money

EEKA Fashion Holdings Limited generates revenue primarily through the sale of its women's fashion apparel. The company operates a multi-channel retail strategy, which includes a network of physical stores across China and an online presence to reach a broader customer base. A significant portion of its income is derived from direct sales to consumers, both through its own branded retail outlets and its e-commerce platforms. Additionally, EEKA Fashion may engage in strategic partnerships and collaborations with other fashion entities to expand its market reach and brand recognition, although specific details on such partnerships are not publicly disclosed.

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. The company may need to focus on reviving growth and improving operational efficiency to enhance shareholder value.

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: Positive
• Last Price: 8.13
• 50DMA: Positive
• 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:3709, the sentiment is Positive. The current price of 8.13 is above the 20-day moving average (MA) of 7.93, above the 50-day MA of 7.83, and above the 200-day MA of 7.53, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 57.13 is Neutral, neither overbought nor oversold. The STOCH value of 30.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$5.58B	10.71	10.59%	4.73%	-7.34%	-28.66%
1368	74 Outperform	$14.91B	9.65	15.27%	4.94%	-12.29%	21.00%
0709	67 Neutral	HK$2.39B	11.02	10.57%	9.12%	3.78%	-21.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1817	54 Neutral	HK$342.00M	9.47	4.51%	―	-7.95%	98.95%
1657	51 Neutral	HK$550.40M	-91.10	-7.01%	―	25.11%	64.76%

EEKA Fashion Holdings Limited Corporate Events

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.

The most recent analyst rating on (HK:3709) stock is a Buy with a HK$9.50 price target. To see the full list of analyst forecasts on EEKA Fashion Holdings Limited stock, see the HK:3709 Stock Forecast page.

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.

The most recent analyst rating on (HK:3709) stock is a Buy with a HK$9.50 price target. To see the full list of analyst forecasts on EEKA Fashion Holdings Limited stock, see the HK:3709 Stock Forecast page.

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.

The most recent analyst rating on (HK:3709) stock is a Buy with a HK$8.50 price target. To see the full list of analyst forecasts on EEKA Fashion Holdings Limited stock, see the HK:3709 Stock Forecast page.

EEKA Fashion Holdings Sees Profit Growth Despite Revenue Decline

EEKA Fashion Holdings Limited reported a 6.12% decrease in revenue for the first half of 2025 compared to the same period in 2024, while net profit increased by 2.17%. Despite the revenue decline, the company saw a significant rise in net cash inflow from operating activities, indicating strong operational efficiency. No interim dividend was proposed for this period, reflecting a cautious approach in financial management amid changing market conditions.

The most recent analyst rating on (HK:3709) stock is a Buy with a HK$8.50 price target. To see the full list of analyst forecasts on EEKA Fashion Holdings Limited stock, see the HK:3709 Stock Forecast page.

EEKA Fashion Holdings to Review Interim Results and Dividend Plans

EEKA Fashion Holdings Limited has announced a forthcoming board meeting scheduled for August 22, 2025. The meeting will address the approval of interim results for the first half of 2025 and discuss the potential payment of an interim dividend, reflecting the company’s ongoing financial performance and shareholder engagement.