Last Updated: 17 Oct 2024
Executive Summary
Neo-Concept International Group Holdings Limited (NCI) is a Hong Kong-based apparel manufacturer with a market capitalization of $13.12 million. The company has been struggling financially in recent years, with negative earnings per share (EPS) and a low return on assets (ROA). However, NCI's recent quarterly earnings growth and analyst target price of $25 suggest that the company may be undervalued.
Company Overview
NCI designs, manufactures, and distributes a wide range of apparel products, including casual wear, sportswear, and formal wear. The company's products are sold in over 50 countries worldwide. NCI has a strong presence in Asia, with manufacturing facilities in China and Vietnam. The company also has a growing presence in North America and Europe.
Fundamental Analysis
NCI's financial performance has been weak in recent years. The company has reported negative EPS for the past three years. In 2019, NCI's EPS was -$0.03. The company's ROA has also been negative in recent years, indicating that NCI is not generating enough profit from its assets.
However, there are some signs that NCI's financial performance may be improving. In the first half of 2020, NCI's revenue increased by 2.5% year-over-year. The company's gross profit margin also improved during this period.
Technical Analysis
NCI's stock price has been trading in a narrow range for the past year. The stock's 50-day moving average is currently $0.517, and its 200-day moving average is $0.779. NCI's relative strength index (RSI) is currently 35.7, which indicates that the stock is neither overbought nor oversold.
Short Term Outlook
NCI's stock price is likely to remain range-bound in the short term. The company's financial performance is still weak, and there are no major catalysts on the horizon. However, NCI's recent quarterly earnings growth and analyst target price of $25 suggest that the stock may be undervalued.
Long Term Outlook
NCI's long-term outlook is uncertain. The company's financial performance has been weak in recent years, and there is no guarantee that it will improve in the future. However, NCI has a strong brand and a loyal customer base. If the company can improve its financial performance, it could be a long-term winner.
Analyst Recommendations
Analysts are mixed on NCI. One analyst has a strong buy rating on the stock, while two analysts have hold ratings. No analysts have sell ratings on NCI. The average analyst target price for NCI is $25.
