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KNT Holdings Limited (HK:1025)
:1025
Hong Kong Market

KNT Holdings Limited (1025) AI Stock Analysis

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HK

KNT Holdings Limited

(1025)

Rating:38Underperform
Price Target:
KNT Holdings Limited is facing significant financial challenges, with declining revenue, persistent losses, and increasing leverage being the primary concerns. The technical analysis indicates a bearish trend, with the stock trading below key moving averages and showing signs of being oversold. Valuation is unattractive due to negative earnings and the absence of a dividend yield. These factors contribute to a low overall stock score, highlighting the company's need for substantial improvement in financial performance and market perception.

KNT Holdings Limited (1025) vs. iShares MSCI Hong Kong ETF (EWH)

KNT Holdings Limited Business Overview & Revenue Model

Company DescriptionKNT Holdings Limited (1025) is a company engaged in the design, manufacture, and sale of knitwear products. The company's operations span the entire supply chain, from sourcing raw materials to producing finished garments, catering primarily to the fashion and apparel industries. KNT Holdings Limited serves a diverse clientele that includes renowned international brands, providing them with customized knitwear solutions.
How the Company Makes MoneyKNT Holdings Limited generates revenue through the sale of knitwear products to various clients in the fashion and apparel sectors. The company's key revenue streams include contract manufacturing for international brands, where it designs and produces knitwear according to client specifications. Additionally, KNT Holdings benefits from strategic partnerships with textile suppliers and fashion houses, enhancing its supply chain efficiency and expanding its market reach. The company leverages its expertise in design and manufacturing to offer high-quality, tailored knitwear solutions, thereby driving sales and profitability.

KNT Holdings Limited Financial Statement Overview

Summary
KNT Holdings Limited faces significant financial difficulties, with declining revenue, persistent losses, and increasing leverage. While there is a slight improvement in gross profit margin and operating cash flow, the company struggles with negative EBIT and EBITDA margins, indicating ongoing operational challenges. Improvement in cash flow management and revenue growth are critical for stabilization and future growth.
Income Statement
30
Negative
KNT Holdings Limited has experienced a decline in revenue over recent years, with revenue dropping from $168.5M in 2020 to $54.3M in 2024. The company has consistently reported negative net income, with a net loss of $24.4M in 2024. The gross profit margin improved slightly to 13.7% in 2024, but the company continues to struggle with negative EBIT and EBITDA margins, indicating ongoing operational challenges.
Balance Sheet
45
Neutral
The balance sheet shows a reduction in total assets and equity over time. The debt-to-equity ratio increased to 0.48 in 2024, reflecting higher leverage. The equity ratio of 42.3% suggests moderate financial stability but is worsening. The company needs to address its rising debt levels and declining equity.
Cash Flow
35
Negative
Operating cash flow improved significantly from a large negative in 2023 to -$11.5M in 2024, yet remains negative. The free cash flow is also negative, indicating ongoing liquidity challenges. The cash flow situation highlights the need for better cash management to support operations and reduce reliance on external financing.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue72.05M54.31M71.67M79.98M62.67M168.51M
Gross Profit10.55M7.45M6.91M2.17M-8.63M9.31M
EBITDA-15.20M-19.01M-27.48M-22.18M-41.29M-41.47M
Net Income-19.97M-24.44M-31.28M-25.07M-44.74M-47.05M
Balance Sheet
Total Assets98.80M110.13M114.11M145.66M96.05M131.45M
Cash, Cash Equivalents and Short-Term Investments42.91M4.43M3.15M60.43M10.45M58.17M
Total Debt21.45M22.52M15.51M25.36M36.07M52.51M
Total Liabilities62.25M63.60M41.53M41.54M51.23M71.97M
Stockholders Equity36.55M46.53M72.57M104.12M44.82M59.48M
Cash Flow
Free Cash Flow-6.66M-11.60M-52.42M-12.76M-31.32M-40.55M
Operating Cash Flow-6.57M-11.54M-50.03M-12.74M-12.68M-34.99M
Investing Cash Flow-46.00K53.00K-3.90M-7.62M-18.64M-5.55M
Financing Cash Flow3.89M12.95M-3.58M72.68M-8.47M-14.42M

KNT Holdings Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.27
Price Trends
50DMA
0.28
Negative
100DMA
0.33
Negative
200DMA
0.35
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
49.71
Neutral
STOCH
41.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1025, the sentiment is Neutral. The current price of 0.27 is above the 20-day moving average (MA) of 0.27, below the 50-day MA of 0.28, and below the 200-day MA of 0.35, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.71 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1025.

KNT Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$253.57B15.1128.11%2.56%11.51%47.88%
74
Outperform
€4.59B9.1711.40%19.05%1.38%-14.80%
56
Neutral
HK$24.59B3.77-2.05%6.59%-0.32%-67.68%
51
Neutral
HK$161.28M-9.34%-40.18%3.09%
40
Underperform
HK$1.06B-95.62%-31.29%57.76%
38
Underperform
HK$59.64M-42.36%26.76%28.17%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1025
KNT Holdings Limited
0.30
-0.65
-68.42%
HK:1707
Geotech Holdings Ltd.
0.10
0.03
42.86%
HK:1234
China Lilang Ltd.
3.83
-0.13
-3.16%
HK:1813
KWG Group Holdings
0.31
0.00
0.00%
HK:2020
ANTA Sports Products
91.00
23.93
35.68%

KNT Holdings Limited Corporate Events

KNT Holdings Enters Strategic Petrochemical Partnership in China
May 2, 2025

KNT Holdings Limited, through its subsidiary Ever Grand Limited, has entered into a non-legally binding memorandum of understanding with Fine Vast Corporation Limited to collaborate on developing the petrochemical business in China. This strategic cooperation aims to enhance energy efficiency and promote sustainable development in the petrochemical sector, potentially diversifying KNT Holdings’ revenue sources and enhancing profitability.

KNT Holdings Limited Clarifies Rights Issue Acceptance Deadline
Apr 11, 2025

KNT Holdings Limited, a company incorporated in the Cayman Islands, issued a clarification announcement regarding a previous statement about the timing of acceptance for its Rights Issue. The company corrected the deadline for acceptance to 4:00 p.m. on Monday, 17 March 2025, instead of the previously stated Thursday, 20 March 2025. This clarification ensures stakeholders have accurate information for participating in the Rights Issue.

KNT Holdings Completes Successful Rights Issue, Raising HK$44 Million
Apr 10, 2025

KNT Holdings Limited, a company incorporated in the Cayman Islands, has successfully completed a Rights Issue, offering three rights shares for every one share held. The Rights Issue was initially subscribed at 11.82%, with the remaining unsubscribed shares successfully placed at the subscription price. This resulted in gross proceeds of approximately HK$44 million, which will be used for investments in Southeast Asia, debt repayment, and general working capital. The shareholding structure of the company has significantly changed, with independent placees now holding a substantial portion of shares.

KNT Holdings Adjusts Rights Issue Timetable Amid Market Challenges
Apr 1, 2025

KNT Holdings Limited has announced a revised timetable for its proposed rights issue, which offers three rights shares for every one share held. The company has extended the deadline for placing unsubscribed rights shares due to challenging market conditions, allowing more time to secure placees. This adjustment reflects the company’s response to market uncertainties and aims to ensure the successful completion of the rights issue, potentially impacting stakeholders by providing additional time to participate in the offering.

KNT Holdings Announces Rights Issue Results and Compensatory Arrangements
Mar 20, 2025

KNT Holdings Limited has announced the results of its Rights Issue, where only 11.82% of the offered shares were subscribed, leaving 88.18% of the shares unsubscribed. The company has arranged for these unsubscribed shares to be placed with independent investors through a compensatory arrangement, potentially benefiting shareholders if a premium over the subscription price is achieved.

KNT Holdings Limited Announces Change of Auditor
Mar 19, 2025

KNT Holdings Limited has announced a change in its auditing firm, with CL Partners CPA Limited resigning due to disagreements over audit fees and resources. The company has appointed Infinity CPA Limited as the new auditor, citing its experience, independence, and market reputation as key factors in the decision. The change is expected to enable more effective cost control and align with the company’s future business development goals.

KNT Holdings Announces Board Changes with Director Resignation
Mar 12, 2025

KNT Holdings Limited announced the resignation of Mr. Leung Martin Oh Man as an independent non-executive director due to personal and business commitments, effective March 12, 2025. He also stepped down from his roles as chairman of the audit committee and member of the remuneration and nomination committees. The board expressed gratitude for his contributions. Following his resignation, Mr. Chan Kai Chung has been appointed as the new chairman of the audit committee.

KNT Holdings Limited Announces Board Composition and Roles
Mar 12, 2025

KNT Holdings Limited, a company incorporated in the Cayman Islands, has announced the composition of its board of directors and their respective roles within the organization. The board consists of both executive and independent non-executive directors, with specific members assigned to the Audit, Remuneration, and Nomination Committees. This announcement outlines the leadership structure of KNT Holdings, which is crucial for stakeholders to understand the governance and strategic decision-making processes within the company.

KNT Holdings Limited Successfully Passes Rights Issue Resolution at EGM
Feb 6, 2025

KNT Holdings Limited announced that its proposed ordinary resolution regarding the Rights Issue was successfully passed at the Extraordinary General Meeting (EGM) held on February 6, 2025. The resolution received unanimous approval from the shareholders who participated in the vote, marking a significant step in the company’s strategic plans. This decision is expected to impact the company’s future operations positively, potentially enhancing its market position as it moves forward with the Rights Issue transactions.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 03, 2025