Karrie International Holdings Limited (1050) AI Stock Analysis

• Market Cap: HK$5.32B
• Dividend Yield: 1.81%
• Average Volume (3M): 14.65M
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.85
• Revenue Growth: 10.34%
• EPS Growth: 3.48%
• Country: HK
• Employees: 3,600
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.05
• Shares Outstanding: 2,087,295,200
• 10 Day Avg. Volume: 7,685,200
• 30 Day Avg. Volume: 14,654,993
• PEG Ratio: 0.42
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 0.51
• P/FCF Ratio: 14.22
• 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$3.12
• Price Target Upside: 27.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.12
• Revenue Forecast (FY): HK$3.45B

• Rating: 61 Neutral
• Price Target: HK$3.00 ▲(22.95% Upside)
• Action: Reiterated Date: 02/10/26
• Date: Action: Reiterated 02/10/26

The score is driven mainly by solid fundamentals (revenue growth, improving margins, and strong ROE) but tempered by weak cash flow conversion and declining free cash flow growth. Technical indicators are currently unfavorable (below key moving averages and negative MACD), and valuation is only moderately attractive given the P/E and modest dividend yield.

Positive Factors

Revenue Growth & Margins

Sustained revenue growth alongside rising gross, EBIT and EBITDA margins indicates the business is recovering and improving operational efficiency. Over 2-6 months this supports durable earnings improvement, better pricing or cost control, and stronger operating leverage versus peers.

High Return on Equity

A near-19% ROE reflects efficient capital allocation and profitable core operations. Persistently high ROE suggests management can generate above-cost returns on reinvested capital, supporting long-term growth, dividend capacity, and reinvestment without excessive equity issuance.

Moderate Leverage / Stable Balance Sheet

Moderate leverage provides financial flexibility to fund capex or expand capacity while limiting refinancing stress. A healthy equity base reduces solvency risk, enabling the company to sustain operations through cycles and pursue strategic investments over the medium term.

Negative Factors

Declining Free Cash Flow

A nearly 40% drop in FCF growth is a structural concern: it reduces internal funding for capex, dividends, and debt repayment. If sustained, the decline forces greater reliance on external financing or equity, constraining strategic flexibility and increasing vulnerability in downturns.

Weak Cash Conversion

Low cash conversion indicates earnings are not translating into cash, raising risk that reported profits overstate liquidity. Persistently weak conversion impairs capacity to fund working capital and investments, increases refinancing risk, and limits ability to smooth payouts through cycles.

Low Net Profit Margin

A single-digit net margin signals limited buffer against cost inflation or pricing pressure in manufacturing. Structurally low margins constrain reinvestment and cash generation, making the business more sensitive to raw material swings and competitive pricing over the medium term.

Karrie International Holdings Limited Business Overview & Revenue Model

Company Description

Karrie International Holdings Limited, an investment holding company, provides metal and plastic products, and electronic manufacturing services (EMS) worldwide. It operates through three segments: Metal and Plastic Business; EMS Business; and Real Estate Business. The Metal and Plastic Business segment manufactures and sells metal and plastic parts, including moulds, and plastic and metal products for information and communication technology industry, as well as offers mechanical engineering solutions. The EMS Business segment manufactures and sells magnetic tape data storage products, point-of-sale systems, and other computer peripherals. The Real Estate Business segment engages in the urban renewal, and residential real estate project investment and development operations. It also engages in the design, manufacture, and sale of server casings, office automation products, visual accessories, metal stamping dies, and plastic injection moulds; provision of property management and consultancy services; and property holding activities. The company was founded in 1980 and is headquartered in Tsuen Wan, Hong Kong.

How the Company Makes Money

Karrie International Holdings Limited generates revenue through multiple streams, primarily from the manufacturing and sale of printed circuit boards (PCBs) and electronic components to a diverse clientele in the electronics industry. The company capitalizes on its expertise in precision machinery and engineering services to offer value-added solutions, which contribute significantly to its earnings. Additionally, Karrie may engage in partnerships with technology firms and other manufacturers to expand its product offerings and market reach, leveraging economies of scale and shared resources. The company's strategic focus on high-quality production and adherence to industry standards further enhances its competitive edge, driving consistent revenue growth.

Karrie International Holdings Limited Financial Statement Overview

Summary

Income statement strength (score 75) shows revenue growth and improving operating margins, while the balance sheet is stable with moderate leverage and strong ROE (score 70). The main drag is cash flow quality (score 65), with declining free cash flow growth and weak cash conversion versus earnings.

Income Statement

Karrie International Holdings Limited has shown a positive revenue growth rate of 7.61% in the most recent year, indicating a recovery from previous declines. The gross profit margin has improved to 14.61%, reflecting better cost management. However, the net profit margin remains relatively low at 6.32%, suggesting room for improvement in profitability. The EBIT and EBITDA margins have also improved, indicating operational efficiency gains.

Balance Sheet

The company's debt-to-equity ratio stands at 0.61, which is moderate and indicates a balanced approach to leveraging. Return on equity is strong at 18.92%, showcasing effective use of shareholder funds. The equity ratio is healthy, suggesting a stable financial structure. However, the company should monitor its debt levels to maintain financial flexibility.

Cash Flow

The free cash flow growth rate has declined by 39.49%, which is a concern for future liquidity. The operating cash flow to net income ratio is 0.22, indicating that cash generation from operations is lower than net income. The free cash flow to net income ratio is 0.44, suggesting that a significant portion of earnings is not translating into free cash flow.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	3.31B	3.23B	2.92B	3.08B	3.08B	3.47B
Gross Profit	501.86M	472.08M	370.14M	325.60M	430.06M	937.52M
EBITDA	406.62M	398.43M	321.88M	314.59M	402.65M	845.37M
Net Income	204.43M	204.10M	169.66M	386.17M	549.10M	445.33M
Balance Sheet
Total Assets	2.72B	2.53B	2.40B	2.55B	5.07B	4.43B
Cash, Cash Equivalents and Short-Term Investments	228.65M	191.18M	149.42M	159.44M	924.05M	662.84M
Total Debt	765.51M	657.53M	533.30M	662.11M	1.22B	921.20M
Total Liabilities	1.60B	1.45B	1.41B	1.61B	3.37B	2.73B
Stockholders Equity	1.12B	1.08B	993.00M	936.76M	1.70B	1.70B
Cash Flow
Free Cash Flow	54.27M	116.26M	226.93M	398.13M	274.72M	465.81M
Operating Cash Flow	232.72M	261.84M	318.16M	586.02M	528.87M	538.26M
Investing Cash Flow	-161.73M	-142.84M	-94.44M	-221.49M	-253.06M	-79.67M
Financing Cash Flow	-50.38M	-77.93M	-232.45M	-1.11B	-25.38M	-257.35M

Karrie International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.44
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1050, the sentiment is Positive. The current price of 2.44 is below the 20-day moving average (MA) of 2.49, below the 50-day MA of 2.48, and above the 200-day MA of 1.85, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.86 is Neutral, neither overbought nor oversold. The STOCH value of 33.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1050.

Karrie International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0838	63 Neutral	HK$1.44B	2.31	7.83%	5.09%	0.51%	3.74%
1050	61 Neutral	HK$5.32B	11.95	18.58%	1.81%	10.34%	3.48%
0929	54 Neutral	HK$747.10M	55.00	0.57%	―	1.48%	12.50%
0255	53 Neutral	HK$906.46M	-59.57	0.40%	14.77%	-4.52%	―
0822	50 Neutral	HK$259.19M	-2.13	-4.33%	―	10.91%	11.01%
1721	46 Neutral	HK$180.00M	-4.53	-24.01%	―	10.03%	-34.10%

Karrie International Holdings Limited Corporate Events

Karrie International Raises HK$152 Million to Boost AI Server Chassis Capacity

Karrie International Holdings Limited has completed a placing of 65,832,000 existing shares to at least six independent investors at HK$2.37 per share, followed by a top-up subscription of an equal number of new shares to the seller under its general mandate. The transactions, which did not result in any new substantial shareholder, generated approximately HK$152 million in net proceeds for the company.

The company plans to use the funds to expand overseas production capacity for server chassis and related products, focusing on Thailand through new machinery, factory construction, and potential mergers or acquisitions. This capital deployment aims to support growing orders for AI server chassis and rack components from global data centers and top AI infrastructure players, strengthening Karrie’s positioning in the AI hardware supply chain.

The most recent analyst rating on (HK:1050) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Karrie International Holdings Limited stock, see the HK:1050 Stock Forecast page.

Karrie International Details HK$152 Million Share Proceeds for Thailand Expansion and AI Server Capacity Boost

Karrie International Holdings Limited has issued a supplemental announcement detailing the planned use and timeline of approximately HK$152 million in net proceeds from a top-up share subscription under its general mandate. The company intends to allocate about two-thirds of the funds to purchase new machinery and equipment for existing and new production plants in Thailand, around 22% to construct its own factories in Thailand, and the remaining 11% to pursue mergers and acquisitions in the server enclosures segment, with most spending scheduled between the first and second quarters of 2026 and M&A activities targeted by the end of the fourth quarter of 2026. These investments form part of a broader HK$450 million financing plan over the next 12 months to expand overseas production capacity for server chassis and related products, aiming to meet increasing orders from global cloud service providers and major AI infrastructure players and strengthen the company’s competitive positioning in the fast-growing AI server hardware market.

The most recent analyst rating on (HK:1050) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Karrie International Holdings Limited stock, see the HK:1050 Stock Forecast page.

Karrie International Launches 3.3% Placing and Top-Up Subscription to Raise Equity

Karrie International Holdings Limited has entered into a placing and top-up subscription arrangement in which an existing shareholder (the Seller) will sell shares through a placing agent and then subscribe for an equivalent number of new shares under the company’s general mandate, keeping overall ownership broadly stable while modestly expanding the share base. The transaction, involving approximately 3.3% of the current issued share capital (or 3.2% of the enlarged capital), is targeted at at least six independent professional, institutional and/or individual investors at HK$2.37 per share, providing the company with fresh equity capital without requiring separate shareholder approval and potentially broadening its investor base and liquidity once the new shares are listed and admitted to trading in Hong Kong.

The most recent analyst rating on (HK:1050) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Karrie International Holdings Limited stock, see the HK:1050 Stock Forecast page.

Karrie International Expands AI Server Capacity on Strong Demand From Global Tech Clients

Karrie International Holdings Limited has announced significant progress in its AI server business, including receiving server chassis orders from a leading AI company, completing design development and customer validation, and preparing to enter mass production. The group has also secured new design and prototype work for next-generation AI architecture, covering network switch chassis, AI compute chassis and server racks, with phased deliveries expected to begin in 2026, underscoring its role as a comprehensive mechanical solutions provider for advanced AI platforms. In addition, the company has ramped up mass production of ASIC-related server chassis for an American technology giant since the third quarter of 2025, anticipates strong demand through 2026 for capacity at both its China and Thailand plants, and is expanding its manufacturing footprint with a new Thai facility scheduled to enter first-phase operation by year-end, positioning the group to capture rapidly growing AI hardware demand and support future growth.

The most recent analyst rating on (HK:1050) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Karrie International Holdings Limited stock, see the HK:1050 Stock Forecast page.

Karrie International Approves Key Financial Resolution at SGM

Karrie International Holdings Limited announced that an ordinary resolution was passed at their Special General Meeting held on December 2, 2025. The resolution involved the approval of a Subscription Agreement, issuance of a Convertible Bond, and related transactions. The resolution was supported by 94.36% of the independent shareholders’ votes, indicating strong backing for the company’s strategic financial maneuvers.

The most recent analyst rating on (HK:1050) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Karrie International Holdings Limited stock, see the HK:1050 Stock Forecast page.