Kantone Holdings (1059) AI Stock Analysis

• Market Cap: HK$157.51M
• Dividend Yield: N/A
• Average Volume (3M): 136.74K
• Price to Earnings (P/E): 5.0
• Beta (1Y): -0.02
• Revenue Growth: -0.66%
• EPS Growth: 265.91%
• Country: HK
• Employees: 165
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.04
• Shares Outstanding: 375,033,500
• 10 Day Avg. Volume: 40,080
• 30 Day Avg. Volume: 136,737
• PEG Ratio: 0.01
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 0.00
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: HK$0.50 ▲(38.89% Upside)

Kantone Holdings demonstrates strong financial performance with significant revenue growth and operational efficiency, balanced by robust equity and low leverage. However, the stock shows technical overbought conditions, indicating potential volatility. The valuation appears reasonable, though the lack of dividend yield is a downside for income-focused investors.

Kantone Holdings Business Overview & Revenue Model

Company Description

Kantone Holdings Limited (1059) is a diversified investment holding company primarily engaged in the provision of IT solutions and services. The company operates across various sectors including healthcare, public safety, and information technology. Kantone Holdings offers a range of products and services such as software development, systems integration, and technology consultancy, aiming to deliver comprehensive and innovative solutions to its clients.

How the Company Makes Money

Kantone Holdings makes money through its diverse range of IT solutions and services. The company generates revenue by providing software development and systems integration services to various sectors, including healthcare and public safety. Key revenue streams include the sale of customized software products, ongoing support and maintenance services, and consultancy fees. The company may also benefit from strategic partnerships and collaborations that enhance its service offerings and expand its market reach. Revenue is further bolstered by long-term contracts with clients, which provide a stable income stream.

Kantone Holdings Financial Statement Overview

Summary

Kantone Holdings has shown strong revenue growth and improved operational efficiency, as seen in increasing gross profit and EBIT margins. The balance sheet is robust with low leverage and strong equity. However, net profitability has decreased, and cash flow management needs improvement, particularly in generating positive free cash flow.

Income Statement

Kantone Holdings has shown a positive revenue growth rate of 18.3% from 2023 to 2024, indicating a strong upward trajectory in sales. The gross profit margin improved to 61.4% in 2024 from 48.8% in 2023, demonstrating enhanced efficiency in cost management. The net profit margin, however, decreased from 7.5% in 2023 to 3.8% in 2024, reflecting challenges in managing non-operational expenses. The EBIT and EBITDA margins also improved, suggesting better operational profitability, but the net income decline warrants attention.

Balance Sheet

The company enjoys a strong equity position with a debt-to-equity ratio of 0.04, indicating low financial leverage and reduced risk from debt. The return on equity increased from 7.2% in 2023 to 3.5% in 2024, reflecting better returns to shareholders despite the lower net income. The equity ratio stands at 68.3%, highlighting a solid capital structure with significant equity funding.

Cash Flow

Kantone Holdings has seen a substantial increase in operating cash flow, which rose to 7.3 million from 3.5 million in 2023. The free cash flow, however, remains negative, posing concerns about cash availability for reinvestment and debt repayment. The operating cash flow to net income ratio stands at 1.27, indicating efficient conversion of earnings into cash.

Breakdown	TTM	Dec 2025	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	151.28M	―	151.28M	152.28M	128.74M	127.75M
Gross Profit	84.52M	―	77.54M	93.51M	62.88M	62.03M
EBITDA	33.74M	―	40.41M	17.46M	22.35M	13.69M
Net Income	27.06M	―	27.06M	5.72M	9.69M	4.56M
Balance Sheet
Total Assets	307.57M	―	307.57M	242.42M	223.95M	210.19M
Cash, Cash Equivalents and Short-Term Investments	149.25M	―	149.25M	109.72M	114.79M	108.26M
Total Debt	7.75M	―	7.75M	6.27M	5.01M	5.12M
Total Liabilities	85.46M	―	85.46M	77.00M	89.36M	76.91M
Stockholders Equity	222.11M	―	222.11M	165.41M	134.59M	133.28M
Cash Flow
Free Cash Flow	1.30M	―	0.00	-5.24M	-5.49M	-6.53M
Operating Cash Flow	6.88M	―	0.00	7.26M	3.53M	10.28M
Investing Cash Flow	-6.55M	―	0.00	-8.43M	-8.70M	-13.85M
Financing Cash Flow	-2.01M	―	0.00	10.96M	-3.02M	1.41M

Kantone Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.36
• 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:1059, the sentiment is Positive. The current price of 0.36 is below the 20-day moving average (MA) of 0.41, below the 50-day MA of 0.39, and above the 200-day MA of 0.32, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 60.63 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 Positive sentiment for HK:1059.

Kantone Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8319	71 Outperform	HK$96.39M	7.60	7.12%	6.41%	3.21%	-12.00%
1059	69 Neutral	HK$157.51M	4.97	14.04%	―	-0.66%	265.91%
8033	66 Neutral	HK$75.78M	5.21	6.73%	7.87%	-1.57%	-18.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0465	50 Neutral	HK$236.55M	-3.12	-29.34%	―	-18.19%	4.52%
8606	48 Neutral	HK$86.75M	-59.09	-1.95%	―	5.01%	82.54%
1949	46 Neutral	HK$128.64M	-1.21	-83.97%	―	-78.41%	-3530.77%

Kantone Holdings Corporate Events

Kantone Holdings Passes All AGM Resolutions Unanimously

Kantone Holdings Limited announced that all resolutions proposed at its Annual General Meeting (AGM) on December 15, 2025, were passed unanimously by poll. The resolutions included the adoption of audited financial statements, re-election of directors, re-appointment of auditors, and granting of mandates to issue and buy back shares. This outcome reflects strong shareholder support and may positively impact the company’s governance and operational flexibility.

The most recent analyst rating on (HK:1059) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Kantone Holdings stock, see the HK:1059 Stock Forecast page.

Kantone Holdings Announces AGM and Share Issuance Proposal

Kantone Holdings Limited has announced its upcoming Annual General Meeting (AGM) scheduled for December 15, 2025, in Hong Kong. The meeting will address several key agenda items, including the adoption of financial statements, re-election of directors, and re-appointment of the company’s auditor. Additionally, the company seeks shareholder approval to authorize the board to issue new shares, which could impact the company’s capital structure and market operations.

The most recent analyst rating on (HK:1059) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Kantone Holdings stock, see the HK:1059 Stock Forecast page.