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Easyknit International Holdings Ltd (HK:1218)
:1218
Hong Kong Market

Easyknit International Holdings Ltd (1218) AI Stock Analysis

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HK:1218

Easyknit International Holdings Ltd

(1218)

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Neutral 51 (OpenAI - 4o)
Rating:51Neutral
Price Target:
HK$3.00
▼(-7.12% Downside)
The stock's overall score is primarily influenced by its financial performance and technical analysis. While revenue growth and positive technical indicators are strengths, significant challenges in profitability and valuation weigh heavily on the score.
Positive Factors
Revenue Growth
Strong revenue growth indicates robust demand for the company's products and effective market penetration, supporting long-term business expansion.
Cash Flow Improvement
Improved cash flow enhances financial flexibility, allowing the company to reinvest in growth opportunities and manage debt more effectively.
Leverage Management
Improved leverage management reduces financial risk and enhances the company's ability to withstand economic fluctuations, supporting long-term stability.
Negative Factors
Profitability Issues
Ongoing profitability challenges may limit the company's ability to reinvest in growth and could impact long-term financial health.
Operational Inefficiencies
Operational inefficiencies can hinder competitiveness and profitability, requiring strategic changes to improve cost management and efficiency.
High Leverage
High leverage poses a risk to financial stability, potentially limiting growth opportunities and increasing vulnerability to economic downturns.

Easyknit International Holdings Ltd (1218) vs. iShares MSCI Hong Kong ETF (EWH)

Easyknit International Holdings Ltd Business Overview & Revenue Model

Company DescriptionEasyknit International Holdings Limited, an investment holding company, engages in the investment, development, and management of properties in Hong Kong. It offers loan financing services, as well as invests in securities. Its investment properties primarily include residential, commercial, and industrial properties. The company is also involved entertainment and film production business. Easyknit International Holdings Limited was founded in 1981 and is based in Cheung Sha Wan, Hong Kong.
How the Company Makes MoneyEasyknit International generates revenue primarily through the production and sale of knitted and woven garments. The company operates on a business-to-business (B2B) model, supplying clothing to major retailers and brands worldwide. Key revenue streams include contracts with established fashion labels, which rely on Easyknit's manufacturing capabilities to fulfill their clothing lines. Additionally, the company benefits from economies of scale and cost efficiencies in its production processes, allowing for competitive pricing. Significant partnerships with global brands enhance its market presence and contribute to steady revenue growth. Changes in consumer demand, fashion trends, and the company's ability to innovate in garment design also play crucial roles in its earnings potential.

Easyknit International Holdings Ltd Financial Statement Overview

Summary
The company exhibits strong revenue growth but faces significant challenges in profitability and operational efficiency. The balance sheet shows high leverage, although recent improvements are noted. Cash flow has improved, yet historical volatility remains a concern.
Income Statement
The company has shown significant revenue growth, particularly in the latest year with a 75.48% increase. However, profitability is a major concern, with negative net profit margins and EBIT margins indicating operational inefficiencies. The gross profit margin has also deteriorated over time, reflecting challenges in cost management.
Balance Sheet
The company's debt-to-equity ratio has improved recently, indicating better leverage management, but remains relatively high. The return on equity is negative, highlighting profitability issues. The equity ratio suggests a moderate level of financial stability, but the overall balance sheet health is mixed due to high leverage.
Cash Flow
Cash flow has improved significantly, with a remarkable increase in free cash flow growth. The operating cash flow to net income ratio is positive, indicating better cash generation relative to net income. However, the historical volatility in cash flow remains a concern.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue488.49M488.49M227.11M86.76M350.78M323.38M
Gross Profit-25.01M-17.05M58.08M58.98M174.99M100.00M
EBITDA-26.61M81.74M-258.48M92.78M-5.49M97.25M
Net Income-717.67M-717.67M-253.24M13.28M979.44M22.31M
Balance Sheet
Total Assets3.33B3.33B8.74B9.19B8.92B4.90B
Cash, Cash Equivalents and Short-Term Investments87.88M87.88M547.88M541.75M567.14M464.84M
Total Debt1.27B1.27B3.67B3.53B3.56B1.47B
Total Liabilities1.60B1.60B4.14B4.20B3.98B1.67B
Stockholders Equity1.73B1.73B2.41B3.45B4.18B3.23B
Cash Flow
Free Cash Flow358.85M358.85M-337.70M-138.95M-453.63M257.27M
Operating Cash Flow358.93M358.93M-336.26M-135.54M-440.97M257.46M
Investing Cash Flow-245.85M-239.07M284.20M420.63M-233.89M-53.71M
Financing Cash Flow-319.29M-411.61M-28.03M-66.69M550.52M-13.45M

Easyknit International Holdings Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.23
Price Trends
50DMA
3.08
Negative
100DMA
2.99
Negative
200DMA
2.47
Positive
Market Momentum
MACD
0.01
Positive
RSI
42.25
Neutral
STOCH
61.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1218, the sentiment is Negative. The current price of 3.23 is above the 20-day moving average (MA) of 3.08, above the 50-day MA of 3.08, and above the 200-day MA of 2.47, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 42.25 is Neutral, neither overbought nor oversold. The STOCH value of 61.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1218.

Easyknit International Holdings Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
51
Neutral
HK$221.23M-1.88-7.04%3.34%27.43%
44
Neutral
HK$117.53M-1.40-8.43%-65.67%-183.81%
41
Neutral
HK$617.77M-0.41-13.99%-0.38%-296.42%
41
Neutral
HK$129.20M-0.04-35.96%-5.63%-36.30%
40
Underperform
HK$126.66M-0.01-70.13%-16.86%
39
Underperform
HK$116.02M-0.02-1347.47%-59.30%19.71%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1218
Easyknit International Holdings Ltd
2.99
1.29
75.88%
HK:0075
YT Realty Group
0.15
-0.08
-34.67%
HK:6158
Zhenro Properties Group Limited
0.03
-0.03
-48.21%
HK:1996
Redsun Properties Group Ltd.
0.04
-0.02
-41.67%
HK:2329
Guorui Properties Ltd
0.14
0.04
46.32%
HK:3639
Yida China Holdings Ltd.
0.05
-0.05
-48.45%

Easyknit International Holdings Ltd Corporate Events

Easyknit International Approves Key Resolution at Special General Meeting
Dec 15, 2025

Easyknit International Holdings Ltd announced that an Ordinary Resolution was passed at their Special General Meeting held on December 15, 2025. The resolution, which was approved by a significant majority, pertains to the Sale and Purchase Agreement and related transactions. The approval reflects the company’s strategic direction and may impact its operational focus and shareholder interests.

The most recent analyst rating on (HK:1218) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Easyknit International Holdings Ltd stock, see the HK:1218 Stock Forecast page.

Easyknit International Reports Significant Revenue Decline for H1 2025
Nov 28, 2025

Easyknit International Holdings Ltd reported a significant decline in its financial performance for the six months ended September 30, 2025, with a 65.5% decrease in revenue from continuing operations compared to the same period in 2024. The company experienced a substantial loss attributable to owners, driven by decreased sales of properties and a write-down on properties held for sale, impacting its net asset value and overall financial stability.

The most recent analyst rating on (HK:1218) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Easyknit International Holdings Ltd stock, see the HK:1218 Stock Forecast page.

Easyknit International Updates on Financial Asset Disposal
Nov 27, 2025

Easyknit International Holdings Limited has announced supplemental information regarding its recent transaction involving the disposal of a financial asset. The update provides details about one of the purchasers, Fast Upgrade Limited, whose principal business is investment holding, with Mr. Chen Haining as its sole shareholder. This announcement does not alter any other information previously disclosed.

The most recent analyst rating on (HK:1218) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Easyknit International Holdings Ltd stock, see the HK:1218 Stock Forecast page.

Easyknit International Announces Significant Disposal of Convertible Note
Nov 25, 2025

Easyknit International Holdings Limited, through its indirect wholly-owned subsidiary, has entered into agreements to dispose of approximately 47.17% of the outstanding principal amount of its 2023 Convertible Note for HK$25,000,000, which includes a premium of HK$3,125,000. This transaction, alongside a previous disposal, constitutes a discloseable transaction under Hong Kong’s Listing Rules, requiring reporting and announcement due to the percentage ratios involved. The disposal reflects the company’s ongoing financial strategy and may impact its liquidity and financial positioning.

The most recent analyst rating on (HK:1218) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Easyknit International Holdings Ltd stock, see the HK:1218 Stock Forecast page.

Easyknit International Announces Special General Meeting for Strategic Sale
Nov 24, 2025

Easyknit International Holdings Ltd has announced a Special General Meeting to be held on December 15, 2025, to approve a significant transaction involving the sale of its entire issued share capital of Mark Profit Development Limited to Eminence Enterprise Limited. This move, if approved, could impact the company’s strategic direction and financial standing, potentially influencing its market position and stakeholder interests.

The most recent analyst rating on (HK:1218) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Easyknit International Holdings Ltd stock, see the HK:1218 Stock Forecast page.

Easyknit International Announces Further Delay in Circular Dispatch
Nov 21, 2025

Easyknit International Holdings Limited announced a further delay in the dispatch of a circular related to a very substantial disposal. The circular, which includes details of a Sale and Purchase Agreement and other financial information, was initially expected by 24 November 2025 but is now postponed to 25 November 2025 due to additional time needed for finalizing the information. This delay may impact stakeholders awaiting detailed transaction insights.

The most recent analyst rating on (HK:1218) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Easyknit International Holdings Ltd stock, see the HK:1218 Stock Forecast page.

Easyknit International Reports Significant Reduction in Net Loss
Nov 21, 2025

Easyknit International Holdings Ltd announced a significant reduction in its net loss for the six months ending September 2025, expecting it to narrow to no more than HK$110 million compared to HK$709.5 million in the same period in 2024. This improvement is attributed to a decrease in write-downs on properties and losses from discontinued operations, although partially offset by increased losses on investment properties and decreased gains from acquisitions.

The most recent analyst rating on (HK:1218) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Easyknit International Holdings Ltd stock, see the HK:1218 Stock Forecast page.

Easyknit International Updates on Substantial Disposal Agreement
Nov 20, 2025

Easyknit International Holdings Ltd has issued a supplemental announcement regarding a very substantial disposal, updating stakeholders on the purchase price and terms of a Sale and Purchase Agreement initially announced on October 10, 2025. The purchase price is approximately HK$287.1 million, with adjustments settled in cash. The maximum principal amount of the 2025 Convertible Note is HK$287,100,000, potentially resulting in the issuance of 1,698,816,568 Conversion Shares. The completion of this agreement is contingent upon several conditions, including shareholder approvals, and may not proceed, prompting caution among investors.

The most recent analyst rating on (HK:1218) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Easyknit International Holdings Ltd stock, see the HK:1218 Stock Forecast page.

Easyknit International Announces Upcoming Board Meeting for Interim Results
Nov 18, 2025

Easyknit International Holdings Limited has announced that its board will meet on November 28, 2025, to review and approve the unaudited interim results for the six months ending September 30, 2025. The meeting will also consider the payment of an interim dividend, which could impact the company’s financial strategy and shareholder returns.

The most recent analyst rating on (HK:1218) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Easyknit International Holdings Ltd stock, see the HK:1218 Stock Forecast page.

Easyknit International Announces Further Delay in Circular Dispatch
Nov 14, 2025

Easyknit International Holdings Limited has announced a further delay in the dispatch of a circular related to a very substantial disposal, originally expected by 14 November 2025, now postponed to on or before 24 November 2025. This delay is due to the need for additional time to finalize the information to be included, impacting the company’s communication with its shareholders and potentially affecting stakeholder expectations.

The most recent analyst rating on (HK:1218) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Easyknit International Holdings Ltd stock, see the HK:1218 Stock Forecast page.

Easyknit International Delays Circular Dispatch for Substantial Disposal
Nov 7, 2025

Easyknit International Holdings Ltd has announced a delay in the dispatch of a circular related to a very substantial disposal. The circular, which includes details of a Sale and Purchase Agreement, financial information, and a property valuation report, was initially expected to be sent to shareholders by 7 November 2025. However, the dispatch has been postponed to on or before 14 November 2025 due to the need for additional time to finalize the information.

The most recent analyst rating on (HK:1218) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Easyknit International Holdings Ltd stock, see the HK:1218 Stock Forecast page.

Easyknit International Clarifies Financial Figures in Disposal Announcement
Oct 17, 2025

Easyknit International Holdings Limited issued a clarification announcement regarding a very substantial disposal related to a Sale and Purchase Agreement. The company corrected the disclosed net loss figures for Mark Profit for the year ended 31 March 2024, stating the net loss before taxation was approximately HK$41,453,000 and after taxation was HK$41,571,000. These changes do not affect the company’s assessment of the disposal of Sale Shares.

The most recent analyst rating on (HK:1218) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Easyknit International Holdings Ltd stock, see the HK:1218 Stock Forecast page.

Easyknit Expands Stake in Best Food with Strategic Acquisition
Oct 17, 2025

Easyknit International Holdings Ltd, through its subsidiary Gold Winner, has acquired 3,042,000 shares of Best Food on the open market for HK$1,825,200. This acquisition increases Easyknit’s stake in Best Food to approximately 4.66%. The acquisition aligns with Easyknit’s strategy of securities investment, and the company views this as an opportunity to enhance its investment returns by capitalizing on Best Food’s potential in the Chinese food and beverage market.

The most recent analyst rating on (HK:1218) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Easyknit International Holdings Ltd stock, see the HK:1218 Stock Forecast page.

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: Dec 19, 2025