Easyknit International Holdings Ltd (1218) AI Stock Analysis

• Market Cap: HK$230.10M
• Dividend Yield: N/A
• Average Volume (3M): 39.32K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.20
• Revenue Growth: 3.34%
• EPS Growth: 27.43%
• Country: HK
• Employees: 19
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): -1.48
• Shares Outstanding: 73,988,400
• 10 Day Avg. Volume: 1,201
• 30 Day Avg. Volume: 39,316
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.07
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 0.34
• 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: 53 Neutral
• Price Target: HK$3.50 ▲(8.36% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is primarily constrained by weak profitability (negative margins and ROE) and mixed balance-sheet leverage, despite strong revenue growth and improved cash flow. Technicals are mildly supportive with the stock trading above major moving averages, but valuation remains pressured by losses reflected in the negative P/E.

Positive Factors

Revenue Growth

Strong 75.48% year-on-year revenue growth signals expanding market penetration across the group's property and healthcare operations. Durable top-line expansion supports reinvestment, scale economics potential and provides runway for margin recovery if cost structure is addressed.

Improved Cash Generation

Free cash flow has improved markedly, with operating cash flow outpacing net income. Durable cash generation reduces reliance on external financing, supports working capital and capex, and provides a buffer to fund strategic initiatives or service debt over the medium term.

Diversified Recurring Revenue

A business mix of property investment (recurring rental income) and healthcare services provides diversified, recurring revenue streams. This structural diversification smooths cash flow cyclicality and supports resilience versus single-industry peers over a 2–6 month horizon.

Negative Factors

Weak Profitability

Negative net profit and EBIT margins indicate ongoing unprofitability that limits retained earnings and ROE. Persistent losses constrain capacity to self-fund growth, reduce strategic flexibility, and increase reliance on financing or asset disposals to bridge operating deficits.

High Leverage

Though debt-to-equity has improved, leverage remains relatively high. Elevated debt increases interest burden and refinancing risk, narrows headroom for capex or acquisitions, and can amplify earnings volatility if revenue or margins weaken.

Gross Margin Deterioration

Gross profit margin deterioration points to cost pressures or pricing weakness that erode core profitability. If structural, shrinking gross margins make margin recovery harder and limit ability to invest in clinics, property upkeep, or service improvements without hurting returns.

Easyknit International Holdings Ltd Business Overview & Revenue Model

Company Description

Easyknit 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 Money

Easyknit 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

Revenue growth is strong (latest year up 75.48%), but profitability remains weak with negative net profit and EBIT margins. Balance sheet quality is mixed due to relatively high leverage and negative ROE, while cash flow is a relative positive with improved free cash flow and better cash generation versus net income, though volatility is a risk.

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.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	337.80M	488.49M	227.11M	86.76M	350.78M	323.38M
Gross Profit	-21.75M	-17.05M	58.08M	58.98M	174.99M	100.00M
EBITDA	-56.05M	81.74M	-258.48M	92.78M	-5.49M	97.25M
Net Income	-117.48M	-717.67M	-253.24M	13.28M	979.44M	22.31M
Balance Sheet
Total Assets	3.24B	3.33B	8.74B	9.19B	8.92B	4.90B
Cash, Cash Equivalents and Short-Term Investments	125.70M	87.88M	547.88M	541.75M	567.14M	464.84M
Total Debt	1.30B	1.27B	3.67B	3.53B	3.56B	1.47B
Total Liabilities	1.63B	1.60B	4.14B	4.20B	3.98B	1.67B
Stockholders Equity	1.62B	1.73B	2.41B	3.45B	4.18B	3.23B
Cash Flow
Free Cash Flow	164.38M	358.85M	-337.70M	-138.95M	-453.63M	257.27M
Operating Cash Flow	164.46M	358.93M	-336.26M	-135.54M	-440.97M	257.46M
Investing Cash Flow	72.17M	-239.07M	284.20M	420.63M	-233.89M	-53.71M
Financing Cash Flow	-157.56M	-411.61M	-28.03M	-66.69M	550.52M	-13.45M

Easyknit International Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.23
• 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:1218, the sentiment is Positive. The current price of 3.23 is above the 20-day moving average (MA) of 3.08, above the 50-day MA of 3.10, and above the 200-day MA of 2.70, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.51 is Neutral, neither overbought nor oversold. The STOCH value of 27.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1218.

Easyknit International Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
1218	53 Neutral	HK$230.10M	-0.52	-7.02%	―	3.34%	27.43%
3639	44 Neutral	HK$113.69M	-0.05	-35.96%	―	-5.63%	-36.30%
2329	41 Neutral	HK$564.44M	-0.70	-13.99%	―	-0.38%	-296.42%
0075	40 Underperform	HK$119.13M	-0.45	-8.43%	―	-65.67%	-183.81%
6158	39 Underperform	HK$122.30M	>-0.01	77.11%	―	-70.13%	-16.86%
1996	39 Underperform	HK$96.13M	-0.02	-1347.47%	―	-59.30%	19.71%

Easyknit International Holdings Ltd Corporate Events

Easyknit International Formalises Nomination Committee Mandate to Strengthen Board Governance

Easyknit International Holdings Limited has formalised the terms of reference for its nomination committee, which is tasked with overseeing board appointments and maintaining an appropriate balance of skills, knowledge, experience and diversity, including gender diversity, on the board. The committee, composed of at least three members with a majority being independent non-executive directors, is empowered to obtain independent professional advice, review board structure and performance, assess the independence of directors, manage succession planning for key leadership roles, and ensure the company’s nomination and board diversity policies remain effective and compliant, underscoring a strengthened commitment to corporate governance and board oversight.

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 Completes HK$286.8 Million Disposal of Mark Profit via Convertible Note

Easyknit International Holdings Limited has completed a very substantial disposal involving the sale of its indirect wholly owned subsidiary Mark Profit, following shareholder approval at a special general meeting on 15 December 2025. The transaction was completed on 15 January 2026, with Mark Profit ceasing to be part of the group and the purchase price of HK$286.8 million settled via a 2025 convertible note issued by Eminence to Goodco, which is convertible into approximately 1.70 billion shares at an initial conversion price of HK$0.169 per share. The disposal reshapes Easyknit’s group structure and capital position, potentially altering its earnings profile and exposure to the disposed business while introducing a significant convertible instrument into its investment portfolio.

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 Approves Key Resolution at Special General Meeting

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.