Easyknit International Holdings Ltd (1218) AI Stock Analysis

• Market Cap: HK$128.00M
• Dividend Yield: N/A
• Average Volume (3M): 4.00K
• Price to Earnings (P/E): 7.7
• Beta (1Y): -0.04
• Revenue Growth: 96.89%
• EPS Growth: -404.12%
• Country: HK
• Employees: 19
• Sector: Industrials
• Sector Strength: 86
• Industry: Real Estate - Development
• EPS (TTM): -0.11
• Shares Outstanding: 73,988,400
• 10 Day Avg. Volume: 10,602
• 30 Day Avg. Volume: 4,003
• PEG Ratio: -0.19
• Price to Book (P/B): 0.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.82
• 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

• Rating: 46 Neutral
• Price Target: ―

Easyknit International Holdings Ltd's overall stock score reflects significant financial challenges, including declining profitability and cash flow issues. The technical analysis shows some potential for upward momentum, but the overbought indicators suggest caution. Valuation is concerning due to a negative P/E ratio and lack of dividends, limiting the stock's appeal in the current market.

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 Holdings Ltd generates revenue through a combination of property sales, rental income, and investment returns. The company's property development and investment segment involves the acquisition, development, and resale of properties, generating significant revenue from sales of completed residential and commercial units. Additionally, Easyknit International earns rental income from its portfolio of investment properties, providing a steady stream of cash flow. The company also engages in securities trading and holds financial investments, which contribute to its earnings through capital gains and dividends. These diverse revenue streams, coupled with strategic partnerships and market positioning, enable Easyknit International to maintain financial stability and growth.

Easyknit International Holdings Ltd Financial Statement Overview

Summary

Easyknit International Holdings Ltd is facing significant financial challenges with declining profitability, increasing leverage, and negative cash flows. The company has a volatile income statement, high debt-to-equity ratio, and negative cash flow, indicating potential liquidity issues and financial instability.

Income Statement

The income statement reveals significant volatility and challenges. Gross profit margins have declined notably from 2022 to 2024, indicating shrinking profitability. The net income has shifted from a profit in 2023 to a substantial loss in 2024, resulting in a negative net profit margin. Revenue growth is inconsistent, with a dramatic increase from 2023 to 2024 but a significant drop prior. The negative EBIT and EBITDA margins highlight operational inefficiencies and difficulties in generating core earnings.

Balance Sheet

The balance sheet shows a relatively high debt-to-equity ratio, indicating leverage risks. Stockholders’ equity has decreased over time, reducing the equity ratio and signaling potential financial vulnerability. However, the company maintains a solid cash position, which provides some liquidity cushioning. The return on equity has plummeted due to the net losses, raising concerns about shareholder value creation.

Cash Flow

Cash flow analysis presents a concerning picture with negative operating and free cash flows in recent years, suggesting cash burn and potential liquidity issues. The operating cash flow to net income ratio is negative, signaling inefficiencies in converting earnings into cash. Although investing cash flow turned positive in 2024, this may not be sustainable. The free cash flow growth rate is negative, indicating declining cash generation capacity.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	278.38M	227.11M	86.76M	350.78M	323.38M	63.63M
Gross Profit	-40.28M	58.08M	58.98M	174.99M	100.00M	61.21M
EBITDA	-196.80M	-258.48M	92.78M	-6.07M	97.25M	-212.04M
Net Income	-892.17M	-253.24M	13.28M	979.44M	22.31M	-297.75M
Balance Sheet
Total Assets	3.61B	8.74B	9.19B	8.92B	4.90B	4.86B
Cash, Cash Equivalents and Short-Term Investments	108.11M	547.88M	541.75M	567.14M	464.84M	194.46M
Total Debt	1.71B	3.67B	3.53B	3.56B	1.47B	1.43B
Total Liabilities	1.87B	4.14B	4.20B	3.98B	1.67B	1.62B
Stockholders Equity	1.74B	2.41B	3.45B	4.18B	3.23B	3.24B
Cash Flow
Free Cash Flow	61.59M	-337.70M	-138.95M	-453.63M	257.27M	4.78M
Operating Cash Flow	63.00M	-336.26M	-135.54M	-440.97M	257.46M	4.81M
Investing Cash Flow	-192.43M	284.20M	420.63M	-233.89M	-53.71M	-156.54M
Financing Cash Flow	-279.65M	-28.03M	-66.69M	550.52M	-13.45M	77.98M

Easyknit International Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 1.73 is below the 20-day moving average (MA) of 2.14, below the 50-day MA of 2.11, and below the 200-day MA of 1.95, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 6.11 is Positive, neither overbought nor oversold. The STOCH value of 35.04 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	€4.04B	9.14	18.29%	3.44%	3.84%	-103.41%
1218	46 Neutral	HK$128.00M	7.65	0.75%	―	96.89%	-404.12%
YTRGF		$15.38M	1.25	-0.39%	―	―	―
1ZZ		€19.38M	―		―	―	―
0RJ		€16.50M	―	-238.71%	―	―	―
84R		€74.99M	―	-11.65%	―	―	―
YC2		€19.01M	―	-27.47%	―	―	―

Easyknit International Holdings Ltd Corporate Events

Easyknit International Announces Change in Share Registrar

Easyknit International Holdings Ltd has announced a change in its Hong Kong branch share registrar and transfer office, effective from March 31, 2025. The new registrar will be Tricor Investor Services Limited, and all applications for share transfers should be directed to them from this date. This change is part of the company’s operational adjustments and may impact shareholders who need to collect share certificates after the specified date.