Echo International Holdings Group Ltd. (8218) AI Stock Analysis

• Market Cap: HK$79.30M
• Dividend Yield: N/A
• Average Volume (3M): 2.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.22
• Revenue Growth: -42.96%
• EPS Growth: 3.17%
• Country: HK
• Employees: 119
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): >-0.01
• Shares Outstanding: 666,423,160
• 10 Day Avg. Volume: 1,200
• 30 Day Avg. Volume: 2,693
• PEG Ratio: 0.33
• Price to Book (P/B): 1.63
• Price to Sales (P/S): 1.30
• P/FCF Ratio: 71.96
• 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: 41 Neutral
• Price Target: HK$0.12 ▼(-4.17% Downside)

Echo International Holdings Group Ltd. is facing significant financial and technical challenges. The most impactful factor is the company's weak financial performance, characterized by declining revenue and profitability issues. Technical analysis further indicates bearish momentum, with the stock being oversold. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield, making the stock less attractive to investors.

Positive Factors

Improved Leverage Management

Improved leverage management indicates stronger financial discipline, reducing risk and enhancing the company's ability to invest in growth opportunities.

Gross Profit Margin Improvement

An improved gross profit margin suggests better cost management, which can lead to enhanced profitability and competitive pricing strategies over time.

Strong Free Cash Flow Conversion

A strong free cash flow conversion rate indicates efficient cash management, providing the company with flexibility to reinvest in business operations and manage debt.

Negative Factors

Declining Revenue Trend

A declining revenue trend poses a long-term challenge, potentially impacting market position and limiting resources for investment in growth initiatives.

Profitability Challenges

Ongoing profitability challenges can hinder the company's ability to sustain operations and invest in growth, affecting long-term financial health.

Weak Cash Flow Management

Weak cash flow management limits the company's ability to fund operations and growth initiatives, potentially leading to liquidity issues over time.

Echo International Holdings Group Ltd. Business Overview & Revenue Model

Company Description

Echo International Holdings Group Ltd. (8218) is a diversified investment holding company based in Hong Kong, primarily engaged in the sectors of trading, logistics, and supply chain management. The company focuses on providing comprehensive solutions in various industries, including electronics, consumer products, and industrial materials. Its core services encompass sourcing, procurement, and distribution of goods, aiming to connect manufacturers with international markets while optimizing the supply chain process.

How the Company Makes Money

Echo International Holdings generates revenue through multiple streams, primarily from its trading operations, where it acts as an intermediary between manufacturers and international buyers. The company earns commissions on sales and may also engage in direct sales of products, contributing to its revenue. Additionally, it offers logistics and supply chain management services, charging fees for these services based on the volume and complexity of the operations involved. Key partnerships with manufacturers and suppliers enhance its market reach, while strategic alliances with logistics providers help streamline operations, ultimately boosting profitability. The company's ability to adapt to market trends and leverage its network is crucial for sustaining its earnings.

Echo International Holdings Group Ltd. Financial Statement Overview

Summary

Echo International Holdings Group Ltd. faces challenges in revenue growth and profitability, with consistent negative net income and declining revenue. The balance sheet shows improved leverage, but profitability remains a concern. Cash flow management is weak, with declining free cash flow growth. The company needs to focus on improving operational efficiency and profitability to enhance financial stability.

Income Statement

Echo International Holdings Group Ltd. has shown a declining revenue trend with a negative revenue growth rate of -13.51% in the latest year. The company struggles with profitability, as indicated by negative net profit and EBIT margins. However, the gross profit margin has slightly improved to 24.72%, suggesting some efficiency in managing production costs.

Balance Sheet

The company's debt-to-equity ratio has improved significantly from previous years, now at 0.21, indicating better leverage management. However, the return on equity remains negative, reflecting ongoing profitability challenges. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Cash flow performance is weak, with a significant decline in free cash flow growth by -60.5%. The operating cash flow to net income ratio is low, indicating limited cash generation relative to net income. However, the free cash flow to net income ratio is relatively strong at 0.76, showing some ability to convert earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	80.83M	61.97M	65.48M	55.28M	80.34M	49.35M
Gross Profit	19.60M	15.32M	15.29M	13.28M	12.44M	9.08M
EBITDA	-5.43M	-1.42M	-6.02M	-6.38M	-10.90M	-21.75M
Net Income	-4.29M	-4.29M	-9.44M	-14.46M	-21.85M	-26.68M
Balance Sheet
Total Assets	69.06M	69.06M	73.91M	67.91M	75.00M	73.92M
Cash, Cash Equivalents and Short-Term Investments	5.85M	5.85M	3.86M	2.96M	4.04M	3.55M
Total Debt	10.46M	10.46M	10.58M	7.36M	60.90M	55.83M
Total Liabilities	19.52M	19.52M	20.94M	15.63M	70.72M	73.76M
Stockholders Equity	49.53M	49.53M	52.98M	52.28M	4.28M	161.00K
Cash Flow
Free Cash Flow	1.12M	1.12M	-4.23M	-2.11M	-28.71M	-10.56M
Operating Cash Flow	1.47M	1.47M	-4.18M	-1.77M	-28.00M	3.65M
Investing Cash Flow	-347.00K	-347.00K	1.98M	-332.00K	-618.00K	-14.22M
Financing Cash Flow	871.00K	871.00K	3.73M	1.09M	29.08M	7.63M

Echo International Holdings Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.12
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8218, the sentiment is Neutral. The current price of 0.12 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.14, and above the 200-day MA of 0.09, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 23.03 is Positive, neither overbought nor oversold. The STOCH value of 6.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:8218.

Echo International Holdings Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8070	68 Neutral	HK$158.00M	9.73	16.11%	―	25.67%	-6.77%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
8511	50 Neutral	HK$28.51M	-0.92	-116.62%	―	-60.51%	45.79%
8113	47 Neutral	HK$51.60M	-11.34	-3.56%	―	-13.62%	40.15%
8218	41 Neutral	HK$79.30M	―	-16.24%	―	-42.96%	3.17%