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

• Market Cap: HK$66.64M
• 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$0.10 ▼(-12.73% Downside)
• Action: Reiterated Date: 11/14/25
• Date: Action: Reiterated 11/14/25

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

A substantially lower debt-to-equity ratio (0.21) materially reduces financial risk and interest burden, improving flexibility to fund operations or restructure. Over the next 2-6 months better leverage supports liquidity management, credit access and strategic optionality despite earnings pressure.

Gross Margin Resilience

An improving gross margin (24.72%) suggests the company is managing production costs or pricing more effectively. Sustained gross-margin gains underpin the ability to absorb overheads, support EBITDA recovery, and provide a structural foundation for restoring operating profitability over the medium term.

Cash Conversion Ability

A 0.76 free cash flow to net income ratio indicates the business can convert reported earnings into cash reasonably well. This cash conversion supports working capital, modest capex and debt servicing, providing a durable buffer that helps the company manage operations and reduce refinancing strain in coming months.

Negative Factors

Declining Revenue & Negative Margins

Consistent revenue decline and negative operating/profit margins are core structural weaknesses: they indicate demand, pricing or competitive issues. Without revenue stabilization, fixed costs and margin erosion will continue to depress profitability, limiting sustainable recovery prospects over the next several quarters.

Weak Free Cash Flow Growth

A steep -60.5% drop in free cash flow growth materially reduces internal funding for operations, capex and debt reduction. This constrains strategic investment, heightens reliance on external financing, and elevates liquidity and refinancing risk if operating cash flow does not improve within the medium-term horizon.

Negative Return on Equity

Negative ROE shows the company is not generating returns for shareholders and is consuming capital rather than creating it. This structural weakness limits ability to attract new equity, undermines reinvestment capacity, and makes sustained turnaround or growth more difficult absent operational or strategic change.

Echo International Holdings Group Ltd. Business Overview & Revenue Model

Company Description

Echo International Holdings Group Limited, an investment holding company, engages in manufacturing and trading electronic products and accessories in Hong Kong, other Asian countries, Europe, Australia, North America, South America, and internationally. It operates through Trading of Electronic Products; Manufacturing and Trading of Electronic Products and Accessories; Provision of Food Catering Services; and Trading of Timepieces. The company offers design verification, sourcing and procurement, manufacturing, assembling, testing and inspection, packaging, and after-sales services for its branded customers. Its products include hair remover, starter, control board, and charger board; and other miscellaneous electronic products, which are PCB assemblies used in beauty, fishing, security, and other electronic related products. The company also offers manufacturing and assembly services for electronic products, such as security alarms, buzzers, fire alarms, massage toners, fishing indicators, and communicators; and food catering services, as well as trades in timepieces. The company was founded in 1989 and is headquartered in Tsuen Wan, Hong Kong.

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: Negative
• Last Price: 0.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8218, the sentiment is Negative. The current price of 0.11 is above the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.10, and above the 200-day MA of 0.10, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 1.57 is Positive, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$220.00M	4.55	16.11%	―	25.67%	-6.77%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
8113	55 Neutral	HK$58.14M	25.75	-3.24%	―	-13.62%	40.15%
8511	43 Neutral	HK$19.18M	14.25	-116.62%	―	-60.51%	45.79%
8218	41 Neutral	HK$66.64M	-11.85	-16.24%	―	-42.96%	3.17%