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

• Market Cap: HK$83.30M
• 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: 47 Neutral
• Price Target: HK$0.20 ▲(77.27% Upside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is held down primarily by weak financial performance, including declining revenue, ongoing losses, and deteriorating free cash flow growth. Technicals provide partial support from strong price vs. moving averages and a positive MACD, but the extremely high RSI indicates stretched momentum. Valuation contributes limited support because earnings are negative (making P/E less meaningful) and no dividend yield is available.

Positive Factors

Improved Leverage

A materially lower debt-to-equity (0.21) improves financial flexibility and reduces interest burden, allowing management to weather revenue volatility and prioritize restructuring or targeted investment without heavy refinancing stress. This strengthens medium-term solvency and optionality.

Gross Margin Improvement

An improved gross margin (~24.7%) indicates better production or procurement efficiency that can persist beyond short-term cycles. Sustained margin uplift provides a structural cushion for operating profit recovery if revenue stabilizes, enabling better cash conversion and targeted reinvestment.

Cash Conversion Ability

A free cash flow to net income ratio of ~0.76 shows the company can convert reported earnings into cash at a decent rate despite pressures. That structural cash conversion supports working capital needs, deleveraging and discretionary spending without relying solely on external funding.

Negative Factors

Declining Revenue Trend

Persistent revenue decline reduces scale economies and market presence, making margin recovery harder and increasing per-unit fixed cost pressure. Over 2-6 months this trend constrains cash flow, limits pricing power, and complicates any turnaround or investment strategy.

Ongoing Losses

Negative net profit and EBIT margins indicate the business has not reached operational profitability. Structural losses erode equity, limit retained earnings for reinvestment, and increase reliance on financing or cost cuts to sustain operations, constraining strategic flexibility.

Deteriorating Free Cash Flow Growth

A sharp drop in free cash flow growth (-60.5%) weakens liquidity momentum and signals operational or working-capital stress. Even with decent FCF-to-income conversion, falling FCF growth reduces capacity for capex, debt paydown, or strategic initiatives and raises refinancing and execution risk.

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.

How the Company Makes Money

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Echo International Holdings Group Ltd. Financial Statement Overview

Summary

Financial performance is weak: revenue declined (-13.51%) and profitability remains negative (negative net profit and EBIT margins). Positives include a slightly improved gross margin (24.72%) and improved leverage (debt-to-equity 0.21), but cash flow is pressured by sharply lower free cash flow growth (-60.5%).

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: Positive
• Last Price: 0.11
• 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:8218, the sentiment is Positive. The current price of 0.11 is above the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.11, and above the 200-day MA of 0.10, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 64.53 is Neutral, neither overbought nor oversold. The STOCH value of 46.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$238.00M	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$56.69M	25.75	-3.24%	―	-13.62%	40.15%
8218	47 Neutral	HK$83.30M	-11.85	-14.59%	―	-42.96%	3.17%
8511	43 Neutral	HK$20.99M	14.25	-116.62%	―	-60.51%	45.79%