Kantone Holdings (1059) AI Stock Analysis

• Market Cap: $146.26M
• Dividend Yield: N/A
• Average Volume (3M): 133.90K
• Price to Earnings (P/E): 4.8
• Beta (1Y): -0.02
• Revenue Growth: -0.66%
• EPS Growth: 265.91%
• Country: HK
• Employees: 165
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.04
• Shares Outstanding: 375,033,500
• 10 Day Avg. Volume: 21,601
• 30 Day Avg. Volume: 133,901
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.05
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 0.09
• Enterprise Value/Ebitda: 0.41
• 1Y Price Target: $0.47
• Price Target Upside: 19.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: HK$0.50 ▲(28.21% Upside)

Kantone Holdings demonstrates strong financial performance with significant revenue growth and operational efficiency, balanced by robust equity and low leverage. However, the stock shows technical overbought conditions, indicating potential volatility. The valuation appears reasonable, though the lack of dividend yield is a downside for income-focused investors.

Kantone Holdings Business Overview & Revenue Model

Company Description

Kantone Holdings Limited (1059) is a diversified investment holding company primarily engaged in the provision of IT solutions and services. The company operates across various sectors including healthcare, public safety, and information technology. Kantone Holdings offers a range of products and services such as software development, systems integration, and technology consultancy, aiming to deliver comprehensive and innovative solutions to its clients.

How the Company Makes Money

Kantone Holdings makes money through its diverse range of IT solutions and services. The company generates revenue by providing software development and systems integration services to various sectors, including healthcare and public safety. Key revenue streams include the sale of customized software products, ongoing support and maintenance services, and consultancy fees. The company may also benefit from strategic partnerships and collaborations that enhance its service offerings and expand its market reach. Revenue is further bolstered by long-term contracts with clients, which provide a stable income stream.

Kantone Holdings Financial Statement Overview

Summary

Kantone Holdings has shown strong revenue growth and improved operational efficiency, as seen in increasing gross profit and EBIT margins. The balance sheet is robust with low leverage and strong equity. However, net profitability has decreased, and cash flow management needs improvement, particularly in generating positive free cash flow.

Income Statement

Kantone Holdings has shown a positive revenue growth rate of 18.3% from 2023 to 2024, indicating a strong upward trajectory in sales. The gross profit margin improved to 61.4% in 2024 from 48.8% in 2023, demonstrating enhanced efficiency in cost management. The net profit margin, however, decreased from 7.5% in 2023 to 3.8% in 2024, reflecting challenges in managing non-operational expenses. The EBIT and EBITDA margins also improved, suggesting better operational profitability, but the net income decline warrants attention.

Balance Sheet

The company enjoys a strong equity position with a debt-to-equity ratio of 0.04, indicating low financial leverage and reduced risk from debt. The return on equity increased from 7.2% in 2023 to 3.5% in 2024, reflecting better returns to shareholders despite the lower net income. The equity ratio stands at 68.3%, highlighting a solid capital structure with significant equity funding.

Cash Flow

Kantone Holdings has seen a substantial increase in operating cash flow, which rose to 7.3 million from 3.5 million in 2023. The free cash flow, however, remains negative, posing concerns about cash availability for reinvestment and debt repayment. The operating cash flow to net income ratio stands at 1.27, indicating efficient conversion of earnings into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	152.28M	128.74M	127.75M	139.07M	146.94M
Gross Profit	93.51M	62.88M	62.03M	73.13M	73.88M
EBITDA	17.46M	7.04M	13.69M	15.94M	5.24M
Net Income	5.72M	9.69M	4.56M	5.69M	3.88M
Balance Sheet
Total Assets	242.42M	223.95M	210.19M	216.68M	186.24M
Cash, Cash Equivalents and Short-Term Investments	109.72M	114.79M	108.26M	118.85M	95.47M
Total Debt	6.27M	5.01M	5.12M	16.16M	12.63M
Total Liabilities	77.00M	89.36M	76.91M	109.02M	133.42M
Stockholders Equity	165.41M	134.59M	133.28M	107.66M	52.82M
Cash Flow
Free Cash Flow	-5.24M	-5.49M	-6.53M	3.81M	21.47M
Operating Cash Flow	7.26M	3.53M	10.28M	14.30M	29.68M
Investing Cash Flow	-11.75M	-8.70M	-13.85M	-3.94M	-22.12M
Financing Cash Flow	10.96M	-3.02M	1.41M	-818.00K	6.80M

Kantone Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1059, the sentiment is Positive. The current price of 0.39 is above the 20-day moving average (MA) of 0.34, above the 50-day MA of 0.37, and above the 200-day MA of 0.28, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.52 is Neutral, neither overbought nor oversold. The STOCH value of 97.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1059.

Kantone Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8033	73 Outperform	HK$82.56M	5.68	4.66%	7.46%	-1.57%	-18.62%
1059	69 Neutral	$146.26M	4.84	14.04%	―	-0.66%	265.91%
8319	68 Neutral	HK$89.16M	6.38	7.90%	6.64%	-9.11%	-8.90%
8606	51 Neutral	HK$105.55M	-67.27	-6.27%	―	5.01%	82.54%
0465	44 Neutral	HK$115.16M	-1.46	-29.00%	―	-18.19%	4.52%
1949	44 Neutral	HK$184.32M	-1.65	-87.34%	―	-78.41%	-3511.76%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Kantone Holdings Corporate Events

Kantone Holdings Announces Board Composition and Committee Roles

Kantone Holdings Limited has announced the composition of its board of directors and the roles they hold within the company. The board includes Mr. Chan Koon Wa as the Chairman and three independent non-executive directors: Mr. Leung Man Fai, Ms. Chung Sau Wai Ada, and Mr. Ip Wai Lun William. The company has also established four committees: Audit, Human Resources and Remuneration, Nomination, and Investment, with specific directors assigned to each. This announcement highlights the company’s governance structure, which is crucial for maintaining transparency and accountability, potentially impacting its market perception and stakeholder confidence.

Kantone Holdings Announces Leadership Changes

Kantone Holdings Limited, a company incorporated in the Cayman Islands, has announced the resignation of Ms. To Yin Fong Cecilica from her roles as executive director, chairperson of the Investment Committee, and authorised representative, effective from August 2, 2025. The company has expressed gratitude for her contributions and appointed Mr. Chan Koon Wa as her successor in these roles, aiming to ensure a smooth transition in leadership.

Kantone Holdings Relocates Hong Kong Office

Kantone Holdings Limited has announced a change in its principal place of business in Hong Kong, effective from July 8, 2025. This relocation to Unit 27A, 9/F, Block B, Focal Industrial Centre, No. 21 Man Lok Street, Hung Hom, Kowloon, Hong Kong, may impact the company’s operational logistics and stakeholder engagements within the region.

Kantone Holdings Enhances Board Governance with New Nomination Committee

Kantone Holdings Limited has established a Nomination Committee to enhance its board’s structure and diversity. The committee is tasked with reviewing the board’s composition, identifying qualified board candidates, assessing director independence, and monitoring the implementation of the company’s Board Diversity Policy. This move is expected to strengthen Kantone Holdings’ corporate governance and align its board composition with its strategic goals, potentially impacting its market positioning positively.

Kantone Holdings Announces Key Leadership Change

Kantone Holdings Limited has announced a change in its company secretary and authorized representative positions. Ms. Yeung Siu Lam has resigned from her roles, effective June 24, 2025, with no disagreements with the board. She will be succeeded by Mr. Chong Hing Cheong, who brings over 17 years of experience in auditing, financial management, and corporate governance. This transition is expected to strengthen the company’s governance and operational efficiency.