Easyknit International Holdings Ltd (1218) AI Stock Analysis

• Market Cap: HK$235.28M
• Dividend Yield: N/A
• Average Volume (3M): 41.07K
• Price to Earnings (P/E): 14.2
• Beta (1Y): -0.23
• Revenue Growth: 115.09%
• EPS Growth: N/A
• Country: HK
• Employees: 19
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): -0.11
• Shares Outstanding: 73,988,400
• 10 Day Avg. Volume: 414
• 30 Day Avg. Volume: 41,073
• 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: 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: 64 Neutral
• Price Target: HK$3.50 ▲(20.27% Upside)

The stock's overall score is driven primarily by its strong technical indicators, suggesting positive market momentum. Financial performance is a concern due to profitability issues and high leverage, but recent improvements in cash flow are positive. Valuation is reasonable, though the lack of a dividend yield may deter some investors.

Easyknit International Holdings Ltd Business Overview & Revenue Model

Company Description

Easyknit International Holdings Ltd (1218) is a Hong Kong-based investment holding company primarily engaged in the textile and apparel industry. The company specializes in the production and sale of knitted fabrics and garments, serving a diverse range of clients across various sectors, including fashion and sportswear. Easyknit International operates through its subsidiaries, which are strategically positioned to meet the growing demand for high-quality textile products in both local and international markets.

How the Company Makes Money

Easyknit International generates revenue primarily through the manufacturing and sale of knitted fabrics and finished garments. The company has established key revenue streams by supplying products to various retailers and brands, which include both wholesale and retail sales. Additionally, Easyknit benefits from long-term contracts and partnerships with major international brands that provide a steady flow of orders and enhance its market presence. Factors contributing to its earnings include the efficient production processes that reduce costs, a focus on quality to attract premium clients, and an expanding global customer base that increases market share.

Easyknit International Holdings Ltd Financial Statement Overview

Summary

The company shows strong revenue growth but faces significant challenges in profitability and operational efficiency. The balance sheet indicates high leverage, though recent improvements are noted. Cash flow has improved, but historical volatility poses a risk.

Income Statement

The company has shown significant revenue growth, particularly in the latest year with a 75.48% increase. However, profitability is a major concern, with negative net profit margins and EBIT margins indicating operational inefficiencies. The gross profit margin has also deteriorated over time, reflecting challenges in cost management.

Balance Sheet

The company's debt-to-equity ratio has improved recently, indicating better leverage management, but remains relatively high. The return on equity is negative, highlighting profitability issues. The equity ratio suggests a moderate level of financial stability, but the overall balance sheet health is mixed due to high leverage.

Cash Flow

Cash flow has improved significantly, with a remarkable increase in free cash flow growth. The operating cash flow to net income ratio is positive, indicating better cash generation relative to net income. However, the historical volatility in cash flow remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	278.38M	488.49M	227.11M	86.76M	350.78M	323.38M
Gross Profit	-40.28M	-17.05M	58.08M	58.98M	174.99M	100.00M
EBITDA	-196.80M	81.74M	-258.48M	92.78M	-6.07M	97.25M
Net Income	-892.17M	-717.67M	-253.24M	13.28M	979.44M	22.31M
Balance Sheet
Total Assets	3.61B	3.33B	8.74B	9.19B	8.92B	4.90B
Cash, Cash Equivalents and Short-Term Investments	108.11M	87.88M	547.88M	541.75M	567.14M	464.84M
Total Debt	1.52B	1.27B	3.67B	3.53B	3.56B	1.47B
Total Liabilities	1.87B	1.60B	4.14B	4.20B	3.98B	1.67B
Stockholders Equity	1.74B	1.73B	2.41B	3.45B	4.18B	3.23B
Cash Flow
Free Cash Flow	61.59M	358.85M	-337.70M	-138.95M	-453.63M	257.27M
Operating Cash Flow	63.00M	358.93M	-336.26M	-135.54M	-440.97M	257.46M
Investing Cash Flow	-192.43M	-239.07M	284.20M	420.63M	-233.89M	-53.71M
Financing Cash Flow	-232.82M	-411.61M	-28.03M	-66.69M	550.52M	-13.45M

Easyknit International Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.91
• 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:1218, the sentiment is Positive. The current price of 2.91 is below the 20-day moving average (MA) of 3.00, below the 50-day MA of 3.08, and above the 200-day MA of 2.16, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 56.48 is Neutral, neither overbought nor oversold. The STOCH value of 72.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
1218	64 Neutral	HK$235.28M	14.23	0.75%	―	115.09%	―
0075	44 Neutral	$123.93M	-1.47	-8.43%	―	-65.67%	-183.81%
6158	41 Neutral	€157.24M	-0.01	―	―	-70.13%	-16.86%
1996	39 Underperform	HK$149.17M	―	-1347.47%	―	-59.30%	19.71%
2329	38 Underperform	HK$568.89M	―	-13.99%	―	-0.38%	-296.42%

Easyknit International Holdings Ltd Corporate Events

Easyknit International Clarifies Financial Figures in Disposal Announcement

Easyknit International Holdings Limited issued a clarification announcement regarding a very substantial disposal related to a Sale and Purchase Agreement. The company corrected the disclosed net loss figures for Mark Profit for the year ended 31 March 2024, stating the net loss before taxation was approximately HK$41,453,000 and after taxation was HK$41,571,000. These changes do not affect the company’s assessment of the disposal of Sale Shares.

The most recent analyst rating on (HK:1218) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Easyknit International Holdings Ltd stock, see the HK:1218 Stock Forecast page.

Easyknit Expands Stake in Best Food with Strategic Acquisition

Easyknit International Holdings Ltd, through its subsidiary Gold Winner, has acquired 3,042,000 shares of Best Food on the open market for HK$1,825,200. This acquisition increases Easyknit’s stake in Best Food to approximately 4.66%. The acquisition aligns with Easyknit’s strategy of securities investment, and the company views this as an opportunity to enhance its investment returns by capitalizing on Best Food’s potential in the Chinese food and beverage market.

The most recent analyst rating on (HK:1218) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Easyknit International Holdings Ltd stock, see the HK:1218 Stock Forecast page.

Easyknit International Announces Major Asset Disposal

Easyknit International Holdings Ltd announced a very substantial disposal involving its wholly-owned subsidiary, Easyknit Properties, entering into a Sale and Purchase Agreement with Eminence. The agreement entails the sale of the entire issued share capital of Mark Profit, which holds significant property assets and equity securities, for approximately HK$268.4 million. This transaction is subject to shareholder approval and other conditions, and its completion could significantly impact Easyknit’s operations and market positioning.

The most recent analyst rating on (HK:1218) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Easyknit International Holdings Ltd stock, see the HK:1218 Stock Forecast page.

Easyknit International Approves Disposal of Best Food Shares

Easyknit International Holdings Limited announced that an ordinary resolution regarding the potential disposal of shares in Best Food Holding Company Limited was approved at their Special General Meeting on September 17, 2025. The resolution, which allows for the sale of shares at a price of at least HK$0.80 per share, was passed unanimously. This decision could impact the company’s investment strategy and financial position, potentially affecting stakeholders interested in the company’s asset management and investment direction.

The most recent analyst rating on (HK:1218) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Easyknit International Holdings Ltd stock, see the HK:1218 Stock Forecast page.

Easyknit International Announces Strategic Disposal of Convertible Note

Easyknit International Holdings Ltd announced a discloseable transaction involving the disposal of 33.75% of the outstanding principal amount of its 2023 Convertible Note for HK$27,000,000, reflecting a premium of HK$3,375,000. This transaction, involving key amendments to the conversion price of the note, signifies a strategic financial maneuver that could impact the company’s financial positioning and stakeholder interests.

The most recent analyst rating on (HK:1218) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Easyknit International Holdings Ltd stock, see the HK:1218 Stock Forecast page.

Easyknit International Announces Special Meeting for Potential Share Disposal

Easyknit International Holdings Ltd has announced a special general meeting to consider the possible disposal of shares in Best Food Holding Company Limited. The resolution includes conditions such as a minimum disposal price and a completion period within 12 months, which could impact the company’s investment portfolio and financial strategy.

The most recent analyst rating on (HK:1218) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Easyknit International Holdings Ltd stock, see the HK:1218 Stock Forecast page.

Easyknit International Announces Delay in Circular Dispatch for Major Transaction

Easyknit International Holdings Ltd has announced a further delay in the dispatch of a circular related to a possible major transaction involving the disposal of listed securities. The circular, initially expected by August 25, 2025, is now postponed to on or before September 1, 2025, due to the need for additional time to finalize the necessary information. This delay may impact stakeholders’ decision-making processes and reflects the company’s ongoing adjustments in its strategic financial activities.

The most recent analyst rating on (HK:1218) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Easyknit International Holdings Ltd stock, see the HK:1218 Stock Forecast page.

Easyknit International Passes All Resolutions at AGM

Easyknit International Holdings Ltd announced the successful passing of all ordinary resolutions during its Annual General Meeting held on August 21, 2025. The resolutions included the adoption of financial statements, re-election of directors, re-appointment of auditors, and granting of mandates to the board for share issuance and repurchase. This outcome reflects strong shareholder support and positions the company for continued governance and operational stability.

The most recent analyst rating on (HK:1218) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Easyknit International Holdings Ltd stock, see the HK:1218 Stock Forecast page.

Easyknit International Delays Circular Dispatch for Major Transaction

Easyknit International Holdings Ltd announced a delay in the dispatch of a circular related to a possible major transaction involving the disposal of listed securities. The circular, initially expected to be sent by August 15, 2025, will now be postponed to on or before August 25, 2025, due to the need for additional time to finalize the information. This delay may impact shareholders and stakeholders awaiting further details on the transaction.