Low Leverage / Strong Balance SheetA very low debt-to-equity ratio and a high equity base provide durable financial resilience. This reduces interest burden, preserves liquidity through downturns, and gives the company capacity to fund targeted capex, R&D or strategic deals without stressing solvency.

Consistent Revenue ImprovementSustained revenue growth, even if modest, indicates expanding customer adoption or stable contract renewals. This creates a foundation for scaling operations and incremental margin gains over time, supporting longer-term profit recovery if cost control continues.

Improving Gross MarginsA near-30% gross margin signals better cost management or favorable product mix. Higher gross margins are a durable lever for operating profit expansion, allowing the company to absorb SG&A or invest in growth while protecting underlying unit economics.

Bears Say

Very Low Net ProfitabilityA net margin close to zero constrains the firm's ability to convert sales into shareholder returns or retained earnings. It leaves limited buffer for shocks, hampers reinvestment capacity, and means operational improvements must be material to drive meaningful returns.

Declining Free Cash FlowMaterial decline in free cash flow and a sub-1 conversion ratio indicate weaker cash generation versus reported earnings. Persistent cash shortfalls limit funding for capex, working capital, dividends or debt reduction, raising execution risk for growth initiatives.

Very Low Return On EquityROE near zero implies the company is not earning meaningful returns on its equity base. This signals potential inefficiencies in capital allocation and suggests returns to shareholders will remain muted unless profitability or asset productivity improves materially.

8427 FAQ

What was SK Target Group Ltd.’s price range in the past 12 months?

SK Target Group Ltd. lowest stock price was HK$11.40 and its highest was HK$38.00 in the past 12 months.

What is SK Target Group Ltd.’s market cap?

SK Target Group Ltd.’s market cap is HK$297.22M.

When is SK Target Group Ltd.’s upcoming earnings report date?

SK Target Group Ltd.’s upcoming earnings report date is Sep 01, 2026 which is in 188 days.

How were SK Target Group Ltd.’s earnings last quarter?

SK Target Group Ltd. released its earnings results on Jan 14, 2026. The company reported HK$0.089 earnings per share for the quarter, beating the consensus estimate of N/A by HK$0.089.

Is SK Target Group Ltd. overvalued?

According to Wall Street analysts SK Target Group Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does SK Target Group Ltd. pay dividends?

SK Target Group Ltd. does not currently pay dividends.

What is SK Target Group Ltd.’s EPS estimate?

SK Target Group Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does SK Target Group Ltd. have?

SK Target Group Ltd. has 16,567,633 shares outstanding.

What happened to SK Target Group Ltd.’s price movement after its last earnings report?

SK Target Group Ltd. reported an EPS of HK$0.089 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -0.986%.

Which hedge fund is a major shareholder of SK Target Group Ltd.?

Currently, no hedge funds are holding shares in HK:8427

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

SK Target Group Ltd. Stock Smart Score

Neutral

Technicals

Fundamentals

Return on Equity

1.30%

Trailing 12-Months

Asset Growth

20.82%

Trailing 12-Months

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Company Description

SK Target Group Ltd.

SK Target Group Limited, an investment holding company, manufactures and trades in precast concrete junction boxes under the Target brand name in Malaysia. The company operates through Manufacturing and Trading; Other Building Materials and Services; Japanese Catering Services; and Sourcing Services segments. Its concrete junction boxes are used in telecommunication and electrical infrastructures upgrade and expansion works, as well as in construction projects. The company also trades in junction box accessories and pipes, including emergency telephone plinth and street lighting footing; and provides mobile crane rental and ancillary services, such as uplifting services for precast concrete junction boxes. In addition, it offers catering services; and materials sourcing services. The company was founded in 1993 and is headquartered in Seri Kembangan, Malaysia.