Sun.King Technology Group Limited (0580) AI Stock Analysis

• Market Cap: HK$3.20B
• Dividend Yield: 1.01%
• Average Volume (3M): 6.76M
• Price to Earnings (P/E): 18.2
• Beta (1Y): 0.94
• Revenue Growth: 46.98%
• EPS Growth: 130.04%
• Country: HK
• Employees: 977
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.06
• Shares Outstanding: 1,606,148,000
• 10 Day Avg. Volume: 6,069,000
• 30 Day Avg. Volume: 6,762,921
• PEG Ratio: 0.09
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 1.35
• P/FCF Ratio: -9.03
• 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: 67 Neutral
• Price Target: HK$2.50 ▲(26.90% Upside)

Sun.King Technology Group Limited's stock score is primarily driven by strong financial performance in terms of revenue growth and profitability, supported by a positive technical trend. However, cash flow management issues and a high P/E ratio pose risks. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Sun.King's products, enhancing market position and supporting long-term business expansion.

Market Position

Contracts with government entities provide stable revenue streams and reinforce Sun.King's position in the smart city and renewable energy sectors.

Balance Sheet Health

A robust balance sheet with low leverage enhances financial stability and provides flexibility for future investments and growth opportunities.

Negative Factors

Cash Flow Management

Poor cash flow management can lead to liquidity issues, limiting the company's ability to invest in growth and manage operational expenses effectively.

Operational Efficiency

Modest operational efficiency suggests potential for cost optimization, which is crucial for enhancing profitability and competitive advantage over time.

Cash Flow Risks

Ongoing cash flow challenges may impact the company's ability to sustain operations and fund strategic initiatives, affecting long-term growth prospects.

Sun.King Technology Group Limited Business Overview & Revenue Model

Company Description

Sun.King Technology Group Limited, an investment holding company, manufactures and trades in power electronic components for use in power transmission and distribution, electrified transportation, industrial, and other sectors in the People's Republic of China. It also engages in the research, development, production, sale, installation, and after sale service of electrical/electronic components and installation, including integrated gate bipolar transistors; and production of electrical capacitors and its devices, amorphous alloy transformers, DC current anode saturable dry-type reactors, and FM voltage AC traction devices. In addition, the company manufactures and sells pulsed power equipment, insulated gate bipolar transistor gate units, and other electronic parts. Further, it engages in the technology research of electronic power device railway equipment; distribution and sale of power electronic components; import and export of goods and technologies; and trading of various products and technologies. The company was formerly known as Sun.King Power Electronics Group Limited and changed its name to Sun.King Technology Group Limited in November 2020. Sun.King Technology Group Limited was founded in 2002 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Sun.King Technology Group Limited generates revenue through multiple streams, primarily from the sale of its innovative electronic products and solutions. The company capitalizes on the growing demand for smart city infrastructure and renewable energy technologies by providing integrated systems that enhance urban living and sustainability. Significant revenue is derived from contracts with governmental and municipal organizations for large-scale deployment of its products. Furthermore, the company may benefit from strategic partnerships with other technology firms and stakeholders in the energy sector, allowing for collaborative projects and access to broader markets. Additionally, Sun.King may explore ongoing service agreements and maintenance contracts, providing a recurring revenue model beyond initial product sales.

Sun.King Technology Group Limited Financial Statement Overview

Summary

Sun.King Technology Group Limited demonstrates strong revenue growth and improved profitability, with a solid balance sheet characterized by low leverage and strong equity positioning. However, significant cash flow management issues pose risks to liquidity and financial flexibility.

Income Statement

Sun.King Technology Group Limited has shown a solid revenue growth from 2023 to 2024 at 52.7%, indicating strong sales performance. The gross profit margin improved to 32.3%, and the net profit margin increased to 6.4%, reflecting enhanced cost management and profitability. However, the EBIT margin at 6.8% and EBITDA margin at 10.0% suggest modest operational efficiency, which could be further optimized.

Balance Sheet

The company's balance sheet is robust, with a low debt-to-equity ratio of 0.16, indicating conservative leverage. The return on equity (ROE) stands at 5.3%, which is decent but could be higher. The equity ratio is strong at 63.4%, showcasing a solid capital structure and financial stability.

Cash Flow

Sun.King Technology has faced challenges with cash flows, as indicated by the absence of operating, investing, and free cash flow in 2024. The previous year's poor free cash flow growth and a lack of positive cash flow metrics highlight potential liquidity risks and inefficiencies in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.84B	1.61B	1.05B	917.78M	930.99M	1.22B
Gross Profit	515.14M	520.67M	335.53M	261.40M	283.81M	413.70M
EBITDA	147.26M	161.44M	118.74M	20.73M	51.28M	211.64M
Net Income	162.57M	102.52M	31.55M	23.99M	15.46M	177.24M
Balance Sheet
Total Assets	3.07B	3.03B	2.84B	2.50B	2.38B	2.52B
Cash, Cash Equivalents and Short-Term Investments	454.69M	415.49M	854.49M	737.90M	718.69M	709.93M
Total Debt	292.58M	306.09M	392.06M	157.03M	216.95M	399.05M
Total Liabilities	1.01B	1.04B	915.79M	582.67M	577.59M	745.23M
Stockholders Equity	2.00B	1.92B	1.85B	1.83B	1.74B	1.76B
Cash Flow
Free Cash Flow	119.53M	-240.22M	-129.14M	6.96M	188.20M	943.00K
Operating Cash Flow	230.58M	-86.62M	35.30M	89.89M	344.84M	84.36M
Investing Cash Flow	-122.22M	-186.11M	-79.84M	-89.95M	-253.88M	182.60M
Financing Cash Flow	-121.75M	-108.89M	221.46M	29.01M	-179.55M	-182.56M

Sun.King Technology Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.97
• 50DMA: Negative
• 100DMA: Negative
• 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:0580, the sentiment is Negative. The current price of 1.97 is below the 20-day moving average (MA) of 1.99, below the 50-day MA of 2.09, and above the 200-day MA of 1.61, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 42.56 is Neutral, neither overbought nor oversold. The STOCH value of 62.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0580.

Sun.King Technology Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0259	74 Outperform	HK$3.45B	0.88	108.05%	46.02%	12.26%	2497.49%
0040	69 Neutral	HK$685.89M	16.96	3.78%	3.73%	2.10%	―
0580	67 Neutral	HK$3.20B	18.17	8.36%	1.01%	46.98%	130.04%
0732	64 Neutral	HK$3.31B	12.88	2.87%	9.26%	2.59%	0.23%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0894	54 Neutral	HK$393.04M	41.21	0.63%	0.63%	5.72%	-57.39%
0532	48 Neutral	HK$226.27M	-1.93	-8.12%	―	6.32%	28.39%

Sun.King Technology Group Limited Corporate Events

Sun.King Wins RMB142.6 Million Offshore Wind Power Components Order

Sun.King Technology Group Limited has announced that one of its subsidiaries has signed an agreement to supply power electronic components worth RMB142.6 million, tax inclusive, to a subsidiary of NR Electric Co., Ltd. for use in an offshore wind power project, with deliveries scheduled in batches during the first half of 2026. Management views offshore wind as a key growth area in clean energy and expects that this contract will support the group’s efforts to expand its presence in the offshore wind power market, underpinning more sustained and stable development while advancing its role in the national new energy build-out; the counterparty is confirmed to be an independent third party under Hong Kong listing rules.

The most recent analyst rating on (HK:0580) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Sun.King Technology Group Limited stock, see the HK:0580 Stock Forecast page.