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

• Market Cap: HK$2.02B
• Dividend Yield: 0.79%
• Average Volume (3M): 1.82M
• Price to Earnings (P/E): 18.2
• Beta (1Y): 0.83
• Revenue Growth: 50.17%
• EPS Growth: 234.78%
• Country: HK
• Employees: 977
• Sector: Technology
• Sector Strength: 89
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.05
• Shares Outstanding: 1,603,834,000
• 10 Day Avg. Volume: 1,913,334
• 30 Day Avg. Volume: 1,818,754
• PEG Ratio: 0.37
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.05
• 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

• Rating: 60 Neutral
• Price Target: HK$1.50 ▲(19.05%Upside)

Sun.King Technology Group Limited's overall stock score reflects its strong financial performance, particularly in revenue growth and profitability, tempered by liquidity risks due to cash flow issues. The technical analysis suggests moderate market optimism, while the valuation indicates fair pricing relative to peers.

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 a diversified model that includes the sale of technology products, software licensing, and IT consulting services. The company's key revenue streams are derived from its software and hardware solutions, which are sold directly to enterprises and government agencies. Additionally, Sun.King Technology Group Limited forms strategic partnerships with other technology firms to enhance its service offerings and expand its market reach. These partnerships often contribute significantly to its earnings by enabling access to new markets and customer bases. The company also leverages its expertise in IT consulting to provide value-added services that complement its product offerings, ensuring a steady stream of consulting fees.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.61B	1.05B	917.78M	930.99M	1.22B
Gross Profit	520.67M	335.53M	261.40M	283.81M	413.70M
EBITDA	161.44M	118.74M	-11.70M	51.28M	211.64M
Net Income	102.52M	31.55M	23.99M	15.46M	177.24M
Balance Sheet
Total Assets	3.03B	2.84B	2.50B	2.38B	2.52B
Cash, Cash Equivalents and Short-Term Investments	415.49M	854.49M	737.90M	718.69M	709.93M
Total Debt	306.09M	392.06M	157.03M	216.95M	399.05M
Total Liabilities	1.04B	915.79M	582.67M	577.59M	745.23M
Stockholders Equity	1.92B	1.85B	1.83B	1.74B	1.76B
Cash Flow
Free Cash Flow	-240.22M	-129.14M	6.96M	188.20M	943.00K
Operating Cash Flow	-86.62M	35.30M	89.89M	344.84M	84.36M
Investing Cash Flow	-186.11M	-79.84M	-89.95M	-253.88M	182.60M
Financing Cash Flow	-108.89M	221.46M	29.01M	-179.55M	-182.56M

Sun.King Technology Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.26
• 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:0580, the sentiment is Positive. The current price of 1.26 is above the 20-day moving average (MA) of 1.21, above the 50-day MA of 1.19, and above the 200-day MA of 1.23, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 63.72 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Sector *	63 Neutral	$33.87B	5.80	-11.87%	1.82%	5.31%	-18.50%
0580	60 Neutral	HK$2.02B	18.18	5.45%	0.79%	50.17%	234.78%
TRUHF		$444.63M	10.42	3.20%	10.07%	―	―
0259	68 Neutral	HK$1.79B	0.65	93.13%	2.58%	-14.15%	-63.50%
0040	53 Neutral	HK$613.69M	23.21	2.42%	8.82%	3.64%	-1468.75%
0894	51 Neutral	HK$185.46M	23.78	0.52%	1.26%	9.56%	90.70%
0532	48 Neutral	HK$179.55M	―	-12.76%	―	-5.65%	-43.21%

Sun.King Technology Group Limited Corporate Events

Sun.King Technology Updates Nomination Committee Terms

Sun.King Technology Group Limited has revised its Nomination Committee’s terms of reference, ensuring compliance with the Hong Kong Stock Exchange’s listing requirements. The updated terms emphasize the importance of diversity and independent non-executive directors in the committee’s composition, aiming to enhance governance and decision-making processes.

Sun.King Technology Group Limited Announces AGM Poll Results

Sun.King Technology Group Limited, a company incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange, held its Annual General Meeting on June 6, 2025. During the meeting, all proposed resolutions were passed by poll, including the adoption of the audited financial statements for 2024, the declaration of a final dividend, the re-election of directors, and the re-appointment of Ernst & Young as auditors. Certain shareholders, including Mr. Xiang Jie and his associates, abstained from voting on Resolution no. 6 as required by the Listing Rules. The successful passing of these resolutions supports the company’s governance and operational continuity.

Sun.King Technology Group Announces Changes to Nomination Committee

Sun.King Technology Group Limited, a company incorporated in the Cayman Islands, has announced a change in the composition of its Nomination Committee. This change involves the replacement of Mr. Gong Renyuan with Ms. White Caige as a member of the committee, effective from June 6, 2025. The adjustment aligns with amendments to the Listing Rules and Corporate Governance Code, which aim to enhance the effectiveness and diversity of the Board, thereby improving the company’s corporate governance practices.

Sun.King Technology Group Announces Director Roles and Functions

Sun.King Technology Group Limited, a company incorporated in the Cayman Islands, has announced the list of its directors and their roles within the organization. The announcement outlines the composition of the executive and independent non-executive directors, detailing their responsibilities across various committees such as audit, remuneration, nomination, and strategy and sustainability. This update provides stakeholders with clarity on the governance structure and leadership roles within the company, potentially impacting its strategic direction and operational oversight.

Sun.King Technology Group Limited Announces 2025 Annual General Meeting

Sun.King Technology Group Limited has announced its upcoming annual general meeting scheduled for June 6, 2025, in Beijing, China. Key agenda items include the adoption of the 2024 financial statements, declaration of a final dividend, re-election of directors, and re-appointment of auditors. The company also seeks approval for the directors to allot and issue shares, which could impact its capital structure and shareholder value.