Balk 1798 Group Limited (1010) AI Stock Analysis

• Market Cap: HK$45.76M
• Dividend Yield: N/A
• Average Volume (3M): 1.27M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: 28.17%
• EPS Growth: -117.24%
• Country: HK
• Employees: 36
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Airlines, Airports & Air Services
• EPS (TTM): -0.07
• Shares Outstanding: 444,294,160
• 10 Day Avg. Volume: 200,000
• 30 Day Avg. Volume: 1,265,866
• PEG Ratio: >-0.01
• Price to Book (P/B): -1.45
• Price to Sales (P/S): 5.14
• P/FCF Ratio: -1.41
• 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: 46 Neutral
• Price Target: HK$0.10 ▲(12.22% Upside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenue, negative profitability, and cash flow issues. Technical analysis provides some support with mixed momentum indicators, but valuation remains weak due to a negative P/E ratio and lack of dividend yield.

Positive Factors

Diversified Revenue Streams

Balk 1798 Group's diversified revenue streams across technology, real estate, and consumer goods provide resilience against sector-specific downturns, supporting long-term stability.

Strategic Partnerships

Strategic partnerships with industry leaders bolster Balk 1798 Group's market presence and facilitate collaborative projects, driving sustainable income and competitive advantage.

Revenue Growth

The company's revenue growth of 28.17% indicates expanding market reach and product adoption, contributing to long-term business viability.

Negative Factors

Financial Instability

Negative equity and high debt levels highlight financial instability, potentially limiting Balk 1798 Group's ability to invest in growth and withstand economic challenges.

Cash Flow Challenges

Negative cash flow metrics indicate poor cash generation, which could hinder Balk 1798 Group's operational flexibility and long-term investment capacity.

Profitability Issues

Operating at a loss with negative EBIT and EBITDA margins suggests ongoing profitability challenges, impacting Balk 1798 Group's ability to sustain operations without restructuring.

Balk 1798 Group Limited Business Overview & Revenue Model

Company Description

Sky Blue 11 Co., Ltd. is an investment holding company, which engages in the design, distribution, and trading of integrated circuits and semi-conductor parts. It operates through the following segments: Design and Sales of Integrated Circuits, Executive Jet Management, Yacht Businesses, Property investment, and Headquarter and Others. The company was founded on October 12, 1993, and is headquartered in Hong Kong.

How the Company Makes Money

Balk 1798 Group Limited generates revenue through multiple channels, primarily by offering technology-driven products and services that address specific market demands. Key revenue streams include direct product sales, licensing agreements, and service contracts with businesses in various sectors. The company also benefits from strategic partnerships with industry leaders, which enhance its market presence and lead to collaborative projects that drive further income. Additionally, revenue from investments in real estate and consumer goods contributes to overall earnings, allowing the company to capitalize on diverse market opportunities.

Balk 1798 Group Limited Financial Statement Overview

Summary

The company is experiencing severe financial difficulties, with a significant decline in revenue, negative profitability, and cash flow challenges. The balance sheet shows negative equity and high debt levels, indicating financial instability.

Income Statement

The company has experienced a significant decline in revenue over the past year, with a 68% drop from 2023 to 2024. The gross profit margin has also deteriorated, and the company has been operating at a loss, with negative EBIT and EBITDA margins. The net profit margin is also negative, indicating ongoing profitability challenges.

Balance Sheet

The balance sheet shows a negative stockholders' equity, indicating that liabilities exceed assets. The debt-to-equity ratio is not calculable due to negative equity, but the high level of total debt compared to assets suggests financial instability. The company has been unable to maintain a positive equity ratio, further highlighting financial distress.

Cash Flow

The company has negative free cash flow and operating cash flow, indicating cash flow issues. The operating cash flow to net income ratio is negative, reflecting poor cash generation relative to net losses. The free cash flow to net income ratio is also negative, further emphasizing cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	36.19M	36.03M	113.97M	181.08M	105.62M	92.65M
Gross Profit	21.75M	21.63M	31.56M	84.59M	35.66M	23.96M
EBITDA	-65.89M	-84.83M	-41.51M	9.89M	-34.88M	3.93M
Net Income	-171.90M	-165.11M	-46.45M	-2.24M	-52.84M	-5.50M
Balance Sheet
Total Assets	207.65M	227.59M	361.68M	461.95M	295.04M	157.57M
Cash, Cash Equivalents and Short-Term Investments	32.41M	35.27M	69.17M	104.39M	86.24M	28.18M
Total Debt	137.04M	125.93M	5.49M	1.65M	194.40M	5.69M
Total Liabilities	364.46M	355.58M	364.66M	414.79M	232.49M	50.28M
Stockholders Equity	-156.81M	-127.98M	-2.98M	47.16M	62.55M	107.29M
Cash Flow
Free Cash Flow	-94.21M	-131.66M	-32.63M	19.70M	-133.67M	22.93M
Operating Cash Flow	-94.21M	-131.66M	-32.62M	19.73M	-131.87M	22.94M
Investing Cash Flow	269.00K	403.00K	135.00K	177.00K	3.31M	1.77M
Financing Cash Flow	52.65M	91.30M	-2.01M	-424.00K	188.35M	-5.02M

Balk 1798 Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1010, the sentiment is Negative. The current price of 0.09 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.10, and below the 200-day MA of 0.11, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 36.72 is Neutral, neither overbought nor oversold. The STOCH value of 13.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1010.

Balk 1798 Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8031	66 Neutral	HK$82.78M	―	―	―	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1750	52 Neutral	HK$185.40M	34.33	3.18%	―	5.80%	57.89%
8201	46 Neutral	HK$39.96M	-5.83	-3.59%	―	2.94%	-56.79%
1010	46 Neutral	HK$45.76M	-0.27	―	―	28.17%	-117.24%
8489	45 Neutral	HK$118.50M	-4.18	-25.91%	―	3.45%	-339.07%
8620	44 Neutral	HK$45.94M	-11.30	-11.34%	―	-3.39%	29.36%

Balk 1798 Group Limited Corporate Events

Sky Blue 11 Shifts Financial Year-End to June 30 to Ease Reporting Pressure

Sky Blue 11 Company Limited has changed its financial year-end from 31 December to 30 June with immediate effect, meaning its next audited financial statements will cover an 18‑month period from 1 January 2025 to 30 June 2026, with updated reporting deadlines for interim and annual results. The board says the shift is intended to ease pressure on internal workflows and improve access to external services by avoiding peak reporting periods and the disruption around Chinese New Year, and does not expect any material adverse impact on the group, though shareholders and potential investors are urged to exercise caution when dealing in the company’s shares during the transition.

The most recent analyst rating on (HK:1010) stock is a Hold with a HK$0.10 price target. To see the full list of analyst forecasts on Balk 1798 Group Limited stock, see the HK:1010 Stock Forecast page.

Sky Blue 11 Company Limited Discloses CEO Emoluments in Supplemental Announcement

Sky Blue 11 Company Limited, formerly known as PacRay International Holdings Limited and Balk 1798 Group Limited, has released a supplemental announcement regarding the emoluments of its CEO for the fiscal years 2017, 2018, 2021, 2022, 2023, and 2024. This announcement provides detailed information on the CEO’s compensation, which includes salaries, allowances, and employer contributions to retirement benefits, reflecting changes in leadership and compensation over the years.