Wonderful Sky Financial Group Holdings Limited (1260) AI Stock Analysis

• Market Cap: HK$483.61M
• Dividend Yield: N/A
• Average Volume (3M): 544.40K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.80
• Revenue Growth: -24.14%
• EPS Growth: -828.57%
• Country: HK
• Employees: 180
• Sector: Industrials
• Sector Strength: 88
• Industry: Specialty Business Services
• EPS (TTM): 0.01
• Shares Outstanding: 1,151,454,000
• 10 Day Avg. Volume: 446,600
• 30 Day Avg. Volume: 544,400
• PEG Ratio: -0.30
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.58
• 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: 57 Neutral
• Price Target: ―

Wonderful Sky Financial Group Holdings Limited exhibits significant financial challenges with declining revenue and profitability. The strong balance sheet provides some stability, but cash flow concerns persist. Despite positive technical momentum, the lack of profitability and absence of dividends result in a low valuation score, suggesting cautious optimism.

Wonderful Sky Financial Group Holdings Limited Business Overview & Revenue Model

Company Description

Wonderful Sky Financial Group Holdings Limited, an investment holding company, provides financial communications and international roadshow services in Hong Kong, the People's Republic of China, and Singapore. It offers corporate positioning, media relations management, listing and celebration events management, press release and speech composing, IPO advertising strategy, design and production of corporate marketing brochures, crisis management, maintenance and development of relationship with stakeholders, and events coordination services. The company also provides global investor summit and forum, one-on-one meeting, investor relation conference, research report monitoring, proxy, shareholder identification, investors targeting, and investor polling services. In addition, it offers international roadshow services consisting of project management, logistics arrangement, roadshow desk support, and online roadshow services. Further, the company offers financial printing services, that comprises IPO prospectus, financial reports, translation, corporate announcements, corporate brochures and marketing collaterals, compliance documentations, and corporate presentation materials, as well as offers copywriting and editing, and typesetting services. Additionally, it provides corporate branding services, including outdoor billboard, neon billboard, public transportation promotion, print media and TV promotion, digital platform promotion, and popup ads or banners on mobile application, as well as three-dimensional display, mobile showroom, etc. The company also offers executive recruitment services, such as executive search for senior management position, human resource outsourcing, human resources strategy advisory, pay trend survey, and capital introduction services; IPO investment services; ESG report services; and asset management services, as well as statutory and commercial insurance products. The company was founded in 1996 and is headquartered in Central, Hong Kong.

How the Company Makes Money

Wonderful Sky Financial Group Holdings Limited generates revenue primarily through its suite of financial public relations and communication services. The company charges fees for services such as public relations consulting, investor relations management, media relations, and event planning for corporate clients. Key revenue streams include retainer fees from ongoing client engagements and project-based fees for specific campaigns or events. Additionally, Wonderful Sky may benefit from strategic partnerships with financial institutions and media outlets, enhancing its service offerings and client reach.

Wonderful Sky Financial Group Holdings Limited Financial Statement Overview

Summary

Wonderful Sky Financial Group Holdings Limited is experiencing revenue and profitability challenges, as reflected in its declining income statement metrics (score: 50). However, the balance sheet is strong with no debt (score: 70), and the cash flow shows a need for improved cash efficiency (score: 60). Overall, the company maintains a strong financial base but faces significant operational and cash management hurdles.

Income Statement

The income statement reveals declining revenue over the past years, with the most recent annual report showing a significant revenue drop from HKD 276 million to HKD 239 million. The net profit margin has turned negative in the latest period due to a substantial net loss of HKD 66.5 million. Additionally, other profitability metrics such as EBIT and EBITDA margins have weakened, indicating challenges in maintaining operational efficiency.

Balance Sheet

The balance sheet is strong with a high equity ratio and no debt, indicating a low-risk financial structure. Stockholders' equity exceeds total liabilities significantly, reflecting a solid financial position. However, total assets have slightly decreased over the years, suggesting potential asset management challenges.

Cash Flow

The cash flow statement shows a decrease in operating cash flow from HKD 97 million to HKD 47 million, coupled with a decline in free cash flow. The free cash flow to net income ratio is unfavorable due to recent net losses, indicating a need for improved cash generation relative to earnings.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	239.06M	276.01M	303.60M	371.12M	450.49M
Gross Profit	122.26M	134.95M	158.15M	169.57M	214.24M
EBITDA	-24.17M	66.10M	-89.68M	176.20M	128.04M
Net Income	-66.50M	27.22M	-128.92M	118.32M	75.67M
Balance Sheet
Total Assets	1.58B	1.61B	1.55B	2.00B	1.90B
Cash, Cash Equivalents and Short-Term Investments	795.87M	737.18M	621.83M	399.06M	573.25M
Total Debt	0.00	0.00	0.00	156.36M	236.65M
Total Liabilities	120.64M	137.10M	157.63M	361.04M	414.94M
Stockholders Equity	1.46B	1.48B	1.39B	1.64B	1.48B
Cash Flow
Free Cash Flow	46.55M	97.24M	119.23M	155.81M	229.89M
Operating Cash Flow	47.05M	97.36M	138.64M	185.00M	244.27M
Investing Cash Flow	98.74M	196.81M	204.45M	-64.47M	-281.25M
Financing Cash Flow	-1.00K	-344.96M	-156.38M	-80.44M	-14.94M

Wonderful Sky Financial Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.42
• 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:1260, the sentiment is Positive. The current price of 0.42 is above the 20-day moving average (MA) of 0.41, above the 50-day MA of 0.41, and above the 200-day MA of 0.31, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.95 is Neutral, neither overbought nor oversold. The STOCH value of 71.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1260.

Wonderful Sky Financial Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	71 Outperform	¥270.65B	14.28	8.44%	2.84%	6.34%	11.66%
1841	65 Neutral	HK$80.80M	16.98	-1.47%	―	-14.57%	-72.26%
1631	63 Neutral	HK$135.68M	23.98	7.44%	―	-14.25%	-51.75%
1260	57 Neutral	HK$483.61M	11.73	2.77%	―	-24.14%	-828.57%
8416	55 Neutral	HK$42.98M	8.71	-9.16%	19.61%	-11.05%	-222.58%
8419	52 Neutral	HK$31.60M	17.95	3.02%	―	-9.59%	―
8450	47 Neutral	HK$121.00M	―	-23.68%	―	-30.12%	-208.11%

Wonderful Sky Financial Group Holdings Limited Corporate Events

Wonderful Sky Financial Group Announces Auditor Change

Wonderful Sky Financial Group Holdings Limited has announced a change in its auditing firm, with Forvis Mazars CPA Limited resigning due to a disagreement over remuneration. Baker Tilly Hong Kong Limited has been appointed as the new auditor, a decision backed by the company’s audit committee, which believes the change will enhance cost-effectiveness while maintaining audit quality. The transition is not expected to impact the company’s annual audit or the release of its annual results.