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

• Market Cap: HK$460.58M
• Dividend Yield: N/A
• Average Volume (3M): 132.73K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.86
• Revenue Growth: 24.87%
• EPS Growth: N/A
• Country: HK
• Employees: 180
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.05
• Shares Outstanding: 1,151,454,000
• 10 Day Avg. Volume: 276,200
• 30 Day Avg. Volume: 132,733
• PEG Ratio: -0.06
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 1.96
• P/FCF Ratio: 6.91
• 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: 68 Neutral
• Price Target: HK$0.45 ▲(9.02% Upside)

The score is driven mainly by strong financial resilience (debt-free balance sheet) and improved FY2025 profitability, supported by a low P/E valuation. These positives are offset by weaker technical positioning (below key moving averages with negative MACD) and concerns about inconsistent multi-year revenue and softer cash flow momentum.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet reduces financial risk and enhances financial resilience, providing flexibility for strategic investments and growth.

Profitability Rebound

The strong rebound in profitability indicates improved operational efficiency and market position, supporting long-term earnings stability.

Revenue Growth

Significant revenue growth reflects enhanced market position and operational efficiency, indicating potential for sustained business expansion.

Negative Factors

Inconsistent Revenue Trend

Volatile and shrinking revenue trends over multiple years pose challenges to predictability and sustainability of future growth.

Low Return on Equity

Low ROE suggests inefficiency in converting equity into profit, which may limit attractiveness to investors seeking higher returns.

Weaker Cash Flow Momentum

Declining cash flow momentum can strain liquidity and limit the company's ability to fund operations and growth initiatives.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	190.84M	190.84M	239.06M	276.01M	303.60M	371.12M
Gross Profit	106.76M	106.76M	122.26M	134.95M	158.15M	169.57M
EBITDA	21.81M	79.20M	-28.66M	53.26M	-89.68M	176.20M
Net Income	41.22M	41.22M	-66.50M	27.22M	-128.92M	118.32M
Balance Sheet
Total Assets	1.63B	1.63B	1.58B	1.61B	1.55B	2.00B
Cash, Cash Equivalents and Short-Term Investments	896.39M	896.39M	795.87M	737.18M	621.83M	399.06M
Total Debt	0.00	0.00	0.00	0.00	0.00	156.36M
Total Liabilities	112.74M	112.74M	120.64M	137.10M	157.63M	361.04M
Stockholders Equity	1.51B	1.51B	1.46B	1.48B	1.39B	1.64B
Cash Flow
Free Cash Flow	54.19M	54.19M	46.55M	97.24M	119.23M	155.81M
Operating Cash Flow	54.25M	54.25M	47.05M	97.36M	138.64M	185.00M
Investing Cash Flow	-232.52M	-232.52M	98.74M	196.81M	204.45M	-64.47M
Financing Cash Flow	0.00	0.00	-1.00K	-344.96M	-156.38M	-80.44M

Wonderful Sky Financial Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.41
• 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:1260, the sentiment is Negative. The current price of 0.41 is below the 20-day moving average (MA) of 0.41, below the 50-day MA of 0.42, and above the 200-day MA of 0.40, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 43.53 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
1260	68 Neutral	HK$460.58M	6.64	4.54%	―	24.87%	―
1631	68 Neutral	HK$143.36M	29.63	5.97%	―	-13.63%	-30.26%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1841	53 Neutral	HK$90.80M	-21.83	-3.56%	―	-14.40%	-180.62%
8419	53 Neutral	HK$25.60M	13.91	3.05%	―	-6.40%	―
8416	50 Neutral	HK$34.98M	-6.15	-6.35%	―	-16.78%	-233.66%
8450	42 Neutral	HK$91.00M	-7.98	-23.68%	―	-30.12%	-208.11%

Wonderful Sky Financial Group Holdings Limited Corporate Events

Wonderful Sky Financial Group Reports Strong Interim Results for 2025

Wonderful Sky Financial Group Holdings Limited has announced its unaudited interim results for the six months ending September 30, 2025. The company reported a significant increase in revenue, reaching HK$133,076,000, up from HK$89,280,000 in the same period in 2024. The profit for the period also saw a substantial rise to HK$56,424,000 compared to HK$28,278,000 in the previous year. This growth reflects improved operational efficiency and a stronger market position, as evidenced by reduced selling and administrative expenses and increased other income.

Wonderful Sky Financial Group Announces Significant Profit Increase

Wonderful Sky Financial Group Holdings Limited has issued a positive profit alert, indicating an expected profit after taxation of not less than HK$50 million for the six months ending 30 September 2025, marking a 76.7% increase from the previous year. This substantial profit growth is attributed to a significant rise in revenue due to the resurgence of the local IPO market, although the results are still subject to final adjustments and have not been audited.

Wonderful Sky Financial Group Announces Board Meeting for Interim Results

Wonderful Sky Financial Group Holdings Limited has announced a board meeting scheduled for November 28, 2025, to approve the unaudited interim results for the six months ending September 30, 2025, and to consider an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.

Wonderful Sky Financial Group Engages in Kaisa Notes Exchange

Wonderful Sky Financial Group Holdings Limited has announced a discloseable transaction involving the exchange of Old Kaisa Notes for a New Kaisa Package as part of the Kaisa Restructuring. This transaction, which does not involve any cash consideration, is significant due to its applicable percentage ratio exceeding 5%, thus requiring notification and announcement under the Listing Rules. The exchange involves converting notes due in 2025 into a series of new notes with varying interest rates and maturity dates extending to 2032, which may impact the company’s financial structuring and stakeholder interests.

Wonderful Sky Financial Group’s AGM Resolutions Unanimously Passed

Wonderful Sky Financial Group Holdings Limited announced that all resolutions at their Annual General Meeting (AGM) on September 30, 2025, were passed. Key resolutions included the re-election of directors, approval of financial statements, and granting mandates for share issuance and repurchase. This successful AGM reflects strong shareholder support and positions the company for continued strategic initiatives and operational stability.