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

• Market Cap: HK$489.37M
• Dividend Yield: N/A
• Average Volume (3M): 400.33K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.84
• Revenue Growth: -20.17%
• EPS Growth: N/A
• Country: HK
• Employees: 180
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.01
• Shares Outstanding: 1,151,454,000
• 10 Day Avg. Volume: 229,000
• 30 Day Avg. Volume: 400,333
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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 (1260) is a leading financial public relations company based in Hong Kong. The company specializes in providing a comprehensive range of services including financial communications, investor relations, corporate communications, and media relations. Wonderful Sky serves a wide array of sectors, primarily focusing on financial institutions, listed companies, and other corporate clients seeking to enhance their market presence and investor engagement.

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	187.90M	190.84M	239.06M	276.01M	303.60M	371.12M
Gross Profit	88.25M	106.76M	122.26M	134.95M	158.15M	169.57M
EBITDA	-28.21M	79.20M	-24.17M	66.10M	-89.68M	176.20M
Net Income	-41.06M	41.22M	-66.50M	27.22M	-128.92M	118.32M
Balance Sheet
Total Assets	1.60B	1.63B	1.58B	1.61B	1.55B	2.00B
Cash, Cash Equivalents and Short-Term Investments	850.46M	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	120.85M	112.74M	120.64M	137.10M	157.63M	361.04M
Stockholders Equity	1.48B	1.51B	1.46B	1.48B	1.39B	1.64B
Cash Flow
Free Cash Flow	71.72M	54.19M	46.55M	97.24M	119.23M	155.81M
Operating Cash Flow	72.22M	54.25M	47.05M	97.36M	138.64M	185.00M
Investing Cash Flow	-75.42M	-232.52M	98.74M	196.81M	204.45M	-64.47M
Financing Cash Flow	-1.00K	0.00	-1.00K	-344.96M	-156.38M	-80.44M

Wonderful Sky Financial Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.42
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 0.42 is below the 20-day moving average (MA) of 0.43, below the 50-day MA of 0.42, and above the 200-day MA of 0.34, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.29 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
6862	69 Neutral	73.63B	14.84	45.12%	6.40%	-4.96%	4.93%
1786	69 Neutral	1.47B	10.12	0.00%	3.20%	-4.72%	-17.55%
3320	62 Neutral	30.72B	10.16	0.00%	2.76%	0.00%	0.00%
1260	57 Neutral	HK$489.37M	11.87	2.77%	―	-20.17%	―
1918	45 Neutral	19.50B	-0.64	-63.41%	―	-53.05%	-169.35%
8275	43 Neutral	102.00M	-2.32	-26.96%	―	13.27%	-531.20%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.