Skymission Group Holdings Limited (1429) AI Stock Analysis

• Market Cap: HK$278.40M
• Dividend Yield: N/A
• Average Volume (3M): 1.65M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• Revenue Growth: -8.31%
• EPS Growth: -56.88%
• Country: HK
• Employees: 818
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.00
• Shares Outstanding: 1,600,000,000
• 10 Day Avg. Volume: 794,400
• 30 Day Avg. Volume: 1,650,666
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.20
• Price to Sales (P/S): 0.13
• P/FCF Ratio: -3.11
• 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: 50 Neutral
• Price Target: HK$0.19 ▲(86.00% Upside)

The score is held down primarily by deteriorating financial performance (revenue decline, sharp losses, and persistent negative operating/free cash flow). Technicals are a meaningful offset with a strong uptrend and positive MACD, but RSI indicates stretched momentum. Valuation remains constrained by negative earnings (negative P/E) and no indicated dividend support.

Positive Factors

Moderate leverage

A debt-to-equity near 0.26 is modest for engineering & construction, giving the company structural financing flexibility. Manageable leverage supports continued contracting and capex needs, lowering immediate solvency risk and preserving capacity to withstand cyclical revenue volatility.

Historical profitability track record

Sustained profitability through FY2021–FY2023 shows the underlying business model and project execution can deliver margins. This prior track record indicates the company has operational know-how and client relationships that could enable a durable recovery if sales and cost discipline are restored.

Reduced cash burn vs earlier periods

A declining magnitude of cash burn suggests improvements in working-capital management or cost containment. Over a multi-month horizon this reduces refinancing pressure, extends runway for restructuring, and increases the odds management can execute a durable operational turnaround without urgent external funding.

Negative Factors

Material revenue decline

A ~24% revenue drop materially weakens scale economics in construction, eroding fixed-cost absorption and bidding competitiveness. Persisting top-line contraction over months reduces backlog conversion, damages supplier and client leverage, and undermines the firm's ability to rebuild margins sustainably.

Persistent negative operating cash flow

Consistent negative operating and free cash flows force reliance on external financing or asset sales, constraining reinvestment into projects and bid competitiveness. Over a 2–6 month horizon this structural cash deficit limits flexibility to scale operations or absorb further revenue shocks without dilutive or costly funding.

Severely compressed margins and negative ROE

Net margin compression to deeply negative levels and an ROE around -42% reflect structural project economics deterioration. These metrics indicate equity erosion and persistent loss-making operations, threatening long-term franchise value unless the company secures sustained revenue recovery or materially improves project margins.

Skymission Group Holdings Limited Business Overview & Revenue Model

Company Description

Skymission Group Holdings Limited, an investment holding company, operates as a formwork works subcontractor in Hong Kong. The company offers its services to construction companies operating in public and private sector construction works sectors. It is also involved in the supply of metal scaffold equipment and related parts. The company was formerly known as Skymission (Global) Group Holdings Limited and changed its name to Skymission Group Holdings Limited. The company was founded in 1998 and is headquartered in Tsuen Wan, Hong Kong. Skymission Group Holdings Limited is a subsidiary of Sky Mission Group Limited.

How the Company Makes Money

Skymission Group Holdings Limited makes money through its core business operations in the construction and engineering sectors. Its primary revenue streams come from contracts for building construction and renovation projects, as well as electrical and mechanical engineering services. The company bids for and secures contracts from both private and public sector clients, allowing it to generate income through the successful completion of these projects. Additionally, strategic partnerships with suppliers and subcontractors, along with effective project management, contribute to the company's profitability by optimizing costs and timelines.

Skymission Group Holdings Limited Financial Statement Overview

Summary

Weak fundamentals: revenue declined ~24% in FY2025 and profitability deteriorated sharply into deep losses with significant margin compression. Cash flow is a key drag with consistently negative operating and free cash flow. Balance sheet leverage is moderate (debt-to-equity ~0.26), but equity erosion and sharply negative ROE signal elevated risk if losses persist.

Income Statement

Operating performance has deteriorated materially. Revenue fell ~24% in FY2025 (annual) following a flat FY2024, and profitability swung from healthy in FY2021–FY2023 to deep losses in FY2024–FY2025. Gross margin compressed sharply (about 7.3% in FY2023 to ~1.1% in FY2025), and net margin moved to roughly -26% in FY2025, indicating weaker project economics and/or cost pressures. Strength: the company previously demonstrated the ability to generate solid margins and profits (FY2021–FY2023), but the current earnings profile is meaningfully impaired.

Balance Sheet

Balance sheet leverage remains moderate, with debt-to-equity around 0.26 in FY2025 (annual), which is not excessive for the sector. However, equity has declined since FY2023 and return on equity is sharply negative in FY2025 (about -42%), reflecting loss-driven erosion of shareholder value. Strength: debt levels appear manageable relative to equity; weakness: profitability-driven capital deterioration and shrinking asset base increase risk if losses persist.

Cash Flow

Cash generation is weak and consistently negative. Operating cash flow is negative across all reported years, including FY2025 (annual) at about -16.5M, and free cash flow is also negative (roughly -16.5M in FY2025). While the magnitude of cash burn is not extreme versus revenue, persistent negative operating cash flow reduces financial flexibility and increases reliance on external funding or working-capital improvements. Strength: recent cash burn is smaller than earlier periods (e.g., FY2021), but the core issue—lack of positive operating cash flow—remains unresolved.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	402.91M	402.91M	608.08M	612.78M	538.36M	534.28M
Gross Profit	4.35M	4.35M	8.70M	44.54M	56.14M	71.90M
EBITDA	-91.67M	-92.03M	-16.52M	51.24M	50.67M	62.15M
Net Income	-105.41M	-105.41M	-32.40M	30.58M	28.79M	60.61M
Balance Sheet
Total Assets	345.07M	345.07M	466.06M	490.50M	444.75M	428.98M
Cash, Cash Equivalents and Short-Term Investments	665.00K	665.00K	13.41M	24.55M	32.37M	56.68M
Total Debt	65.42M	65.42M	54.98M	49.41M	51.86M	43.73M
Total Liabilities	92.11M	92.11M	107.69M	96.82M	84.56M	97.57M
Stockholders Equity	252.96M	252.96M	358.37M	393.69M	360.19M	331.40M
Cash Flow
Free Cash Flow	-16.47M	-16.47M	-14.57M	-3.09M	-32.20M	-120.18M
Operating Cash Flow	-16.47M	-16.47M	-14.57M	-3.09M	-24.36M	-75.25M
Investing Cash Flow	0.00	0.00	0.00	0.00	-7.84M	-44.93M
Financing Cash Flow	3.72M	3.72M	3.43M	-4.73M	7.90M	133.00M

Skymission Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.10
• 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:1429, the sentiment is Positive. The current price of 0.1 is below the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.12, and above the 200-day MA of 0.07, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 59.61 is Neutral, neither overbought nor oversold. The STOCH value of 41.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1429.

Skymission Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
3878	63 Neutral	HK$116.54M	29.28	1.45%	―	-19.27%	-47.47%
1751	56 Neutral	HK$519.64M	-31.02	-53.25%	―	-45.46%	-329.88%
1429	50 Neutral	HK$278.40M	-3.39	-27.98%	―	-8.31%	-56.88%
1413	47 Neutral	HK$123.00M	-0.89	-40.10%	―	-70.99%	-2956.76%
2193	45 Neutral	HK$104.90M	-5.66	-6.89%	―	-1.91%	18.30%
8262	40 Underperform	HK$43.39M	-3.79	-12.85%	―	8.74%	48.76%

Skymission Group Holdings Limited Corporate Events

Dacheng International Assumes Control of Skymission and Launches Mandatory Cash Offer

Control of Skymission Group Holdings Limited has changed hands after Dacheng International Holdings Limited acquired 1.2 billion shares, representing 75% of the company’s issued share capital, from the previous vendor at a total consideration of HK$114 million, or HK$0.095 per share, fully funded in cash by Mr. Zou’s personal savings without external borrowing. Following completion of this transaction on 16 January 2026, Dacheng and its concert parties now hold a controlling stake, triggering a mandatory unconditional cash offer at HK$0.095 per share for all remaining issued shares not already owned by them, a move that could significantly reshape Skymission’s ownership structure and provide minority shareholders with an exit opportunity while potentially paving the way for new strategic direction under the new controlling shareholder.

The most recent analyst rating on (HK:1429) stock is a Hold with a HK$0.18 price target. To see the full list of analyst forecasts on Skymission Group Holdings Limited stock, see the HK:1429 Stock Forecast page.

Skymission Requests Trading Halt Pending Takeovers-Related Announcement

Skymission Group Holdings Limited has requested a halt in trading of its shares on the Hong Kong Stock Exchange from 10:09 a.m. on 16 January 2026. The suspension comes ahead of an announcement related to Hong Kong’s Code on Takeovers and Mergers, which the company classifies as inside information, signaling a potential transaction or corporate development that could materially affect shareholders and the company’s future direction.

The most recent analyst rating on (HK:1429) stock is a Hold with a HK$0.11 price target. To see the full list of analyst forecasts on Skymission Group Holdings Limited stock, see the HK:1429 Stock Forecast page.

Skymission Group Holdings Announces 2025 Interim Results

Skymission Group Holdings Limited has announced its unaudited interim results for the six months ending September 30, 2025. The announcement complies with the listing requirements of the Hong Kong Stock Exchange, reflecting the company’s adherence to regulatory standards. This release may impact stakeholders by providing insights into the company’s financial health and operational performance during the reported period.

Skymission Group Holdings Schedules Board Meeting for Interim Results

Skymission Group Holdings Limited has announced that its Board of Directors will convene on November 28, 2025, to review and approve the company’s unaudited interim results for the six months ending September 30, 2025. The meeting will also consider the possibility of declaring an interim dividend, which could have implications for shareholders and the company’s financial strategy.