Skymission Group Holdings Limited (1429) AI Stock Analysis

• Market Cap: HK$180.80M
• Dividend Yield: N/A
• Average Volume (3M): 1.65M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.52
• 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: 49 Neutral
• Price Target: HK$0.11 ▲(7.00% Upside)

The score is held back primarily by deteriorating financial performance and persistent negative operating/free cash flow. Technicals provide some support due to an established uptrend, but overbought signals reduce confidence. Valuation is constrained by losses (negative P/E) and the absence of dividend yield data.

Positive Factors

Manageable leverage

A low debt-to-equity ratio (~0.26) provides structural financial flexibility. With moderate leverage the company can better absorb operating losses, service obligations, and access additional debt if needed, giving management time to execute turnaround initiatives without immediate solvency pressure.

Prior profitability track

Historical profitability in FY2021–FY2023 indicates the underlying business model and project economics can support healthy margins. This track record suggests current losses may be operational or cyclical rather than structural, improving the odds that remediation and margin recovery are achievable over a multi-quarter horizon.

Reduced cash burn trend

A declining magnitude of cash burn versus earlier periods reduces near-term financing pressure. Smaller negative operating/free cash flow provides additional runway to implement cost controls, renegotiate project terms, or secure new contracts, making a multi-quarter recovery or stabilization more feasible.

Negative Factors

Revenue and margin collapse

A sharp revenue drop and collapse in gross/net margins indicate weakened project economics and competitive or execution challenges. Sustained margin compression undermines operating leverage, reduces ability to generate surplus cash, and forces difficult choices on pricing, backlog selection, or restructuring to restore sustainable profitability.

Persistent negative cash flow

Consistent negative operating and free cash flow erodes liquidity and increases reliance on external funding. Over several quarters this raises refinancing, covenant and dilution risk, limits reinvestment in backlog, and constrains the company’s ability to bid competitively for new projects or recover margins without external support.

Equity erosion & negative ROE

Declining equity and a deeply negative ROE reflect cumulative losses that erode shareholder value and the capital base. This deterioration can restrict access to equity markets, increase dilution risk when raising funds, and weaken creditor confidence, making long-term recovery and investment more difficult if losses persist.

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

Skymission Group Holdings Limited is facing financial headwinds, with declining revenues and profitability margins. The balance sheet shows a strong equity base, but cash flow issues warrant attention. The company needs to improve operational efficiency and cash flow management to stabilize its financial position.

Income Statement

The company experienced a revenue decline from the previous year, with a negative revenue growth rate of -0.77%. Gross profit margin decreased significantly, indicating increased costs or reduced pricing power. The net profit margin turned negative, reflecting operational challenges, as evidenced by a negative EBIT and EBITDA margin.

Balance Sheet

The company's debt-to-equity ratio is stable, indicating manageable leverage levels. However, the return on equity (ROE) has turned negative due to net losses. The equity ratio remains strong at 76.89%, suggesting a robust capital structure with a high proportion of equity financing.

Cash Flow

The company faces cash flow challenges with a significant decline in operating cash flow and negative free cash flow. The operating cash flow to net income ratio is negative, indicating inefficiencies in converting earnings to cash. Free cash flow to net income is also negative, highlighting cash management issues.

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: Negative
• STOCH: Negative

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 0.10, above the 50-day MA of 0.10, and above the 200-day MA of 0.06, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 78.04 is Negative, neither overbought nor oversold. The STOCH value of 83.64 is Negative, 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$115.10M	28.92	1.45%	―	-19.27%	-47.47%
1751	56 Neutral	HK$603.83M	-36.05	-53.25%	―	-45.46%	-329.88%
1429	49 Neutral	HK$180.80M	-2.20	-27.98%	―	-8.31%	-56.88%
1413	47 Neutral	HK$126.28M	-0.91	-40.10%	―	-70.99%	-2956.76%
2193	45 Neutral	HK$96.51M	-5.20	-6.89%	―	-1.91%	18.30%
8262	40 Underperform	HK$46.16M	-4.03	-12.85%	―	8.74%	48.76%

Skymission Group Holdings Limited Corporate Events

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.