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Hong Kong Aerospace Technology Group Limited (HK:1725)
:1725
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Hong Kong Aerospace Technology Group Limited (1725) AI Stock Analysis

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HK:1725

Hong Kong Aerospace Technology Group Limited

(1725)

Rating:49Neutral
Price Target:
HK$1.00
▲(25.00%Upside)
The stock's overall score is primarily influenced by its weak financial performance, with financial challenges across income, balance sheet, and cash flow statements. While there is some positive short-term technical momentum, the valuation remains a concern with a negative P/E ratio.

Hong Kong Aerospace Technology Group Limited (1725) vs. iShares MSCI Hong Kong ETF (EWH)

Hong Kong Aerospace Technology Group Limited Business Overview & Revenue Model

Company DescriptionHong Kong Aerospace Technology Group Limited, an investment holding company, provides electronics manufacturing services in the People's Republic of China, the United States, India, South Korea, Austria, Hong Kong, Brazil, Mexico, the United Kingdom, Germany, Vietnam, and Australia. The company provides design enhancement and verification; technical advice and engineering solutions; raw materials selection and procurement; quality control; logistic and delivery; and after-sale services for assembling and production of printed circuit board assemblies and fully-assembled electronic products for banking and finance, telecommunication, and smart device industries. Its fully-assembled electronic products include mobile phones, mobile point-of-sale, photovoltaic inverters, tablets, and street lamp controllers. It is also engaged in the sales of electronic products, satellite manufacturing, and satellite tracking and controlling services. Hong Kong Aerospace Technology Group Limited has a strategic cooperation agreement with the College of Engineering of City University of Hong Kong for the research and development of advanced satellite technology and related applications, such as communication systems, antenna technology, advanced materials, data processing, and energy management in Hong Kong. The company was formerly known as Eternity Technology Holdings Limited and changed its name to Hong Kong Aerospace Technology Group Limited in June 2021. The company was incorporated in 2003 and is based in Tseung Kwan O, Hong Kong. Hong Kong Aerospace Technology Group Limited is a subsidiary of Hong Kong Aerospace Technology Holdings Limited.
How the Company Makes MoneyThe company generates revenue primarily through the development, manufacturing, and sale of satellite systems and related technology. It earns income by providing satellite operation services, which include data processing and management solutions for clients in various industries. Additionally, Hong Kong Aerospace Technology Group Limited may engage in strategic partnerships and collaborations with other aerospace and technology firms to leverage synergies and expand its service offerings. Income is also driven by potential government contracts and private sector partnerships that require specialized aerospace technology solutions. The company's expertise in satellite technology positions it as a key player in the growing market for space-based data services.

Hong Kong Aerospace Technology Group Limited Financial Statement Overview

Summary
The company is facing financial challenges with declining revenues, negative margins, high leverage, and significant cash flow issues. These indicate operational inefficiencies and a lack of financial health.
Income Statement
45
Neutral
The company has been experiencing a declining revenue trend, with a significant drop in total revenue from 2023 to 2024. The EBIT and EBITDA margins have been negative in recent years, indicating operational inefficiencies. Net profit margins are also negative, reflecting consistent financial losses. The revenue growth rate has been negative, highlighting challenges in sales performance.
Balance Sheet
50
Neutral
The debt-to-equity ratio is relatively high, suggesting a heavy reliance on debt financing. There has been a decline in stockholders' equity over the years. The equity ratio has decreased, indicating a higher proportion of liabilities relative to assets. Return on Equity (ROE) is negative, showing that the company is not currently delivering returns to its shareholders.
Cash Flow
40
Negative
The cash flow situation is concerning, with negative free cash flow and operating cash flow in recent years. The company is not generating sufficient cash from its operations to cover capital expenditures. Free cash flow growth has been negative, and the ratio of operating cash flow to net income is unfavorable, highlighting cash flow challenges.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue315.80M593.51M635.43M650.23M547.83M
Gross Profit48.12M64.71M26.04M37.12M49.59M
EBITDA-116.80M-138.00M-94.17M-28.93M27.09M
Net Income-198.00M-211.14M-154.29M-53.08M17.32M
Balance Sheet
Total Assets845.17M1.15B1.23B941.31M575.76M
Cash, Cash Equivalents and Short-Term Investments28.72M72.73M43.10M97.59M186.63M
Total Debt432.94M691.55M591.56M243.93M32.70M
Total Liabilities708.95M951.51M981.47M549.77M325.47M
Stockholders Equity174.85M174.33M245.88M391.54M250.29M
Cash Flow
Free Cash Flow-33.37M-323.19M-287.59M-434.16M51.03M
Operating Cash Flow-23.83M-132.87M-93.03M-176.84M93.48M
Investing Cash Flow23.69M-120.41M-194.01M-273.61M-22.29M
Financing Cash Flow-47.07M279.99M232.80M362.21M3.15M

Hong Kong Aerospace Technology Group Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.80
Price Trends
50DMA
0.73
Positive
100DMA
0.75
Positive
200DMA
0.93
Negative
Market Momentum
MACD
0.02
Positive
RSI
56.98
Neutral
STOCH
45.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1725, the sentiment is Positive. The current price of 0.8 is above the 20-day moving average (MA) of 0.79, above the 50-day MA of 0.73, and below the 200-day MA of 0.93, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 56.98 is Neutral, neither overbought nor oversold. The STOCH value of 45.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1725.

Hong Kong Aerospace Technology Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
€9.31B16.623.99%3.01%2.81%-19.31%
49
Neutral
HK$413.34M-115.47%-47.58%22.99%
€153.43M20.001.85%2.80%
45
Neutral
HK$258.61M8.187.78%-22.96%
45
Neutral
HK$376.66M-270.38%95.98%-2.60%
41
Neutral
HK$800.40M-2.25%-9.17%-547.06%
39
Underperform
HK$359.13M-1.94%-14.00%87.71%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1725
Hong Kong Aerospace Technology Group Limited
0.80
-0.04
-4.76%
DE:CTQ0
Continental Aerospace Technologies Holding Ltd.
0.02
0.01
100.00%
HK:1673
Huazhang Technology Holding Ltd.
0.22
-0.03
-12.00%
HK:0439
KuangChi Science Limited
1.30
0.85
188.89%
HK:8021
WLS Holdings Ltd
0.02
0.00
0.00%
HK:8391
Cornerstone Technologies Holdings Limited
0.42
-0.18
-30.00%

Hong Kong Aerospace Technology Group Limited Corporate Events

Hong Kong Aerospace Technology Group to Raise HK$64.5 Million Through New Share Subscription
Jul 25, 2025

Hong Kong Aerospace Technology Group Limited has entered into a Subscription Agreement to issue 100,000,000 new shares, representing approximately 16.55% of the enlarged share capital, at a price of HK$0.65 per share. This move is expected to raise approximately HK$64.5 million in net proceeds, which will be used for general working capital, including administrative expenses related to the company’s aerospace business.

Hong Kong Aerospace Technology Group Announces Major Acquisition
Jul 21, 2025

Hong Kong Aerospace Technology Group Limited has entered into a major transaction to acquire 49% of Aspace Satellite Technology Limited’s issued share capital. The acquisition, valued at HK$126,000,000, will be satisfied through the issuance of consideration shares and convertible bonds. This transaction is significant as it involves a connected person and requires various approvals, including from an independent board committee and shareholders. The move is expected to enhance the company’s strategic positioning in the aerospace technology sector, subject to the fulfillment of certain conditions.

USPACE Technology Group Finalizes Disposal of Huizhou City Eternity Technology
Jul 18, 2025

USPACE Technology Group Limited, a company incorporated in the Cayman Islands, announced the completion of a transaction involving the disposal of its entire issued shares in Huizhou City Eternity Technology Company. This transaction, finalized on July 18, 2025, means that USPACE no longer holds any equity interest in the target company, and the financial results of the target group will no longer be consolidated into USPACE’s financial statements.

USPACE Technology Group Announces Key Management Changes
Jul 4, 2025

USPACE Technology Group Limited has announced a change in its company secretary, authorised representative, and process agent roles. Ms. Cheng Ka Yan has resigned from these positions, and Mr. Yu Chi Kit has been appointed to fill them, effective July 5, 2025. Mr. Yu brings extensive experience in accounting, auditing, and company secretarial practice in Hong Kong, which is expected to support the company’s governance and operational functions.

USPACE Technology Group Updates Nomination Committee Terms
Jun 30, 2025

USPACE Technology Group Limited, incorporated in the Cayman Islands, has revised the terms of reference for its Nomination Committee, emphasizing the inclusion of independent non-executive directors and gender diversity. The updated terms outline the structure, meeting protocols, and decision-making processes, potentially enhancing governance and operational efficiency.

USPACE Technology Group Limited Announces Change of Principal Business Location
Jun 30, 2025

USPACE Technology Group Limited, a company incorporated in the Cayman Islands, has announced a change in its principal place of business in Hong Kong. Effective from July 1, 2025, the company will relocate to Units 917–920, 9th Floor, One Island South, No. 2 Heung Yip Road, Wong Chuk Hang, Hong Kong. This move signifies a strategic operational shift for the company, potentially impacting its logistical and administrative functions while maintaining its current contact information.

USPACE Technology Group Announces Board and Committee Changes
Jun 30, 2025

USPACE Technology Group Limited, incorporated in the Cayman Islands, has announced significant changes in its board of directors and committee compositions, effective from July 1, 2025. Ms. Kwok Pui Ha has been appointed as an independent non-executive director, replacing Mr. Hung Ka Hai Clement, who has resigned. Ms. Kwok will also assume roles as chairman of the Audit Committee and member of both the Remuneration and Nomination Committees, indicating a strategic shift in leadership and governance for the company.

USPACE Technology Group Announces Board Composition
Jun 30, 2025

USPACE Technology Group Limited, listed on the Hong Kong Stock Exchange, has announced the composition of its Board of Directors and their roles within the company. The board includes a mix of executive, non-executive, and independent non-executive directors, with H.E. Mohamed Ben Amor serving as Chairman. This announcement provides clarity on the governance structure of the company, which could influence its strategic direction and reassure stakeholders about its leadership stability.

USPACE Technology Group Limited Successfully Passes AGM Resolutions
May 26, 2025

USPACE Technology Group Limited, incorporated in the Cayman Islands, announced that all resolutions were approved by shareholders at their Annual General Meeting held on May 26, 2025. The resolutions included the approval of financial statements for the year ended December 31, 2024, and the re-election of several directors. The successful passing of these resolutions reflects strong shareholder support and is likely to provide stability in the company’s governance and operations.

USPACE Technology Group Limited Announces Change in Hong Kong Business Location
Apr 30, 2025

USPACE Technology Group Limited has announced a change in its principal place of business in Hong Kong, effective from May 1, 2025. This move to a new location at 6th Floor, St. John’s Building, 33 Garden Road, Central, Hong Kong, is part of the company’s strategic adjustments, although its website, telephone, and facsimile numbers will remain the same.

USPACE Technology Group Announces 2025 AGM with Key Resolutions
Apr 29, 2025

USPACE Technology Group Limited, a company incorporated in the Cayman Islands, has announced its 2025 Annual General Meeting (AGM) scheduled for May 26, 2025, in Hong Kong. The AGM will address several key resolutions, including the approval of the audited financial statements for 2024, re-election of directors, and re-appointment of auditors. Additionally, the meeting will consider authorizing the board to allot and issue shares or securities convertible into shares, reflecting the company’s strategic focus on enhancing its capital structure and governance.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 09, 2025