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Hong Kong Aerospace Technology Group Limited (HK:1725)
:1725
Hong Kong Market

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

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HK:1725

Hong Kong Aerospace Technology Group Limited

(1725)

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Neutral 49 (OpenAI - 5.2)
Rating:49Neutral
Price Target:
HK$0.87
â–Ľ(-13.40% Downside)
The score is held down primarily by weak financial performance (declining revenue, persistent losses, high leverage, and negative operating/free cash flow). Technical indicators are moderately supportive and partially offset the fundamentals, while valuation remains uncertain due to losses (negative P/E) and no dividend support.
Positive Factors
Operational scale
A headcount of 567 indicates retained operational scale for a hardware and equipment business, supporting manufacturing, service and R&D capacity. That staffing base helps sustain production continuity and product development execution over the medium term.
Market liquidity / access to capital
Average three‑month trading volume near 8.9M shares provides liquidity on HKEX, improving the company’s practical access to equity capital and secondary financing. For a cash‑constrained hardware firm this enhances ability to raise funds or pursue transactions over months.
Improving EPS trajectory
Reported EPS growth of ~38.6% signals an improving earnings trend versus prior periods. If this improvement is sustained and paired with revenue stabilization, it suggests the company may be moving toward operational leverage and a potential path to positive profitability over the medium term.
Negative Factors
Significant revenue decline
A ~33% year-over-year revenue decline represents a material erosion of top-line scale. In capital‑intensive hardware businesses, sustained volume contraction undermines fixed‑cost absorption, supplier leverage and long‑term competitiveness, making margin recovery and growth harder.
Persistent negative margins and losses
Consistent negative EBIT/EBITDA and net margins indicate structural profitability issues. Ongoing losses limit internal reinvestment, increase dependence on external funding, and raise the bar for operational turnaround; absent revenue recovery, shareholder returns remain at risk.
Weak cash generation and leverage
Negative operating and free cash flow show the company is not generating sufficient cash to cover capex and working capital. Coupled with a high debt-to-equity posture, this elevates refinancing and liquidity risk and constrains strategic flexibility over the next several months.

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 DescriptionChina Strategic Technology Group Limited, an investment holding company, provides electronics manufacturing services in the People's Republic of China, the United States, India, South Korea, Hong Kong, Germany, Vietnam, Australia, and internationally. It operates in two segments, Electronics Manufacturing Services Business and Aerospace Business. The company provides refinement services, including design optimisation and validation; technical consultation and engineering solutions; raw materials selection and procurement; quality control; logistics and distribution; after-sale services; and assembly and production services for electronic products, as well as assembling and production of printed circuit board assemblies and fully-assembled electronic products for banking and finance, telecommunications, smart devices industries. Its fully-assembled electronic products include mobile phones, mobile point-of-sale, photovoltaic inverters, tablets, and street lamp controllers. It also engages in the satellite manufacturing; satellite component manufacturing; precision electronics manufacturing; satellite data applications; satellite telemetry, tracking, and controlling; and satellite launching business. The company was formerly known as USPACE Technology Group Limited and changed its name to China Strategic Technology Group Limited in November 2025. The company was incorporated in 2017 and is headquartered in Wong Chuk Hang, Hong Kong. China Strategic Technology Group Limited operates as a subsidiary of Hong Kong Aerospace Technology Holdings Limited.
How the Company Makes MoneyHong Kong Aerospace Technology Group Limited generates revenue primarily through the sale of aerospace components and systems, which include satellite technology and related services. The company profits from government contracts, partnerships with private aerospace companies, and collaborations with research institutions, which provide a steady stream of income. Additionally, the company may engage in product licensing and consultancy services, further diversifying its revenue streams. Strategic partnerships and collaborations with key players in the aerospace industry also play a crucial role in expanding its market reach and enhancing its earnings potential.

Hong Kong Aerospace Technology Group Limited Financial Statement Overview

Summary
Weak fundamentals: declining revenue, negative EBIT/EBITDA and net margins (ongoing losses), high leverage with falling equity and negative ROE, and negative operating/free cash flow indicating poor cash generation.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue340.26M315.80M593.51M635.43M650.23M547.83M
Gross Profit68.52M48.12M64.71M26.04M37.12M49.59M
EBITDA-80.11M-116.80M-138.00M-94.17M-28.93M27.09M
Net Income-158.79M-198.00M-211.14M-154.29M-53.08M17.32M
Balance Sheet
Total Assets796.10M845.17M1.15B1.23B941.31M575.76M
Cash, Cash Equivalents and Short-Term Investments29.55M28.72M72.73M43.10M97.59M186.63M
Total Debt422.89M432.94M691.55M591.56M243.93M32.70M
Total Liabilities710.27M708.95M951.51M981.47M549.77M325.47M
Stockholders Equity139.31M174.85M174.33M245.88M391.54M250.29M
Cash Flow
Free Cash Flow-26.61M-33.37M-323.19M-287.59M-434.16M51.03M
Operating Cash Flow-25.16M-23.83M-132.87M-93.03M-176.84M93.48M
Investing Cash Flow-1.40M23.69M-120.41M-194.01M-273.61M-22.29M
Financing Cash Flow10.21M-47.07M279.99M232.80M362.21M3.15M

Hong Kong Aerospace Technology Group Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.00
Price Trends
50DMA
0.82
Positive
100DMA
0.90
Negative
200DMA
0.85
Positive
Market Momentum
MACD
0.02
Positive
RSI
49.10
Neutral
STOCH
15.25
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1725, the sentiment is Neutral. The current price of 1 is above the 20-day moving average (MA) of 0.96, above the 50-day MA of 0.82, and above the 200-day MA of 0.85, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 49.10 is Neutral, neither overbought nor oversold. The STOCH value of 15.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1725.

Hong Kong Aerospace Technology Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
HK$1.60B14.103.91%3.60%20.53%28.42%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
49
Neutral
HK$525.54M-2.19-98.45%―-32.75%38.59%
47
Neutral
HK$640.32M-14.94-1.99%―-5.59%-1071.43%
47
Neutral
HK$143.67M4.07-1.80%―-3.98%37.50%
39
Underperform
HK$489.06M-3.37-566.49%―83.87%-10.49%
39
Underperform
HK$351.15M-29.49-2.71%―-4.33%55.43%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1725
Hong Kong Aerospace Technology Group Limited
0.89
0.00
0.00%
HK:0232
Continental Aerospace Technologies Holding Ltd.
0.17
0.07
63.81%
HK:1673
Huazhang Technology Holding Ltd.
0.23
-0.01
-6.12%
HK:0439
KuangChi Science Limited
0.98
-1.03
-51.24%
HK:8021
WLS Holdings Ltd
0.01
-0.02
-62.07%
HK:8391
Cornerstone Technologies Holdings Limited
0.50
-0.09
-15.25%

Hong Kong Aerospace Technology Group Limited Corporate Events

China Strategic Technology Calls EGM to Approve Major New Share Subscriptions
Jan 26, 2026

China Strategic Technology Group Limited has called an extraordinary general meeting to be held in Guangzhou on 11 February 2026, seeking shareholder approval for two share subscription agreements that will expand its issued share capital. Under the first agreement, the company plans to allot and issue 81,000,000 new shares at HK$0.56 per share to subscriber Zhong Li, while a second agreement covers the conditional issuance of 79,926,000 new shares at the same price to subscriber Xie Chang Lun. The board is asking shareholders to grant specific mandates authorising directors to issue these new shares and to execute all related documents and ancillary actions, a move that, if approved, will raise fresh equity capital and could alter the company’s ownership structure and financial flexibility.

The most recent analyst rating on (HK:1725) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Hong Kong Aerospace Technology Group Limited stock, see the HK:1725 Stock Forecast page.

China Strategic Technology Group Further Delays Share Subscription Circular
Jan 23, 2026

China Strategic Technology Group Limited has announced a further delay in sending a shareholder circular relating to its proposed subscription and placing of new shares under specific mandates. The circular, which will contain detailed information on the subscription and placing agreements and the notice convening an extraordinary general meeting, will now be despatched on 27 January 2026 instead of the previously expected date of 23 January 2026, as the company requires additional time to prepare and finalise its contents, potentially extending the timetable for shareholders’ consideration of these capital-raising proposals.

The most recent analyst rating on (HK:1725) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Hong Kong Aerospace Technology Group Limited stock, see the HK:1725 Stock Forecast page.

China Strategic Technology Sets February 2026 Date and Book Closure for Extraordinary General Meeting
Jan 23, 2026

China Strategic Technology Group Limited has scheduled an extraordinary general meeting (EGM) for 11 February 2026 and announced a book closure period from 6 to 11 February 2026, during which share transfers will not be registered, to determine shareholders entitled to attend and vote. Shareholders must ensure their share transfers are registered by 4:30 p.m. on 5 February 2026 to qualify, and the company will issue a circular in due course detailing the resolutions to be considered at the EGM, underscoring the administrative steps ahead of key corporate decisions tied to its previously announced subscription and placing.

The most recent analyst rating on (HK:1725) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Hong Kong Aerospace Technology Group Limited stock, see the HK:1725 Stock Forecast page.

China Strategic Technology Group Clarifies Director Resignation and Late Disclosure
Jan 14, 2026

China Strategic Technology Group Limited has provided a supplemental announcement regarding the resignation of director and former deputy chairman H.H. Maktoum, clarifying that despite repeated attempts to obtain further reasons, the only explanation given remains personal reasons and that there is no disagreement between him and the board or any issues requiring shareholder attention. The company detailed a delay in formally acknowledging his resignation due to an earlier email and signed resignation letter sent via his representative to a former company secretary, which was not actioned before that secretary’s own departure, leading to late compliance with disclosure obligations under Hong Kong Listing Rule 13.51(2); however, it stressed that key board meetings and approvals, including interim results and changes to corporate name, headquarters and management, remained validly approved with a proper quorum despite his absence.

The most recent analyst rating on (HK:1725) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Hong Kong Aerospace Technology Group Limited stock, see the HK:1725 Stock Forecast page.

China Strategic Technology Group Discloses Multiple Board Resignations Amid Ongoing Governance Transition
Jan 14, 2026

China Strategic Technology Group Limited has issued a supplemental announcement detailing a wave of board-level resignations that took effect on 13 October 2025, involving multiple directors including Ms. Kwok Pui Ha, H.E. Mohamed Ben Amor, Mr. Nathan Earl Whigham, Professor Christian Feichtinger, Mr. Alhamedi Mnahi F Alanezi, Mr. Juan de Dalmau-Mommertz, Mr. Marwan Jassim Sulaiman Jassim Alsarkal, Dr. Fabio Favata and Ms. Barbara Jane Ryan. The company attributes the departures primarily to personal and family reasons, health issues and competing business commitments, while noting that Dr. Favata has stated he has no disagreement with the board despite citing evolving circumstances as limiting his ability to serve effectively. The board is still seeking further elaboration from several of the resigned directors and plans to issue additional updates, underscoring ongoing boardroom transition at a time when the group is pursuing a RMB4 billion industrial merger and acquisition investment fund in cooperation with a mainland Chinese private equity partner.

The most recent analyst rating on (HK:1725) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Hong Kong Aerospace Technology Group Limited stock, see the HK:1725 Stock Forecast page.

China Strategic Technology Group Revamps Company Secretary and Governance Roles
Jan 7, 2026

China Strategic Technology Group Limited has announced a change in key corporate governance roles, with company secretary and authorised representative Mr. Lee Yiu Man resigning effective 7 January 2026 due to other business development, while confirming that he has no disagreement with the board and no issues that need to be brought to shareholders’ attention. The board has appointed experienced governance professional Ms. Huang Huajuan as the new company secretary, authorised representative and process agent from the same date, underscoring the company’s focus on maintaining compliance with Hong Kong listing and corporate regulations and signalling continuity and stability in its governance structure for investors and other stakeholders.

The most recent analyst rating on (HK:1725) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Hong Kong Aerospace Technology Group Limited stock, see the HK:1725 Stock Forecast page.

China Strategic Technology Group Delays Share Subscription Circular to January 2026
Dec 23, 2025

China Strategic Technology Group Limited has announced a delay in sending to shareholders a circular related to its proposed subscription of new shares and placing of new shares under specific mandates, originally expected by 23 December 2025. The company now plans to dispatch the circular, which will include further details of the subscription and placing agreements as well as the notice for an extraordinary general meeting, on or before 23 January 2026, indicating that additional time is required to prepare and finalise the document for shareholder consideration.

The most recent analyst rating on (HK:1725) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Hong Kong Aerospace Technology Group Limited stock, see the HK:1725 Stock Forecast page.

China Strategic Technology Group Announces New Share Issuance
Dec 5, 2025

China Strategic Technology Group Limited, a company incorporated in the Cayman Islands, announced a strategic move to issue new shares under specific mandates. The company has entered into agreements for the subscription and placing of new shares, which will increase its issued share capital significantly. The subscription involves 160,926,000 shares, representing a substantial portion of the company’s existing and enlarged share capital, offered at a discount to recent market prices. Additionally, the placing agreement involves up to 90,000,000 shares, also offered at a discount, to independent third parties. These actions are likely aimed at raising capital and potentially expanding the company’s market presence.

The most recent analyst rating on (HK:1725) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Hong Kong Aerospace Technology Group Limited stock, see the HK:1725 Stock Forecast page.

China Strategic Technology Group Limited Announces Name and Logo Change
Nov 27, 2025

China Strategic Technology Group Limited, previously known as USPACE Technology Group Limited, has officially changed its company name and stock short names to better reflect its strategic direction. The change, effective from December 3, 2025, includes a new company logo and does not impact shareholder rights or daily operations, ensuring continuity in trading and financial activities.

The most recent analyst rating on (HK:1725) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Hong Kong Aerospace Technology Group Limited stock, see the HK:1725 Stock Forecast page.

USPACE Technology Group Partners with Qingyuan Qingtou to Launch RMB4 Billion Investment Fund
Nov 17, 2025

USPACE Technology Group Limited has announced a cooperation framework agreement with Qingyuan Qingtou Private Equity Fund Management Co., Ltd. to establish an industrial merger and acquisition investment fund worth RMB4 billion. The collaboration aims to attract investment in enterprises that align with Qingyuan’s industrial upgrade needs, facilitate project integration, and enhance industrial parks. This strategic move is expected to optimize resource allocation, improve market competitiveness, and promote the development of a modern industrial system in Qingyuan.

The most recent analyst rating on (HK:1725) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Hong Kong Aerospace Technology Group Limited stock, see the HK:1725 Stock Forecast page.

USPACE Technology Group Forms Strategic Partnership for Aerospace Projects
Nov 13, 2025

USPACE Technology Group Limited, through its subsidiary Gang Hang Ke (Shenzhen) Space Technology Co., Ltd., has entered into a strategic cooperation agreement with Quanzhou Zhongke Xingqiao Aerospace Technology Co., Ltd. to promote the Zhongke Xingqiao Space-Air-Ground Integration Industrial Project. This collaboration aims to advance commercial aerospace, digital economy, and low-altitude economy projects, including the development of a global commercial space-ground link network and a high-resolution remote sensing satellite constellation program. The agreement outlines the establishment of a joint venture in Guangzhou, China, with Gang Hang Ke holding a majority stake, to facilitate these initiatives over a three-year period.

The most recent analyst rating on (HK:1725) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Hong Kong Aerospace Technology Group Limited stock, see the HK:1725 Stock Forecast page.

USPACE Technology Group Limited Announces Board Changes
Nov 12, 2025

USPACE Technology Group Limited, a company incorporated in the Cayman Islands, has announced significant changes to its board of directors. The company has appointed Mr. Chen Youan and Mr. Lu Huasheng as executive directors, effective from November 12, 2025. These appointments bring experienced leadership to the company, with Mr. Chen having a background in financial management and Mr. Lu in auditing and infrastructure finance. The changes in the board are expected to strengthen the company’s governance and strategic direction.

The most recent analyst rating on (HK:1725) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Hong Kong Aerospace Technology Group Limited stock, see the HK:1725 Stock Forecast page.

USPACE Technology Group Limited Announces Board Composition and Roles
Nov 12, 2025

USPACE Technology Group Limited, incorporated in the Cayman Islands, has announced the composition of its board of directors and their roles within the company. The board includes executive directors and independent non-executive directors, with specific members assigned to the audit, remuneration, and nomination committees. This announcement clarifies the leadership structure and committee roles, which could impact the company’s governance and strategic direction.

The most recent analyst rating on (HK:1725) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Hong Kong Aerospace Technology Group Limited stock, see the HK:1725 Stock Forecast page.

USPACE Technology Group Approves Name Change at EGM
Nov 7, 2025

USPACE Technology Group Limited, a company incorporated in the Cayman Islands, held an Extraordinary General Meeting (EGM) on November 7, 2025, where a resolution regarding the proposed change of the company’s name was passed unanimously by shareholders. The resolution was approved by all voting shareholders, with no opposition or abstentions, reflecting strong support for the company’s strategic direction.

The most recent analyst rating on (HK:1725) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Hong Kong Aerospace Technology Group Limited stock, see the HK:1725 Stock Forecast page.

USPACE Technology Group Expands AI Satellite Capabilities with New Shenzhen Centre
Nov 3, 2025

USPACE Technology Group Limited has announced the establishment of an Artificial Intelligence Satellite Application Technology Centre in Shenzhen by its subsidiary Gang Hang Ke. This strategic move aims to enhance the company’s aerospace business by integrating advanced AI technologies with satellite operations, focusing on intelligent decision-making, autonomous satellite operations, and developing AI systems for satellite clusters. The initiative is expected to broaden market prospects in the commercial space sector, leveraging the company’s expertise from its ‘Golden Bauhinia’ satellite projects.

The most recent analyst rating on (HK:1725) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Hong Kong Aerospace Technology Group Limited stock, see the HK:1725 Stock Forecast page.

USPACE Technology Group’s Acquisition Deal Lapses, Aspace Faces Loan Compliance Issue
Oct 31, 2025

USPACE Technology Group Limited announced the lapse of its acquisition of 49% of Aspace Satellite Technology Limited due to unmet conditions by the deadline and no extension agreement with Superb Ever Worldwide Limited. The lapse is not expected to adversely affect USPACE’s business or financial position. Additionally, Aspace is negotiating with a lender over a non-compliance issue related to a term loan, which has led to the lender taking possession of some of Aspace’s equipment.

The most recent analyst rating on (HK:1725) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Hong Kong Aerospace Technology Group Limited stock, see the HK:1725 Stock Forecast page.

USPACE Technology Group Explores Major Acquisition in Telecommunications Sector
Oct 30, 2025

USPACE Technology Group Limited, through its wholly-owned subsidiary Guangdong Qingyu Intelligent Technology Co., Ltd., has entered into a memorandum of understanding for a potential investment and merger and acquisition of 51% of Zhejiang Yuehua Telecommunication Co., Ltd. This move is part of USPACE’s strategic expansion in the telecommunications and cable production industry, with due diligence processes set to be completed within 90 days. The Subject Company specializes in various cable productions and holds significant national certifications, indicating a strong market position in the PRC.

The most recent analyst rating on (HK:1725) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Hong Kong Aerospace Technology Group Limited stock, see the HK:1725 Stock Forecast page.

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: Jan 16, 2026