TK Group (Holdings) Ltd. (2283) AI Stock Analysis

• Market Cap: HK$1.88B
• Dividend Yield: 7.05%
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.47
• Revenue Growth: 21.20%
• EPS Growth: 28.15%
• Country: HK
• Employees: 3,687
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Chemicals - Specialty
• EPS (TTM): 0.32
• Shares Outstanding: 833,260,000
• 10 Day Avg. Volume: 1,342,800
• 30 Day Avg. Volume: 1,238,813
• PEG Ratio: -0.28
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.04
• 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: HK$2.78
• Price Target Upside: 22.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: HK$2.50 ▲(10.13%Upside)

The stock is bolstered by a strong technical analysis with upward price momentum and attractive valuation metrics, including a low P/E ratio and high dividend yield. However, financial performance is slightly hampered by the absence of current year cash flow data, which adds an element of uncertainty to its financial outlook.

Positive Factors

Earnings Growth

TK Group announced a positive profit alert for 1H24 with 40%+ YoY earnings growth.

Revenue and Margin Recovery

Strong order pipelines, new client wins, and revenue/margin recovery across most segments drive the positive outlook for 2H24.

Valuation and Yield

Trading at 5.6x FY24E P/E with 8% yield, the stock offers attractive risk/reward.

Negative Factors

TK Group (Holdings) Ltd. Business Overview & Revenue Model

Company Description

TK Group (Holdings) Ltd. (2283) is a Hong Kong-based company primarily engaged in the manufacturing and sale of plastic components and molds. The company operates through several segments, including mold fabrication, plastic injection, and assembling of plastic components. TK Group serves a broad range of industries, such as automotive, electronics, household appliances, and medical devices, offering integrated manufacturing solutions from design to production.

How the Company Makes Money

TK Group (Holdings) Ltd. generates revenue primarily through the design, manufacturing, and sales of plastic injection molds and related components. The company's key revenue streams include custom mold fabrication services, where it designs and manufactures molds tailored to client specifications, and plastic component production, where it utilizes its molds to produce plastic parts for various applications. Additionally, TK Group offers assembly services, adding value by assembling plastic components into finished products. The company benefits from strategic partnerships with major electronics and automotive manufacturers, which provide consistent demand for its products and services. Furthermore, its diversified customer base across multiple industries helps mitigate risks associated with dependency on a single market.

TK Group (Holdings) Ltd. Financial Statement Overview

Summary

TK Group shows strong revenue growth and profitability, with a robust balance sheet marked by low leverage and solid equity. However, the absence of current year cash flow data presents uncertainties in cash management. Continued focus on operational efficiency and cash flow generation could enhance overall financial health.

Income Statement

TK Group has demonstrated a steady increase in total revenue from the previous year, showing a healthy revenue growth rate of 21.20%. The gross profit margin stands at 26.53%, with a net profit margin of 11.10%, indicating a stable profitability position. However, the EBIT margin of 13.30% suggests room for improvement in operational efficiency. The EBITDA margin is robust at 18.78%, indicating strong cash flow generation capabilities.

Balance Sheet

The company exhibits a strong equity position with an equity ratio of 66.42%, reflecting a solid financial structure. The debt-to-equity ratio is low at 0.06, indicating minimal leverage and reduced financial risk. Return on equity (ROE) is healthy at 15.31%, showcasing effective use of equity to generate profits.

Cash Flow

Cash flow analysis is limited due to missing data for the current year. Last year's operating cash flow to net income ratio was robust at 2.18, demonstrating effective cash generation from operations. However, the absence of free cash flow data for the current year raises concerns about cash flow sustainability and investment capacity.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.36B	1.95B	2.28B	2.40B	2.03B
Gross Profit	625.83M	512.79M	503.83M	527.56M	504.39M
EBITDA	531.34M	472.74M	497.99M	551.66M	459.98M
Net Income	261.85M	204.19M	226.91M	282.38M	209.69M
Balance Sheet
Total Assets	2.58B	2.45B	2.71B	2.87B	2.59B
Cash, Cash Equivalents and Short-Term Investments	1.16B	1.16B	1.27B	1.20B	1.07B
Total Debt	101.19M	122.29M	463.23M	443.64M	380.87M
Total Liabilities	865.46M	766.41M	1.06B	1.18B	1.15B
Stockholders Equity	1.71B	1.69B	1.61B	1.62B	1.39B
Cash Flow
Free Cash Flow	284.63M	376.34M	217.13M	243.58M	418.36M
Operating Cash Flow	370.66M	445.31M	361.25M	352.19M	496.88M
Investing Cash Flow	-232.91M	-54.95M	-137.64M	-98.86M	-64.71M
Financing Cash Flow	-275.57M	-349.89M	-149.84M	-120.58M	-103.55M

TK Group (Holdings) Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.27
• 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:2283, the sentiment is Positive. The current price of 2.27 is above the 20-day moving average (MA) of 2.18, above the 50-day MA of 2.01, and above the 200-day MA of 1.84, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 64.47 is Neutral, neither overbought nor oversold. The STOCH value of 72.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2283.

TK Group (Holdings) Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2283	80 Outperform	HK$1.88B	7.17	15.42%	7.05%	21.20%	28.15%
0408	74 Outperform	HK$900.34M	9.33	2.51%	13.66%	-1.70%	12.53%
0301	56 Neutral	HK$635.12M	―	-8.95%	―	-3.09%	-480.17%
1986	54 Neutral	HK$840.59M	55.38	-1.16%	6.28%	2.49%	-171.78%
3318	51 Neutral	HK$1.88B	96.74	0.59%	―	-21.05%	-87.68%
1047	46 Neutral	HK$114.45M	―	-1.32%	―	12.01%	82.32%
Sector *	44 Neutral	C$976.20M	-6.71	-13.35%	2.69%	17.20%	-32.62%

TK Group (Holdings) Ltd. Corporate Events

TK Group Expands Production Capacity with Land Acquisition in Vietnam

TK Group (Holdings) Limited has announced its intention to acquire land in Vietnam’s Phuc Dien Extended Industrial Park for approximately HKD26.76 million. This strategic move is part of the company’s plan to expand its production capacity and reinforce its dual production layout between China and Vietnam. The acquisition aims to replicate the company’s Chinese production capabilities in Vietnam, providing mold maintenance and repair services to support scalable production. This expansion is expected to offer more flexible and reliable solutions to global customers and help the company navigate potential changes in trade policies.

The most recent analyst rating on (HK:2283) stock is a Buy with a HK$2.79 price target. To see the full list of analyst forecasts on TK Group (Holdings) Ltd. stock, see the HK:2283 Stock Forecast page.

TK Group (Holdings) Ltd. Successfully Passes All Resolutions at AGM

TK Group (Holdings) Ltd. announced that all proposed resolutions were approved at their annual general meeting held on May 23, 2025. Key resolutions included the approval of the audited financial statements for 2024, the declaration of final and special dividends, the re-election of directors, and the re-appointment of PricewaterhouseCoopers as the company’s auditor. Additionally, mandates were granted to the board for issuing and repurchasing shares. These resolutions reflect the company’s strong financial performance and strategic direction, potentially reinforcing its market position and shareholder confidence.

The most recent analyst rating on (HK:2283) stock is a Buy with a HK$2.79 price target. To see the full list of analyst forecasts on TK Group (Holdings) Ltd. stock, see the HK:2283 Stock Forecast page.

TK Group Announces 2025 AGM with Key Resolutions on Agenda

TK Group (Holdings) Limited has announced its 2025 Annual General Meeting, scheduled for May 23, 2025, in Hong Kong. Key agenda items include the approval of financial statements for 2024, the declaration of a final and special dividend, re-election of directors, and the re-appointment of PricewaterhouseCoopers as the company’s auditor. Additionally, a resolution will be considered to authorize the directors to allot and issue additional shares, with certain limitations, enhancing the company’s flexibility in managing its capital structure.