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

• Market Cap: HK$2.10B
• Dividend Yield: 8.99%
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.65
• Revenue Growth: 14.51%
• EPS Growth: 17.14%
• Country: HK
• Employees: 3,687
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.10
• Shares Outstanding: 833,260,000
• 10 Day Avg. Volume: 1,048,000
• 30 Day Avg. Volume: 1,143,846
• PEG Ratio: 0.27
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.83
• P/FCF Ratio: 6.89
• 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: 71 Outperform
• Price Target: HK$3.00 ▲(17.65% Upside)

TK Group's strong valuation and financial performance drive the overall score, with its attractive P/E ratio and high dividend yield being significant strengths. The positive technical indicators support the stock's potential, although caution is advised due to the lack of current cash flow data and slightly negative MACD.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and demand for products, supporting long-term business expansion and stability.

Balance Sheet Health

A robust balance sheet with low leverage enhances financial resilience, enabling the company to withstand economic fluctuations and invest in growth.

Profitability

Sustained profitability margins demonstrate efficient cost management and pricing power, contributing to long-term financial health and shareholder value.

Negative Factors

Cash Flow Uncertainty

Lack of current cash flow data raises concerns about the company's ability to sustain operations and fund future investments, impacting financial planning.

Operational Efficiency

Lower operational efficiency may hinder profit maximization and competitiveness, necessitating strategic improvements to enhance cost management.

Cash Flow Sustainability

Uncertainty in free cash flow data can limit the company's ability to reinvest in growth opportunities, affecting long-term strategic initiatives and financial flexibility.

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

Company Description

TK Group (Holdings) Limited, an investment holding company, engages in the manufacture, sale, subcontracting, fabrication, and modification of molds and plastic components. The company operates in two segments, Mold Fabrication and Plastic Components Manufacturing. It provides precision, high performance, special decoration, and medical molding products. The company serves customers in various markets, including mobile phones and wearable devices, automobile, medical and personal health care, smart home, commercial telecommunications equipment, electronic atomizers, household electrical appliances, digital devices, and others. It operates in the People's Republic of China, South East Asia, Hong Kong, Europe, the United States, and internationally. The company was founded in 1983 and is headquartered in Shenzhen, China.

How the Company Makes Money

TK Group generates revenue through multiple streams, primarily from the sale of manufactured goods in sectors such as electronics and packaging. The company leverages its manufacturing capabilities to produce high-demand products, which are then sold to wholesalers and retailers. Additionally, TK Group engages in strategic partnerships and joint ventures that enhance its market reach and operational efficiency. The company may also benefit from economies of scale, reducing costs and increasing profit margins. Overall, its revenue model is built on a combination of product sales, efficient manufacturing processes, and strategic collaborations that facilitate growth and profitability.

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.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.40B	2.36B	1.95B	2.28B	2.40B	2.03B
Gross Profit	641.19M	625.83M	512.79M	503.83M	527.56M	504.39M
EBITDA	426.65M	531.34M	472.74M	461.77M	551.66M	459.98M
Net Income	268.88M	261.85M	204.19M	226.91M	282.38M	209.69M
Balance Sheet
Total Assets	2.54B	2.58B	2.45B	2.70B	2.85B	2.57B
Cash, Cash Equivalents and Short-Term Investments	1.07B	1.16B	1.16B	1.27B	1.03B	920.45M
Total Debt	72.54M	101.19M	122.29M	463.23M	443.64M	380.87M
Total Liabilities	854.42M	865.46M	766.41M	1.09B	1.23B	1.18B
Stockholders Equity	1.68B	1.71B	1.69B	1.61B	1.62B	1.39B
Cash Flow
Free Cash Flow	259.15M	284.63M	376.34M	217.13M	243.58M	418.36M
Operating Cash Flow	365.80M	370.66M	445.31M	361.25M	352.19M	496.88M
Investing Cash Flow	-251.62M	-232.91M	-54.95M	-137.64M	-98.86M	-64.71M
Financing Cash Flow	-258.27M	-275.57M	-349.89M	-149.84M	-120.58M	-103.55M

TK Group (Holdings) Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 Negative. The current price of 2.55 is above the 20-day moving average (MA) of 2.55, above the 50-day MA of 2.53, and above the 200-day MA of 2.31, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.38 is Neutral, neither overbought nor oversold. The STOCH value of 40.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	71 Outperform	HK$2.10B	7.79	16.52%	8.99%	14.51%	17.14%
0408	69 Neutral	HK$1.07B	8.26	3.36%	7.85%	-5.37%	25.20%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0301	56 Neutral	HK$625.71M	-18.00	-14.53%	―	0.35%	-153.95%
1047	54 Neutral	HK$123.68M	372.22	0.07%	―	5.65%	―
1986	54 Neutral	HK$771.20M	-26.58	-1.52%	5.55%	0.37%	-331.54%
3318	49 Neutral	HK$1.83B	-49.56	-1.08%	―	-23.46%	-126.64%

TK Group (Holdings) Ltd. Corporate Events

TK Group Names Veteran Executive Lu Gong Shan as New CEO in Planned Leadership Transition

TK Group (Holdings) Limited has announced a leadership reshuffle effective 1 January 2026, appointing long-serving executive Mr. Lu Gong Shan as executive director, member of the remuneration committee and chief executive officer, while incumbent CEO Mr. Yung Kin Cheung Michael will step down from the chief executive role but remain on the board as an executive director to concentrate on developing the Group’s strategic direction. Mr. Lu, who has risen through the ranks since joining the Group in 2002 and currently oversees its mold business units, will serve under a three-year service contract with a fixed annual emolument of HK$1.6 million plus discretionary bonus, signaling a planned and orderly succession that preserves continuity in operational management and governance, with the board emphasizing there is no disagreement with Mr. Yung and expressing gratitude for his prior leadership.

The most recent analyst rating on (HK:2283) stock is a Buy with a HK$3.00 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 Outlines Board Composition and Committee Roles

TK Group (Holdings) Limited has announced the current composition of its board of directors and the allocation of roles across its key governance committees. The board consists of five executive directors, including Chairman Li Pui Leung and CEO Lu Gong Shan, and three independent non-executive directors, who collectively serve on the audit, remuneration and nomination committees. Leadership of these committees is largely in the hands of the independent non-executive directors, with Dr. Chung Chi Ping Roy and Mr. Tsang Wah Kwong chairing key committees, underscoring the company’s emphasis on independent oversight and structured corporate governance, which is important for investors and other stakeholders assessing board independence and accountability.

The most recent analyst rating on (HK:2283) stock is a Buy with a HK$3.00 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 Signs New Leasing Framework for Connected Property Transactions

TK Group (Holdings) Ltd. has entered into a new Leasing Framework Agreement with TK Technology (Shenzhen) and TK Technology Holdings, entities controlled by key shareholders, to govern ongoing leases of properties and the provision of property management services such as cleaning and security to the group. The agreement consolidates and replaces prior leasing arrangements, formalising the terms for current and future tenancy and service contracts; while the transactions are classified as continuing connected transactions under Hong Kong listing rules, the expected transaction size keeps them below the 5% threshold, meaning they require reporting and disclosure but are exempt from shareholder approval, thereby maintaining regulatory compliance while supporting the group’s operational needs.

The most recent analyst rating on (HK:2283) stock is a Buy with a HK$3.00 price target. To see the full list of analyst forecasts on TK Group (Holdings) Ltd. stock, see the HK:2283 Stock Forecast page.