Pak Tak International Limited (2668) AI Stock Analysis

• Market Cap: HK$574.26M
• Dividend Yield: N/A
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.54
• Revenue Growth: 2.67%
• EPS Growth: -54.41%
• Country: HK
• Employees: 600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.02
• Shares Outstanding: 5,630,000,000
• 10 Day Avg. Volume: 644,000
• 30 Day Avg. Volume: 1,138,666
• PEG Ratio: 2.55
• Price to Book (P/B): 3.86
• Price to Sales (P/S): 3.40
• P/FCF Ratio: -39.00
• 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: 39 Underperform
• Price Target: HK$0.14 ▼(-21.11% Downside)

Pak Tak International Limited's overall stock score is heavily impacted by its poor financial performance, characterized by consistent revenue declines, negative profitability, and high leverage. Technical analysis further supports a bearish outlook with indicators suggesting a lack of bullish momentum. Valuation metrics are unattractive due to negative earnings and no dividend yield. These factors collectively contribute to a low overall stock score.

Positive Factors

Strategic Partnerships

Strategic partnerships with international distributors enhance market reach and provide a stable revenue stream, supporting long-term growth.

Product Innovation

Commitment to R&D and innovation positions Pak Tak to meet evolving customer demands, sustaining competitive advantage and market relevance.

Market Diversification

Diversified revenue streams across multiple industries reduce reliance on a single market, enhancing resilience against sector-specific downturns.

Negative Factors

High Leverage

High leverage poses financial risks, potentially limiting the company's ability to invest in growth opportunities and increasing vulnerability to economic shifts.

Negative Profitability

Negative profitability indicates operational inefficiencies and challenges in cost management, threatening long-term financial health and sustainability.

Cash Flow Constraints

Volatile and insufficient cash flow limits the company's ability to cover expenses and invest in growth without relying on external financing.

Pak Tak International Limited Business Overview & Revenue Model

Company Description

Pak Tak International Limited (2668) is a Hong Kong-based company primarily engaged in the manufacturing and trading of electronic components and accessories. The company operates in the electronics sector, focusing on producing high-quality products that cater to various industries, including telecommunications, consumer electronics, and automotive. Pak Tak is known for its commitment to innovation and quality, providing a diverse range of products such as connectors, circuit boards, and other electronic parts.

How the Company Makes Money

Pak Tak International Limited generates revenue primarily through the sale of its electronic components and accessories. The company has established a robust revenue model that includes direct sales to manufacturers and distributors within various industries. Key revenue streams include bulk orders from large corporate clients, ongoing contracts with telecommunications firms, and collaborations with automotive manufacturers for specialized electronic components. Additionally, Pak Tak benefits from strategic partnerships with international distributors that help expand its market reach, while also leveraging economies of scale in production to enhance profitability. Factors contributing to its earnings include increased demand for electronic products in emerging markets and the company's focus on research and development to create innovative solutions tailored to client needs.

Pak Tak International Limited Financial Statement Overview

Summary

Pak Tak International Limited faces significant financial challenges across all verticals. Consistent revenue declines, negative profitability margins, and high leverage highlight operational inefficiencies and financial instability. The lack of positive cash flow and negative net income further stress the company's liquidity and sustainability.

Income Statement

The company has shown significant revenue decline over recent years, with a steep drop in total revenue from 2020 to 2024. The gross profit margin has remained quite low, indicating challenges in managing cost of goods sold. Net profit margin is negative, with the company experiencing consistent net losses, highlighting profitability issues. Negative EBIT and EBITDA margins for recent years also reflect operational inefficiencies.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating significant leverage which could pose financial risks. The equity ratio has been decreasing, reflecting potential financial instability. However, the company's total assets have seen fluctuations, with a recent increase in 2024, suggesting some asset base improvements. Return on equity is negative due to net losses, further emphasizing profitability challenges.

Cash Flow

Operating cash flow has been volatile, with recent years showing zero operating cash flow, which is concerning for liquidity and operational sustainability. Free cash flow has also been negative or zero, pointing towards insufficient cash generation to cover capital expenditures. The company lacks positive cash flow metrics, indicating potential liquidity constraints and challenges in maintaining operations without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	741.35M	675.23M	427.77M	727.31M	2.15B	3.00B
Gross Profit	40.42M	34.46M	37.37M	37.50M	77.35M	92.12M
EBITDA	-46.73M	-8.18M	-160.28M	31.59M	51.82M	74.80M
Net Income	-306.18M	-229.20M	-201.75M	-14.26M	-5.65M	21.28M
Balance Sheet
Total Assets	1.83B	1.82B	948.24M	1.33B	1.55B	1.86B
Cash, Cash Equivalents and Short-Term Investments	96.24M	28.75M	85.42M	38.12M	197.95M	440.31M
Total Debt	760.65M	759.36M	381.57M	470.93M	527.63M	665.78M
Total Liabilities	1.31B	1.21B	580.99M	758.88M	905.44M	1.33B
Stockholders Equity	506.41M	593.78M	367.25M	568.92M	646.41M	530.79M
Cash Flow
Free Cash Flow	35.36M	-58.84M	43.55M	-56.73M	-240.97M	146.20M
Operating Cash Flow	64.25M	-55.76M	44.83M	-53.70M	-240.95M	146.22M
Investing Cash Flow	-57.68M	211.00K	75.56M	171.32M	158.04M	-290.78M
Financing Cash Flow	-1.57M	-6.58M	-71.24M	-93.40M	-21.96M	149.46M

Pak Tak International Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2668, the sentiment is Negative. The current price of 0.18 is above the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.15, and below the 200-day MA of 0.20, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 19.04 is Positive, neither overbought nor oversold. The STOCH value of 10.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2668.

Pak Tak International Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0608	63 Neutral	HK$458.42M	5.72	2.55%	2.46%	-4.07%	-26.53%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2298	60 Neutral	HK$636.09M	5.27	4.94%	5.52%	0.72%	2.24%
3322	50 Neutral	HK$295.41M	-9.27	-2.35%	―	24.99%	89.24%
3778	46 Neutral	HK$369.44M	-20.38	-2.76%	5.08%	-1.24%	5.98%
1906	46 Neutral	HK$720.85M	-28.65	-6.24%	―	5.88%	16.82%
2668	39 Underperform	HK$574.26M	-1.57	-74.13%	―	2.67%	-54.41%

Pak Tak International Limited Corporate Events

Pak Tak International Limited’s Strategic Actions to Resolve Financial Concerns

Pak Tak International Limited is actively implementing measures to resolve its going concern issue, including restructuring defaulted bank borrowings and securing financial support from its substantial shareholder. The company is also focusing on collecting receivables, evaluating additional banking facilities, and developing its new iron ore mining segment to improve liquidity and ensure long-term profitability.