Pak Tak International Limited (2668) AI Stock Analysis

• Market Cap: HK$1.52B
• Dividend Yield: N/A
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.36
• 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: 45 Neutral
• Price Target: HK$0.32 ▲(76.11% Upside)

The score is primarily weighed down by weak financial performance—declining revenue, ongoing losses, high leverage, and poor/volatile operating and free cash flow. Technicals provide some offset with price holding above key longer-term moving averages and a positive MACD, while valuation remains pressured due to negative earnings and no dividend information.

Positive Factors

Recent asset base increase

A recent increase in total assets provides a firmer asset base to support operations and potential collateral for financing. Over the next several months this can facilitate working capital support or restructuring options while the company pursues revenue recovery initiatives.

Operational scale (manufacturing capacity)

A workforce of ~600 indicates retained manufacturing and operational capacity, enabling the company to fulfill orders and scale production if demand rebounds. This structural capacity reduces lead times and supports contract retention and ramp-ups over a multi-month recovery horizon.

HKEX listing and market access

Being listed on the HKEX (XHKG) provides sustained access to public capital markets and regulatory oversight, improving options for equity or debt raising. This structural access enhances the company's ability to secure financing or strategic partnerships during a multi-month turnaround.

Negative Factors

Multi-year revenue decline and persistent losses

Sustained revenue declines and ongoing net losses weaken competitive position and erode margins, limiting resources for R&D or sales investment. Without durable top-line recovery, profitability is unlikely to return in 2-6 months, constraining strategic options and growth prospects.

High leverage and declining equity ratio

Elevated leverage and a falling equity ratio raise refinancing and solvency risks, reducing financial flexibility. With limited internal cash generation, debt-servicing pressure could force asset sales, cost cuts, or expensive external funding within a medium-term window, hindering recovery plans.

Weak and volatile cash generation

Zero or negative operating and free cash flow undermines the firm's ability to fund operations, capex, or service debt without external financing. This structural cash shortfall threatens liquidity and the sustainability of operations over the next several months absent capital injections.

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

Financial statements indicate material weakness: sharp multi-year revenue declines, persistently negative profitability (net losses and negative EBIT/EBITDA margins), elevated leverage (high debt-to-equity with declining equity ratio), and very weak cash generation (volatile/zero operating cash flow and negative/zero free cash flow).

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: Neutral
• Last Price: 0.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2668, the sentiment is Neutral. The current price of 0.18 is below the 20-day moving average (MA) of 0.37, below the 50-day MA of 0.23, and below the 200-day MA of 0.20, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 40.31 is Neutral, neither overbought nor oversold. The STOCH value of 1.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$455.37M	5.68	2.55%	2.33%	-4.07%	-26.53%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2298	60 Neutral	HK$723.83M	6.56	4.94%	6.04%	0.72%	2.24%
3778	51 Neutral	HK$369.44M	-18.22	-2.76%	4.55%	-1.24%	5.98%
3322	50 Neutral	HK$318.53M	-10.04	-2.35%	―	24.99%	89.24%
1906	46 Neutral	HK$838.54M	-32.58	-6.24%	―	5.88%	16.82%
2668	45 Neutral	HK$1.52B	-3.95	-74.13%	―	2.67%	-54.41%

Pak Tak International Limited Corporate Events

Pak Tak Explores Tanzanian Gold Acquisition in Diversification Drive

Pak Tak International Limited has signed a non-binding memorandum of understanding to explore acquiring part or all of the equity interest in a Tanzanian company that owns an operating gold processing plant and is engaged in gold exploration and production. The potential transaction, which currently imposes no financial commitment on Pak Tak, would mark a strategic move into the gold resources sector as the group seeks to diversify its business and revenue base, though management cautions that the deal may or may not proceed pending due diligence and the negotiation of a formal agreement within three months.

The most recent analyst rating on (HK:2668) stock is a Sell with a HK$0.36 price target. To see the full list of analyst forecasts on Pak Tak International Limited stock, see the HK:2668 Stock Forecast page.

Pak Tak Updates on Debt Restructuring and Iron Ore Expansion Amid Going Concern Issues

Pak Tak International Limited has provided a quarterly update on its efforts to address a disclaimer of opinion and going concern issues, focusing on restructuring defaulted bank borrowings, securing financial backing, and improving liquidity. The group is negotiating settlement terms for two significant defaulted bank loans, including one where an appeal has been dismissed and repayment obligations affirmed, while maintaining close coordination with its substantial shareholder Tengyue for potential financial support. Management is accelerating receivables collection, exploring new banking facilities secured against investment properties, and investing in the expansion and efficiency of its iron ore mining and milling operations, which, though not yet at full capacity, are expected to enhance long‑term profitability and strengthen the company’s liquidity position.

The most recent analyst rating on (HK:2668) stock is a Sell with a HK$0.09 price target. To see the full list of analyst forecasts on Pak Tak International Limited stock, see the HK:2668 Stock Forecast page.

Pak Tak International Faces Final Judgment on Loan Dispute

Pak Tak International Limited has received a final judgment from the Guangdong Higher People’s Court regarding an appeal on loan agreements with the Shenzhen Branch of Hua Xia Bank. The court dismissed the appeal, ordering Shenzhen Jinsheng, a subsidiary of Pak Tak, to repay RMB279 million in principal and additional interest, with the company and its subsidiaries held jointly liable. The company is seeking legal advice and negotiating with the bank for a settlement.

The most recent analyst rating on (HK:2668) stock is a Sell with a HK$0.14 price target. To see the full list of analyst forecasts on Pak Tak International Limited stock, see the HK:2668 Stock Forecast page.