NNK Group Ltd (3773) AI Stock Analysis

• Market Cap: HK$659.85M
• Dividend Yield: N/A
• Average Volume (3M): 40.47K
• Price to Earnings (P/E): 26.5
• Beta (1Y): -0.04
• Revenue Growth: 12.63%
• EPS Growth: -37.50%
• Country: HK
• Employees: 156
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.03
• Shares Outstanding: 415,000,000
• 10 Day Avg. Volume: 53,000
• 30 Day Avg. Volume: 40,466
• PEG Ratio: 0.37
• Price to Book (P/B): 3.63
• Price to Sales (P/S): 9.00
• P/FCF Ratio: -9.03
• 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: 70 Outperform
• Price Target: HK$2.00 ▲(26.58% Upside)

NNK Group Ltd's strong financial performance, particularly in revenue and profit growth, is a key strength. However, cash flow challenges and a high P/E ratio present risks. Technical indicators show positive momentum, but caution is advised due to potential overbought conditions.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful business expansion and increased market demand, supporting long-term financial health.

Operational Efficiency

High gross profit margins reflect effective cost management, enhancing profitability and providing a buffer against market fluctuations.

Profitability

Improved net profit margins indicate strong profitability, which can support reinvestment and shareholder returns over the long term.

Negative Factors

Cash Flow Challenges

Negative operating cash flow raises concerns about liquidity and the company's ability to fund operations and growth without external financing.

Debt Levels

Rising debt levels can increase financial risk and limit flexibility, potentially impacting long-term strategic initiatives.

Earnings Conversion

A negative cash flow to net income ratio suggests difficulties in converting earnings into cash, which could hinder financial stability.

NNK Group Ltd Business Overview & Revenue Model

Company Description

NNK Group Ltd (3773) is a diversified investment holding company based in Hong Kong. The company operates across various sectors, including property development and investment, financial services, and trading. NNK Group focuses on creating value through strategic investments in real estate and financial markets, as well as providing a range of trading services to clients. Its core products and services include residential and commercial property development, asset management, and financial advisory services.

How the Company Makes Money

NNK Group Ltd generates revenue through multiple key streams. Primarily, it earns money from property development and sales, where it develops residential and commercial properties and sells them at a profit. The company also generates rental income from its investment properties, which contributes a steady cash flow. In addition, NNK Group earns revenue from its financial services division, which includes asset management and advisory services, earning fees based on the assets managed and commissions from transactions. Strategic partnerships with local and international investors enhance its investment capabilities and broaden its market reach, thereby increasing potential revenue opportunities.

NNK Group Ltd Financial Statement Overview

Summary

NNK Group Ltd demonstrates strong revenue and profit growth, with robust margins indicating operational efficiency. However, cash flow challenges are evident, with negative operating and free cash flow, which could impact future liquidity.

Income Statement

The company has shown strong revenue growth with a 39.0% increase from 2023 to 2024. Gross profit margin remains high at 81.3% in 2024, indicating efficient cost management. Net profit margin improved to 25.4%, reflecting enhanced profitability. Both EBIT and EBITDA margins are healthy at 27.5% and 28.7%, respectively, showcasing strong operational performance.

Balance Sheet

The debt-to-equity ratio increased to 0.40, suggesting moderate leverage. Return on equity improved to 10.3%, indicating better utilization of equity. The equity ratio is stable at 55.5%, reflecting a strong equity base. However, the increase in total debt warrants monitoring for potential risks.

Cash Flow

The company experienced a significant decline in operating cash flow, turning negative in 2024. Free cash flow also turned negative, indicating cash management challenges. The operating cash flow to net income ratio is negative, highlighting potential issues in converting earnings to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	135.17M	125.56M	90.30M	86.36M	90.33M	81.23M
Gross Profit	98.06M	102.10M	73.83M	72.48M	75.55M	63.00M
EBITDA	27.37M	36.07M	21.29M	28.57M	26.71M	24.73M
Net Income	23.09M	31.94M	16.35M	27.27M	26.48M	30.21M
Balance Sheet
Total Assets	626.83M	560.82M	412.53M	506.60M	379.84M	352.97M
Cash, Cash Equivalents and Short-Term Investments	141.05M	50.84M	93.00M	96.22M	32.52M	103.58M
Total Debt	181.16M	123.12M	31.85M	152.19M	51.71M	52.07M
Total Liabilities	305.88M	252.18M	133.23M	243.65M	144.16M	143.76M
Stockholders Equity	323.71M	311.25M	279.30M	262.95M	235.68M	209.21M
Cash Flow
Free Cash Flow	-4.80M	-125.16M	115.69M	-36.59M	-68.44M	-41.45M
Operating Cash Flow	-4.01M	-123.72M	117.15M	-33.50M	-67.04M	-40.66M
Investing Cash Flow	-2.22M	-2.75M	-456.00K	-984.00K	-453.00K	96.00K
Financing Cash Flow	273.00K	47.65M	-33.06M	57.55M	-3.85M	27.64M

NNK Group Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3773, the sentiment is Negative. The current price of 1.58 is below the 20-day moving average (MA) of 1.66, below the 50-day MA of 1.68, and below the 200-day MA of 1.64, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 37.66 is Neutral, neither overbought nor oversold. The STOCH value of 69.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3773.

NNK Group Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8062	74 Outperform	HK$118.08M	―	-0.93%	8.16%	-29.38%	-104.21%
3773	70 Outperform	HK$659.85M	26.50	7.35%	―	12.63%	-37.50%
8017	69 Neutral	HK$1.01B	14.63	39.26%	―	146.18%	1617.05%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3315	61 Neutral	€789.68M	16.98	2.23%	6.32%	-16.76%	-50.21%
0818	54 Neutral	HK$1.56B	10.89	1.98%	―	-17.23%	-6.20%
8613	41 Neutral	HK$109.88M	-3.17	―	―	-43.10%	-5.98%

NNK Group Ltd Corporate Events

Yinsheng Digifavor Reports Revenue Growth but Decline in Profitability

Yinsheng Digifavor Company Limited announced its unaudited consolidated interim results for the six months ending June 30, 2025. The company reported a revenue increase to RMB 69,917,000 from RMB 61,312,000 in the same period of 2024. However, profit before income tax decreased significantly to RMB 14,124,000 from RMB 28,897,000, attributed to higher distribution and selling expenses, as well as increased finance costs. The profit attributable to owners of the company also fell to RMB 12,463,000 from RMB 21,315,000, reflecting challenges in maintaining profitability despite revenue growth.

The most recent analyst rating on (HK:3773) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on NNK Group Ltd stock, see the HK:3773 Stock Forecast page.

Yinsheng Digifavor Schedules Board Meeting for Interim Results

Yinsheng Digifavor Company Limited has announced that its board of directors will meet on August 27, 2025, to discuss and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the potential payment of an interim dividend, reflecting the company’s ongoing financial management and shareholder engagement strategies.

Yinsheng Digifavor Issues Profit Warning Amid Strategic Investments

Yinsheng Digifavor Company Limited has issued a profit warning, anticipating a significant decrease in profits for the first half of 2025 compared to the same period in 2024. The decline, projected to be between 40% to 45%, is attributed to increased investments in digital equity product development and higher costs in their mobile services segment, impacting the company’s gross profit margin.