SK Target Group Ltd. (8427) AI Stock Analysis

• Market Cap: HK$345.84M
• Dividend Yield: N/A
• Average Volume (3M): 102.36K
• Price to Earnings (P/E): 896.2
• Beta (1Y): -0.53
• Revenue Growth: 4.23%
• EPS Growth: -40.55%
• Country: HK
• Employees: 70
• Sector: Technology
• Sector Strength: 95
• Industry: Communication Equipment
• EPS (TTM): 0.02
• Shares Outstanding: 16,351,631
• 10 Day Avg. Volume: 46,891
• 30 Day Avg. Volume: 102,362
• PEG Ratio: 7.70
• Price to Book (P/B): 4.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -64.70
• 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$22.00
• Price Target Upside: 4.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: HK$21.00 ▼(-0.71%Downside)

The overall stock score is influenced primarily by solid technical momentum and a strong balance sheet. However, significant concerns arise from the extremely high P/E ratio indicating overvaluation, coupled with liquidity issues stemming from negative cash flow. These factors collectively moderate the overall score.

SK Target Group Ltd. Business Overview & Revenue Model

Company Description

SK Target Group Ltd. (8427) is a company engaged in the provision of corporate consultancy services. The company primarily operates in sectors such as financial advisory, corporate restructuring, and other consultancy services tailored to assist businesses in managing their operations more efficiently. It serves a diverse clientele, including small to medium-sized enterprises in various industries.

How the Company Makes Money

SK Target Group Ltd. generates revenue through its consultancy services. The company's primary revenue streams include fees charged for corporate advisory services, which encompass financial advisory for mergers and acquisitions, restructuring services, and other specialized consultancy projects. Additionally, SK Target Group Ltd. may engage in partnerships with other firms or consultants to expand their service offerings and reach a broader client base. The company's earnings are influenced by its ability to maintain a strong client portfolio and deliver high-quality consultancy services that meet the evolving needs of its clients.

SK Target Group Ltd. Financial Statement Overview

Summary

SK Target Group Ltd. shows positive revenue growth and improving gross profit margins, but net profitability remains weak. The balance sheet is strong with low leverage and a high equity ratio, providing financial stability. However, cash flow challenges persist, with negative operating cash flow and declining free cash flow, highlighting liquidity risks.

Income Statement

The company has demonstrated a positive trend in revenue growth with a 1.25% increase over the past year. Gross profit margins have improved to 27.9%, reflecting better cost management. However, the net profit margin remains low at 0.35%, indicating challenges in translating revenue growth into significant net earnings. EBIT and EBITDA margins show improvement, but overall profitability is still constrained.

Balance Sheet

The balance sheet shows a strong equity position with an equity ratio of 71.7%, indicating financial stability. The debt-to-equity ratio is low at 0.11, reflecting minimal leverage and reduced financial risk. Return on equity is modest at 0.30%, suggesting limited returns for shareholders despite the strong equity base.

Cash Flow

Cash flow from operating activities is negative, reflecting challenges in generating cash from operations. The free cash flow has decreased, indicating issues with liquidity and cash management. Both operating cash flow to net income and free cash flow to net income ratios are concerning, suggesting difficulties in converting earnings into actual cash flow.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	30.68M	30.30M	21.29M	22.62M	23.01M
Gross Profit	8.56M	6.92M	3.57M	5.53M	6.68M
EBITDA	2.64M	2.18M	-118.00K	-1.01M	-423.00K
Net Income	108.00K	88.00K	-1.92M	-4.85M	-4.43M
Balance Sheet
Total Assets	50.61M	50.66M	41.69M	42.41M	46.19M
Cash, Cash Equivalents and Short-Term Investments	28.23M	28.07M	22.80M	23.20M	22.85M
Total Debt	3.85M	4.31M	1.45M	1.53M	3.38M
Total Liabilities	14.31M	15.48M	8.78M	8.82M	10.08M
Stockholders Equity	36.30M	35.17M	32.91M	33.59M	36.11M
Cash Flow
Free Cash Flow	-1.00M	3.21M	-1.04M	-1.62M	106.00K
Operating Cash Flow	-441.00K	3.50M	-845.00K	122.00K	437.00K
Investing Cash Flow	1.24M	390.00K	141.00K	-1.28M	-574.00K
Financing Cash Flow	-54.00K	1.10M	434.00K	1.56M	2.46M

SK Target Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8427, the sentiment is Positive. The current price of 21.15 is above the 20-day moving average (MA) of 19.68, above the 50-day MA of 16.60, and above the 200-day MA of 14.14, indicating a bullish trend. The MACD of 1.03 indicates Negative momentum. The RSI at 65.81 is Neutral, neither overbought nor oversold. The STOCH value of 85.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8427.

SK Target Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1720	61 Neutral	HK$108.90M	5.44	3.16%	―	6.07%	136.36%
1202	60 Neutral	HK$356.00M	287.10	0.15%	―	-26.82%	-56.94%
8427	60 Neutral	HK$345.84M	896.19	0.83%	―	4.23%	-40.55%
1617	59 Neutral	HK$224.42M	5.19	5.02%	―	1.01%	660.00%
Sector *	57 Neutral	HK$14.24B	5.26	-5.75%	5.39%	9.34%	-42.23%
1473	48 Neutral	HK$163.46M	5.44	13.21%	―	61.65%	98.79%
1613	46 Neutral	HK$108.60M	―	-29.38%	―	108.35%	58.07%