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SK Target Group Ltd.
(8427)
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Rating:52Neutral
Price Target:
HK$5.50
▼(-77.98% Downside)
Action:Reiterated
Date:06/24/26
The score is driven primarily by a moderate financial turnaround (improving margins and low leverage) but is held back by very thin net profitability and inconsistent cash generation. The technical setup is notably negative with the stock far below key moving averages and bearish momentum indicators, while valuation is difficult to justify due to a negative P/E and no dividend yield data.
Positive Factors
Revenue stabilization and growth
Sustained top-line growth over multiple years suggests the company is regaining market traction and expanding sales reach. A steadier revenue base supports investment planning, economies of scale and reduces reliance on one-off gains, improving predictability of core business cash generation over months.
Negative Factors
Very thin net profitability
Net margins at roughly 0.3% leave minimal room to absorb cost shocks, commodity or labor inflation, or modest revenue declines. Such razor-thin profitability constrains retained earnings, weakens the ability to self-fund growth, and makes reported earnings fragile and sensitive to small operational changes.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue stabilization and growth
Sustained top-line growth over multiple years suggests the company is regaining market traction and expanding sales reach. A steadier revenue base supports investment planning, economies of scale and reduces reliance on one-off gains, improving predictability of core business cash generation over months.
Read all positive factors
SK Target Group Ltd. (8427) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$97.09M
Dividend YieldN/A
Average Volume (3M)57.21K
Price to Earnings (P/E)95.6
Beta (1Y)-0.55
Revenue Growth20.70%
EPS Growth-13.19%
CountryHK
Employees75
SectorBasic Materials
Sector Strength58
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.03
Shares Outstanding16,567,633
10 Day Avg. Volume48,400
30 Day Avg. Volume57,210
Financial Highlights & Ratios
PEG Ratio0.89
Price to Book (P/B)0.55
Price to Sales (P/S)0.64
P/FCF Ratio7.91
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
SK Target Group Ltd. Business Overview & Revenue Model
Company Description
SK Target Group Limited, an investment holding enterprise, primarily focuses on the manufacturing and distribution of precast concrete junction boxes throughout Malaysia, branded under "Target." These concrete components are crucial for upgrading ...
How the Company Makes Money
SK Target Group Ltd. generates revenue primarily through the delivery of its software development services and IT solutions. Its income streams include fees charged for custom application development, ongoing maintenance and support services, cons...
SK Target Group Ltd. Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
72
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | May 2024 | May 2023 | May 2022 | May 2021 | May 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 34.97M | 31.55M | 30.68M | 30.30M | 21.29M | 21.07M |
| Gross Profit | 10.52M | 9.39M | 8.56M | 6.92M | 3.57M | 4.67M |
| EBITDA | 2.89M | 2.49M | 2.64M | 2.18M | -118.00K | -1.01M |
| Net Income | 149.00K | 82.00K | 108.00K | 88.00K | -1.92M | -4.85M |
Balance Sheet | ||||||
| Total Assets | 53.87M | 55.16M | 50.61M | 50.66M | 41.69M | 42.41M |
| Cash, Cash Equivalents and Short-Term Investments | 23.38M | 21.55M | 28.23M | 28.07M | 23.64M | 23.20M |
| Total Debt | 6.31M | 7.04M | 3.85M | 4.31M | 1.45M | 1.53M |
| Total Liabilities | 16.54M | 18.45M | 14.31M | 15.48M | 8.78M | 8.82M |
| Stockholders Equity | 37.34M | 36.71M | 36.30M | 35.17M | 32.91M | 33.59M |
Cash Flow | ||||||
| Free Cash Flow | 1.48M | 2.54M | -1.00M | 3.21M | -1.04M | -1.62M |
| Operating Cash Flow | 3.16M | 6.47M | -441.00K | 3.50M | -845.00K | 122.00K |
| Investing Cash Flow | -1.71M | -12.13M | 1.24M | 390.00K | 141.00K | -1.28M |
| Financing Cash Flow | -407.00K | -285.00K | -54.00K | 1.10M | 434.00K | 1.56M |
SK Target Group Ltd. Technical Analysis
Neutral
24.98
Price Trends
7.24
Negative
10.02
Negative
18.20
Negative
Market Momentum
-0.71
Negative
51.44
Neutral
60.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8427, the sentiment is Neutral. The current price of 24.98 is above the 20-day moving average (MA) of 5.10, above the 50-day MA of 7.24, and above the 200-day MA of 18.20, indicating a neutral trend. The MACD of -0.71 indicates Negative momentum. The RSI at 51.44 is Neutral, neither overbought nor oversold. The STOCH value of 60.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:8427.
SK Target Group Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | HK$1.52B | 34.49 | 11.92% | 2.53% | 4.77% | 20.26% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
54 Neutral | HK$2.66B | -23.53 | -31.28% | ― | -34.98% | -3.65% | |
53 Neutral | HK$2.56B | 66.67 | -11.77% | 0.24% | 0.94% | ― | |
52 Neutral | HK$97.09M | 95.65 | -1.73% | ― | 20.70% | -13.19% | |
48 Neutral | HK$308.00M | 10.54 | 4.16% | ― | 5.62% | 37.91% |
* Basic Materials Sector Average
HK:8427
SK Target Group Ltd.
5.86
-16.44
-73.72%
HK:2342
Comba Telecom Systems Holdings
0.82
-1.09
-56.96%
HK:1720
Putian Communication Group Limited
0.28
0.18
185.71%
HK:9963
Transtech Optelecom Science Holdings Limited
8.91
8.51
2127.50%
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Pangaea Connectivity Technology Limited
1.29
1.11
616.67%
HK:0638
Fibocom Wireless, Inc. Class H
7.38
-11.15
-60.18%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.