SK Target Group Ltd. (HK:8427)
:8427
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SK Target Group Ltd.
(8427)
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Rating:52Neutral
Price Target:
HK$10.50
▼(-57.97% Downside)
Action:ReiteratedDate:03/24/26
The score is driven primarily by improving financial performance (profitability recovery and stronger gross margins) but constrained by very thin net margins and uneven cash flow. Technicals are notably weak with the stock below all major moving averages and negative MACD. Valuation is difficult to assess due to unusable/missing P/E and dividend yield data, adding uncertainty.
Positive Factors
Gross margin expansion
A sustained rise in gross margin from ~17% to ~30% implies improved pricing, cost structure, or higher-value service mix. This structural margin improvement enhances operating leverage, easing the path to durable operating profitability even if revenue growth moderates.
Negative Factors
Very thin net margins
Net margins near zero mean limited earnings power and a very small buffer against cost inflation or client revenue swings. Even modest adverse changes in costs, pricing, or utilization can wipe out profits, constraining reinvestment, hiring, and long-term margin improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Gross margin expansion
A sustained rise in gross margin from ~17% to ~30% implies improved pricing, cost structure, or higher-value service mix. This structural margin improvement enhances operating leverage, easing the path to durable operating profitability even if revenue growth moderates.
Read all positive factors
SK Target Group Ltd. (8427) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$171.48M
Dividend YieldN/A
Average Volume (3M)57.21K
Price to Earnings (P/E)―
Beta (1Y)-0.62
Revenue Growth8.17%
EPS Growth-22.45%
CountryHK
Employees70
SectorBasic Materials
Sector Strength58
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.09
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 company, manufactures and trades in precast concrete junction boxes under the Target brand name in Malaysia. The company operates through Manufacturing and Trading; Other Building Materials and Servic...
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 | May 2024 | May 2023 | May 2022 | May 2021 | May 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 31.55M | 30.68M | 30.30M | 21.29M | 21.07M |
| Gross Profit | 9.39M | 8.56M | 6.92M | 3.57M | 4.67M |
| EBITDA | 2.49M | 2.64M | 2.18M | -118.00K | -1.01M |
| Net Income | 82.00K | 108.00K | 88.00K | -1.92M | -4.85M |
Balance Sheet | |||||
| Total Assets | 55.16M | 50.61M | 50.66M | 41.69M | 42.41M |
| Cash, Cash Equivalents and Short-Term Investments | 21.55M | 28.23M | 28.07M | 23.64M | 23.20M |
| Total Debt | 7.04M | 3.85M | 4.31M | 1.45M | 1.53M |
| Total Liabilities | 18.45M | 14.31M | 15.48M | 8.78M | 8.82M |
| Stockholders Equity | 36.71M | 36.30M | 35.17M | 32.91M | 33.59M |
Cash Flow | |||||
| Free Cash Flow | 2.54M | -1.00M | 3.21M | -1.04M | -1.62M |
| Operating Cash Flow | 6.47M | -441.00K | 3.50M | -845.00K | 122.00K |
| Investing Cash Flow | -12.13M | 1.24M | 390.00K | 141.00K | -1.28M |
| Financing Cash Flow | -285.00K | -54.00K | 1.10M | 434.00K | 1.56M |
SK Target Group Ltd. Technical Analysis
Negative
24.98
Price Trends
15.48
Negative
20.46
Negative
25.00
Negative
Market Momentum
-1.60
Positive
31.20
Neutral
26.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8427, the sentiment is Negative. The current price of 24.98 is above the 20-day moving average (MA) of 12.27, above the 50-day MA of 15.48, and below the 200-day MA of 25.00, indicating a bearish trend. The MACD of -1.60 indicates Positive momentum. The RSI at 31.20 is Neutral, neither overbought nor oversold. The STOCH value of 26.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$533.26M | 7.47 | 12.27% | 2.53% | 19.80% | ― | |
65 Neutral | HK$756.20M | 1.60 | 7.29% | ― | -9.34% | 605.26% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
56 Neutral | HK$605.00M | 3.36 | 3.54% | ― | 8.78% | 160.00% | |
52 Neutral | HK$171.48M | ― | -0.75% | ― | 8.17% | -22.45% | |
47 Neutral | HK$548.00M | 110.06 | -0.09% | ― | -23.93% | -109.41% | |
46 Neutral | HK$86.81M | -1.99 | -30.01% | ― | -58.81% | -10.51% |
* Basic Materials Sector Average
HK:8427
SK Target Group Ltd.
10.35
-6.15
-37.27%
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0.55
0.45
450.00%
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Nanfang Communication Holdings Ltd.
0.47
0.37
389.47%
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.