Sun Kong Holdings Ltd. (8631) AI Stock Analysis

• Market Cap: HK$58.80M
• Dividend Yield: N/A
• Average Volume (3M): 12.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.11
• Revenue Growth: -74.71%
• EPS Growth: -114.27%
• Country: HK
• Employees: 13
• Sector: Energy
• Sector Strength: 75
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): -0.12
• Shares Outstanding: 120,000,000
• 10 Day Avg. Volume: 11,000
• 30 Day Avg. Volume: 12,766
• PEG Ratio: 72.27
• Price to Book (P/B): 21.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -65.09
• 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

• Rating: 46 Neutral
• Price Target: ―

Sun Kong Holdings Ltd. faces significant financial challenges with declining revenues and negative profitability, leading to a low financial performance score. The technical analysis indicates a bearish trend, adding to the negative outlook. Valuation is further hampered by a negative P/E ratio and the absence of dividend yield. The overall score reflects the need for strategic improvements and a cautious outlook.

Sun Kong Holdings Ltd. Business Overview & Revenue Model

Company Description

Sun Kong Holdings Ltd. (8631) is a company based in Hong Kong, primarily engaged in the construction industry. The company focuses on providing fitting-out and renovation services, mainly for commercial properties. Through its expertise, Sun Kong Holdings provides comprehensive solutions that encompass project management, design, and execution, ensuring high-quality standards and client satisfaction.

How the Company Makes Money

Sun Kong Holdings Ltd. generates revenue primarily through its fitting-out and renovation services for commercial properties. The company earns income by entering into contracts with clients who require modifications and updates to their existing structures. The revenue model is based on project-based contracts where the company charges for its services, including project management, design, and implementation. Sun Kong Holdings may also engage in partnerships or collaborations with suppliers and subcontractors to optimize costs and enhance service delivery, thereby contributing to its profitability.

Sun Kong Holdings Ltd. Financial Statement Overview

Summary

Sun Kong Holdings Ltd. faces significant financial challenges, characterized by declining revenues, negative profitability, and increased leverage. While improvements in cash flow generation are noted, the negative free cash flow and sustained losses highlight the need for strategic improvements to achieve financial stability and growth.

Income Statement

Sun Kong Holdings Ltd. has faced declining revenues over the past few years, with a significant drop from 2020 to 2024. The company consistently reports negative EBIT and net income, reflecting operational challenges and sustained profitability issues. Although there was a slight improvement in gross profit margin in 2024, the overall financial health is strained by negative profitability margins.

Balance Sheet

The company's debt-to-equity ratio has increased, indicating higher leverage, though the equity remains a significant portion of the total assets. The return on equity is negative due to persistent net losses. While the equity ratio is relatively stable, the financial leverage poses a risk to financial stability.

Cash Flow

Cash flow management shows improvement with a positive operating cash flow in 2024, although free cash flow remains negative. The company's ability to generate cash from operations relative to its net income is improving, but the negative free cash flow highlights ongoing challenges in capital expenditure management.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
27.99M	69.03M	67.72M	230.91M	240.11M	351.11M
	Gross Profit
6.55M	5.45M	3.27M	6.89M	2.14M	12.65M
	EBIT
-17.24M	-10.29M	-12.21M	-2.76M	-9.27M	1.59M
	EBITDA
-20.48M	-7.48M	-8.78M	206.00K	-4.90M	4.49M
	Net Income Common Stockholders
-17.59M	-10.66M	-12.07M	-3.13M	-7.50M	1.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
476.00K	46.00K	376.00K	1.94M	2.06M	626.00K
	Total Assets
48.34M	50.23M	58.23M	71.59M	64.87M	67.84M
	Total Debt
7.48M	12.12M	12.19M	10.76M	1.99M	728.00K
	Net Debt
7.00M	12.08M	11.81M	8.82M	-69.00K	102.00K
	Total Liabilities
23.83M	20.94M	18.27M	19.57M	9.71M	5.18M
	Stockholders Equity
24.51M	29.30M	39.96M	52.02M	55.16M	62.66M
Cash Flow		Free Cash Flow
-6.61M	-319.00K	-3.44M	-7.22M	549.00K	-24.55M
	Operating Cash Flow
-5.90M	456.00K	79.00K	-6.82M	3.63M	-18.89M
	Investing Cash Flow
-658.00K	-725.00K	-3.07M	-2.04M	-3.04M	-5.66M
	Financing Cash Flow
11.95M	-391.00K	1.91M	5.28M	-425.00K	-380.00K

Sun Kong Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.57
• 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:8631, the sentiment is Negative. The current price of 0.57 is above the 20-day moving average (MA) of 0.52, above the 50-day MA of 0.50, and below the 200-day MA of 0.62, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 41.44 is Neutral, neither overbought nor oversold. The STOCH value of 68.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8631.

Sun Kong Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	58 Neutral	$7.59B	3.32	-4.46%	9.96%	0.83%	-49.64%
8128	52 Neutral	HK$179.08M	16.00	4.17%	―	2.61%	8.70%
8069	50 Neutral	HK$24.50M	―	-14.53%	―	23.13%	-226.21%
8631	46 Neutral	HK$58.80M	―	-50.95%	―	-74.71%	-114.27%
8213	45 Neutral	HK$194.27M	―		―	-56.57%	-49.64%
8401	37 Underperform	HK$48.11M	―	-128.75%	―	-36.57%	28.77%