Sun Kong Holdings Ltd. (8631) AI Stock Analysis

• Market Cap: HK$114.00M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.03
• Revenue Growth: 280.64%
• EPS Growth: -122.27%
• Country: HK
• Employees: 43
• Sector: Energy
• Sector Strength: 52
• Industry: Regulated Electric
• EPS (TTM): -0.09
• Shares Outstanding: 120,000,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: >-0.01
• Price to Book (P/B): -2.28
• Price to Sales (P/S): 0.38
• P/FCF Ratio: -1.80
• 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: 47 Neutral
• Price Target: HK$0.94 ▲(95.00% Upside)

The score is held down primarily by weak financial health—large losses, negative cash flows, and negative equity indicating solvency risk. Technicals provide a partial offset with strong momentum and the price well above key moving averages, but the elevated RSI suggests the move may be overextended. Valuation is also constrained by negative earnings and no dividend yield data.

Positive Factors

Revenue Growth

Sustained near-doubling of revenue indicates meaningful demand traction and market expansion. Over a multi-month horizon, high top-line growth can support operating leverage, provide scale to absorb fixed costs, and create runway for restructuring toward profitability if costs are controlled.

Regulated Industry

Operating in the regulated electric sector tends to create stable, predictable demand and regulatory barriers to entry. This structural backdrop supports long-term revenue visibility and lower cyclicality, enabling more dependable planning of capital spending and service investments.

Improving Free Cash Flow Trend

Positive movement in free cash flow, even from negative levels, signals initial improvement in cash conversion. If sustained, this trend reduces reliance on external financing, supports deleveraging and working capital normalization, and improves solvency prospects over months.

Negative Factors

Negative Equity / Solvency Risk

A negative equity position indicates solvency stress and limited balance-sheet flexibility. Over time this increases refinancing and covenant risks, constrains access to capital, and can force dilutive or costly remedial measures, undermining the firm's ability to invest or sustain operations.

Deep Negative Profitability

Very low gross margin and deeply negative net margin point to structural profitability issues—minimal pricing power or high COGS. Without durable margin improvement or a clear cost-transformation plan, sustained losses will erode cash reserves and limit the firm's ability to scale profitably.

Negative Operating Cash Flow

Persistently negative operating cash flow signals poor cash generation from core activities, forcing dependence on external funding to meet obligations. Over a multi-month timeframe this impairs reinvestment ability, raises liquidity risk, and increases the likelihood of restructuring or asset sales.

Sun Kong Holdings Ltd. Business Overview & Revenue Model

Company Description

Sun Kong Holdings Limited, an investment holding company, engages in the sale and transportation of diesel oil and diesel exhaust fluid in Hong Kong. It also sells steam coal. The company serves logistics sector. The company was founded in 2002 and is headquartered in Yuen Long, Hong Kong. Sun Kong Holdings Limited is a subsidiary of Fully Fort Group Limited.

How the Company Makes Money

Sun Kong Holdings generates revenue through multiple key streams, including the sale of consumer goods in the electronics, textiles, and food and beverage sectors. The company earns income from direct sales to retailers and wholesalers, as well as through online platforms. Additionally, Sun Kong Holdings benefits from strategic partnerships with manufacturers and distributors, which allows for cost-effective production and broad market reach. The company's revenue is further supported by its commitment to quality and innovation, which helps maintain customer loyalty and attract new clients, thereby driving sales growth.

Sun Kong Holdings Ltd. Financial Statement Overview

Summary

Despite strong revenue growth (+98.25%), fundamentals are weak: persistent losses (net margin -69.50%), negative EBIT/EBITDA margins, and an extremely low gross margin (0.19%). The balance sheet is distressed with negative stockholders' equity, and cash flow is negative (operating and free cash flow), indicating poor cash generation and elevated solvency risk.

Income Statement

Sun Kong Holdings Ltd. has experienced significant revenue growth, with a 98.25% increase in the latest year. However, profitability remains a concern as the company has consistently reported negative net profit margins, with the most recent margin at -69.50%. The EBIT and EBITDA margins are also negative, indicating operational challenges. The gross profit margin is extremely low at 0.19%, suggesting minimal pricing power or high cost of goods sold.

Balance Sheet

The company's balance sheet shows a concerning negative stockholders' equity, leading to a negative debt-to-equity ratio. This indicates financial instability and potential solvency issues. The return on equity is positive at 415.75%, but this is due to the negative equity, which distorts the metric. The equity ratio is negative, further highlighting the financial distress.

Cash Flow

Sun Kong Holdings Ltd. has negative operating and free cash flows, with a free cash flow to net income ratio of 1.10, indicating that cash flow generation is insufficient to cover net losses. The operating cash flow to net income ratio is negative, reflecting poor cash conversion from operations. Although there is some free cash flow growth, it is from a negative base, which is not sustainable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	83.45M	55.50M	69.03M	67.72M	230.91M	240.11M
Gross Profit	-365.00K	107.00K	5.45M	3.27M	6.89M	2.14M
EBITDA	-48.45M	-35.50M	-7.48M	-8.78M	206.00K	-4.90M
Net Income	-52.28M	-38.57M	-10.66M	-12.07M	-3.13M	-7.50M
Balance Sheet
Total Assets	48.64M	37.05M	50.23M	58.23M	71.59M	64.87M
Cash, Cash Equivalents and Short-Term Investments	1.65M	2.02M	46.00K	376.00K	1.94M	2.06M
Total Debt	6.69M	7.08M	12.12M	12.19M	10.76M	1.99M
Total Liabilities	61.37M	46.33M	20.94M	18.27M	19.57M	9.71M
Stockholders Equity	-12.73M	-9.28M	29.30M	39.96M	52.02M	55.16M
Cash Flow
Free Cash Flow	-6.23M	-11.81M	-319.00K	-3.44M	-7.22M	549.00K
Operating Cash Flow	-6.16M	-10.74M	456.00K	79.00K	-6.82M	3.63M
Investing Cash Flow	1.95M	1.28M	-725.00K	-3.07M	-2.04M	-3.04M
Financing Cash Flow	8.36M	16.03M	-391.00K	1.91M	5.28M	-425.00K

Sun Kong Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8631, the sentiment is Positive. The current price of 0.48 is below the 20-day moving average (MA) of 0.62, below the 50-day MA of 0.57, and below the 200-day MA of 0.52, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 70.39 is Negative, neither overbought nor oversold. The STOCH value of 48.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
1621	73 Outperform	HK$131.00M	9.49	5.81%	―	-14.65%	-2.82%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
8270	55 Neutral	HK$173.75M	-3.86	-31.34%	―	-29.86%	-791.02%
8631	47 Neutral	HK$114.00M	-1.02	-632.63%	―	280.64%	-122.27%
2728	42 Neutral	HK$111.38M	-6.94	-25.25%	―	-0.55%	-340.00%
0332	40 Underperform	HK$117.82M	-0.06	―	―	-76.52%	-630.18%