Sun Kong Holdings Ltd. (8631) AI Stock Analysis

• Market Cap: HK$58.20M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): -0.07
• 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: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: HK$0.48 ▼(-18.14% Downside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by significant profitability and cash flow challenges, as well as financial distress indicated by negative equity. Technical analysis provides some support with short-term bullish momentum, but valuation metrics remain unattractive due to ongoing losses and lack of dividends.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and demand for the company's products, which is crucial for long-term business sustainability.

Strategic Partnerships

Strategic partnerships enhance production efficiency and market reach, providing a competitive edge that supports sustained business growth.

Product Diversification

Diversified product offerings reduce dependency on a single market, mitigating risks and capturing broader consumer demand.

Negative Factors

Profitability Challenges

Persistent negative profit margins indicate operational inefficiencies and pricing challenges, threatening long-term financial health.

Negative Equity

Negative equity suggests financial instability and potential solvency issues, limiting the company's ability to invest in growth opportunities.

Cash Flow Issues

Insufficient cash flow generation hampers the company's ability to cover losses and invest in future growth, posing a risk to sustainability.

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

Sun Kong Holdings Ltd. faces significant financial challenges across all verticals. Despite strong revenue growth, the company struggles with profitability and cash flow generation. The balance sheet reflects financial distress, with negative equity and high leverage. Overall, the financial health of the company is weak, with substantial risks that need to be addressed to achieve stability and growth.

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	27.99M	55.50M	69.03M	67.72M	230.91M	240.11M
Gross Profit	6.55M	107.00K	5.45M	3.27M	6.89M	2.14M
EBITDA	-19.99M	-35.50M	-7.48M	-8.78M	206.00K	-4.90M
Net Income	-17.59M	-38.57M	-10.66M	-12.07M	-3.13M	-7.50M
Balance Sheet
Total Assets	48.34M	37.05M	50.23M	58.23M	71.59M	64.87M
Cash, Cash Equivalents and Short-Term Investments	476.00K	2.02M	46.00K	376.00K	1.94M	2.06M
Total Debt	7.48M	7.08M	12.12M	12.19M	10.76M	1.99M
Total Liabilities	23.83M	46.33M	20.94M	18.27M	19.57M	9.71M
Stockholders Equity	24.51M	-9.28M	29.30M	39.96M	52.02M	55.16M
Cash Flow
Free Cash Flow	-6.61M	-11.81M	-319.00K	-3.44M	-7.22M	549.00K
Operating Cash Flow	-5.90M	-10.74M	456.00K	79.00K	-6.82M	3.63M
Investing Cash Flow	-706.50K	1.28M	-725.00K	-3.07M	-2.04M	-3.04M
Financing Cash Flow	17.93M	16.03M	-391.00K	1.91M	5.28M	-425.00K

Sun Kong Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.59
• 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 0.59 is above the 20-day moving average (MA) of 0.50, above the 50-day MA of 0.49, and above the 200-day MA of 0.51, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 73.44 is Negative, neither overbought nor oversold. The STOCH value of 50.33 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	69 Neutral	HK$128.00M	9.28	5.81%	―	-14.65%	-2.82%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
8270	52 Neutral	HK$103.47M	-2.30	-31.34%	―	-29.86%	-791.02%
2728	45 Neutral	HK$133.65M	―	-25.25%	―	-0.55%	-340.00%
8631	43 Neutral	HK$58.20M	-0.50	-632.63%	―	280.64%	-122.27%
0332	40 Underperform	HK$130.91M	-0.06	―	―	-76.52%	-630.18%