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SK Target Group Ltd. (8427) AI Stock Analysis
SK Target Group Ltd.
(HKEX:8427)
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.
SK Target Group Ltd. (8427) vs. iShares MSCI Hong Kong ETF (EWH)
- Market Cap
- HKD 55.67M
- Dividend Yield
- ―
- Average Volume (3M)
- 7,996
- Price to Earnings (P/E)
- -15.1
- Beta (1Y)
- 0.19
- Revenue Growth
- 18.64%
- EPS Growth
- -2177.88%
- Country
- Hong Kong
- Employees
- 72
- Sector
- Basic Materials
- Sector Strength
- 61
- Industry
- Electrical Equipment & Parts
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 and...
SK Target Group Ltd. Financial Statement Overview
Summary
Financials show a turnaround: revenue improved and profitability recovered since 2023 with gross margin rising to ~30% by 2025. However, net margins remain extremely thin (~0.3% in 2024–2025) and cash flows have been volatile (negative operating/free cash flow in 2024, then strong positive in 2025), limiting confidence in earnings quality and durability.
Income Statement
58NeutralBalance Sheet
72PositiveCash Flow
55Neutral| Breakdown | TTM | May 2025 | May 2024 | May 2023 | May 2022 | May 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 27.46M | 34.87M | 31.55M | 30.68M | 30.30M | 21.29M |
| Gross Profit | 10.33M | 10.24M | 9.39M | 8.56M | 6.92M | 3.57M |
| EBITDA | 4.66M | 3.79M | 3.14M | 2.64M | 2.18M | -118.00K |
| Net Income | -889.00K | -1.95M | 82.00K | 108.00K | 88.00K | -1.92M |
Balance Sheet | ||||||
| Total Assets | 52.42M | 52.47M | 55.16M | 50.61M | 50.66M | 41.69M |
| Cash, Cash Equivalents and Short-Term Investments | 22.98M | 24.19M | 21.55M | 28.23M | 28.07M | 22.80M |
| Total Debt | 4.64M | 4.65M | 7.04M | 3.85M | 4.31M | 1.45M |
| Total Liabilities | 15.94M | 15.95M | 18.45M | 14.31M | 15.48M | 8.78M |
| Stockholders Equity | 36.49M | 36.52M | 36.71M | 36.30M | 35.17M | 32.91M |
Cash Flow | ||||||
| Free Cash Flow | 1.48M | 0 | 2.54M | -1.00M | 3.21M | -1.04M |
| Operating Cash Flow | 3.16M | 0 | 6.47M | -441.00K | 3.50M | -845.00K |
| Investing Cash Flow | -2.57M | 0 | -12.13M | 1.24M | 390.00K | 141.00K |
| Financing Cash Flow | -607.67K | 0 | -285.00K | -54.00K | 1.10M | 434.00K |
SK Target Group Ltd. Technical Analysis
Price Trends
Market Momentum
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 3.36 is above the 20-day moving average (MA) of 3.22, below the 50-day MA of 3.44, and below the 200-day MA of 8.89, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 51.97 is Neutral, neither overbought nor oversold. The STOCH value of 92.96 is Negative, 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
Overall Rating
HK:147366Neutral
HK:172058Neutral
HK:234257Neutral- HK:842752Neutral
HK:996342Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| HK:1473 | 66Neutral | HKD 1.42B | 32.09 | 14.03% | 1.25% | 4.77% | 19.94% |
| Sector * | 61Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
| HK:1720 | 58Neutral | HKD 250.80M | 3.50 | 9.43% | ― | 42.78% | 197.12% |
| HK:2342 | 57Neutral | HKD 2.85B | 101.67 | 0.86% | 0.28% | 4.27% | ― |
| HK:8427 | 52Neutral | HKD 55.67M | -15.14 | -8.82% | ― | 18.64% | -2177.88% |
| HK:9963 | 42Neutral | HKD 3.66B | -49.74 | -14.47% | ― | 76.36% | 48.06% |
* Basic Materials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HK:8427 | SK Target Group Ltd. | 3.36 | -28.08 | -89.31% | |
| HK:2342 | Comba Telecom Systems Holdings | 0.92 | -1.84 | -66.85% | |
| HK:1720 | Putian Communication Group Limited | 0.23 | 0.11 | 96.55% | |
| HK:9963 | Transtech Optelecom Science Holdings Limited | 9.45 | 9.03 | 2150.00% | |
| HK:1473 | Pangaea Connectivity Technology Limited | 1.20 | 0.79 | 189.86% | |
| HK:0638 | Fibocom Wireless, Inc. Class H | 5.52 | -13.66 | -71.22% |
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.
Date of analysis: Jun 23, 2026