SK Target Group Ltd. (8427) AI Stock Analysis

• Market Cap: HK$574.27M
• Dividend Yield: N/A
• Average Volume (3M): 79.21K
• Price to Earnings (P/E): 3070.2
• Beta (1Y): -0.65
• Revenue Growth: 8.17%
• EPS Growth: -22.45%
• Country: HK
• Employees: 70
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Communication Equipment
• EPS (TTM): -0.07
• Shares Outstanding: 16,351,631
• 10 Day Avg. Volume: 69,610
• 30 Day Avg. Volume: 79,212
• PEG Ratio: 0.89
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 7.91
• 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: HK$21.00
• Price Target Upside: -40.21% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: HK$37.00 ▲(5.35% Upside)

The overall stock score of 60 reflects a strong technical position with bullish momentum, but it is tempered by significant valuation concerns due to an extremely high P/E ratio. Financial performance is stable, with low leverage and revenue growth, but profitability and cash flow management need improvement.

SK Target Group Ltd. Business Overview & Revenue Model

Company Description

SK Target Group Ltd. (8427) is a diversified company operating primarily in the fields of logistics and supply chain management. The company specializes in providing integrated solutions that encompass warehousing, transportation, and distribution services. By leveraging advanced technology and industry expertise, SK Target Group Ltd. aims to optimize supply chain efficiencies and enhance service delivery for its clients across various sectors, including retail, manufacturing, and e-commerce.

How the Company Makes Money

SK Target Group Ltd. generates revenue through multiple streams, primarily by offering logistics and supply chain management services to a wide range of clients. Key revenue streams include fees for warehousing services, transportation charges for freight services, and consulting fees for supply chain optimization projects. Additionally, the company may engage in partnerships with major retailers and manufacturers to provide tailored logistics solutions, which can lead to long-term contracts and stable revenue. The integration of technology in its operations also allows SK Target Group Ltd. to improve efficiency and reduce costs, further contributing to its profitability.

SK Target Group Ltd. Financial Statement Overview

Summary

SK Target Group Ltd. shows a solid financial position with low leverage and improving revenue growth. However, profitability is a concern due to low net profit margins and return on equity. Cash flow management needs improvement as declining free cash flow could impact future investments and growth.

Income Statement

SK Target Group Ltd. has shown a steady improvement in revenue with a growth rate of 2.23% in the latest year. The gross profit margin has improved to 29.75%, indicating better cost management. However, the net profit margin remains low at 0.26%, suggesting limited profitability. The EBIT and EBITDA margins are moderate, reflecting operational efficiency improvements.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.19, indicating low leverage and financial stability. The equity ratio stands at 66.56%, showing a strong equity base. However, the return on equity is low at 0.22%, suggesting limited returns on shareholder investments.

Cash Flow

The operating cash flow is positive, but the free cash flow has decreased significantly, indicating potential cash management issues. The free cash flow to net income ratio is 0.39, which is moderate but suggests room for improvement in cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.55M	31.55M	30.68M	30.30M	21.29M	21.07M
Gross Profit	9.39M	9.39M	8.56M	6.92M	3.57M	4.67M
EBITDA	2.12M	2.49M	2.64M	2.18M	-118.00K	-1.01M
Net Income	82.00K	82.00K	108.00K	88.00K	-1.92M	-4.85M
Balance Sheet
Total Assets	55.16M	55.16M	50.61M	50.66M	41.69M	42.41M
Cash, Cash Equivalents and Short-Term Investments	21.55M	21.55M	28.23M	28.07M	23.64M	23.20M
Total Debt	7.04M	7.04M	3.85M	4.31M	1.45M	1.53M
Total Liabilities	18.45M	18.45M	14.31M	15.48M	8.78M	8.82M
Stockholders Equity	36.71M	36.71M	36.30M	35.17M	32.91M	33.59M
Cash Flow
Free Cash Flow	-3.62M	2.54M	-1.00M	3.21M	-1.04M	-1.62M
Operating Cash Flow	-1.14M	6.47M	-441.00K	3.50M	-845.00K	122.00K
Investing Cash Flow	-1.93M	-12.13M	1.24M	390.00K	141.00K	-1.28M
Financing Cash Flow	198.00K	-285.00K	-54.00K	1.10M	434.00K	1.56M

SK Target Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8427, the sentiment is Positive. The current price of 35.12 is above the 20-day moving average (MA) of 33.15, above the 50-day MA of 33.22, and above the 200-day MA of 21.53, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 58.49 is Neutral, neither overbought nor oversold. The STOCH value of 87.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8427.

SK Target Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1473	70 Outperform	HK$515.68M	14.24	12.51%	2.13%	53.77%	―
1720	68 Neutral	HK$165.00M	7.88	3.11%	―	8.78%	160.00%
8427	60 Neutral	HK$574.27M	3,070.18	1.30%	―	8.17%	-22.45%
1617	59 Neutral	HK$206.53M	3.18	4.88%	―	-9.34%	605.26%
1202	48 Neutral	HK$360.00M	-478.95	0.15%	―	-23.93%	-109.41%
1613	41 Neutral	HK$98.72M	-2.68	-30.08%	―	86.85%	-36.65%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%