SEHK:8427

Stock Analysis Report

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Executive Summary

SK Target Group Limited, an investment holding company, manufactures and trades in precast concrete junction boxes under the Target brand name in Malaysia.


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

How has SK Target Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8427's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.4%

8427

4.4%

HK Basic Materials

1.2%

HK Market


1 Year Return

-27.0%

8427

40.2%

HK Basic Materials

5.4%

HK Market

Return vs Industry: 8427 underperformed the Hong Kong Basic Materials industry which returned 40.2% over the past year.

Return vs Market: 8427 underperformed the Hong Kong Market which returned 5.4% over the past year.


Shareholder returns

8427IndustryMarket
7 Day-1.4%4.4%1.2%
30 Day1.4%14.5%-2.7%
90 Day-57.3%4.9%6.9%
1 Year-27.0%-27.0%46.5%40.2%9.7%5.4%
3 Year-90.6%-90.6%105.7%83.4%3.5%-7.6%
5 Yearn/a119.4%88.8%12.0%-6.8%

Price Volatility Vs. Market

How volatile is SK Target Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is SK Target Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 8427 (HK$0.07) is trading below our estimate of fair value (HK$0.18)

Significantly Below Fair Value: 8427 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8427 is unprofitable, so we can't compare its PE Ratio to the HK Basic Materials industry average.

PE vs Market: 8427 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8427's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8427 is good value based on its PB Ratio (0.7x) compared to the HK Basic Materials industry average (0.9x).


Next Steps

Future Growth

How is SK Target Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

1.6%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as SK Target Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has SK Target Group performed over the past 5 years?

-48.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8427 is currently unprofitable.

Growing Profit Margin: 8427 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 8427 is unprofitable, and losses have increased over the past 5 years at a rate of 48.1% per year.

Accelerating Growth: Unable to compare 8427's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8427 is unprofitable, making it difficult to compare its past year earnings growth to the Basic Materials industry (6.4%).


Return on Equity

High ROE: 8427 has a negative Return on Equity (-7.72%), as it is currently unprofitable.


Next Steps

Financial Health

How is SK Target Group's financial position?


Financial Position Analysis

Short Term Liabilities: 8427's short term assets (MYR38.8M) exceed its short term liabilities (MYR9.4M).

Long Term Liabilities: 8427's short term assets (MYR38.8M) exceed its long term liabilities (MYR2.5M).


Debt to Equity History and Analysis

Debt Level: 8427 is debt free.

Reducing Debt: 8427 had no debt 5 years ago.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 8427 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 8427 is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 15.2% per year.


Next Steps

Dividend

What is SK Target Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 8427's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 8427's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 8427's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8427's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 8427's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Swee Loh (52 yo)

no data

Tenure

RM373,000

Compensation

Mr. Swee Keong Loh has been a Compliance Officer of SK Target Group Ltd. since June 13, 2018. He serves as Chairman and Chief Executive Officer at SK Target Group Limited and has been its Executive Directo ...


CEO Compensation Analysis

Compensation vs Market: Swee's total compensation ($USD89.15K) is below average for companies of similar size in the Hong Kong market ($USD230.44K).

Compensation vs Earnings: Swee's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Swee Loh
Chairmanno dataRM373.00k34.67%
MYR 17.4m
Mun Wong
Chief Financial Officerno datano datano data
Hong Ma
Operations Managerno datano datano data
Xue Phang
Chief Project Officer4.58yrsno datano data
Rongkai Deng
Executive Director0.92yrno datano data
Tze Leung
Company Secretary1.75yrsno datano data

1.8yrs

Average Tenure

44.5yo

Average Age

Experienced Management: 8427's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Swee Loh
Chairmanno dataRM373.00k34.67%
MYR 17.4m
Rongkai Deng
Executive Director0.92yrno datano data
She Ma
Independent Non-Executive Director1.67yrsRM39.00kno data
Kin Ming Chu
Independent Non-Executive Director3.17yrsRM79.00kno data
Ka Yau
Independent Non-Executive Director3.17yrsRM79.00kno data

2.4yrs

Average Tenure

39yo

Average Age

Experienced Board: 8427's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 8427 insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11%.


Top Shareholders

Company Information

SK Target Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SK Target Group Limited
  • Ticker: 8427
  • Exchange: SEHK
  • Founded: 1993
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: HK$50.239m
  • Shares outstanding: 688.20m
  • Website: https://www.targetprecast.com

Number of Employees


Location

  • SK Target Group Limited
  • No. 18, Jalan LP 2A/2
  • Taman Lestari Perdana
  • Seri Kembangan
  • Selangor
  • 43300
  • Malaysia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8427SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2017

Biography

SK Target Group Limited, an investment holding company, manufactures and trades in precast concrete junction boxes under the Target brand name in Malaysia. The company operates through Manufacturing and Tr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/10 12:48
End of Day Share Price2020/08/07 00:00
Earnings2020/02/29
Annual Earnings2019/05/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.