TK Group (Holdings) Ltd. (2283) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

TK Group (Holdings) Ltd.

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Why is TK Group (Holdings) Ltd. ?

High Management Efficiency with a high ROE of 14.67%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 31.78

Poor long term growth as Net Sales has grown by an annual rate of 3.36% and Operating profit at 2.80% over the last 5 years

Negative results in Dec 25

OPERATING CASH FLOW(Y) Lowest at HKD 757.22 MM
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
ROCE(HY) Lowest at 12.4%

With ROE of 15.50%, it has a Fair valuation with a 1.19 Price to Book Value

Over the past year, while the stock has generated a return of 10.19%, its profits have risen by 17.3% ; the PEG ratio of the company is 0.4

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to TK Group (Holdings) Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is TK Group (Holdings) Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

TK Group (Holdings) Ltd.

10.19%

0.84

31.66%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.36%

EBIT Growth (5y)

2.80%

EBIT to Interest (avg)

31.78

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.64

Sales to Capital Employed (avg)

1.25

Tax Ratio

21.46%

Dividend Payout Ratio

39.95%

Pledged Shares

Institutional Holding

ROCE (avg)

33.14%

ROE (avg)

14.67%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.19

EV to EBIT

3.72

EV to EBITDA

2.19

EV to Capital Employed

1.49

EV to Sales

0.41

PEG Ratio

0.44

Dividend Yield

ROCE (Latest)

40.17%

ROE (Latest)

15.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 14,508.26

CASH AND EQV(HY)

Highest at HKD 1,174.43 MM

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD 757.22 MM

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

ROCE(HY)

Lowest at 12.4%

RAW MATERIAL COST(Y)

Grown by 16.84% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -58.99 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.13 times

DIVIDEND PER SHARE(HY)

Lowest at HKD 5.13

Here's what is working for TK Group (Holdings) Ltd.

Interest Coverage Ratio

Highest at 14,508.26

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Cash and Eqv

Highest at HKD 1,174.43 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for TK Group (Holdings) Ltd.

Operating Cash Flow

Lowest at HKD 757.22 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Dividend Payout Ratio

Lowest at 0% and Fallen

In each year in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Debt-Equity Ratio

Highest at -58.99 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 5.13 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at HKD 5.13

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (HKD)

Raw Material Cost

Grown by 16.84% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales