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Happy City Holdings Limited Class A
(NASDAQ:HCHL)
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Rating:46Neutral
Price Target:
$4.00
▼(-9.50% Downside)
Action:Reiterated
Date:06/09/26
The score is held down primarily by deteriorating financial performance (2025 loss, margin compression, and renewed cash burn) and remaining leverage risk. Technicals are supportive due to strong upward momentum, but the overbought RSI reduces confidence. Valuation is also a headwind because the company is currently loss-making (negative P/E) and no dividend yield is available.
Positive Factors
Standby equity facility ($20M)
The $20M standby equity facility materially increases financing optionality over the next 36 months. As an on‑demand, non‑obligatory equity backstop it can shore up liquidity, fund operations or capex and reduce short‑term refinancing pressure while preserving operational continuity.
Negative Factors
Revenue decline and margin compression
Sharp revenue contraction and material margin erosion reflect weakening unit economics and lost scale. Sustained revenue declines and compressed gross margins undermine durable profitability, making it harder to cover fixed costs and recover prior returns without structural fixes to mix, pricing or cost base.
Read all positive and negative factors
Positive Factors
Negative Factors
Standby equity facility ($20M)
The $20M standby equity facility materially increases financing optionality over the next 36 months. As an on‑demand, non‑obligatory equity backstop it can shore up liquidity, fund operations or capex and reduce short‑term refinancing pressure while preserving operational continuity.
Read all positive factors
Happy City Holdings Limited Class A (HCHL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$117.90M
Dividend YieldN/A
Average Volume (3M)139.16K
Price to Earnings (P/E)―
Beta (1Y)-0.02
Revenue Growth-17.78%
EPS Growth-284.09%
CountryUS
Employees38
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)N/A
Shares Outstanding17,772,000
10 Day Avg. Volume114,894
30 Day Avg. Volume139,159
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)27.12
Price to Sales (P/S)8.80
P/FCF Ratio-27.51
Enterprise Value/Market Cap0.52
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Happy City Holdings Limited Class A Business Overview & Revenue Model
Company Description
Happy City Holdings Limited, a company established in 2019 and based in Kwai Chung, manages three all-you-can-eat Thai and Japanese hotpot dining establishments throughout Hong Kong, operating them via its fully owned subsidiaries....
Happy City Holdings Limited Class A Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
34
Negative
Cash Flow
22
Negative
| Breakdown | Aug 2025 | Aug 2024 | Aug 2023 |
|---|---|---|---|
Income Statement | |||
| Total Revenue | 6.80M | 8.30M | 6.75M |
| Gross Profit | 856.95K | 2.26M | 769.92K |
| EBITDA | -1.62M | 2.88M | 357.31K |
| Net Income | -2.43M | 1.32M | -1.09M |
Balance Sheet | |||
| Total Assets | 8.02M | 6.97M | 4.04M |
| Cash, Cash Equivalents and Short-Term Investments | 3.69M | 2.94M | 184.74K |
| Total Debt | 4.55M | 4.93M | 3.90M |
| Total Liabilities | 5.81M | 6.37M | 5.50M |
| Stockholders Equity | 2.21M | 601.97K | -1.46M |
Cash Flow | |||
| Free Cash Flow | -2.18M | 493.27K | -685.77K |
| Operating Cash Flow | -1.27M | 1.27M | -676.22K |
| Investing Cash Flow | -1.22M | -771.74K | -9.55K |
| Financing Cash Flow | 2.90M | 2.26M | 392.09K |
Happy City Holdings Limited Class A Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $106.92M | -4.47 | 50.91% | ― | 0.19% | 46.85% | |
60 Neutral | $16.36M | 7.35 | 5.46% | ― | -5.81% | 78.41% | |
54 Neutral | $4.08M | 3.73 | 0.46% | ― | 0.23% | -177.05% | |
46 Neutral | $117.90M | -30.97 | -173.01% | ― | -17.78% | -284.09% | |
45 Neutral | $11.01M | -0.69 | -1624.34% | ― | 90.26% | -9.15% | |
45 Neutral | $30.50M | -131.10 | 203.49% | ― | ― | ― |
* Consumer Cyclical Sector Average
HCHL
Happy City Holdings Limited Class A
3.96
1.05
36.08%
GTIM
Good Times Restaurants
1.55
-0.12
-7.19%
NDLS
Noodles & Co
17.92
12.07
206.22%
REBN
Reborn Coffee, Inc.
1.34
-1.83
-57.73%
CHSN
Chanson International Holding Class A
1.12
-326.88
-99.66%
PC
Premium Catering (Holdings) Ltd.
9.40
2.53
36.83%
Happy City Holdings Limited Class A Corporate Events
Happy City Holdings Announces Board Resignation and Committee Leadership Change
Jul 28, 2026
On July 27, 2026, Happy City Holdings Limited announced that independent director Ho Wai Alan, Chung tendered his resignation from the board, effective July 31, 2026, stepping down from his roles as chair of the nominating committee and member of ...
Happy City Holdings Responds to Nasdaq as Trading Halt Persists
Jul 17, 2026
On June 11, 2026, Happy City Holdings Limited received an SEC order that suspended trading in its securities from June 12 to June 26, 2026, followed by a Nasdaq information request and a trading halt in its Class A ordinary shares announced on Jun...
Happy City Holdings Faces Ongoing Nasdaq Trading Halt After SEC Suspension
Jul 9, 2026
Happy City Holdings Limited, a Singapore-based foreign private issuer with Class A ordinary shares listed on Nasdaq, operates under the U.S. Securities Exchange Act as a Form 20-F filer. The company’s governance, led by CEO and director Suk ...
Happy City Holdings Trading Halted After SEC Flags Social Media-Linked Manipulation Concerns
Jun 16, 2026
On June 11, 2026, Happy City Holdings Limited disclosed that the U.S. Securities and Exchange Commission ordered a temporary suspension of trading in its securities from 4:00 a.m. ET on June 12, 2026, through 11:59 p.m. ET on June 26, 2026. The SE...
Happy City Holdings Regains Nasdaq Compliance, Avoids Delisting Risk
Jun 9, 2026
On January 23, 2026, Happy City Holdings Limited was notified by Nasdaq that it no longer met the required $2.5 million stockholders’ equity threshold or the alternative listing standards, including the $35 million minimum market value of li...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.