Happy City Holdings Limited Class A (HCHL)
NASDAQ:HCHL
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Happy City Holdings Limited Class A
(NASDAQ:HCHL)
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Rating:40Underperform
Price Target:
$1.50
▼(-66.06% Downside)
Action:DowngradedDate:03/19/26
The score is driven primarily by deteriorating financial performance (sharp 2025 margin compression, net loss, and renewed cash burn) and still-elevated leverage despite improvement. Technicals add modest pressure given a weak longer-term trend and negative MACD, while valuation cannot be supported with the provided P/E and dividend yield data.
Positive Factors
PIPE financing bolsters liquidity
The ~US$3.0M private placement meaningfully replenishes the company’s cash buffer and extends runway versus immediate burn. This structural capital injection reduces near-term financing pressure, enabling execution of operations and strategic initiatives while management addresses underlying operating issues.
Negative Factors
Severe margin and profit deterioration
Sharp deterioration in revenue and margins signals weakening unit economics and pressure on pricing or costs. Such structural margin erosion undermines durable profitability, reduces the company’s ability to self-fund operations, and heightens the need for operational fixes or recurring external capital.
Read all positive and negative factors
Positive Factors
Negative Factors
PIPE financing bolsters liquidity
The ~US$3.0M private placement meaningfully replenishes the company’s cash buffer and extends runway versus immediate burn. This structural capital injection reduces near-term financing pressure, enabling execution of operations and strategic initiatives while management addresses underlying operating issues.
Read all positive factors
Happy City Holdings Limited Class A (HCHL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$30.03M
Dividend YieldN/A
Average Volume (3M)139.16K
Price to Earnings (P/E)―
Beta (1Y)0.56
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees104
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 Cap2.03
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
Operates three all-you-can-eat Thai and Japanese hotpot restaurants in Hong Kong through wholly owned subsidiaries, established in 2019 and headquartered in Kwai Chung...
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% | |
60 Neutral | $108.36M | -0.90 | -1.47% | ― | 21.20% | ― | |
49 Neutral | $47.75M | -0.76 | 132.11% | ― | -0.35% | -37.02% | |
48 Neutral | $12.78M | 17.64 | 3.18% | ― | 1.84% | 12.10% | |
46 Neutral | $14.64M | -0.90 | 2210.86% | ― | 21.10% | -18.56% | |
44 Neutral | $118.63M | -6.82 | 203.49% | ― | -15.43% | -310.94% | |
40 Underperform | $30.03M | ― | -173.01% | ― | ― | ― |
* Consumer Cyclical Sector Average
HCHL
Happy City Holdings Limited Class A
1.69
-3.69
-68.59%
GTIM
Good Times Restaurants
1.21
-0.85
-41.26%
NDLS
Noodles & Co
8.11
0.43
5.60%
REBN
Reborn Coffee, Inc.
2.45
-0.98
-28.57%
CHSN
Chanson International Holding Class A
2.78
-20.80
-88.21%
PC
Premium Catering (Holdings) Ltd.
9.40
1.75
22.88%
Happy City Holdings Limited Class A Corporate Events
Happy City Holdings Announces Resignation of Independent Director Suet Man Mak
Apr 1, 2026
Happy City Holdings Limited reported that on March 31, 2026, its board of directors received and accepted the immediate resignation of independent director Ms. Suet Man, Mak. The company stated that Ms. Mak stepped down for personal reasons and th...
Happy City Holdings Names New Chief Financial Officer After February Resignation
Mar 5, 2026
On February 23, 2026, Happy City Holdings Limited’s Chief Financial Officer, Ms. Wai Man Ao, submitted her resignation, which the board accepted on February 28, 2026, with the company stating her departure did not arise from any disagreement...
Happy City Holdings Raises US$3 Million via PIPE Financing Closed on March 2, 2026
Mar 4, 2026
On February 27, 2026, Happy City Holdings Limited entered into a private placement subscription agreement with a group of individual and institutional investors to issue 10,560,000 Class A ordinary shares at US$0.28 per share, raising US$2,956,800...
Happy City Holdings Warned by Nasdaq Over Minimum Equity Shortfall
Jan 27, 2026
On January 23, 2026, Happy City Holdings Limited received a notice from Nasdaq’s Listing Qualifications staff stating that the company no longer meets the Nasdaq Capital Market’s minimum stockholders’ equity requirement of $2.5 m...
Happy City Holdings Adds Independent Director Suet Man Mak to Board and Key Committees
Jan 20, 2026
On January 15, 2026, Happy City Holdings Limited expanded its board by one seat and appointed finance executive Suet Man Mak, 39, as an independent director, with the appointment disclosed in a January 20, 2026 filing. Mak, a seasoned corporate fi...
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.
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