Tai Cheung Holdings Limited (0088) AI Stock Analysis

• Market Cap: HK$2.03B
• Dividend Yield: 7.29%
• Average Volume (3M): 219.21K
• Price to Earnings (P/E): 32.4
• Beta (1Y): 0.21
• Revenue Growth: -56.63%
• EPS Growth: -16.16%
• Country: HK
• Employees: 146
• Sector: Real Estate
• Sector Strength: 50
• Industry: Real Estate - Development
• EPS (TTM): 0.04
• Shares Outstanding: 617,531,430
• 10 Day Avg. Volume: 284,286
• 30 Day Avg. Volume: 219,207
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$3.70
• Price Target Upside: 12.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 53 Neutral
• Price Target: HK$3.50 ▲(6.38% Upside)

The overall stock score of 53 reflects the company's financial challenges, particularly with declining revenue and negative cash flows, despite a strong balance sheet. Technical analysis shows moderate bullish momentum, but the high P/E ratio indicates potential overvaluation. The high dividend yield is a positive factor for income-focused investors.

Positive Factors

Financial Position

With net cash of HKD859mn, Tai Cheung is well-positioned to pursue land acquisitions when opportunities arise.

Luxury Home Sales

The decline in HIBOR has lowered mortgage rates, improving homebuyer sentiment and potentially boosting luxury home sales.

Stock Valuation

The stock is trading at a significant discount to the assessed NAV, offering potential upside with a target price set at HKD3.90.

Negative Factors

Net Profit Decline

FY25 net profit fell 16% to HKD62.8mn, slightly below estimates, due to lower-than-expected hotel contribution.

Risk in Tourism

A derailment in inbound tourism is identified as a key risk, which could impact the recovery of hotel operations.

Tai Cheung Holdings Limited Business Overview & Revenue Model

Company Description

Tai Cheung Holdings Limited, an investment holding company, engages in property investment, development, and management businesses in Hong Kong and the United States. The company's property portfolio includes residential, industrial, and office/commercial buildings. It also provides construction and corporate secretary services. The company was founded in 1956 and is headquartered in Central, Hong Kong.

How the Company Makes Money

Tai Cheung Holdings generates revenue primarily through rental income from its property investments, as well as profit from property sales and development projects. The company benefits from long-term leases with commercial tenants, which provide a steady cash flow. Additionally, revenue is supplemented by property development activities where the company undertakes construction projects either for sale or for leasing purposes. Strategic partnerships with real estate firms and local contractors enhance its operational efficiencies and project success. Market demand for quality real estate in Hong Kong and favorable economic conditions also play significant roles in driving the company's earnings.

Tai Cheung Holdings Limited Financial Statement Overview

Summary

Tai Cheung Holdings Limited faces challenges with declining revenue and negative cash flows, despite strong equity and low leverage. The high net profit margin may not be sustainable, and the company needs to address cash flow issues to improve financial health. The balance sheet remains a strong point, providing a buffer against financial instability.

Income Statement

Tai Cheung Holdings Limited's income statement shows a declining trend in revenue with a negative growth rate of -8.40% in the latest year. The gross profit margin is relatively low at 16.67%, and the net profit margin is unusually high at 174.44% due to a significant net income figure, which may indicate one-time gains or accounting adjustments. EBIT and EBITDA margins are also high, suggesting operational efficiency, but the overall revenue decline is concerning.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.0127, indicating minimal leverage and financial stability. Return on equity is modest at 0.99%, suggesting limited profitability relative to equity. The equity ratio is healthy, showing a strong asset base supported by equity.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, with a free cash flow growth rate of 25.83% indicating some improvement. However, the operating cash flow to net income ratio is negative, highlighting cash flow challenges. The free cash flow to net income ratio is slightly above 1, suggesting that cash flow is aligned with net income, but the overall negative cash flow position is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.30M	36.00M	121.70M	105.40M	189.80M	102.70M
Gross Profit	7.00M	6.00M	23.00M	47.70M	60.90M	32.20M
EBITDA	-9.90M	74.60M	40.00M	-6.00M	16.50M	-16.20M
Net Income	75.80M	62.80M	74.90M	-20.00M	2.90M	-28.20M
Balance Sheet
Total Assets	6.70B	6.68B	6.66B	6.77B	6.97B	7.17B
Cash, Cash Equivalents and Short-Term Investments	1.16B	866.40M	1.26B	1.42B	1.79B	2.07B
Total Debt	69.90M	80.60M	39.40M	114.90M	139.40M	203.10M
Total Liabilities	300.60M	328.10M	223.50M	263.20M	298.60M	345.50M
Stockholders Equity	6.40B	6.35B	6.44B	6.51B	6.68B	6.82B
Cash Flow
Free Cash Flow	-232.30M	-292.30M	-101.90M	-111.70M	-91.20M	-1.33B
Operating Cash Flow	-232.00M	-290.50M	-101.40M	-111.40M	-90.90M	-1.33B
Investing Cash Flow	140.80M	94.00M	143.80M	-70.40M	-14.30M	-800.00K
Financing Cash Flow	-99.70M	-106.90M	-223.40M	-163.10M	-213.00M	-237.20M

Tai Cheung Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0088, the sentiment is Positive. The current price of 3.29 is above the 20-day moving average (MA) of 3.26, above the 50-day MA of 3.24, and above the 200-day MA of 2.97, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 58.24 is Neutral, neither overbought nor oversold. The STOCH value of 21.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0088.

Tai Cheung Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$7.09B	13.58	-0.36%	6.87%	4.08%	-25.24%
0194	60 Neutral	HK$1.74B	―	-3.74%	6.10%	54.72%	59.72%
0088	53 Neutral	HK$2.03B	32.35	0.98%	7.29%	-56.63%	-16.16%
0095	45 Neutral	HK$1.64B	―	-28.76%	―	-58.04%	-65.03%
3ZH	―	€37.30M	―	-34.29%	―	―	―
CQH3	―	€102.20M	6.11	-2.79%	―	―	―
USH	―	€254.38M	―	-11.42%	―	―	―

Tai Cheung Holdings Limited Corporate Events

Tai Cheung Holdings Announces 2025 AGM and Key Resolutions

Tai Cheung Holdings Limited has announced its Annual General Meeting (AGM) to be held on August 27, 2025, at the Sheraton Hong Kong Hotel & Towers. The meeting will address several key agenda items, including the approval of financial statements, declaration of a final dividend, election of directors, and appointment of auditors. Additionally, the company will propose resolutions to authorize the repurchase of shares and the issuance of new shares, which could impact the company’s market operations and shareholder value.

The most recent analyst rating on (HK:0088) stock is a Buy with a HK$3.95 price target. To see the full list of analyst forecasts on Tai Cheung Holdings Limited stock, see the HK:0088 Stock Forecast page.

Tai Cheung Holdings Reports Decrease in Annual Profit for 2025

Tai Cheung Holdings Limited reported a decrease in profit for the year ended 31st March 2025, with earnings attributable to equity holders amounting to HK$62.8 million, down from HK$74.9 million the previous year. The decline was mainly due to reduced property sales and lower interest income, although gains on financial assets provided some offset. Despite the drop in profit, the company maintained its total dividend at HK24 cents per share, reflecting stability in shareholder returns.

The most recent analyst rating on (HK:0088) stock is a Buy with a HK$4.22 price target. To see the full list of analyst forecasts on Tai Cheung Holdings Limited stock, see the HK:0088 Stock Forecast page.

Tai Cheung Holdings Announces Final Dividend for FY 2025

Tai Cheung Holdings Limited has announced a final ordinary cash dividend of HKD 0.12 per share for the financial year ending 31 March 2025. This dividend reflects the company’s ongoing commitment to providing shareholder value and may impact investor sentiment positively, with the payment scheduled for 23 September 2025.

The most recent analyst rating on (HK:0088) stock is a Buy with a HK$4.22 price target. To see the full list of analyst forecasts on Tai Cheung Holdings Limited stock, see the HK:0088 Stock Forecast page.

Tai Cheung Holdings to Review Year-End Financials and Dividend Proposal

Tai Cheung Holdings Limited has scheduled a board meeting on June 26, 2025, to approve the company’s final results for the fiscal year ending March 31, 2025, and to consider a final dividend recommendation. This meeting is crucial for stakeholders as it will provide insights into the company’s financial performance and potential returns to shareholders.

The most recent analyst rating on (HK:0088) stock is a Buy with a HK$4.22 price target. To see the full list of analyst forecasts on Tai Cheung Holdings Limited stock, see the HK:0088 Stock Forecast page.