Tai Cheung Holdings Limited (0088) AI Stock Analysis

• Market Cap: HK$1.98B
• Dividend Yield: 7%
• Average Volume (3M): 178.29K
• Price to Earnings (P/E): 31.6
• Beta (1Y): 0.21
• Revenue Growth: -31.03%
• EPS Growth: -31.43%
• Country: HK
• Employees: 146
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 0.04
• Shares Outstanding: 617,531,430
• 10 Day Avg. Volume: 110,856
• 30 Day Avg. Volume: 178,295
• PEG Ratio: -1.79
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 52.15
• P/FCF Ratio: -6.42
• 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$4.01
• Price Target Upside: 17.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: HK$3.00 ▼(-11.76% Downside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenue and negative cash flows, despite a strong balance sheet. Technical analysis indicates bearish momentum, while valuation shows the stock is overvalued, offset by a high dividend yield.

Positive Factors

Strong Balance Sheet

A strong balance sheet with minimal leverage provides financial stability and flexibility, enabling the company to withstand economic downturns and invest in growth opportunities.

High Net Profit Margin

A high net profit margin indicates strong profitability, which can enhance shareholder value and provide resources for reinvestment, though sustainability should be assessed.

Free Cash Flow Improvement

Improvement in free cash flow suggests better cash management and operational efficiency, which can support future investments and debt reduction.

Negative Factors

Declining Revenue

Declining revenue poses a risk to long-term growth and profitability, potentially impacting the company's ability to maintain its market position and invest in new projects.

Negative Cash Flows

Negative cash flows highlight liquidity challenges, which can constrain operational capabilities and limit strategic initiatives, affecting long-term sustainability.

Revenue Growth Challenges

Significant negative revenue growth indicates market challenges and competitive pressures, which may require strategic adjustments to regain growth momentum.

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	87.40M	1.90M	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: 3.40
• 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 3.4 is above the 20-day moving average (MA) of 3.34, above the 50-day MA of 3.27, and above the 200-day MA of 3.10, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 63.04 is Neutral, neither overbought nor oversold. The STOCH value of 55.13 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 *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0131	58 Neutral	HK$770.16M	―	-16.32%	3.60%	-11.00%	-676.27%
0369	51 Neutral	€2.30B	-0.95	-11.42%	4.09%	-4.95%	-29.73%
0194	49 Neutral	HK$1.66B	―	-3.74%	6.39%	54.72%	59.72%
0095	48 Neutral	HK$1.36B	-0.21	-28.76%	―	-58.04%	-65.03%
0088	45 Neutral	HK$1.98B	31.56	0.82%	7.00%	-31.03%	-31.43%
2772	40 Underperform	€302.30M	―	-34.31%	―	-63.41%	77.97%

Tai Cheung Holdings Limited Corporate Events

Tai Cheung Holdings Passes Key Resolutions at AGM

Tai Cheung Holdings Limited announced the successful passing of all resolutions at its Annual General Meeting held on August 27, 2025. Key resolutions included the approval of audited financial statements, declaration of a final dividend, re-election of directors, re-appointment of auditors, and approval of share repurchase and issuance mandates. The unanimous support for these resolutions reflects strong shareholder confidence and positions the company for continued strategic initiatives.

The most recent analyst rating on (HK:0088) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Tai Cheung Holdings Limited stock, see the HK:0088 Stock Forecast page.