Tai Cheung Holdings Limited (0088) AI Stock Analysis

• Market Cap: HK$2.33B
• Dividend Yield: 6.86%
• Average Volume (3M): 178.29K
• Price to Earnings (P/E): 44.8
• Beta (1Y): 0.22
• Revenue Growth: -31.03%
• EPS Growth: -31.43%
• Country: US
• 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: 5.53% 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$3.50 ▼(-7.89% 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

Low Leverage / Strong Equity

Extremely low leverage gives the company durable financial flexibility to fund development cycles, withstand property-market downturns, and pursue opportunistic acquisitions without urgent refinancing. This supports long-term investment and risk management in real estate.

Diversified Property Revenue Model

A mix of property sales, recurring rental income and management fees provides multiple cash generation channels across market cycles. Strategic industry partnerships reduce execution risk and improve project delivery, supporting steady long-term revenue and market access.

Operational Efficiency

Sustained strong operating margins indicate efficient project execution and cost control in development and property management. When revenue stabilizes, higher margins translate to faster cash conversion and more durable profit generation across real estate cycles.

Negative Factors

Declining Revenue Trend

Significant and persistent revenue decline erodes scale economics in development and leasing, reduces bargaining power with contractors and tenants, and limits ability to absorb fixed overheads. Long-term growth recovery will be required to restore sustainable earnings.

Negative Operating and Free Cash Flows

Ongoing cash flow deficits undermine the firm's ability to self-fund projects, pay dividends, and maintain properties. Even with strong equity, repeated negative operating cash flow forces reliance on asset sales or external financing, raising execution and refinancing risk.

Quality of Earnings / Low ROE

Exceptionally high reported net margin paired with very low ROE suggests earnings include non-recurring items and weak recurring profitability. This raises sustainability concerns about earnings quality and indicates limited long-term returns on capital for shareholders.

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 property development and leasing activities. The company's revenue model includes the sale of residential and commercial units, as well as rental income from its investment properties. Key revenue streams consist of proceeds from completed property projects, ongoing rental agreements, and income from property management services. Additionally, strategic partnerships with construction firms and real estate agencies enhance its operational efficiency and market reach, contributing positively to its 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	36.00M	36.00M	121.70M	105.40M	189.80M	102.70M
Gross Profit	6.00M	6.00M	23.00M	47.70M	60.90M	32.20M
EBITDA	-50.40M	74.60M	87.40M	1.90M	16.50M	-16.20M
Net Income	62.80M	62.80M	74.90M	-20.00M	2.90M	-28.20M
Balance Sheet
Total Assets	6.68B	6.68B	6.66B	6.77B	6.97B	7.17B
Cash, Cash Equivalents and Short-Term Investments	866.40M	866.40M	1.26B	1.42B	1.79B	2.07B
Total Debt	80.60M	80.60M	39.40M	114.90M	139.40M	203.10M
Total Liabilities	328.10M	328.10M	223.50M	263.20M	298.60M	345.50M
Stockholders Equity	6.35B	6.35B	6.44B	6.51B	6.68B	6.82B
Cash Flow
Free Cash Flow	-292.30M	-292.30M	-101.90M	-111.70M	-91.20M	-1.33B
Operating Cash Flow	-290.50M	-290.50M	-101.40M	-111.40M	-90.90M	-1.33B
Investing Cash Flow	50.00M	94.00M	143.80M	-70.40M	-14.30M	-800.00K
Financing Cash Flow	-106.90M	-106.90M	-223.40M	-163.10M	-213.00M	-237.20M

Tai Cheung Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 3.8 is above the 20-day moving average (MA) of 3.59, above the 50-day MA of 3.45, and above the 200-day MA of 3.14, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 72.99 is Negative, neither overbought nor oversold. The STOCH value of 90.80 is Negative, 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$757.11M	-0.75	-16.32%	3.70%	-11.00%	-676.27%
0369	51 Neutral	HK$2.74B	-1.11	-11.42%	4.12%	-4.95%	-29.73%
0194	49 Neutral	HK$1.68B	-4.21	-3.74%	6.35%	54.72%	59.72%
0088	45 Neutral	HK$2.33B	44.77	0.82%	6.86%	-31.03%	-31.43%
0095	42 Neutral	HK$1.65B	-0.26	-28.76%	―	-58.04%	-65.03%
2772	41 Neutral	HK$262.34M	-0.16	-34.31%	―	-63.41%	77.97%

Tai Cheung Holdings Limited Corporate Events

Tai Cheung Holdings Reports Decline in Interim Profits Amid Rising Costs

Tai Cheung Holdings Limited reported its unaudited interim results for the six months ending September 30, 2025, showing a decline in profit attributable to equity holders to HK$25.8 million from HK$36.6 million in the previous year. Despite a rise in revenue to HK$18.9 million, the company faced increased costs of sales and administrative expenses, resulting in an operating loss of HK$8.4 million. The financial results reflect challenges in maintaining profitability amid rising costs, impacting the company’s market positioning and shareholder returns.

The most recent analyst rating on (HK:0088) stock is a Buy with a HK$4.01 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 Interim Dividend for 2025

Tai Cheung Holdings Limited has announced an interim dividend of HKD 0.12 per share for the six months ending 30 September 2025, with the payment date set for 07 January 2026. This announcement reflects the company’s stable financial performance and commitment to providing returns to its shareholders, potentially enhancing its market position and investor confidence.

The most recent analyst rating on (HK:0088) stock is a Buy with a HK$4.01 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 Approve Interim Results and Dividend

Tai Cheung Holdings Limited has announced that its Board of Directors will convene on November 27, 2025, to approve the interim results for the six months ending September 30, 2025, and consider the payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential returns for stakeholders, impacting its market position and investor confidence.

The most recent analyst rating on (HK:0088) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Tai Cheung Holdings Limited stock, see the HK:0088 Stock Forecast page.