Cafe de Coral Holdings Ltd. (0341) AI Stock Analysis

• Market Cap: HK$2.92B
• Dividend Yield: 6.9%
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.53
• Revenue Growth: -3.45%
• EPS Growth: -50.11%
• Country: HK
• Employees: 19,189
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.08
• Shares Outstanding: 580,004,000
• 10 Day Avg. Volume: 677,864
• 30 Day Avg. Volume: 1,112,998
• PEG Ratio: -0.61
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 3.52
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: HK$6.00 ▲(17.65% Upside)

Cafe de Coral Holdings Ltd. has a stable financial foundation with a strong balance sheet and adequate cash flow management. However, bearish technical indicators and a relatively high P/E ratio compared to peers suggest caution. The high dividend yield is a positive aspect for income investors, but the company needs to focus on improving profitability and revenue growth to enhance its overall performance.

Positive Factors

Strong Balance Sheet

A strong balance sheet with manageable debt levels provides financial stability and flexibility, supporting long-term growth and resilience against economic fluctuations.

Cash Flow Management

Effective cash flow management ensures liquidity and the ability to invest in growth opportunities, even amidst challenges in free cash flow growth.

Market Diversification

Diversification across multiple brands and cuisines reduces dependency on a single revenue stream, enhancing market resilience and capturing a broader customer base.

Negative Factors

Decline in Revenue Growth

A declining revenue growth rate suggests challenges in maintaining sales momentum, which could impact long-term profitability and market position.

Negative Free Cash Flow Growth

Negative free cash flow growth indicates potential liquidity issues, limiting the company's ability to invest in expansion and innovation.

Low Profit Margins

Low profit margins suggest limited pricing power and operational efficiency, which could hinder the company's ability to improve profitability in a competitive market.

Cafe de Coral Holdings Ltd. Business Overview & Revenue Model

Company Description

Café de Coral Holdings Limited, an investment holding company, operates quick service restaurants, and casual dining chains in Hong Kong and Mainland China. The company operates restaurants primarily under the Café de Coral, Super Super Congee & Noodles, The Spaghetti House, Oliver's Super Sandwiches, Shanghai Lao Lao, Mixian Sense, Don Don Tei, THE CUP, Little Onion, and Lane Noodles brands. It also provides institutional catering services under the Asia Pacific Catering and Luncheon Star brands for universities, hospitals, government, and public and private institutions; and produces, distributes, and sells ham and sausage products under the Viking Boat brand name for supermarket chains, convenience stores, bakeries, fast food restaurants, and hotels. In addition, the company is involved in the property investment, premises space and property leasing, and food trading and processing activities. As of March 31, 2022, it had 500 operating units. The company was incorporated in 1968 and is headquartered in Sha Tin, Hong Kong.

How the Company Makes Money

Cafe de Coral Holdings Ltd. generates revenue through multiple streams, primarily from its extensive network of fast-casual dining restaurants. The company earns income from food and beverage sales in its various outlets, which are strategically located in high-traffic areas. A significant portion of its revenue also comes from catering services, where it provides food solutions for corporate events and private functions. The company has established partnerships with suppliers to ensure a consistent supply of high-quality ingredients, allowing it to maintain competitive pricing and menu variety. Furthermore, the company benefits from economies of scale in its operations, which helps in managing costs effectively and enhancing profitability.

Cafe de Coral Holdings Ltd. Financial Statement Overview

Summary

Cafe de Coral Holdings Ltd. demonstrates a stable financial position with some areas needing attention. The income statement shows potential for improved profitability, while the balance sheet remains robust with a healthy equity base. Cash flow management appears adequate, though recent declines in free cash flow growth warrant monitoring.

Income Statement

Cafe de Coral Holdings Ltd. has shown a mixed performance in its income statement. The company experienced a decline in revenue growth rate in the most recent year, indicating potential challenges in maintaining sales momentum. However, the gross profit margin and net profit margin have shown some resilience, albeit at relatively low levels. The EBIT and EBITDA margins suggest moderate operational efficiency, but there is room for improvement in profitability.

Balance Sheet

The balance sheet of Cafe de Coral Holdings Ltd. reflects a stable financial position with a manageable debt-to-equity ratio, indicating a balanced approach to leveraging. The return on equity has been moderate, suggesting that the company is generating a reasonable return on shareholders' investments. The equity ratio indicates a solid foundation of equity relative to total assets, providing a cushion against potential financial fluctuations.

Cash Flow

The cash flow statement reveals some challenges in cash generation, with a negative free cash flow growth rate in the most recent year. However, the operating cash flow to net income ratio and free cash flow to net income ratio indicate that the company is still able to convert a significant portion of its earnings into cash, which is a positive sign for liquidity management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.57B	8.57B	8.69B	8.02B	7.51B	6.71B
Gross Profit	892.65M	892.65M	989.29M	681.78M	524.86M	350.40M
EBITDA	755.98M	1.56B	1.70B	1.42B	1.25B	1.58B
Net Income	232.74M	232.74M	330.45M	110.35M	21.21M	359.13M
Balance Sheet
Total Assets	5.98B	5.98B	6.51B	7.18B	6.87B	7.15B
Cash, Cash Equivalents and Short-Term Investments	1.05B	1.05B	1.26B	1.67B	1.59B	2.09B
Total Debt	2.13B	2.13B	2.45B	3.25B	3.10B	3.23B
Total Liabilities	3.24B	3.24B	3.60B	4.38B	4.05B	4.12B
Stockholders Equity	2.73B	2.73B	2.90B	2.78B	2.82B	3.03B
Cash Flow
Free Cash Flow	1.21B	1.21B	1.35B	1.25B	675.69M	1.42B
Operating Cash Flow	1.51B	1.51B	1.66B	1.71B	1.17B	1.70B
Investing Cash Flow	-366.48M	-254.05M	-263.01M	-452.32M	-469.81M	-284.87M
Financing Cash Flow	-1.87B	-1.46B	-1.80B	-1.16B	-1.20B	287.96M

Cafe de Coral Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0341, the sentiment is Negative. The current price of 5.1 is below the 20-day moving average (MA) of 5.35, below the 50-day MA of 5.75, and below the 200-day MA of 6.54, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 24.51 is Positive, neither overbought nor oversold. The STOCH value of 7.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0341.

Cafe de Coral Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6811	68 Neutral	HK$1.07B	11.74	10.47%	5.56%	4.16%	59.08%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0341	55 Neutral	HK$2.92B	21.58	5.05%	6.90%	-3.45%	-50.11%
9922	53 Neutral	HK$2.50B	52.96	1.38%	1.12%	-6.80%	-85.10%
1978	51 Neutral	HK$292.00M	-47.40	-2.62%	24.14%	-5.71%	-144.00%
0538	47 Neutral	HK$982.38M	82.57	0.38%	7.11%	0.26%	-73.09%

Cafe de Coral Holdings Ltd. Corporate Events

Cafe de Coral Declares Interim Dividend for 2025

Cafe de Coral Holdings Ltd. has announced an interim dividend of HKD 0.1 per share for the six months ending September 30, 2025. This decision reflects the company’s ongoing commitment to delivering shareholder value and suggests a stable financial performance, potentially reinforcing its position in the competitive food and beverage market.

Cafe de Coral Reports Decline in Revenue Amid Market Challenges

Cafe de Coral Holdings Ltd. reported a 5.4% decline in revenue to HK$4,036.2 million for the first half of FY2025/26, with adjusted EBITDA down 29.4% and profit attributable to shareholders dropping 67.6%. The company faced challenges due to structural market transformations, weak consumer sentiment, and fierce competition, impacting sales during peak periods. Despite these difficulties, the Casual Dining and Institutional Catering divisions performed well, showcasing the resilience of the company’s diversified strategy. The company is focusing on improving efficiency and growth through new business formats, consolidating underperforming outlets, and optimizing supply chains.

Cafe de Coral Schedules Board Meeting to Discuss Interim Results and Dividend

Cafe de Coral Holdings Ltd. has announced a board meeting scheduled for November 27, 2025, to approve the interim results for the six months ending September 30, 2025, and to consider the payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.

Cafe de Coral Issues Profit Warning Amid Market Challenges

Cafe de Coral Holdings Ltd. has issued a profit warning, indicating a significant decline in its financial performance for the six months ending September 2025. The company expects a 30% drop in adjusted EBITDA and a 65% to 70% decrease in profit attributable to shareholders compared to the previous year. This downturn is attributed to a decrease in revenue, fair value loss on investment properties, and challenges in the restaurant sector due to weak consumer sentiment and increased competition. Despite these challenges, the company is undertaking a fundamental restructuring to adapt to market changes, focusing on more flexible business models, consolidating underperforming outlets, and enhancing supply chain integration to ensure long-term sustainability.

Café de Coral Releases Supplemental Director Emolument Information

Café de Coral Holdings Limited has released supplemental information to its annual report for the year ending March 31, 2025, detailing the emoluments of its directors and chief executive. This disclosure provides transparency regarding the remuneration structure, which includes fees, salaries, discretionary bonuses, and share-based compensation, potentially impacting stakeholder perceptions and the company’s governance practices.