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

• Market Cap: HK$3.99B
• Dividend Yield: 5.79%
• Average Volume (3M): 1.47M
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.58
• Revenue Growth: -1.42%
• EPS Growth: -28.96%
• Country: HK
• Employees: 19,189
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Restaurants
• EPS (TTM): 0.15
• Shares Outstanding: 580,004,000
• 10 Day Avg. Volume: 1,304,592
• 30 Day Avg. Volume: 1,466,704
• 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$6.67
• Price Target Upside: -3.47% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 65 Neutral
• Price Target: HK$7.50 ▲(8.54% Upside)

Cafe de Coral Holdings Ltd. has a stable financial position with a robust balance sheet and adequate cash flow management, though profitability and revenue growth need improvement. The technical indicators suggest a neutral market sentiment, while the valuation is supported by a reasonable P/E ratio and attractive dividend yield. The absence of earnings call and corporate events data limits the analysis to these factors.

Positive Factors

Business Strategy

The Group looks to enhance its business model and optimize its network portfolio.

Market Expansion

CDC will place greater effort into driving deeper penetration in the Greater Bay Area.

Negative Factors

Competitive Challenges

Meaningful margin improvement is still difficult due to limiting factors such as competitive environment and rising minimum wage.

Financial Performance

Café de Coral issued a profit warning with net profit expected to decline by no more than 30%.

Industry Environment

Same-store sales trend is still under pressure, with falling figures in both Hong Kong and mainland China.

Cafe de Coral Holdings Ltd. Business Overview & Revenue Model

Company Description

Cafe de Coral Holdings Ltd. (0341) is a leading quick-service restaurant operator in Hong Kong, renowned for its fast-casual dining experience that primarily focuses on Asian cuisine. The company operates several well-known brands, including Cafe de Coral, The Spaghetti House, and Maxims, offering a diverse menu that caters to local tastes. With a strong presence in the fast-food sector, Cafe de Coral also engages in food production and catering services, providing a comprehensive dining experience to its customers across various segments.

How the Company Makes Money

Cafe de Coral generates revenue primarily through its restaurant operations, which include both dine-in and takeaway services. The company's key revenue streams consist of food and beverage sales from its various brands, with a focus on affordability and quality to attract a broad customer base. Additionally, the company earns income from its catering services and food production, supplying meals to corporate clients and institutions. Strategic partnerships with suppliers and local distributors enhance its operational efficiency and product offerings, contributing to its profitability. Seasonal promotions and loyalty programs also play a significant role in driving customer retention and sales growth.

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	6.51B	8.57B	8.69B	8.02B	7.51B	6.71B
Gross Profit	683.60M	892.65M	989.29M	681.78M	524.86M	350.40M
EBITDA	593.80M	1.56B	1.70B	1.42B	1.25B	1.58B
Net Income	201.91M	232.74M	330.45M	110.35M	21.21M	359.13M
Balance Sheet
Total Assets	6.23B	5.98B	6.51B	7.18B	6.87B	7.15B
Cash, Cash Equivalents and Short-Term Investments	1.07B	1.05B	1.26B	1.67B	1.59B	2.09B
Total Debt	2.33B	2.13B	2.45B	3.25B	3.10B	3.23B
Total Liabilities	3.49B	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	1.01B	1.21B	1.35B	1.25B	675.69M	1.42B
Operating Cash Flow	1.23B	1.51B	1.66B	1.71B	1.17B	1.70B
Investing Cash Flow	-180.86M	-254.05M	-263.01M	-452.32M	-469.81M	-284.87M
Financing Cash Flow	-1.01B	-1.46B	-1.80B	-1.16B	-1.20B	294.07M

Cafe de Coral Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.91
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0341, the sentiment is Neutral. The current price of 6.91 is below the 20-day moving average (MA) of 7.01, below the 50-day MA of 7.02, and below the 200-day MA of 7.11, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 47.14 is Neutral, neither overbought nor oversold. The STOCH value of 16.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
2217	74 Outperform	$2.11B	26.39	5.40%	4.62%	3.43%	-32.96%
0341	65 Neutral	HK$3.99B	17.16	8.26%	5.79%	-1.42%	-28.96%
6811	64 Neutral	HK$1.07B	11.74	10.47%	4.99%	4.16%	59.08%
Sector *	61 Neutral	$17.80B	12.85	-0.74%	3.03%	1.37%	-14.40%
0538	57 Neutral	HK$1.16B	97.25	0.38%	5.82%	0.26%	-73.09%
9922	56 Neutral	HK$3.38B	71.60	1.38%	0.83%	-6.80%	-85.10%
1978	54 Neutral	HK$320.00M	23.14	-2.62%	22.02%	-5.71%	-144.00%

Cafe de Coral Holdings Ltd. Corporate Events

Café de Coral Grants Share Options to Employees

Café de Coral Holdings Limited has announced the grant of share options to certain employees, allowing them to subscribe for a total of 646,000 ordinary shares at an exercise price of HK$7.496 per share. This move is part of their share option scheme adopted in 2022, aimed at incentivizing employees and aligning their interests with the company’s long-term goals. The options will vest in five tranches over a period from 2028 to 2032, contingent on personal performance targets and subject to a clawback mechanism in cases of misconduct or financial misstatement. This initiative reflects the company’s commitment to fostering employee engagement and enhancing its competitive positioning in the market.

The most recent analyst rating on (HK:0341) stock is a Hold with a HK$6.52 price target. To see the full list of analyst forecasts on Cafe de Coral Holdings Ltd. stock, see the HK:0341 Stock Forecast page.

Cafe de Coral Holdings Announces 2025 AGM and Strategic Resolutions

Cafe de Coral Holdings Ltd. has announced its 2025 Annual General Meeting, scheduled for August 19, 2025, in Hong Kong. The agenda includes the adoption of financial statements, re-election of directors, and re-appointment of auditors. Additionally, a resolution will be considered to authorize the directors to allot and issue shares, with certain limitations, highlighting the company’s strategic focus on governance and shareholder engagement.

The most recent analyst rating on (HK:0341) stock is a Hold with a HK$6.52 price target. To see the full list of analyst forecasts on Cafe de Coral Holdings Ltd. stock, see the HK:0341 Stock Forecast page.

Cafe de Coral Holdings Ltd. Updates Nomination Committee Terms

Cafe de Coral Holdings Ltd. has revised the terms of reference for its Nomination Committee, as approved by the Board on June 16, 2025. The committee, which will consist of a majority of independent non-executive directors and include at least one member of a different gender, is tasked with reviewing the Board’s structure, ensuring diversity, and recommending appointments and succession planning. This move is aimed at enhancing corporate governance and aligning the Board’s composition with the company’s strategic goals, potentially impacting its market positioning and stakeholder relations positively.

The most recent analyst rating on (HK:0341) stock is a Buy with a HK$12.30 price target. To see the full list of analyst forecasts on Cafe de Coral Holdings Ltd. stock, see the HK:0341 Stock Forecast page.

Café de Coral Proposes New Bye-laws for Enhanced Electronic Engagement

Café de Coral Holdings Limited has announced a proposal to adopt new bye-laws to align with recent paperless listing reforms and amendments to the Hong Kong Stock Exchange Listing Rules. The proposed changes aim to facilitate electronic general meetings, enable electronic shareholder communications, and allow the company to hold repurchased shares in treasury. These amendments are subject to shareholder approval at the upcoming annual general meeting on August 19, 2025.

The most recent analyst rating on (HK:0341) stock is a Buy with a HK$12.30 price target. To see the full list of analyst forecasts on Cafe de Coral Holdings Ltd. stock, see the HK:0341 Stock Forecast page.

Cafe de Coral Holdings Faces Revenue Decline Amid Economic Challenges

Cafe de Coral Holdings Ltd. reported a 1.4% decrease in revenue to HK$8,568.3 million and a 29.6% decline in profit attributable to shareholders to HK$232.7 million for the year ended March 31, 2025. The company faced challenges due to economic downturns in Hong Kong and Mainland China, compounded by weak consumer sentiment and fierce price competition. Despite these challenges, the company maintained stable profit margins in Mainland China and continued to expand its network in the Greater Bay Area. The company is adapting to new market conditions by optimizing its store network and consolidating its multi-brand portfolio. A final dividend of HK25 cents per share was recommended, with a total dividend payout ratio of 99.7%.

The most recent analyst rating on (HK:0341) stock is a Buy with a HK$12.30 price target. To see the full list of analyst forecasts on Cafe de Coral Holdings Ltd. stock, see the HK:0341 Stock Forecast page.

Cafe de Coral Announces Final Dividend for FY2025

Cafe de Coral Holdings Ltd. announced a final ordinary cash dividend of HKD 0.25 per share for the financial year ending March 31, 2025, with the payment date set for September 4, 2025. This announcement reflects the company’s stable financial performance and commitment to returning value to its shareholders, potentially enhancing its attractiveness to investors.

The most recent analyst rating on (HK:0341) stock is a Buy with a HK$12.30 price target. To see the full list of analyst forecasts on Cafe de Coral Holdings Ltd. stock, see the HK:0341 Stock Forecast page.