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

• Market Cap: HK$3.61B
• Dividend Yield: 6.92%
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.55
• Revenue Growth: -1.42%
• EPS Growth: -28.96%
• Country: HK
• Employees: 19,189
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.15
• 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: 62 Neutral
• Price Target: HK$6.50 ▲(12.46% Upside)

Cafe de Coral Holdings Ltd. has a stable financial foundation with a robust balance sheet and adequate cash flow management. However, the stock is currently experiencing bearish technical indicators, suggesting potential short-term challenges. The valuation is attractive with a reasonable P/E ratio and high dividend yield, offering potential long-term value for investors.

Positive Factors

Balance Sheet Health

A strong balance sheet with a healthy equity base provides financial stability and flexibility, enabling the company to withstand economic fluctuations and invest in growth opportunities.

Cash Flow Management

Effective cash flow management ensures the company can meet its financial obligations and invest in strategic initiatives, supporting long-term operational sustainability.

Market Position

As a leading operator in Hong Kong, the company's established market position and brand recognition provide a competitive advantage, enhancing customer loyalty and market penetration.

Negative Factors

Revenue Growth Decline

Declining revenue growth suggests challenges in maintaining sales momentum, which could impact the company's ability to expand and improve profitability over time.

Free Cash Flow Challenges

Challenges in free cash flow growth may limit the company's ability to fund new projects and return capital to shareholders, potentially affecting long-term financial health.

Profitability Concerns

Moderate operational efficiency indicates room for improvement in profitability, which is crucial for sustaining competitive advantage and shareholder value in the long term.

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 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	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: 5.78
• 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 5.78 is below the 20-day moving average (MA) of 6.25, below the 50-day MA of 6.52, and below the 200-day MA of 6.90, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 24.85 is Positive, neither overbought nor oversold. The STOCH value of 17.57 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$1.08B	11.85	10.47%	5.41%	4.16%	59.08%
0341	62 Neutral	HK$3.61B	15.53	8.26%	6.92%	-1.42%	-28.96%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0538	57 Neutral	HK$1.04B	87.16	0.38%	6.74%	0.26%	-73.09%
9922	53 Neutral	HK$2.50B	52.96	1.38%	1.07%	-6.80%	-85.10%
1978	51 Neutral	HK$312.00M	-50.65	-2.62%	23.81%	-5.71%	-144.00%

Cafe de Coral Holdings Ltd. Corporate Events

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.

The most recent analyst rating on (HK:0341) stock is a Hold with a HK$7.50 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 Passes All Resolutions at AGM

Cafe de Coral Holdings Ltd. successfully passed all proposed resolutions at its Annual General Meeting held on August 19, 2025. The resolutions included the adoption of financial statements, re-election of directors, and approval of a final dividend, reflecting strong shareholder support. The approval of new bye-laws and mandates for share issuance and buybacks indicates strategic moves to enhance corporate governance and operational flexibility.

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.

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.