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

• Market Cap: HK$2.62B
• Dividend Yield: 6.9%
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 19.8
• Beta (1Y): 0.51
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.18
• Revenue Forecast (FY): HK$8.17B

• Rating: 55 Neutral
• Price Target: HK$4.50 ▼(-8.54% Downside)
• Action: Reiterated Date: 11/30/25
• Date: Action: Reiterated 11/30/25

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

Balance sheet strength

A manageable debt-to-equity mix and solid equity ratio provide financial flexibility to fund operations, absorb shocks, and support dividends or selective store investments. Over 2-6 months this durability reduces refinancing risk and preserves capacity for strategic capital allocation.

Vertical integration / food supply

Owning food processing and supply capabilities strengthens cost control and consistency across restaurants and creates external revenue streams. This vertical integration supports margin resilience versus peers, aids input cost management, and underpins sustainable operating efficiencies over the medium term.

Attractive dividend income

A high yield backed by a stable balance sheet and ongoing cash conversion indicates the company can return cash to shareholders. For income investors this suggests durable shareholder distributions, assuming cash flow stabilization, and helps anchor long-term investor base and capital stability.

Negative Factors

Declining revenue trend

Negative top-line growth signals weakening demand or market share pressure across the restaurant portfolio. Persisting revenue decline compresses operating leverage, limits reinvestment capacity for new stores or marketing, and makes margin recovery and long-term profit stabilization more difficult.

Weak free cash flow growth

Declining free cash flow growth reduces internal funding for capex, refurbishments, or expansion and may force reliance on external financing. Over months this constrains strategic initiatives, pressures the sustainability of dividends, and limits ability to absorb commodity or wage inflation.

Earnings decline / EPS pressure

A steep decline in EPS indicates margin erosion or one-off losses reducing profitability. Sustained EPS weakness undermines return on equity and management flexibility to invest, pay dividends, or pursue growth, and signals the need for operational improvements to restore durable earnings power.

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

The company makes money mainly by selling food and beverages through its restaurant network under multiple brands. Revenue is generated from customer transactions across quick service restaurants and other dining formats (e.g., casual dining), where earnings are driven by guest traffic, average spend per customer, menu pricing, product mix, and store network scale. In addition to restaurant sales, the group earns revenue from food processing and related supply-chain operations that produce and/or distribute food products used internally by its restaurants and, where applicable, sold to third parties. These operations can contribute to earnings by capturing margin in centralized production, improving consistency and cost control for the restaurant business, and generating external sales when products/services are provided to customers outside the group. Key factors influencing profitability typically include same-store sales performance, successful new store openings and brand management, input costs (ingredients, labor, rent, utilities), operating efficiency, and the ability to optimize sourcing and production through its food processing/supply capabilities. Specific details on major partnerships: null.

Cafe de Coral Holdings Ltd. Financial Statement Overview

Summary

Cafe de Coral Holdings Ltd. demonstrates a stable financial position with a robust balance sheet and adequate cash flow management. However, the income statement shows potential for improved profitability, and 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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	8.34B	8.57B	8.69B	8.02B	7.51B	6.71B
Gross Profit	784.60M	892.65M	989.29M	681.78M	524.86M	350.40M
EBITDA	1.06B	1.56B	1.70B	1.42B	1.25B	1.58B
Net Income	135.46M	232.74M	330.45M	110.35M	21.21M	359.13M
Balance Sheet
Total Assets	5.79B	5.98B	6.51B	7.18B	6.87B	7.15B
Cash, Cash Equivalents and Short-Term Investments	965.27M	1.05B	1.26B	1.67B	1.59B	2.09B
Total Debt	3.11B	2.13B	2.45B	3.25B	3.10B	3.23B
Total Liabilities	3.14B	3.24B	3.60B	4.38B	4.05B	4.12B
Stockholders Equity	2.64B	2.73B	2.90B	2.78B	2.82B	3.03B
Cash Flow
Free Cash Flow	1.16B	1.21B	1.35B	1.25B	675.69M	1.42B
Operating Cash Flow	1.44B	1.51B	1.66B	1.71B	1.17B	1.70B
Investing Cash Flow	-271.31M	-254.05M	-263.01M	-452.32M	-469.81M	-284.87M
Financing Cash Flow	-1.28B	-1.46B	-1.80B	-1.16B	-1.20B	287.96M

Cafe de Coral Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 4.92 is above the 20-day moving average (MA) of 4.70, above the 50-day MA of 4.76, and below the 200-day MA of 6.00, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 40.75 is Neutral, neither overbought nor oversold. The STOCH value of 29.31 is Neutral, 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$1.17B	5.43	10.47%	5.56%	4.16%	59.08%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9922	57 Neutral	HK$2.62B	15.96	1.38%	1.12%	-6.80%	-85.10%
0341	55 Neutral	HK$2.62B	19.78	5.05%	6.90%	-3.45%	-50.11%
1978	51 Neutral	HK$276.00M	-113.78	-2.62%	24.14%	-5.71%	-144.00%
0538	47 Neutral	HK$993.30M	8.83	0.39%	7.11%	0.26%	-73.09%