Xiabuxiabu Catering Management (China) Holdings Co., Ltd. (0520) AI Stock Analysis

• Market Cap: HK$1.08B
• Dividend Yield: 6.06%
• Average Volume (3M): 3.76M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.04
• Revenue Growth: -21.42%
• EPS Growth: 55.86%
• Country: HK
• Employees: 22,504
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -0.09
• Shares Outstanding: 1,086,174,400
• 10 Day Avg. Volume: 3,203,990
• 30 Day Avg. Volume: 3,758,103
• PEG Ratio: -0.02
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 2.07
• 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

• Rating: 51 Neutral
• Price Target: HK$1.00 ▲(1.01% Upside)

The overall stock score of 51 reflects significant financial challenges, with declining revenues and net losses being the most impactful factors. Technical analysis suggests potential short-term gains, but long-term trends remain bearish. The high dividend yield offers some appeal, but the negative P/E ratio highlights underlying financial issues.

Xiabuxiabu Catering Management (China) Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Xiabuxiabu Catering Management (China) Holdings Co., Ltd. is a leading player in the Chinese catering industry, primarily known for its hot pot dining experience. The company operates a chain of restaurants that focus on providing a fresh and interactive dining experience, utilizing a self-service model that allows customers to select a variety of ingredients to cook at their tables. Xiabuxiabu's offerings cater to a wide range of tastes and preferences, making it a popular choice among consumers in urban areas. The company also explores opportunities in food delivery and catering services, broadening its market reach.

How the Company Makes Money

Xiabuxiabu generates revenue primarily through its restaurant operations, where customers pay for the food and beverages consumed during their visits. The company's revenue model is built on the self-service hot pot concept, where customers choose from a variety of fresh ingredients. Key revenue streams include dine-in sales, takeout services, and catering services for events. Additionally, Xiabuxiabu may benefit from partnerships with food suppliers and delivery platforms, enhancing its distribution capabilities and customer reach. The company's focus on expanding its restaurant network and enhancing customer experience also plays a significant role in driving sales growth.

Xiabuxiabu Catering Management (China) Holdings Co., Ltd. Financial Statement Overview

Summary

Xiabuxiabu Catering Management is experiencing financial headwinds with declining revenues and sustained net losses. The financial stability is impacted by increasing leverage and eroding equity base. Cash flow challenges further stress the financial health, highlighting the need for strategic improvements. While there remains a solid asset base, the company must address operational inefficiencies and financial leverage to improve its financial outlook.

Income Statement

The company has faced fluctuating revenues and profits over the years. Recent years have shown declining revenue and persistent net losses, indicating challenges in profitability. The Gross Profit Margin has decreased from 30% in 2019 to approximately 20.5% in 2024, reflecting cost pressures. Negative Net Profit Margins highlight ongoing financial difficulties. There is also a concerning trend of declining EBIT and EBITDA margins, indicating operational inefficiencies.

Balance Sheet

The balance sheet shows a weakening equity position, with Stockholders' Equity decreasing from 2019 to 2024. The Debt-to-Equity Ratio has increased, indicating higher leverage and potential financial risk. However, the company maintains a relatively stable Equity Ratio, suggesting some resilience in capital structure despite increased liabilities.

Cash Flow

Cash flow analysis reveals volatility in Free Cash Flow, with significant declines in 2024. Operating Cash Flow has also decreased, which could affect liquidity. The Free Cash Flow to Net Income Ratio is negative, reflecting insufficient cash generation to cover net losses. This trend indicates potential liquidity issues and challenges in sustaining free cash flow growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.75B	5.92B	4.74B	6.16B	5.47B
Gross Profit	1.42B	1.80B	938.31M	1.46B	1.42B
EBITDA	276.65M	876.65M	691.21M	931.82M	501.86M
Net Income	-400.68M	-199.47M	-353.05M	-293.21M	1.84M
Balance Sheet
Total Assets	3.35B	4.12B	4.31B	4.95B	5.78B
Cash, Cash Equivalents and Short-Term Investments	824.08M	656.11M	590.89M	920.53M	1.10B
Total Debt	1.29B	1.52B	1.49B	1.68B	1.99B
Total Liabilities	2.50B	2.85B	2.79B	2.94B	3.44B
Stockholders Equity	774.09M	1.20B	1.46B	1.97B	2.32B
Cash Flow
Free Cash Flow	472.13M	690.39M	480.61M	609.58M	865.57M
Operating Cash Flow	715.42M	1.13B	881.62M	1.05B	1.27B
Investing Cash Flow	-28.51M	-794.30M	-774.06M	-539.31M	-373.82M
Financing Cash Flow	-452.17M	-509.55M	-731.80M	-683.30M	-565.94M

Xiabuxiabu Catering Management (China) Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0520, the sentiment is Positive. The current price of 0.99 is below the 20-day moving average (MA) of 1.01, above the 50-day MA of 0.92, and above the 200-day MA of 0.82, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 55.32 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0520.

Xiabuxiabu Catering Management (China) Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6862	―	$73.35B	14.89	46.34%	6.48%	-4.96%	4.93%
6811	―	HK$1.13B	12.38	10.47%	5.17%	4.16%	59.08%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0341	―	HK$3.70B	15.92	8.26%	6.38%	-1.42%	-28.96%
0538	―	HK$1.09B	91.74	0.38%	6.40%	0.26%	-73.09%
0520	―	HK$1.08B	―	-26.56%	6.06%	-21.42%	55.86%

Xiabuxiabu Catering Management (China) Holdings Co., Ltd. Corporate Events

Xiabuxiabu Secures Approval for Strategic Acquisition at EGM

Xiabuxiabu Catering Management (China) Holdings Co., Ltd. announced that the resolution proposed at their Extraordinary General Meeting (EGM) on September 12, 2025, was passed by a significant majority. The resolution involved the approval of a sale and purchase agreement for acquiring a 40% equity interest in Xiabuxiabu (China) Food Holdings Co. Ltd. This acquisition is expected to enhance the company’s market position and operational capabilities. The voting process was overseen by Computershare Hong Kong Investor Services Limited, and certain shareholders, including Mr. Ho and his associates, abstained from voting due to their interests in the transaction.

The most recent analyst rating on (HK:0520) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Xiabuxiabu Catering Management (China) Holdings Co., Ltd. stock, see the HK:0520 Stock Forecast page.

Xiabuxiabu Reports Reduced Losses Amid Strategic Restructuring

Xiabuxiabu Catering Management reported a notable decrease in revenue and net loss for the first half of 2025 compared to the same period in 2024. Despite a drop in sales, the company managed to significantly reduce its net loss by focusing on cost optimization, improving operational efficiency, and strategically closing under-performing restaurants while expanding into high-potential areas. The company also emphasized enhancing its delivery service ecosystem, expanding prepaid consumption models, and engaging young consumers through co-branded products and digital marketing strategies, aiming to revitalize the brand and drive future growth.

The most recent analyst rating on (HK:0520) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Xiabuxiabu Catering Management (China) Holdings Co., Ltd. stock, see the HK:0520 Stock Forecast page.

Xiabuxiabu Plans Strategic Acquisition to Boost Market Position

Xiabuxiabu Catering Management (China) Holdings Co., Ltd. has announced an extraordinary general meeting (EGM) scheduled for September 12, 2025, to approve the acquisition of a 40% equity interest in Xiabuxiabu (China) Food Holdings Co. Ltd. This strategic move is expected to enhance the company’s market positioning and operational capabilities, potentially impacting stakeholders positively by expanding its market share and influence in the catering industry.

The most recent analyst rating on (HK:0520) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Xiabuxiabu Catering Management (China) Holdings Co., Ltd. stock, see the HK:0520 Stock Forecast page.

Xiabuxiabu Board Meeting to Approve Interim Results and Dividend

Xiabuxiabu Catering Management (China) Holdings Co., Ltd. announced that its board of directors will meet on August 28, 2025, to approve the interim results for the first half of the year and consider the payment of an interim dividend. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market positioning and investor relations.

The most recent analyst rating on (HK:0520) stock is a Hold with a HK$0.96 price target. To see the full list of analyst forecasts on Xiabuxiabu Catering Management (China) Holdings Co., Ltd. stock, see the HK:0520 Stock Forecast page.

Xiabuxiabu Reports Significant Reduction in Losses for H1 2025

Xiabuxiabu Catering Management (China) Holdings Co., Ltd. has announced a significant reduction in its net loss for the first half of 2025, with losses expected to decrease by approximately 63.2% to 70.5% compared to the same period in 2024. This improvement is attributed to strategic cost optimization, enhanced operational efficiency, and a focus on high-potential market areas. The company has implemented various initiatives such as optimizing its restaurant network, expanding its on-demand delivery services, and engaging in co-branded product development with leading anime IPs to revitalize its brand and drive growth.

The most recent analyst rating on (HK:0520) stock is a Hold with a HK$0.96 price target. To see the full list of analyst forecasts on Xiabuxiabu Catering Management (China) Holdings Co., Ltd. stock, see the HK:0520 Stock Forecast page.

Xiabuxiabu Delays Circular Dispatch for Proposed Acquisition

Xiabuxiabu Catering Management (China) Holdings Co., Ltd. announced a delay in the dispatch of a circular related to its proposed acquisition of a 40% equity interest in Xiabuxiabu (China) Food Holdings Co. Ltd. The circular, which includes detailed information about the agreement and recommendations for shareholders, was initially expected by July 31, 2025, but will now be dispatched by August 29, 2025, due to the need for additional time to finalize certain information.

The most recent analyst rating on (HK:0520) stock is a Hold with a HK$0.96 price target. To see the full list of analyst forecasts on Xiabuxiabu Catering Management (China) Holdings Co., Ltd. stock, see the HK:0520 Stock Forecast page.