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

• Market Cap: HK$854.78M
• Dividend Yield: 7.77%
• Average Volume (3M): 2.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.03
• 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: 1,693,276
• 30 Day Avg. Volume: 2,086,109
• 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
• EPS Forecast (FY): -0.15
• Revenue Forecast (FY): HK$4.49B

• Rating: 49 Neutral
• Price Target: HK$1.00 ▲(26.58% Upside)

The overall stock score is primarily influenced by the company's financial challenges, including declining revenues and net losses, which are reflected in a low financial performance score. Technical analysis indicates bearish momentum, further weighing on the score. The valuation is slightly better due to a high dividend yield, but the negative P/E ratio remains a concern. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Market Expansion

Xiabuxiabu's strategy to expand its restaurant network and improve customer experience is likely to enhance market reach and drive long-term revenue growth.

Diverse Revenue Streams

The company's diverse revenue streams, including dine-in, takeout, and catering, provide resilience against market fluctuations and support sustainable growth.

Industry Position

As a leading player in the Chinese catering industry, Xiabuxiabu benefits from strong brand recognition and a competitive advantage in the market.

Negative Factors

Declining Revenues

The company's declining revenues and net losses indicate challenges in maintaining profitability, which could impact long-term financial health.

Increased Leverage

Higher leverage increases financial risk and could limit the company's ability to invest in growth opportunities, affecting long-term stability.

Cash Flow Challenges

Volatile and declining cash flow can strain liquidity, making it difficult for the company to sustain operations and invest in growth, impacting future prospects.

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

Company Description

Xiabuxiabu Catering Management (China) Holdings Co., Ltd., an investment holding company, operates Chinese hotpot restaurants in the People's Republic of China. As of December 31, 2021, the company owned and operated 841 restaurants under the Xiabuxiabu brand name in 132 cities in approximately 21 provinces and three centrally administered municipalities; and 183 restaurants under the Coucou brand name in 42 cities in approximately 19 provinces in Beijing, Tianjin, Shanghai, and Hong Kong. It also offers catering services; and sells condiment products and other goods. In addition, the company engages in the slaughtering, processing, cold storage, and sale of raw materials; and construction business. The company was founded in 1998 and is headquartered in Beijing, the People's Republic of China. Xiabuxiabu Catering Management (China) Holdings Co., Ltd. is a subsidiary of Ying Qi Investments Limited.

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 facing financial challenges with declining revenues and sustained net losses. The financial stability is impacted by increasing leverage and an eroding equity base. Cash flow challenges further stress the financial health, highlighting the need for strategic improvements.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.30B	4.75B	5.92B	4.74B	6.16B	5.47B
Gross Profit	912.82M	1.42B	1.80B	938.31M	1.46B	1.42B
EBITDA	279.43M	276.65M	876.65M	691.21M	931.82M	501.86M
Net Income	-211.94M	-400.68M	-199.47M	-353.05M	-293.21M	1.84M
Balance Sheet
Total Assets	3.00B	3.35B	4.12B	4.31B	4.95B	5.78B
Cash, Cash Equivalents and Short-Term Investments	742.30M	824.08M	656.11M	590.89M	920.53M	1.10B
Total Debt	1.19B	1.29B	1.52B	1.49B	1.68B	1.99B
Total Liabilities	2.23B	2.50B	2.85B	2.79B	2.94B	3.44B
Stockholders Equity	691.44M	774.09M	1.20B	1.46B	1.97B	2.32B
Cash Flow
Free Cash Flow	397.81M	472.13M	690.39M	480.61M	609.58M	865.57M
Operating Cash Flow	539.25M	715.42M	1.13B	881.62M	1.05B	1.27B
Investing Cash Flow	-62.42M	-28.51M	-794.30M	-774.06M	-539.31M	-373.82M
Financing Cash Flow	-473.46M	-452.17M	-509.55M	-731.80M	-683.30M	-565.94M

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

• Technical Analysis Sentiment: Negative
• Last Price: 0.79
• 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:0520, the sentiment is Negative. The current price of 0.79 is below the 20-day moving average (MA) of 0.89, below the 50-day MA of 0.95, and below the 200-day MA of 0.83, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 28.01 is Positive, neither overbought nor oversold. The STOCH value of 12.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	71 Outperform	$70.79B	14.37	46.34%	6.15%	-4.96%	4.93%
6811	68 Neutral	HK$1.07B	11.74	10.47%	5.45%	4.16%	59.08%
0341	62 Neutral	HK$3.61B	15.53	5.05%	6.93%	-3.45%	-50.11%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0520	49 Neutral	HK$854.78M	―	-26.56%	7.77%	-21.42%	55.86%
0538	47 Neutral	HK$960.55M	80.73	0.38%	7.19%	0.26%	-73.09%

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.