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

• Market Cap: HK$789.86M
• Dividend Yield: 8.42%
• Average Volume (3M): 3.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.07
• Revenue Growth: -21.14%
• EPS Growth: -107.76%
• Country: HK
• Employees: 22,504
• Sector: Consumer Cyclical
• Sector Strength: 54
• Industry: Restaurants
• EPS (TTM): -0.41
• Shares Outstanding: 1,086,174,400
• 10 Day Avg. Volume: 5,855,100
• 30 Day Avg. Volume: 3,292,900
• PEG Ratio: -1.06
• Price to Book (P/B): 5.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.24
• 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$0.50 ▼(-34.21%Downside)

The overall stock score is primarily influenced by financial challenges, including declining revenues and cash flow issues. Technical analysis presents a neutral to mildly positive outlook, while valuation offers some attractiveness due to the high dividend yield despite negative earnings. The absence of earnings call and corporate event data means the score heavily relies on financial and technical aspects.

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 meals based on the ingredients and broth selections they choose. The company benefits from a high volume of customers due to the popularity of its hotpot dining experience. Additionally, Xiabuxiabu has expanded its revenue streams by establishing the 'CouCou' brand, targeting a more premium market segment with enhanced dining offerings. Key factors contributing to its earnings include strategic restaurant locations, efficient supply chain management, and a focus on customer service, which drive both customer retention and new customer acquisition. The company may also engage in partnerships with suppliers to ensure quality and cost-effectiveness of ingredients, although specific partnership details are not disclosed.

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: Neutral
• Last Price: 0.76
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 0.76 is above the 20-day moving average (MA) of 0.67, above the 50-day MA of 0.68, and below the 200-day MA of 0.89, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 54.49 is Neutral, neither overbought nor oversold. The STOCH value of 70.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
2217	74 Outperform	HK$1.93B	24.20	5.40%	3.75%	1.63%	-47.80%
0341	69 Neutral	HK$3.93B	16.91	8.26%	8.76%	2.29%	35.94%
6811	64 Neutral	HK$893.71M	14.74	6.54%	5.43%	2.49%	-33.12%
Sector *	62 Neutral	$16.34B	10.69	-6.34%	3.17%	1.66%	-24.46%
0520	51 Neutral	HK$789.86M	―	-40.47%	8.42%	-21.14%	-107.76%
HDALF		$10.75B	16.35	42.85%	6.55%	―	―
0538	60 Neutral	HK$927.81M	19.75	-0.69%	59.10%	-7.18%	-110.84%

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

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 important details about the agreement and recommendations for shareholders, was initially expected to be sent out by June 27, 2025, but has been postponed to on or before July 31, 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.

Xiabuxiabu Catering Management Successfully Passes All AGM Resolutions

Xiabuxiabu Catering Management announced that all resolutions proposed at their Annual General Meeting held on May 16, 2025, were passed by shareholder poll. Key resolutions included the re-election of directors, re-appointment of auditors, and granting of general mandates to the board for share repurchase and issuance. This successful AGM reflects strong shareholder support and positions the company for continued strategic operations and governance.

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 details of the agreement and recommendations from the Independent Board Committee, was initially expected by 16 May 2025 but is now postponed to on or before 27 June 2025 due to the need for additional time to finalize certain information. This delay may impact the company’s timeline for completing the acquisition and could affect shareholder decision-making processes.

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 Announces RMB89 Million Acquisition Deal

Xiabuxiabu Catering Management (China) Holdings Co., Ltd. announced a discloseable and connected transaction involving the conditional acquisition of Sale Equity from Mr. Ho for RMB89 million. This transaction, subject to shareholder approval and other consents, is significant due to Mr. Ho’s position as chairman and controlling shareholder, making it a connected transaction under Hong Kong’s Listing Rules.

Xiabuxiabu Catering Announces AGM with Key Resolutions

Xiabuxiabu Catering Management (China) Holdings Co., Ltd. has announced its upcoming annual general meeting scheduled for May 16, 2025. Key agenda items include the review of the company’s financial statements for the year ending December 31, 2024, re-election of directors, re-appointment of auditors, and a resolution to authorize the company to repurchase up to 10% of its issued shares. These decisions could impact the company’s governance and financial strategies, potentially influencing its market positioning and shareholder value.

Xiabuxiabu Announces Board Composition and Roles

Xiabuxiabu Catering Management (China) Holdings Co., Ltd. has announced the composition of its board of directors and the roles within its three board committees. This organizational update may impact the company’s governance and strategic decision-making, potentially influencing its market position and stakeholder relations.

Xiabuxiabu Announces Board and Audit Committee Changes

Xiabuxiabu Catering Management (China) Holdings Co., Ltd. announced changes in its board of directors and audit committee effective April 15, 2025. Ms. Li Jie will resign as a non-executive director and member of the audit committee, while Mr. Feng Hui-Huang and Mr. Huang Cheng-Chung have been appointed as executive director and independent non-executive director respectively. These changes are expected to bring new perspectives and expertise to the company’s leadership, potentially impacting its strategic direction and operational efficiency.

Xiabuxiabu Reports Revenue Decline Amidst Strategic Restructuring and Expansion

Xiabuxiabu Catering Management reported a 19.7% decline in revenue for 2024, reflecting challenges in the competitive food and beverage industry. Despite closing numerous loss-making outlets, the company expanded its network with new restaurant openings and pursued overseas growth, aiming to enhance profitability and maintain competitiveness.