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

• Market Cap: HK$887.24M
• Dividend Yield: 7.67%
• Average Volume (3M): 3.91M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.11
• Revenue Growth: -21.14%
• EPS Growth: -107.76%
• Country: HK
• Employees: 22,504
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Restaurants
• EPS (TTM): -0.13
• Shares Outstanding: 1,086,174,400
• 10 Day Avg. Volume: 2,932,600
• 30 Day Avg. Volume: 3,913,783
• PEG Ratio: -0.12
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.47
• 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: HK$0.50
• Price Target Upside: -36.71% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: HK$1.00 ▲(26.58%Upside)

The overall stock score is primarily impacted by financial challenges including declining revenues and net losses. While technical indicators show some short-term bullish momentum, the financial instability and negative P/E ratio are significant concerns. The high dividend yield offers some appeal to income investors.

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

Company Description

Xiabuxiabu Catering Management (China) Holdings Co., Ltd. (0520) is a leading casual dining company in China, primarily operating a popular chain of hotpot restaurants under the 'Xiabuxiabu' and 'CouCou' brands. Founded in 1998, the company has successfully expanded its presence across various regions in China, offering a unique dining experience characterized by high-quality ingredients and a modern, comfortable setting. The core service of Xiabuxiabu is its hotpot dining experience, where customers can enjoy a variety of broths and a wide selection of fresh ingredients to cook at their tables.

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 facing declining revenues and persistent net losses. The company shows financial instability with increased leverage, eroding equity base, and cash flow challenges. Operational inefficiencies and financial leverage need to be addressed.

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: 0.79
• 50DMA: Positive
• 100DMA: Positive
• 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 0.79 is above the 20-day moving average (MA) of 0.76, above the 50-day MA of 0.70, and below the 200-day MA of 0.89, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 56.34 is Neutral, neither overbought nor oversold. The STOCH value of 57.48 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$2.11B	26.55	5.40%	3.44%	1.63%	-47.80%
6862	71 Outperform	$77.37B	14.81	42.85%	11.27%	1.35%	4.06%
0341	69 Neutral	HK$4.19B	18.56	8.26%	8.21%	2.29%	35.94%
6811	64 Neutral	HK$913.13M	14.90	6.54%	5.32%	2.49%	-33.12%
Sector *	63 Neutral	$16.78B	10.88	-7.08%	3.04%	1.73%	-25.15%
0538	60 Neutral	HK$938.72M	19.75	-0.69%	7.44%	-7.18%	-110.84%
0520	54 Neutral	HK$887.24M	―	-40.47%	7.67%	-21.14%	-107.76%

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

Xiabuxiabu Updates Nomination Committee Terms

Xiabuxiabu Catering Management (China) Holdings Co., Ltd. announced updates to the terms of reference for its Nomination Committee, effective from July 1, 2025. This update reflects the company’s ongoing commitment to governance and compliance with Hong Kong’s Listing Rules, potentially impacting its board operations and stakeholder confidence.

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 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.