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

• Market Cap: HK$811.50M
• Dividend Yield: N/A
• Average Volume (3M): 2.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.00
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: HK$0.75 ▲(1.49% Upside)

The overall stock score of 45 reflects significant financial challenges, including declining revenues and net losses, as well as bearish technical indicators. While the high dividend yield is a positive aspect, it is overshadowed by the company's operational inefficiencies and financial instability.

Positive Factors

Market Position

Being a leading player in the Chinese catering industry provides Xiabuxiabu with a competitive advantage and brand recognition, which can help sustain its market position and attract a loyal customer base over the long term.

Business Model Strength

The self-service model allows for operational efficiency and scalability, enabling Xiabuxiabu to manage costs effectively while enhancing customer experience, which is crucial for long-term growth.

Revenue Diversification

Diversifying into food delivery and catering services broadens revenue streams and reduces dependency on dine-in sales, providing resilience against market fluctuations and potential growth avenues.

Negative Factors

Declining Revenue

A significant decline in revenue growth reflects challenges in maintaining sales momentum, which can impact long-term financial stability and market competitiveness.

Financial Leverage

Increased financial leverage can strain the company's balance sheet, limiting its ability to invest in growth opportunities and increasing financial risk, which could impact long-term sustainability.

Cash Flow Volatility

Volatile cash flow and decreased operating cash flow can hinder the company's ability to fund operations and growth initiatives, posing a risk to its financial health and operational stability.

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: Neutral
• Last Price: 0.74
• 50DMA: Negative
• 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 0.74 is below the 20-day moving average (MA) of 0.76, below the 50-day MA of 0.82, and below the 200-day MA of 0.80, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 46.51 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 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
6862	71 Outperform	HK$82.33B	16.32	46.34%	5.78%	-4.96%	4.93%
6811	68 Neutral	HK$1.08B	11.63	10.47%	5.56%	4.16%	59.08%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0341	55 Neutral	HK$2.87B	21.16	5.05%	6.90%	-3.45%	-50.11%
0538	47 Neutral	HK$993.30M	84.40	0.38%	7.11%	0.26%	-73.09%
0520	45 Neutral	HK$811.50M	-3.50	-26.56%	―	-21.42%	55.86%