Ajisen (China) Holdings Limited (0538) AI Stock Analysis

• Market Cap: HK$895.06M
• Dividend Yield: 7.8%
• Average Volume (3M): 758.37K
• Price to Earnings (P/E): 19.8
• Beta (1Y): 0.39
• Revenue Growth: -7.18%
• EPS Growth: -110.84%
• Country: HK
• Employees: 7,790
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Restaurants
• EPS (TTM): -0.01
• Shares Outstanding: 1,091,538,800
• 10 Day Avg. Volume: 1,060,100
• 30 Day Avg. Volume: 758,366
• PEG Ratio: 0.25
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.88
• 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: 60 Neutral
• Price Target: HK$1.00 ▲(20.48%Upside)

Ajisen (China) Holdings Limited faces financial challenges with declining revenue and cash flow issues, impacting its overall score significantly. Positive technical momentum partially offsets these concerns, but the negative valuation metrics highlight financial risks.

Ajisen (China) Holdings Limited Business Overview & Revenue Model

Company Description

Ajisen (China) Holdings Limited (0538) is a leading restaurant chain operator in China, primarily engaged in the operation of Japanese ramen noodle restaurants under the 'Ajisen Ramen' brand. The company specializes in providing high-quality, quick-service Japanese cuisine, with a focus on ramen noodles and a variety of side dishes. Ajisen (China) Holdings Limited operates an extensive network of restaurants across Mainland China and Hong Kong, catering to the growing demand for Japanese food in these regions.

How the Company Makes Money

Ajisen (China) Holdings Limited generates revenue primarily through its restaurant operations, where income is derived from the sale of food and beverages to customers. The company's key revenue streams include dine-in services, delivery services, and takeaway options. Additionally, Ajisen may benefit from franchising agreements, where franchisees operate restaurants under the Ajisen brand and contribute to the company's revenue through franchise fees and royalties. Strategic partnerships with suppliers and real estate developers can also enhance profitability by optimizing supply chain efficiency and securing prime restaurant locations.

Ajisen (China) Holdings Limited Financial Statement Overview

Summary

The company's financial performance is under pressure, with declining revenue, negative net profit margin, and cash flow constraints in 2024. While the balance sheet remains strong, the negative cash flow raises liquidity concerns.

Income Statement

The company has experienced fluctuating revenue, with a significant decline in 2024 compared to 2023. Gross profit margin has remained relatively stable, but net profit margin has deteriorated due to negative net income in 2024. EBIT and EBITDA margins have also decreased, indicating challenges in operational efficiency.

Balance Sheet

The company maintains a strong equity base with a declining debt-to-equity ratio over recent years, showcasing financial stability. The equity ratio is healthy, indicating a solid capital structure. However, the return on equity has been negative in 2024 due to net losses, which is a concern.

Cash Flow

The cash flow statement reveals challenges, with operating cash flow falling to zero in 2024. Free cash flow has also dropped significantly, impacting financial flexibility. The absence of free cash flow growth and operating cash flow to net income ratios in 2024 highlight cash flow constraints.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.72B	1.82B	1.43B	2.00B	1.82B
Gross Profit	829.10M	892.30M	626.05M	911.23M	822.52M
EBITDA	128.44M	583.75M	216.74M	162.59M	381.87M
Net Income	-20.22M	181.19M	-143.91M	20.94M	-77.87M
Balance Sheet
Total Assets	3.99B	3.96B	3.87B	4.30B	4.61B
Cash, Cash Equivalents and Short-Term Investments	1.64B	1.63B	1.47B	1.53B	1.74B
Total Debt	611.57M	439.79M	503.13M	681.37M	818.79M
Total Liabilities	1.02B	903.59M	947.27M	1.19B	1.38B
Stockholders Equity	2.91B	3.00B	2.87B	3.06B	3.16B
Cash Flow
Free Cash Flow	319.48M	432.86M	244.87M	296.46M	279.67M
Operating Cash Flow	429.94M	503.18M	299.92M	417.72M	405.33M
Investing Cash Flow	-392.44M	-506.58M	-47.91M	-104.57M	-6.34M
Financing Cash Flow	-333.31M	-329.04M	-347.82M	-519.84M	-350.22M

Ajisen (China) Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.83
• 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:0538, the sentiment is Positive. The current price of 0.83 is below the 20-day moving average (MA) of 0.84, above the 50-day MA of 0.78, and above the 200-day MA of 0.77, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 53.27 is Neutral, neither overbought nor oversold. The STOCH value of 37.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0538.

Ajisen (China) Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2217	74 Outperform	HK$2.11B	26.39	5.40%	3.44%	1.63%	-47.80%
0341	69 Neutral	HK$4.16B	17.90	8.26%	8.28%	2.29%	35.94%
6811	64 Neutral	HK$883.99M	14.58	6.54%	5.49%	2.49%	-33.12%
0538	60 Neutral	HK$895.06M	19.75	-0.69%	7.80%	-7.18%	-110.84%
Sector *	56 Neutral	HK$24.58B	3.79	-2.03%	6.58%	-0.32%	-67.68%
2150	51 Neutral	HK$2.70B	―	-20.95%	―	-6.61%	-5748.54%
0520	51 Neutral	HK$811.50M	―	-40.47%	8.08%	-21.14%	-107.76%

Ajisen (China) Holdings Limited Corporate Events

Ajisen (China) Renews Shanghai Office Lease with Cost Savings

Ajisen (China) Holdings Limited has announced the renewal of its tenancy agreement for office space in Shanghai, extending the lease from July 2025 to June 2028. This renewal, involving a connected transaction with JILIN Property, is exempt from certain regulatory requirements due to its size but will still be reported. The new agreement offers a 4.5% reduction in rent compared to the previous terms, potentially improving cost efficiency for the company.

Ajisen (China) Holdings Limited Announces Change in Trusteeship

Ajisen (China) Holdings Limited has announced a change in trusteeship concerning its controlling shareholder, the ANMI Trust, which is a discretionary family trust set up by Ms. Poon. The change was completed on June 18, 2025, and involved a waiver from the obligation to make a mandatory general offer for the company’s shares, which could have been triggered by this change. This development is significant as it maintains the current shareholding structure without necessitating a general offer, thus preserving the existing control dynamics within the company.

Ajisen (China) Holdings Limited Passes All Resolutions at AGM

Ajisen (China) Holdings Limited announced that all proposed resolutions were passed at its annual general meeting held on 20 May 2025. Key resolutions included the adoption of the financial statements for the year ended 31 December 2024, the declaration of a final dividend, the re-election of directors, and the reappointment of Deloitte Touche Tohmatsu as auditors. The approval of general mandates for the issuance and repurchase of shares indicates a strategic focus on flexibility in capital management, which may impact the company’s market operations and shareholder value.

Ajisen (China) Holdings Limited Announces 2025 Annual General Meeting

Ajisen (China) Holdings Limited has announced its upcoming annual general meeting scheduled for May 20, 2025, in Hong Kong. Key agenda items include the adoption of financial statements for the year ending December 31, 2024, the declaration of a final dividend, re-election of directors, and the re-appointment of Deloitte Touche Tohmatsu as the company’s auditor. The meeting will also seek approval for directors to allot and issue additional shares, with limitations on the aggregate amount of shares to be issued.