Ajisen (China) Holdings Limited (HK:0538)
:0538
Want to see HK:0538 full AI Analyst Report?
Top Page
Ajisen (China) Holdings Limited
(0538)
Select Model
Select Model
Rating:66Neutral
Price Target:
HK$1.00
▼(-1.96% Downside)
Action:Reiterated
Date:05/03/26
The score is driven primarily by solid balance-sheet strength and consistently positive free cash flow, which support financial resilience. Offsetting this is volatile profitability (notably the sharp 2025 gross margin decline and thin net margin), while technicals are moderately positive and valuation is mixed (high P/E despite a strong dividend yield).
Positive Factors
Conservative Leverage
Low debt-to-equity (~0.23 in 2025) gives the company durable financial flexibility typical restaurants need to withstand demand swings, fund refurbishments or selective expansion, and preserve liquidity. This supports resilience through cost pressures and cyclical downturns.
Negative Factors
Sharp Gross Margin Decline
A drop from ~48–49% to ~32% is a structurally meaningful margin compression, pointing to sustained cost pressures, weaker pricing power, or adverse mix shifts. Unless addressed through pricing, sourcing or menu changes, lower gross margins will constrain profit recovery and cash generation durability.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Leverage
Low debt-to-equity (~0.23 in 2025) gives the company durable financial flexibility typical restaurants need to withstand demand swings, fund refurbishments or selective expansion, and preserve liquidity. This supports resilience through cost pressures and cyclical downturns.
Read all positive factors
Ajisen (China) Holdings Limited (0538) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$862.32M
Dividend Yield7.11%
Average Volume (3M)439.68K
Price to Earnings (P/E)26.3
Beta (1Y)0.57
Revenue Growth6.74%
EPS GrowthN/A
CountryHK
Employees1,600
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)0.03
Shares Outstanding1,091,538,800
10 Day Avg. Volume224,330
30 Day Avg. Volume439,676
Financial Highlights & Ratios
PEG Ratio-0.13
Price to Book (P/B)0.30
Price to Sales (P/S)0.47
P/FCF Ratio2.27
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Ajisen (China) Holdings Limited Business Overview & Revenue Model
Company Description
Ajisen (China) Holdings Limited, an investment holding company, operates a chain of fast casual restaurants in the People's Republic of China and Hong Kong Special Administrative Region. It operates through Operation of Restaurants; Manufacture an...
How the Company Makes Money
Ajisen (China) Holdings Limited primarily makes money by operating its restaurant network and selling food and beverages to customers. Its core revenue stream is restaurant sales (e.g., ramen and other menu items) generated from customer traffic a...
Ajisen (China) Holdings Limited Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
78
Positive
Cash Flow
73
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.78B | 1.72B | 1.82B | 1.43B | 2.00B |
| Gross Profit | 568.07M | 829.10M | 892.30M | 626.05M | 911.23M |
| EBITDA | 395.95M | 128.44M | 583.75M | 216.74M | 162.59M |
| Net Income | 27.67M | -20.22M | 181.19M | -143.91M | 20.94M |
Balance Sheet | |||||
| Total Assets | 3.99B | 3.99B | 3.96B | 3.87B | 4.30B |
| Cash, Cash Equivalents and Short-Term Investments | 1.68B | 1.64B | 1.63B | 1.47B | 1.53B |
| Total Debt | 653.17M | 611.57M | 439.79M | 503.13M | 681.37M |
| Total Liabilities | 1.08B | 1.02B | 903.59M | 947.27M | 1.19B |
| Stockholders Equity | 2.85B | 2.91B | 3.00B | 2.87B | 3.06B |
Cash Flow | |||||
| Free Cash Flow | 371.04M | 319.48M | 432.86M | 244.87M | 296.46M |
| Operating Cash Flow | 453.15M | 429.94M | 503.18M | 299.92M | 417.72M |
| Investing Cash Flow | 42.31M | -392.44M | -506.58M | -47.91M | -104.57M |
| Financing Cash Flow | -328.08M | -333.31M | -329.04M | -347.82M | -519.84M |
Ajisen (China) Holdings Limited Technical Analysis
Negative
1.02
Price Trends
0.84
Negative
0.83
Negative
0.83
Negative
Market Momentum
>-0.01
Positive
24.72
Positive
-107.07
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0538, the sentiment is Negative. The current price of 1.02 is above the 20-day moving average (MA) of 0.82, above the 50-day MA of 0.84, and above the 200-day MA of 0.83, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 24.72 is Positive, neither overbought nor oversold. The STOCH value of -107.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0538.
Ajisen (China) Holdings Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | HK$60.59B | 12.91 | 40.94% | 5.78% | 1.16% | -13.86% | |
66 Neutral | HK$862.32M | 26.35 | 0.99% | 7.11% | 6.74% | ― | |
66 Neutral | HK$1.03B | 9.53 | 12.32% | 5.56% | 7.49% | 78.21% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | HK$2.95B | 17.66 | 6.13% | 6.90% | -4.50% | -29.15% | |
55 Neutral | HK$576.51M | 17.80 | 5.13% | 4.58% | -2.18% | 11.28% | |
50 Neutral | HK$188.87M | 16.91 | 2.32% | 21.88% | -2.56% | -23.91% |
* Consumer Cyclical Sector Average
HK:0538
Ajisen (China) Holdings Limited
0.79
0.04
4.64%
HK:0052
Fairwood Holdings
4.45
-0.74
-14.26%
HK:6862
Haidilao International Holding
10.87
-3.26
-23.09%
HK:1314
Tsui Wah Holdings Ltd.
0.14
-0.06
-31.16%
HK:0341
Cafe de Coral Holdings Ltd.
5.15
-1.41
-21.49%
HK:6811
Tai Hing Group Holdings Ltd.
1.06
0.22
25.74%
Ajisen (China) Holdings Limited Corporate Events
Ajisen China Swings Back to Profit on Higher Sales and Cost Discipline
Mar 27, 2026
Ajisen (China) Holdings Limited reported a solid turnaround for the year ended 31 December 2025, as revenue rose 6.7% to RMB1.83 billion, driven mainly by an 8.1% increase in restaurant sales and a net addition of 21 outlets to 617 locations. Gros...
Ajisen China Proposes Final 2025 Dividend and Sets Payout Timetable
Mar 27, 2026
Ajisen (China) Holdings Limited has proposed a final ordinary dividend of RMB 0.07 per share for the financial year ended 31 December 2025, payable in Hong Kong dollars at HKD 0.0791 per share based on an exchange rate of RMB 1 to HKD 1.13. Subjec...
Ajisen China Declares Special Cash Dividend for 2025
Mar 27, 2026
Ajisen (China) Holdings Limited has declared a special cash dividend of RMB 0.03 per share for the financial year ended 31 December 2025, payable in Hong Kong dollars at HKD 0.0339 per share based on an exchange rate of RMB 1 to HKD 1.13. The payo...
Ajisen China Sets March Board Meeting to Approve 2025 Results and Consider Final Dividend
Mar 16, 2026
Ajisen (China) Holdings Limited has scheduled a board meeting for 27 March 2026 to review and approve the group’s audited annual results for the financial year ended 31 December 2025 and their release to the market. The board will also delib...
Ajisen China Signals 2025 Profit Turnaround on Expansion and Cost Controls
Mar 6, 2026
Ajisen (China) Holdings Limited has issued a positive profit alert, indicating it expects to swing to a profit attributable to shareholders of between RMB15 million and RMB40 million for the year ended 31 December 2025, compared with a loss of abo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.