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

• Market Cap: HK$916.89M
• Dividend Yield: 7.62%
• Average Volume (3M): 504.60K
• 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: 58
• Industry: Restaurants
• EPS (TTM): -0.01
• Shares Outstanding: 1,091,538,800
• 10 Day Avg. Volume: 940,600
• 30 Day Avg. Volume: 504,600
• PEG Ratio: 0.24
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.56
• 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: 50 Neutral
• Price Target: ―

Ajisen (China) Holdings Limited is facing significant financial challenges, with declining revenue and cash flow issues. The company's technical indicators suggest a bearish trend, and its valuation is impacted by negative earnings despite a high dividend yield. Without positive earnings guidance or significant corporate events, the overall outlook is cautious.

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

Ajisen (China) Holdings Limited shows signs of financial strain, with declining revenue and profitability indicators. While the balance sheet displays a strong equity position, the negative cash flow situation in 2024 raises concerns about liquidity and operational challenges. The company needs to address these issues to enhance financial health.

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
	EBIT
14.91M	126.84M	-114.58M	24.11M	-47.22M
	EBITDA
128.44M	583.75M	216.74M	162.59M	381.87M
	Net Income Common Stockholders
-20.22M	181.19M	-143.91M	20.94M	-77.87M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.64B	1.63B	1.47B	1.53B	1.74B
	Total Assets
3.99B	3.96B	3.87B	4.30B	4.61B
	Total Debt
611.57M	439.79M	503.13M	681.37M	818.79M
	Net Debt
-1.02B	-1.17B	-961.98M	-846.17M	-919.59M
	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
0.00	432.86M	244.87M	296.46M	279.67M
	Operating Cash Flow
0.00	503.18M	299.92M	417.72M	405.33M
	Investing Cash Flow
0.00	-506.58M	-47.91M	-104.57M	-6.34M
	Financing Cash Flow
0.00	-329.04M	-347.82M	-519.84M	-350.22M

Ajisen (China) Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 0.84 is above the 20-day moving average (MA) of 0.78, above the 50-day MA of 0.74, and above the 200-day MA of 0.77, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 67.71 is Neutral, neither overbought nor oversold. The STOCH value of 90.48 is Negative, 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
0331	78 Outperform	HK$2.55B	5.33	49.10%	3.73%	3.11%	-2.34%
0220	76 Outperform	HK$42.85B	21.37	13.80%	4.67%	3.98%	8.64%
0291	68 Neutral	$80.78B	15.72	15.25%	0.47%	-3.20%	-11.50%
Sector *	62 Neutral	$6.88B	11.07	2.77%	4.28%	2.67%	-24.94%
2319	61 Neutral	$66.29B	587.54	0.21%	3.06%	-11.90%	-97.93%
0538	50 Neutral	HK$916.89M	19.75	-0.69%	7.62%	-7.18%	-110.84%

Ajisen (China) Holdings Limited Corporate Events

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.

Ajisen (China) Holdings Announces Key Leadership Change

Ajisen (China) Holdings Limited has announced a change in its company secretary, authorized representative, and process agent. Ms. Cheung Lai Ha has resigned from these roles, and Mr. Ng Tung Ching Raphael has been appointed to succeed her, effective March 27, 2025. Mr. Ng brings over 14 years of experience in legal and company secretarial domains, specializing in corporate governance and compliance. The company expressed gratitude to Ms. Cheung for her contributions and welcomed Mr. Ng to his new position.

Ajisen (China) Reports 2024 Financial Results Amidst Operational Challenges

Ajisen (China) Holdings Limited announced its annual results for the year ended December 31, 2024, revealing a decrease in turnover by 5.4% to RMB 1,717,290,000 compared to the previous year. The company faced significant challenges, with a drastic 88.2% drop in profit from operations and a net loss before tax of RMB 50,132,000. Despite these setbacks, Ajisen expanded its restaurant count to 596 by the end of 2024, indicating a strategic focus on growth amidst financial difficulties.

Ajisen (China) Holdings Announces Final Dividend for 2024

Ajisen (China) Holdings Limited announced a final cash dividend of RMB 0.06 per share for the year ending December 31, 2024, with shareholders’ approval scheduled for May 20, 2025. The dividend will be paid in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.067, with payment set for August 15, 2025. This announcement reflects the company’s stable financial performance and commitment to returning value to shareholders, potentially strengthening its position in the competitive food and beverage industry.

Ajisen (China) Holdings Limited Announces Upcoming Board Meeting for Annual Results

Ajisen (China) Holdings Limited has announced a board meeting scheduled for March 27, 2025, to discuss and approve the annual results for the year ending December 31, 2024. The meeting will also consider the recommendation of a final dividend, which could impact the company’s financial strategy and shareholder returns.

Ajisen (China) Issues Profit Warning Amid Market Challenges

Ajisen (China) Holdings Limited has issued a profit warning, indicating an expected loss of up to RMB40 million for the year ending December 31, 2024, compared to a profit of RMB181.2 million the previous year. This anticipated loss is attributed to revaluation losses on investment properties due to challenging property market conditions in Hong Kong and Mainland China, as well as decreased profitability in its catering business due to intensified competition and shifts in consumer behavior towards takeaway services, which have increased operating costs.