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

• Market Cap: HK$993.30M
• Dividend Yield: 7.11%
• Average Volume (3M): 439.68K
• Price to Earnings (P/E): 83.5
• Beta (1Y): 0.45
• Revenue Growth: 0.26%
• EPS Growth: -73.09%
• Country: HK
• Employees: 7,790
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.02
• Shares Outstanding: 1,091,538,800
• 10 Day Avg. Volume: 224,330
• 30 Day Avg. Volume: 439,676
• PEG Ratio: 0.36
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 2.53
• 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: 47 Neutral
• Price Target: HK$1.00 ▼(-1.96% Downside)

Ajisen (China) Holdings Limited faces significant financial challenges, with declining revenue and negative cash flow impacting its financial health. Technical indicators suggest bearish momentum, and the high P/E ratio raises valuation concerns. However, the strong dividend yield provides some support for the stock.

Positive Factors

Strong Brand Presence

Ajisen's strong brand presence and extensive network of stores enable it to attract a large customer base, providing a competitive advantage in the quick-service restaurant industry.

Healthy Capital Structure

A healthy capital structure with a strong equity base and declining debt-to-equity ratio indicates financial stability, allowing for potential growth and resilience against economic downturns.

Stable Gross Profit Margin

A stable gross profit margin suggests effective cost management and pricing strategies, which are crucial for maintaining profitability in a competitive market.

Negative Factors

Declining Revenue

Declining revenue indicates potential challenges in market demand or competitive pressures, which could impact long-term growth and profitability.

Negative Cash Flow

Negative cash flow and reduced financial flexibility can hinder the company's ability to invest in growth opportunities and meet financial obligations, posing a risk to long-term sustainability.

Negative Net Income

Negative net income reflects operational challenges and inefficiencies, which can affect investor confidence and the company's ability to reinvest in its business.

Ajisen (China) Holdings Limited Business Overview & Revenue Model

Company Description

Ajisen (China) Holdings Limited is a leading operator of Japanese-style ramen restaurants in China, primarily focusing on the quick-service restaurant sector. Established in 1995, the company has expanded its brand presence with a significant number of outlets across various cities in China, offering a diverse menu that includes ramen, rice dishes, and side items. Ajisen is known for its distinct flavor profiles and a commitment to quality, utilizing fresh ingredients to cater to the growing appetite for Japanese cuisine in the region.

How the Company Makes Money

Ajisen (China) Holdings Limited generates revenue primarily through the operation of its restaurant chain, which includes dine-in services, takeout, and delivery options. The company earns money from the sale of food and beverages, with ramen being the flagship product that attracts a loyal customer base. Additional revenue streams include franchising opportunities, where Ajisen licenses its brand and operational model to franchisees, providing them with support and training in exchange for royalties. The company may also benefit from partnerships with suppliers and distributors that enhance its supply chain efficiency, contributing to its overall profitability. Seasonal promotions, loyalty programs, and strategic marketing initiatives further help to drive customer traffic and increase sales.

Ajisen (China) Holdings Limited Financial Statement Overview

Summary

Ajisen (China) Holdings Limited is experiencing financial strain with declining revenue and profitability. The balance sheet is strong with a solid equity base, but negative cash flow and net income in 2024 highlight liquidity and operational challenges.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.77B	1.72B	1.82B	1.43B	2.00B	1.82B
Gross Profit	852.28M	829.10M	892.30M	626.05M	911.23M	822.52M
EBITDA	148.01M	128.44M	583.75M	216.74M	162.59M	396.48M
Net Income	11.16M	-20.22M	181.19M	-143.91M	20.94M	-77.87M
Balance Sheet
Total Assets	3.98B	3.99B	3.96B	3.87B	4.30B	4.61B
Cash, Cash Equivalents and Short-Term Investments	1.66B	1.64B	1.63B	1.47B	1.53B	1.74B
Total Debt	612.00M	611.57M	439.79M	503.13M	681.37M	818.79M
Total Liabilities	1.06B	1.02B	903.59M	947.27M	1.19B	1.38B
Stockholders Equity	2.86B	2.91B	3.00B	2.87B	3.06B	3.16B
Cash Flow
Free Cash Flow	330.68M	319.48M	432.86M	244.87M	296.46M	279.67M
Operating Cash Flow	432.25M	429.94M	503.18M	299.92M	417.72M	405.33M
Investing Cash Flow	-104.48M	-392.44M	-506.58M	-47.91M	-104.57M	-6.34M
Financing Cash Flow	-343.52M	-333.31M	-329.04M	-347.82M	-519.84M	-350.22M

Ajisen (China) Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.02
• 50DMA: Negative
• 100DMA: Negative
• 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 1.02 is above the 20-day moving average (MA) of 0.89, above the 50-day MA of 0.91, and above the 200-day MA of 0.88, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.36 is Neutral, neither overbought nor oversold. The STOCH value of 80.56 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
6811	68 Neutral	HK$1.05B	11.53	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$2.81B	20.74	5.05%	6.90%	-3.45%	-50.11%
0538	47 Neutral	HK$993.30M	83.49	0.38%	7.11%	0.26%	-73.09%
2150	47 Neutral	HK$1.96B	-3.05	-14.61%	―	-11.19%	-22.98%
0520	45 Neutral	HK$822.32M	-3.50	-26.56%	―	-21.42%	55.86%