Tao Heung Holdings Limited (0573) AI Stock Analysis

• Market Cap: €299.23M
• Dividend Yield: 20.34%
• Average Volume (3M): 288.93K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.34
• Revenue Growth: -17.76%
• EPS Growth: -171.63%
• Country: HK
• Employees: 4,009
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Restaurants
• EPS (TTM): -0.06
• Shares Outstanding: 1,014,348,000
• 10 Day Avg. Volume: 257,000
• 30 Day Avg. Volume: 288,933
• PEG Ratio: 0.03
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.43
• 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: €0.46
• Price Target Upside: 58.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: HK$0.50 ▲(72.41%Upside)

The overall stock score for Tao Heung Holdings Limited is influenced primarily by financial performance and technical analysis. The company's financial difficulties and weak technical indicators weigh heavily on its score, while a high dividend yield offers some appeal.

Tao Heung Holdings Limited Business Overview & Revenue Model

Company Description

Tao Heung Holdings Limited, an investment holding company, operates restaurants and bakeries in Hong Kong and Mainland China. The company engages in the provision of food catering services; and production, sale, and distribution of food products and other items related to restaurant operations; and provision of poultry farm operations. It also slaughters, processes, and sells livestock; produces and retails bakery products; and provides management and promotion, treasury, and human resources support services, as well as trades in food and other operating items to restaurant operations. In addition, the company engages in the property investment activities. It operates restaurants under Tao Heung, Pier 88, Hak Ka Hut, Cheers Restaurant, Chao Inn, Chung's Cuisine/Chung's Kitchen, Joyous One, Tao Square, Tao's Kitchen, Cheers Palace, Tai Cheong Bakery, and Chung's House brands. The company was founded in 1991 and is based in Tai Po, Hong Kong.

How the Company Makes Money

Tao Heung Holdings Limited generates revenue primarily through the operation of its restaurant and catering businesses. The company earns money by providing dining services across its network of restaurants, which are strategically located in high-traffic areas to attract a large customer base. Revenue streams include dine-in services, takeaway, and delivery options, catering to both individual customers and corporate clients. Additionally, Tao Heung benefits from its bakery and dim sum operations, which enhance brand recognition and attract a wider range of customers. The company may also engage in partnerships or collaborations with other businesses to expand its market reach and increase sales, though specific partnerships are not detailed in the available data.

Tao Heung Holdings Limited Financial Statement Overview

Summary

Tao Heung Holdings Limited faces significant financial challenges, particularly in revenue and profitability. While the balance sheet is relatively stable, cash flow issues and negative returns highlight operational difficulties.

Income Statement

Tao Heung Holdings Limited has experienced fluctuating revenue with a noticeable decline in recent years. The gross profit margin has been inconsistent, and the net profit margin turned negative in the most recent year. The company has struggled with EBIT and EBITDA margins, indicating operational challenges. Revenue growth has been negative, highlighting significant challenges in maintaining sales levels.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, suggesting manageable leverage. However, the return on equity has been negative recently due to net losses. The equity ratio is strong, indicating a solid capital base compared to total assets. Despite these strengths, the negative ROE is a concern.

Cash Flow

Cash flow from operations has been inconsistent, with a significant drop in the most recent year. Free cash flow growth has been volatile, with periods of strong performance followed by declines. The operating cash flow to net income ratio has been affected by the negative net income, creating concerns about the sustainability of cash flows.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.43B	2.95B	2.40B	2.84B	2.39B
Gross Profit	133.07M	325.67M	-22.91M	195.84M	-31.37M
EBITDA	311.47M	507.95M	247.81M	335.77M	408.83M
Net Income	-52.80M	73.66M	-143.14M	-21.23M	-57.96M
Balance Sheet
Total Assets	1.87B	2.19B	2.27B	2.75B	2.94B
Cash, Cash Equivalents and Short-Term Investments	213.32M	345.15M	266.37M	473.91M	580.64M
Total Debt	404.11M	543.81M	639.75M	801.86M	1.01B
Total Liabilities	720.37M	934.56M	1.03B	1.20B	1.35B
Stockholders Equity	1.14B	1.23B	1.22B	1.53B	1.57B
Cash Flow
Free Cash Flow	159.27M	424.35M	167.65M	328.29M	69.05M
Operating Cash Flow	240.82M	523.26M	266.73M	454.03M	265.72M
Investing Cash Flow	-73.96M	-33.12M	-99.08M	-128.29M	-183.54M
Financing Cash Flow	-294.82M	-337.12M	-335.05M	-453.02M	-173.34M

Tao Heung Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0573, the sentiment is Negative. The current price of 0.29 is below the 20-day moving average (MA) of 0.30, below the 50-day MA of 0.30, and below the 200-day MA of 0.41, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.00 is Neutral, neither overbought nor oversold. The STOCH value of 14.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0573.

Tao Heung Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1314	62 Neutral	HK$260.56M	20.54	2.54%	10.58%	-2.52%	45.64%
1181	58 Neutral	HK$191.53M	53.14	-8.51%	5.62%	-10.93%	-143.61%
1443	58 Neutral	HK$80.60M	10.67	-41.01%	4.84%	1.74%	-46.43%
Sector *	56 Neutral	HK$24.88B	3.87	-2.03%	6.54%	-0.32%	-67.68%
1978	54 Neutral	HK$288.00M	23.14	-12.09%	24.47%	-17.29%	-136.42%
0573	52 Neutral	€299.23M	9.61	-4.41%	20.34%	-17.76%	-171.63%
1869	46 Neutral	HK$97.31M	―		―	-21.79%	-613.89%

Tao Heung Holdings Limited Corporate Events

Tao Heung Holdings Limited Updates Nomination Committee Terms

Tao Heung Holdings Limited has revised the terms of reference for its Nomination Committee, which is responsible for identifying and recommending candidates for the company’s board of directors. The committee, primarily composed of independent non-executive directors, will oversee board performance evaluations and develop nomination guidelines. This revision aims to enhance the committee’s effectiveness in maintaining a diverse and skilled board, aligning with the company’s corporate strategy.

Tao Heung Holdings Appoints New Nomination Committee Member

Tao Heung Holdings Limited has announced the appointment of Ms. Wong Fun Ching as a member of its Nomination Committee, effective from July 1, 2025. This strategic move is expected to enhance the company’s governance and strengthen its leadership structure, potentially impacting its operational efficiency and stakeholder confidence.

Tao Heung Holdings Limited Announces Board Composition and Roles

Tao Heung Holdings Limited has announced the composition of its Board of Directors, detailing the roles and functions of each member. The announcement outlines the structure of the Board, including the executive, non-executive, and independent non-executive directors, as well as the membership of key Board committees, which is crucial for stakeholders to understand the governance and leadership dynamics of the company.

Tao Heung Holdings Limited Announces Successful AGM Resolutions

Tao Heung Holdings Limited announced the successful passing of all resolutions at its Annual General Meeting held on 29 May 2025. The resolutions included the adoption of financial statements, re-election of directors, re-appointment of auditors, and granting mandates for share allotment and purchase. The approval of these resolutions reflects strong shareholder support and positions the company for continued operational stability and strategic growth.

Tao Heung Holdings Limited Announces 2025 AGM and Key Resolutions

Tao Heung Holdings Limited has announced its upcoming annual general meeting (AGM) scheduled for May 29, 2025. Key agenda items include the adoption of the 2024 financial statements, re-election of directors, and re-appointment of Ernst & Young as auditors. Additionally, the company seeks approval for directors to issue additional shares, subject to certain conditions, which could impact the company’s capital structure and shareholder value.