Tao Heung Holdings Limited (0573) AI Stock Analysis

• Market Cap: €314.45M
• Dividend Yield: 19.35%
• Average Volume (3M): 286.97K
• 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: 80
• Industry: Restaurants
• EPS (TTM): -0.06
• Shares Outstanding: 1,014,348,000
• 10 Day Avg. Volume: 328,700
• 30 Day Avg. Volume: 286,966
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 52.68% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: HK$0.50 ▲(66.67% Upside)

The overall stock score of 54 reflects significant financial challenges, particularly in revenue and profitability, which are the most impactful factors. Technical analysis shows a neutral outlook, while valuation is hampered by a negative P/E ratio despite a high dividend yield.

Tao Heung Holdings Limited Business Overview & Revenue Model

Company Description

Tao Heung Holdings Limited (0573) is a leading restaurant group in Hong Kong and Mainland China, specializing in Chinese cuisine. The company operates a wide range of restaurants under various brands, catering to different dining preferences and price points. Its core services include the provision of dining experiences through its diverse restaurant portfolio, featuring dim sum, traditional Chinese banquets, and casual dining options.

How the Company Makes Money

Tao Heung Holdings Limited generates revenue primarily through its extensive network of restaurants, which serve a broad array of Chinese dishes to customers in Hong Kong and Mainland China. The company's revenue streams include dine-in services, takeaway orders, and catering services for special events. Additionally, Tao Heung benefits from strategic partnerships and joint ventures that help expand its market reach and brand presence. The company also leverages its supply chain operations to manage costs effectively and ensure quality food offerings, contributing to its profitability.

Tao Heung Holdings Limited Financial Statement Overview

Summary

Tao Heung Holdings Limited faces significant financial challenges, particularly in revenue and profitability, with negative net profit margins and inconsistent cash flows. The balance sheet is stable with a manageable debt level, but negative ROE is concerning.

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: 0.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.3 is below the 20-day moving average (MA) of 0.31, below the 50-day MA of 0.30, and below the 200-day MA of 0.38, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 44.28 is Neutral, neither overbought nor oversold. The STOCH value of 47.22 is Neutral, 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
Sector *	57 Neutral	HK$25.99B	4.36	-4.73%	5.52%	-0.90%	-51.66%
0573	54 Neutral	€314.45M	9.61	-4.41%	19.35%	-17.76%	-171.63%
1978	54 Neutral	HK$328.00M	23.14	-12.09%	22.30%	-17.29%	-136.42%
1181	54 Neutral	HK$219.51M	53.14	-8.51%	5.29%	-10.93%	-143.61%
1314	51 Neutral	HK$272.96M	21.52	2.54%	17.86%	-5.04%	-67.83%
1869	46 Neutral	HK$131.15M	―		―	-21.79%	-613.89%
1443	46 Neutral	HK$85.80M	10.67	-41.01%	4.55%	-7.56%	-231.11%

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.