Tao Heung Holdings Limited (0573) AI Stock Analysis

• Market Cap: €339.81M
• Dividend Yield: 18.18%
• Average Volume (3M): 197.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• Revenue Growth: -16.50%
• EPS Growth: -311.44%
• Country: HK
• Employees: 4,009
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -0.04
• Shares Outstanding: 1,014,348,000
• 10 Day Avg. Volume: 69,700
• 30 Day Avg. Volume: 197,200
• PEG Ratio: 0.05
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 2.77
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: HK$0.50 ▲(47.06% Upside)

Tao Heung Holdings Limited's overall stock score reflects significant financial challenges, particularly in revenue and profitability, which are the most impactful factors. The technical analysis suggests a lack of strong momentum, while the valuation is concerning due to a negative P/E ratio, despite an attractive dividend yield. The absence of earnings call data and corporate events limits further insights.

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 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. The balance sheet remains relatively stable, but cash flow issues and negative returns indicate underlying operational difficulties. The company needs to address revenue declines and improve profitability to enhance its financial health.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.28B	2.43B	2.95B	2.40B	2.84B	2.39B
Gross Profit	107.70M	133.07M	325.67M	-22.91M	195.84M	-31.37M
EBITDA	50.31M	311.47M	507.95M	247.81M	407.42M	408.83M
Net Income	-93.78M	-52.80M	73.66M	-143.14M	-21.23M	-57.96M
Balance Sheet
Total Assets	1.85B	1.87B	2.19B	2.27B	2.75B	2.94B
Cash, Cash Equivalents and Short-Term Investments	206.89M	213.32M	345.15M	251.85M	457.93M	580.64M
Total Debt	444.67M	404.11M	543.81M	639.75M	801.86M	1.01B
Total Liabilities	731.95M	720.37M	934.56M	1.03B	1.20B	1.35B
Stockholders Equity	1.10B	1.14B	1.23B	1.22B	1.53B	1.57B
Cash Flow
Free Cash Flow	146.09M	159.27M	424.35M	167.65M	328.29M	69.05M
Operating Cash Flow	237.84M	233.79M	523.26M	266.73M	454.03M	265.72M
Investing Cash Flow	-76.87M	-73.96M	-33.12M	-87.07M	-109.10M	-171.50M
Financing Cash Flow	-230.47M	-294.82M	-337.12M	-335.05M	-455.38M	-173.34M

Tao Heung Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 Positive. The current price of 0.34 is below the 20-day moving average (MA) of 0.34, above the 50-day MA of 0.34, and below the 200-day MA of 0.35, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 49.75 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1181	―	HK$216.28M	-4.95	-18.74%	4.76%	-9.92%	-1260.00%
1978	―	HK$304.00M	-49.35	-2.62%	22.88%	-5.71%	-144.00%
0573	―	€339.81M	-3.63	-8.43%	18.18%	-16.50%	-311.44%
1314	―	HK$241.26M	19.02	2.54%	19.55%	-5.04%	-67.83%
1443	―	HK$119.60M	―	-41.01%	3.45%	-7.56%	-231.11%
1869	―	HK$129.74M	-2.80	―	―	-18.92%	-2250.00%

Tao Heung Holdings Limited Corporate Events

Tao Heung Holdings Reports Significant Financial Decline in H1 2025

Tao Heung Holdings Limited reported a significant decline in its financial performance for the first half of 2025, with revenue decreasing by 11.3% compared to the same period in 2024. The company experienced a loss of HK$35.8 million, a stark contrast to the profit of HK$9.4 million in the previous year, attributed to reduced revenue and increased financial challenges. The number of its restaurants and bakery outlets also saw a decrease, reflecting operational downsizing.

The most recent analyst rating on (HK:0573) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Tao Heung Holdings Limited stock, see the HK:0573 Stock Forecast page.

Tao Heung Holdings Issues Profit Warning Amid Market Challenges

Tao Heung Holdings Limited has issued a profit warning, anticipating a significant loss of HK$35 million to HK$45 million for the first half of 2025, compared to a profit in the previous year. This downturn is attributed to a decrease in revenue and challenging market conditions, including geopolitical uncertainties and changing consumer preferences. The company is responding by introducing new menus, implementing cost control measures, and enhancing its brand presence through various marketing strategies to maintain competitiveness and support long-term growth.

The most recent analyst rating on (HK:0573) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Tao Heung Holdings Limited stock, see the HK:0573 Stock Forecast page.

Tao Heung Holdings Schedules Board Meeting for Interim Results

Tao Heung Holdings Limited has announced a board meeting scheduled for August 28, 2025, to approve the publication of its interim results for the first half of the year and consider the payment of an interim dividend. This meeting could impact the company’s financial strategy and stakeholder returns, reflecting its operational performance and market positioning.