Tao Heung Holdings Limited (0573) AI Stock Analysis

• Market Cap: HK$324.59M
• Dividend Yield: 17.91%
• Average Volume (3M): 197.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: HK$0.50 ▲(56.25% 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.

Positive Factors

Market Position

Being a leading restaurant group in key markets like Hong Kong and Mainland China provides a strong market position and brand recognition, which can drive customer loyalty and long-term revenue stability.

Business Model

A diverse restaurant portfolio allows Tao Heung to cater to a broad customer base, mitigating risks associated with changing consumer preferences and economic conditions, supporting sustainable revenue streams.

Strategic Partnerships

Strategic partnerships and joint ventures enhance market reach and brand presence, providing opportunities for growth and competitive advantage in the restaurant industry.

Negative Factors

Revenue Decline

Negative revenue growth indicates challenges in maintaining sales levels, which can impact long-term profitability and financial health if not addressed.

Profitability Challenges

A negative net profit margin reflects operational inefficiencies and profitability challenges, which can hinder reinvestment and growth opportunities.

Cash Flow Volatility

Inconsistent cash flow from operations can limit the company's ability to fund operations and invest in growth, affecting long-term financial stability.

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 generates revenue primarily through its restaurant operations, which include a wide array of dining options that cater to various customer segments. The company earns money from food and beverage sales across its restaurant chains, and it also benefits from catering services for events and corporate functions. Additionally, the food manufacturing segment contributes to revenue by supplying products to its restaurants and other retailers. Key partnerships with suppliers and distributors enhance the efficiency of its supply chain, while strategic marketing efforts help attract a steady flow of customers. Seasonal promotions and loyalty programs further bolster sales, ensuring a consistent revenue stream.

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: Neutral
• Last Price: 0.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 Neutral. The current price of 0.32 is below the 20-day moving average (MA) of 0.32, below the 50-day MA of 0.33, and below the 200-day MA of 0.32, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.70 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1181	57 Neutral	HK$223.81M	-5.05	-18.74%	5.15%	-9.92%	-1260.00%
1978	51 Neutral	HK$292.00M	-46.75	-2.62%	24.14%	-5.71%	-144.00%
0573	51 Neutral	HK$324.59M	-3.46	-8.43%	17.91%	-16.50%	-311.44%
1314	50 Neutral	HK$217.82M	19.51	2.28%	21.88%	1.02%	-71.48%
1443	44 Neutral	HK$84.50M	-1.57	-48.91%	4.48%	-13.13%	-873.33%
1869	44 Neutral	HK$162.18M	-3.65	―	―	-18.92%	-2250.00%