Tai United Holdings (0718) AI Stock Analysis

• Market Cap: HK$152.25M
• Dividend Yield: N/A
• Average Volume (3M): 1.27M
• Price to Earnings (P/E): ―
• Beta (1Y): 4.32
• Revenue Growth: -20.78%
• EPS Growth: 6.78%
• Country: HK
• Employees: 163
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Distribution
• EPS (TTM): -0.04
• Shares Outstanding: 5,250,020,000
• 10 Day Avg. Volume: 2,565,660
• 30 Day Avg. Volume: 1,265,896
• PEG Ratio: <0.01
• Price to Book (P/B): -0.10
• Price to Sales (P/S): 1.47
• P/FCF Ratio: 14.77
• 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: 37 Underperform
• Price Target: HK$0.03 ▼(-53.33% Downside)

Tai United Holdings is experiencing severe financial distress, with negative equity and consistent losses. Technical analysis indicates a strong bearish trend, and valuation metrics are unfavorable due to negative earnings. These factors collectively suggest high risk and instability, resulting in the lowest possible score.

Positive Factors

Diversified Revenue Streams

Tai United Holdings' diversified revenue sources provide resilience against sector-specific downturns, supporting long-term stability.

Strategic Partnerships

Partnerships enhance market reach and operational efficiency, potentially leading to improved revenue and competitive positioning.

Property Investment Focus

A strong focus on property investment can provide stable rental income and capital appreciation, supporting long-term growth.

Negative Factors

Negative Equity

Negative equity suggests financial instability, limiting the company's ability to raise capital and invest in growth opportunities.

Revenue Decline

Declining revenue indicates challenges in maintaining market share and competitiveness, impacting long-term profitability.

Weak Cash Flow

Weak cash flow generation limits financial flexibility, hindering the company's ability to invest in growth and manage debt.

Tai United Holdings Business Overview & Revenue Model

Company Description

Tai United Holdings Limited, an investment holding company, primarily invests in properties in the People's Republic of China, Singapore, the United States, the United Kingdom, and the Republic of Mongolia. The company operates through Property Investment, Medical Equipment Trading, Flooring Materials Trading, Mining and Exploitation of Natural Resources, and Financial Services and Asset Management segments. The Property Investment segment invests in, manages, and leases properties, as well as develops shopping malls. The Medical Equipment Trading segment trades in medical equipment. The Flooring Materials Trading segments trades in flooring materials. The Mining and Exploitation of Natural Resources segment is involved in the mining and production of tungsten resources. The Financial Services and Asset Management segment trades in equity securities and derivatives; and manages assets arising from acquisition of distressed debts assets. The company was formerly known as Bestway International Holdings Limited and changed its name to Tai United Holdings Limited in August 2016. The company was incorporated in 1995 and is headquartered in North Point, Hong Kong. Tai United Holdings Limited is a subsidiary of Songbird SG PTE. Ltd.

How the Company Makes Money

Tai United Holdings generates revenue through multiple streams, primarily from rental income derived from its portfolio of investment properties. The company also earns income through property sales and development projects. Additional revenue is generated from the trading of electronic components, where the company acts as a distributor and supplier to various clients. Strategic partnerships with local and international businesses enhance its market reach and operational efficiency, contributing to its overall earnings. Furthermore, fluctuations in the real estate market and economic conditions can significantly influence the company's financial performance.

Tai United Holdings Financial Statement Overview

Summary

Tai United Holdings is facing significant financial challenges with consistent losses and negative equity, posing substantial risks. Revenue decline, poor profitability, and weak cash flow suggest instability. The company must address leverage and operational inefficiencies to improve its financial standing.

Income Statement

The company shows troubling revenue volatility with total revenue decreasing from 2023 to 2024. Margins are notably poor, with a negative net profit margin and declining EBITDA. Gross profit remains positive, but the net income is significantly negative, indicating substantial losses.

Balance Sheet

The financial health is concerning, as evidenced by negative stockholders' equity, indicating insolvency. The debt-to-equity ratio is not calculable due to negative equity, and the equity ratio is negative, reflecting financial instability.

Cash Flow

Cash flow generation is weak with erratic free cash flow trends. Operating cash flow is zero in 2024, which, combined with inconsistent past performance, raises sustainability concerns. The company lacks positive free cash flow growth, impacting its financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	120.57M	121.75M	211.79M	159.74M	309.09M	18.75M
Gross Profit	77.29M	77.19M	55.08M	71.53M	23.81M	-22.83M
EBITDA	-69.75K	-734.45M	-1.19B	-1.42B	-331.18M	-18.86M
Net Income	-707.24M	-760.27M	-1.17B	-1.46B	-441.38M	-26.78M
Balance Sheet
Total Assets	1.44B	1.77B	2.56B	3.61B	4.68B	2.49B
Cash, Cash Equivalents and Short-Term Investments	78.01M	352.86M	120.93M	222.94M	263.82M	504.75M
Total Debt	1.47B	1.44B	1.68B	1.75B	1.92B	241.94M
Total Liabilities	3.43B	3.51B	3.52B	3.39B	2.97B	386.95M
Stockholders Equity	-1.99B	-1.74B	-966.99M	221.03M	1.71B	2.10B
Cash Flow
Free Cash Flow	35.34M	12.08M	3.11M	24.41M	-93.00M	-76.42M
Operating Cash Flow	35.28M	12.13M	3.75M	29.36M	-92.51M	-76.21M
Investing Cash Flow	287.53M	500.48M	-26.36M	-2.74M	21.93M	164.07M
Financing Cash Flow	-16.91M	-246.03M	-55.00M	-46.09M	-188.65M	-176.30M

Tai United Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0718, the sentiment is Negative. The current price of 0.06 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.05, and above the 200-day MA of 0.04, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 13.44 is Positive, neither overbought nor oversold. The STOCH value of 14.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0718.

Tai United Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8372	68 Neutral	HK$91.20M	9.05	9.25%	2.08%	27.91%	18.87%
0673	52 Neutral	HK$910.61M	-6.13	-305.54%	―	-17.39%	-45.76%
0401	52 Neutral	HK$86.83M	-13.14	-11.91%	―	-4.50%	75.98%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
0718	37 Underperform	HK$152.25M	―	―	―	-20.78%	6.78%

Tai United Holdings Corporate Events

Tai United Holdings Updates 2024 Annual Report with Share Option Details

Tai United Holdings Limited has issued a supplemental announcement regarding its 2024 Annual Report. The company has disclosed additional details about its New Share Option Scheme, which includes 525,001,985 shares available for grant, representing approximately 10% of the issued shares. This update does not affect any other information in the report.

Tai United Holdings Reports Interim Financial Results with Continued Losses

Tai United Holdings Limited has announced its unaudited condensed consolidated interim results for the six months ending June 30, 2025. The company reported a total revenue of HK$64,762,000, a slight decrease from the previous year. Despite efforts to manage costs, the company faced a loss before tax of HK$212,569,000, with a total comprehensive expense for the period amounting to HK$248,073,000. The results indicate ongoing financial challenges, with significant losses attributed to changes in the fair value of investment properties and impairment losses recognized under the expected credit loss model.

Tai United Holdings Issues Profit Warning for 1H2025

Tai United Holdings Limited has issued a profit warning for the first half of 2025, anticipating a substantial loss before tax between HK$200 million and HK$240 million. This expected loss is primarily due to a decrease in the fair value of investment properties in the PRC, provisions for impairment losses on financial guarantees, and finance costs related to a shopping mall acquisition in Guangzhou. The company is finalizing its financial results, which are subject to further review, and advises shareholders and potential investors to exercise caution.

Tai United Holdings Updates on Subsidiary Litigation

Tai United Holdings Limited has announced an update regarding a litigation claim against its subsidiary, Anyang Jiangchuan. The Beiguan District People’s Court of Anyang Municipality has issued an enforcement notice and a disclosure order, requiring Anyang Jiangchuan to pay approximately RMB3.9 million plus accrued interest to a former supplier for construction services. The company is in discussions with the court and the supplier to negotiate settlement terms, including possible installment payments. Shareholders and investors are advised to exercise caution when dealing with the company’s securities.