Tai United Holdings (0718) AI Stock Analysis

• Market Cap: HK$157.50M
• Dividend Yield: N/A
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 4.39
• 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: 220,500
• 30 Day Avg. Volume: 1,144,937
• 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 ▼(-50.00% 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 Business Model

A diversified business model across property investment/development/management and electronics trading spreads revenue risk across sectors. Over months this reduces dependence on any single market cycle, allowing the firm to reallocate capital and leverage cross-segment synergies to stabilize cash flows.

Recurring Rental Income Base

Rental income from an investment property portfolio represents recurring, contract-backed cash inflows. Durable over 2–6 months, stable leases can support minimum cash generation even amid sales volatility, providing a backbone for operations and a predictable revenue floor for liquidity planning.

Positive Gross Profit

Positive gross profit indicates the company’s core activities can generate margin before overheads. This suggests scope to restore net profitability if operating expenses, financing costs, or asset performance are improved, making core economics recoverable rather than structurally unprofitable.

Negative Factors

Negative Equity / Insolvency Risk

Negative equity is a durable red flag: it impairs borrowing capacity, may trigger covenant breaches, and limits strategic options. Over months this elevates the likelihood of restructuring, recapitalization, or asset disposals, constraining management's ability to execute long-term recovery plans.

Weak Cash Flow Generation

Zero operating cash flow and erratic free cash flow undermine the firm's ability to service debt, fund capex, or invest in growth without external financing. Persistently weak cash generation forces reliance on asset sales or dilution, limiting durable financial flexibility and operational resilience.

Revenue Decline and Persistent Losses

Sustained revenue decline coupled with negative net margins and falling EBITDA indicates structural or executional issues reducing scale and profitability. Over months this erodes retained capital, pressures working capital, and may necessitate strategic shifts or cost restructuring to restore viability.

Tai United Holdings Business Overview & Revenue Model

Company Description

Tai United Holdings (0718) is a diversified investment holding company based in Hong Kong. It operates primarily in the sectors of property investment, development, and management, alongside involvement in the trading of electronic components. The company focuses on acquiring and managing a portfolio of properties while also engaging in strategic investments across various industries to enhance shareholder value.

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: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

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 0.03, above the 50-day MA of 0.03, and above the 200-day MA of 0.04, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 13.44 is Positive, 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 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$106.40M	10.56	9.25%	1.89%	27.91%	18.87%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
0401	51 Neutral	HK$72.83M	-8.50	-11.91%	―	-4.50%	75.98%
0673	42 Neutral	HK$816.87M	-5.91	-465.55%	―	-17.39%	-45.76%
0718	37 Underperform	HK$157.50M	-0.22	―	―	-20.78%	6.78%

Tai United Holdings Corporate Events

Tai United Sets March Board Meeting to Approve 2025 Results and Consider Final Dividend

Tai United Holdings has scheduled a board meeting for 31 March 2026 to review and approve the audited final results of the company and its subsidiaries for the financial year ended 31 December 2025. At the same meeting, the board will also consider whether to recommend a final dividend, a decision that could have direct implications for shareholder returns and signal management’s confidence in the group’s financial performance.

The most recent analyst rating on (HK:0718) stock is a Hold with a HK$0.03 price target. To see the full list of analyst forecasts on Tai United Holdings stock, see the HK:0718 Stock Forecast page.