Tang Palace (China) Holdings Limited (1181) AI Stock Analysis

• Market Cap: HK$205.52M
• Dividend Yield: 5.15%
• Average Volume (3M): 695.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• Revenue Growth: -9.92%
• EPS Growth: -1260.00%
• Country: HK
• Employees: 2,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -0.02
• Shares Outstanding: 1,076,027,500
• 10 Day Avg. Volume: 724,300
• 30 Day Avg. Volume: 695,181
• PEG Ratio: 0.08
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 2.83
• 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: 52 Neutral
• Price Target: HK$0.19 ▼(-8.57% Downside)

The score is primarily held back by weak financial performance (declining/volatile revenue, losses, and inconsistent cash flow). Technicals are mixed with a weak trend but near-oversold RSI, while valuation is tempered by a negative P/E despite a relatively high dividend yield.

Positive Factors

Balance sheet strength

A strong equity ratio provides durable capital buffer against shocks and reduces solvency risk. Over a 2-6 month horizon this supports operational continuity, potential access to credit on better terms, and resilience while management addresses profitability and cash generation.

Moderate leverage

Moderate leverage limits interest burden and refinancing pressure, preserving financial flexibility. This structural advantage helps the company withstand revenue volatility and funds targeted investments or working capital without immediate need for dilutive external capital.

Established restaurant brand

An established branded F&B business provides repeatable unit economics and potential to scale through locations or formats. Structural consumer demand for dining and brand recognition can support longer-term revenue recovery if operations and cash flows stabilize.

Negative Factors

Declining and volatile revenue

Sustained revenue declines reduce capacity to cover fixed restaurant costs and erode operating leverage. Over several months this undermines margin recovery, limits reinvestment in outlets or marketing, and complicates return to consistent profitability.

Negative profitability and EPS collapse

Negative net margins and sharply negative EPS signal persistent operating losses. This structurally weak profitability constrains retained earnings, increases reliance on external funding for growth or dividends, and pressures long-term shareholder returns.

Erratic operating cash flow and zero FCF

Irregular OCF and absence of free cash flow limit the firm's ability to fund capex, refurbish restaurants, or sustain dividends without external financing. Over months this raises refinancing risk and limits strategic flexibility versus better-cash-generating peers.

Tang Palace (China) Holdings Limited Business Overview & Revenue Model

Company Description

Tang Palace (China) Holdings Limited, an investment holding company, engages in the restaurant operation and food production businesses in the People's Republic of China. The company operates restaurants under the Tang Palace Seafood Restaurant, Tang's Cuisine, Tang Palace, Social Place, Canton Tea Room, Pepper Lunch, Soup Delice, and PappaRich brands. It is also involved in intangible asset holding, as well as retail and wholesale trading activities. As of December 31, 2021, the company operated 49 restaurants and 13 other restaurants under joint ventures. Tang Palace (China) Holdings Limited was founded in 1992 and is headquartered in Kowloon, Hong Kong.

How the Company Makes Money

Tang Palace generates revenue primarily through its restaurant operations, which include dining services, takeaway orders, and catering services. The core revenue streams are derived from food and beverage sales made within its restaurant outlets. Additionally, the company may earn income from franchise operations, if applicable, by allowing other operators to use its brand and operating model. Strategic partnerships with suppliers for quality ingredients and potential collaborations with delivery services also contribute to its revenue. Seasonal promotions and special events further boost sales during peak dining times, while effective marketing strategies help attract new customers and retain existing ones.

Tang Palace (China) Holdings Limited Financial Statement Overview

Summary

Overall fundamentals are pressured by volatile and declining revenue, negative net margin, and low EBIT/EBITDA margins. The balance sheet is relatively stable with moderate leverage and a strong equity ratio, but negative ROE and erratic operating/free cash flow limit financial strength.

Income Statement

The revenue has shown volatility with recent declines, impacting overall profitability. The net profit margin is negative, pointing to profitability issues. The EBIT and EBITDA margins are low, indicating operational challenges.

Balance Sheet

The debt-to-equity ratio shows moderate leverage, and the company maintains a strong equity ratio. However, the return on equity is negative, reflecting recent losses in net income.

Cash Flow

The operating cash flow is erratic, with periods of negative cash flow. Free cash flow growth is stagnant due to zero recent free cash flow, impacting the company's ability to reinvest.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	958.68M	1.02B	1.12B	941.96M	1.36B	1.11B
Gross Profit	146.19M	318.50M	308.54M	214.94M	398.77M	317.88M
EBITDA	27.64M	46.61M	145.33M	-25.65M	215.46M	184.97M
Net Income	-40.46M	-18.92M	41.69M	-150.93M	40.57M	4.38M
Balance Sheet
Total Assets	708.26M	760.43M	805.74M	753.11M	1.03B	1.06B
Cash, Cash Equivalents and Short-Term Investments	347.61M	347.56M	321.37M	254.99M	423.00M	434.03M
Total Debt	189.34M	209.92M	227.08M	189.13M	276.21M	330.87M
Total Liabilities	521.60M	555.22M	564.79M	507.37M	617.08M	645.62M
Stockholders Equity	187.23M	205.69M	239.58M	244.94M	414.75M	416.15M
Cash Flow
Free Cash Flow	41.97M	74.98M	112.27M	-66.94M	136.42M	95.46M
Operating Cash Flow	53.15M	110.13M	147.82M	-44.25M	177.34M	127.41M
Investing Cash Flow	35.00K	-33.76M	40.46M	-462.00K	-17.37M	-16.82M
Financing Cash Flow	-42.40M	-70.52M	-122.10M	-108.74M	-157.97M	-88.48M

Tang Palace (China) Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1181, the sentiment is Negative. The current price of 0.21 is above the 20-day moving average (MA) of 0.21, above the 50-day MA of 0.20, and above the 200-day MA of 0.19, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.69 is Neutral, neither overbought nor oversold. The STOCH value of 25.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1181.

Tang Palace (China) Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6811	68 Neutral	HK$1.02B	11.21	10.47%	5.56%	4.16%	59.08%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1181	52 Neutral	HK$205.52M	-4.88	-18.74%	5.15%	-9.92%	-1260.00%
1978	51 Neutral	HK$264.00M	-42.86	-2.62%	24.14%	-5.71%	-144.00%
1869	47 Neutral	HK$165.00M	-3.56	―	―	-18.92%	-2250.00%
0538	47 Neutral	HK$982.38M	82.57	0.38%	7.11%	0.26%	-73.09%
1443	42 Neutral	HK$67.60M	-1.12	-48.91%	4.48%	-13.13%	-873.33%

Tang Palace (China) Holdings Limited Corporate Events

Tang Palace warns of sharply wider 2025 loss on weaker demand and non-cash charges

Tang Palace (China) Holdings Limited has issued a profit warning, forecasting a significantly wider loss attributable to shareholders of about RMB55 million to RMB60 million for 2025, compared with a loss of roughly RMB19 million a year earlier. The deterioration is driven by a roughly 12% decline in revenue amid tighter Chinese government frugality and alcohol restrictions impacting certain customer groups, ongoing cautious consumption in Mainland China and Hong Kong, non-cash impairment provisions of RMB5 million to RMB10 million for loss-making restaurants, and a fair value loss of RMB18 million to RMB20 million on a financial asset due to rising credit risk. In response, the Group is pivoting toward family and festive dining, launching online deals and discount coupons, and expanding via lightly renovated outlets while tightening costs through bulk purchasing and staff optimisation, moves the board believes will support sustainable development despite the current earnings pressure; the non-cash charges are not expected to materially affect the Group’s cash flow or daily operations.

The most recent analyst rating on (HK:1181) stock is a Hold with a HK$0.20 price target. To see the full list of analyst forecasts on Tang Palace (China) Holdings Limited stock, see the HK:1181 Stock Forecast page.

Tang Palace Wins Dismissal of Property Management Claim in Shenzhen Court

Tang Palace (China) Holdings Limited has announced that the Futian District People’s Court in Shenzhen has dismissed a claim brought against its wholly owned subsidiary Shenzhen Well Excellent Tang Palace F&B Co., Ltd. and its Caide branch by Shenzhen Sen Wang Property Management Co., Ltd., according to a civil judgment dated 19 January 2026. The judgment will take effect after the appeal period, and the company plans to monitor subsequent legal developments, pursue enforcement of the ruling, and has advised shareholders and potential investors to exercise caution when dealing in its securities.

The most recent analyst rating on (HK:1181) stock is a Hold with a HK$0.20 price target. To see the full list of analyst forecasts on Tang Palace (China) Holdings Limited stock, see the HK:1181 Stock Forecast page.