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

• Market Cap: HK$216.28M
• Dividend Yield: 5.15%
• Average Volume (3M): 695.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.38
• 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: 57 Neutral
• Price Target: HK$0.21 ▼(-2.38% Downside)

The overall stock score is primarily influenced by the company's financial performance challenges, including declining revenues and profitability. While technical analysis shows positive momentum, valuation concerns due to a negative P/E ratio offset some of the technical strengths. The high dividend yield provides a slight positive aspect in the valuation.

Positive Factors

Market Position

As a leading operator in the Chinese dining sector, Tang Palace benefits from established brand recognition and a strong market position, which supports customer loyalty and competitive advantage in a crowded market.

Business Model

The diversified revenue streams from dining, takeaway, and catering services allow Tang Palace to mitigate risks associated with any single revenue source, providing a stable foundation for long-term growth.

Balance Sheet Health

A moderate leverage and strong equity ratio indicate a stable balance sheet, which enhances financial resilience and provides flexibility for future investments or expansions.

Negative Factors

Revenue Decline

The decline in revenue growth reflects challenges in maintaining sales momentum, which could impact long-term profitability and market competitiveness if not addressed.

Profitability Issues

Negative net income and low profit margins indicate operational inefficiencies, which could hinder the company's ability to generate sustainable profits and reinvest in business growth.

Cash Flow Inconsistencies

Erratic cash flow patterns and periods of negative cash flow can limit the company's ability to fund operations and strategic initiatives, posing a risk to financial stability and growth.

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

Tang Palace (China) Holdings Limited faces challenges with declining revenues and profitability, as evidenced by negative net income and low margins. The balance sheet remains relatively stable with moderate leverage, but cash flow inconsistencies hinder growth potential.

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: Neutral
• Last Price: 0.21
• 50DMA: Negative
• 100DMA: Positive
• 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 Neutral. The current price of 0.21 is above the 20-day moving average (MA) of 0.20, 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 46.66 is Neutral, neither overbought nor oversold. The STOCH value of 23.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$1.05B	11.53	10.47%	5.56%	4.16%	59.08%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1181	57 Neutral	HK$216.28M	-4.93	-18.74%	5.15%	-9.92%	-1260.00%
1978	51 Neutral	HK$288.00M	-46.75	-2.62%	24.14%	-5.71%	-144.00%
0538	47 Neutral	HK$993.30M	83.49	0.38%	7.11%	0.26%	-73.09%
1869	44 Neutral	HK$157.95M	-3.43	―	―	-18.92%	-2250.00%
1443	42 Neutral	HK$87.10M	-1.44	-48.91%	4.48%	-13.13%	-873.33%