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

• Market Cap: HK$194.76M
• Dividend Yield: 5.46%
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): 53.1
• Beta (1Y): 0.46
• Revenue Growth: -9.92%
• EPS Growth: -1260.00%
• Country: HK
• Employees: 2,600
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Restaurants
• EPS (TTM): -0.02
• Shares Outstanding: 1,076,027,500
• 10 Day Avg. Volume: 1,268,740
• 30 Day Avg. Volume: 1,157,309
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Hold
• Number of Analyst Covering: 1

• Rating: 50 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily impacted by financial performance challenges, including declining revenues and profitability issues. Technical analysis indicates a bearish trend, further weighing on the score. Despite these challenges, the high dividend yield provides some support to the valuation score.

Positive Factors

Business Model Strength

The company's focus on upscale dining and diverse regional cuisines provides a strong brand identity and appeal, supporting long-term customer loyalty and market differentiation.

Strategic Location Choices

By selecting strategic locations, Tang Palace enhances its visibility and customer access, which can drive consistent revenue streams and strengthen market presence.

Economies of Scale

A broad network of restaurants allows Tang Palace to achieve cost efficiencies in procurement and operations, supporting margin improvement and competitive pricing.

Negative Factors

Declining Revenue

Declining revenue trends indicate potential market share loss or demand issues, which can undermine long-term growth prospects and financial stability.

Cash Flow Inconsistencies

Inconsistent cash flow generation can hinder the company's ability to fund operations, invest in growth opportunities, and maintain financial flexibility.

Profitability Issues

Negative profit margins reflect operational inefficiencies or cost management challenges, which can erode shareholder value and limit reinvestment capacity.

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

Company Description

Tang Palace (China) Holdings Limited (1181) operates primarily in the restaurant industry, focusing on Chinese cuisine. The company is known for its upscale dining experiences and operates several restaurant brands that offer a variety of Chinese food, including Cantonese, Sichuan, and other regional cuisines. Tang Palace is committed to providing high-quality dining experiences, combining traditional culinary techniques with innovative presentations.

How the Company Makes Money

Tang Palace (China) Holdings Limited generates revenue primarily through its chain of restaurants located across China. The company makes money by offering dine-in services, takeout, and catering for various occasions. The revenue streams are primarily derived from the sales of food and beverages, with a focus on premium menu offerings and exceptional service. In addition to direct restaurant sales, the company may engage in partnerships with food delivery platforms to expand their reach and convenience for customers. Tang Palace's earnings are also supported by strategic location choices for their restaurants, ensuring high foot traffic and accessibility. The company may benefit from economies of scale due to its network of restaurants, allowing for cost efficiencies in procurement and operations.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.02B	1.12B	941.96M	1.36B	1.11B
Gross Profit	318.50M	308.54M	214.94M	398.77M	317.88M
EBITDA	46.61M	145.33M	-25.65M	215.46M	184.97M
Net Income	-18.92M	41.69M	-152.32M	40.57M	3.16M
Balance Sheet
Total Assets	760.43M	805.74M	753.11M	1.03B	1.06B
Cash, Cash Equivalents and Short-Term Investments	347.56M	321.37M	254.99M	423.00M	434.03M
Total Debt	209.92M	227.08M	189.13M	276.21M	330.87M
Total Liabilities	555.22M	564.79M	507.37M	617.08M	645.62M
Stockholders Equity	205.69M	239.58M	244.94M	414.75M	416.15M
Cash Flow
Free Cash Flow	74.98M	112.27M	-66.94M	136.42M	95.46M
Operating Cash Flow	110.13M	147.82M	-44.25M	177.34M	127.41M
Investing Cash Flow	-33.76M	40.46M	-462.00K	-17.37M	-16.82M
Financing Cash Flow	-70.52M	-122.10M	-108.74M	-157.97M	-88.48M

Tang Palace (China) Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.18
• 50DMA: Positive
• 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 Positive. The current price of 0.18 is below the 20-day moving average (MA) of 0.19, below the 50-day MA of 0.19, and below the 200-day MA of 0.19, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 50.49 is Neutral, neither overbought nor oversold. The STOCH value of 26.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	64 Neutral	HK$1.06B	11.63	10.47%	4.99%	4.16%	59.08%
Sector *	61 Neutral	$17.83B	12.89	-1.60%	3.03%	1.39%	-14.45%
0538	57 Neutral	HK$1.18B	99.08	0.38%	5.82%	0.26%	-73.09%
1978	54 Neutral	HK$320.00M	23.14	-2.62%	22.02%	-5.71%	-144.00%
1181	50 Neutral	HK$194.76M	53.14	-18.74%	5.46%	-9.92%	-1260.00%
1443	46 Neutral	HK$78.00M	10.67	-41.01%	4.84%	-7.56%	-231.11%
1869	46 Neutral	HK$165.00M	―		―	-18.92%	-2250.00%

Tang Palace (China) Holdings Limited Corporate Events

Tang Palace Reports Revenue Decline and Strategic Shift in 2025 Interim Results

Tang Palace (China) Holdings Limited reported a decline in revenue and gross profit for the first half of 2025 compared to the same period in 2024. The company experienced an 11.8% decrease in revenue and a 10.5% drop in gross profit, resulting in a loss attributable to owners of the company. The number of self-owned restaurants decreased, while takeaway satellite stores were introduced, indicating a strategic shift in operations.

Tang Palace (China) Holdings Schedules Board Meeting for Financial Review

Tang Palace (China) Holdings Limited has announced a board meeting scheduled for August 27, 2025, in Hong Kong. The meeting’s agenda includes reviewing and approving the company’s unaudited consolidated financial statements for the first half of 2025 and considering the declaration of an interim dividend. This announcement is significant as it may impact the company’s financial outlook and shareholder returns.

Tang Palace Issues Profit Warning Amid Regulatory and Market Challenges

Tang Palace (China) Holdings Limited has issued a profit warning, expecting a loss of RMB15 million to RMB20 million for the first half of 2025, compared to a profit in the same period last year. This downturn is attributed to new government regulations in China affecting customer spending, impairment losses on assets, and fair value losses on financial assets. In response, the company is implementing strategic measures to stabilize costs and adapt to market conditions, aiming for sustainable development despite the current challenges.

Tang Palace Updates Nomination Committee Terms for Enhanced Governance

Tang Palace (China) Holdings Limited announced revisions to the terms of reference for its Board of Directors’ Nomination Committee, effective July 1, 2025. The changes aim to ensure a diverse and independent committee, enhancing governance and potentially impacting the company’s strategic direction and stakeholder confidence.

Tang Palace Appoints New Nomination Committee Member

Tang Palace (China) Holdings Limited has announced the appointment of Ms. WENG Peihe, an executive director, as a member of its nomination committee effective from July 1, 2025. This strategic appointment is expected to enhance the company’s governance structure and potentially strengthen its decision-making processes, reflecting its commitment to maintaining robust leadership and operational efficiency.