Tsui Wah Holdings Ltd. (1314) AI Stock Analysis

• Market Cap: HK$315.70M
• Dividend Yield: 8.73%
• Average Volume (3M): 447.20K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.62
• Revenue Growth: -2.52%
• EPS Growth: 45.64%
• Country: HK
• Employees: 1,619
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Restaurants
• EPS (TTM): <0.01
• Shares Outstanding: 1,411,226,400
• 10 Day Avg. Volume: 747,600
• 30 Day Avg. Volume: 447,200
• PEG Ratio: -0.04
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.96
• 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

• Rating: 62 Neutral
• Price Target: ―

Tsui Wah Holdings Ltd. shows strengths in valuation with an attractive P/E ratio and high dividend yield, indicating potential undervaluation. Financial performance is mixed, with strong revenue growth but declining profitability margins. Technical indicators reflect neutral to bearish trends, suggesting caution. The company needs to improve profitability margins and manage capital more effectively to enhance shareholder returns.

Tsui Wah Holdings Ltd. Business Overview & Revenue Model

Company Description

Tsui Wah Holdings Limited, an investment holding company, operates a chain of restaurants. As of March 31, 2022, the company operated 85 restaurants in Mainland China, Hong Kong, Macau, and Singapore. It also provides food catering and management services; operates a food and bakery factory; owns trademarks; and holds properties. The company was founded in 1967 and is based in Kwai Chung, Hong Kong. Tsui Wah Holdings Limited is a subsidiary of Cui Fa Limited.

How the Company Makes Money

Tsui Wah Holdings Ltd. generates revenue primarily through the operation of its restaurant outlets. The company earns money by serving a variety of food and beverages to customers who dine in or order takeaway. Key revenue streams include in-store dining sales, takeaway orders, and delivery services. Tsui Wah also benefits from strategic locations in high-traffic areas and its reputation as a beloved local brand, which attracts both local residents and tourists. Additionally, the company may engage in partnerships or collaborations with other businesses to expand its reach and enhance its service offerings, although specific details on partnerships are null.

Tsui Wah Holdings Ltd. Financial Statement Overview

Summary

Overall, Tsui Wah Holdings Ltd. has demonstrated revenue growth and operational efficiency, but faces challenges in consistently translating this into higher profitability margins. The balance sheet shows prudent debt management, but a decline in return on equity indicates some inefficiencies. Cash flow generation is strong, but negative financing cash flows suggest the need for better capital management strategies.

Income Statement

Tsui Wah Holdings Ltd. showed a positive revenue growth rate of 12.8% from 2023 to 2024, with a solid gross profit margin of 22.3%. However, the net profit margin decreased from 7.2% in 2023 to 4.1% in 2024, indicating pressure on profitability. Although EBIT turned positive in 2024 compared to negative figures in previous years, the EBIT margin remains low at 2.1%. The EBITDA margin is relatively strong at 18.9%, showcasing good operational efficiency.

Balance Sheet

The company's debt-to-equity ratio improved to 0.48 in 2024 from 0.60 in 2023, indicating better financial leverage management. However, the equity ratio decreased slightly to 56.9% in 2024. Return on Equity dropped to 7.7% from 11% in 2023, reflecting lower returns for shareholders despite improved net income.

Cash Flow

Free cash flow increased by 32.9% from 2023 to 2024, indicating strong cash generation. The operating cash flow to net income ratio improved to 4.7, highlighting efficient cash earnings. However, financing cash flows remained negative, reflecting potential challenges in managing financial obligations or returning capital to shareholders.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
896.89M	954.13M	845.80M	993.32M	956.38M	1.38B
	Gross Profit
267.40M	358.04M	120.85M	115.38M	80.81M	79.51M
	EBIT
223.48M	19.76M	-77.76M	-103.26M	-160.07M	-178.51M
	EBITDA
45.99M	179.98M	238.84M	139.36M	168.64M	9.88M
	Net Income Common Stockholders
38.76M	39.09M	60.58M	-118.25M	-124.11M	-317.39M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
169.53M	235.01M	288.89M	119.75M	170.21M	238.90M
	Total Assets
840.63M	890.32M	1.04B	1.27B	1.55B	1.64B
	Total Debt
236.46M	244.58M	331.63M	580.51M	720.87M	767.48M
	Net Debt
66.93M	9.57M	142.73M	460.76M	550.67M	528.59M
	Total Liabilities
386.54M	405.01M	505.46M	760.80M	935.63M	934.66M
	Stockholders Equity
479.48M	507.28M	550.01M	518.27M	617.05M	701.52M
Cash Flow		Free Cash Flow
106.07M	151.34M	113.90M	98.39M	115.54M	14.76M
	Operating Cash Flow
123.94M	183.93M	135.66M	139.31M	181.05M	104.44M
	Investing Cash Flow
-17.88M	67.41M	148.04M	-40.35M	-63.58M	-81.98M
	Financing Cash Flow
-164.54M	-200.48M	-205.08M	-157.10M	-197.89M	-204.31M

Tsui Wah Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.23
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1314, the sentiment is Positive. The current price of 0.23 is above the 20-day moving average (MA) of 0.21, above the 50-day MA of 0.21, and above the 200-day MA of 0.23, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.64 is Neutral, neither overbought nor oversold. The STOCH value of 58.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1314.

Tsui Wah Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$6.86B	11.07	2.77%	4.27%	2.66%	-24.95%
1314	62 Neutral	HK$315.70M	8.06	8.01%	8.73%	-2.52%	45.64%
BVI		€33.72M	7.60	-4.41%	32.97%	―	―
1443	58 Neutral	HK$85.80M	11.00	5.22%	4.54%	1.74%	-46.43%
1978	54 Neutral	HK$288.00M	23.14	-12.09%	24.47%	-17.29%	-136.42%
1181	53 Neutral	HK$190.46M	53.14	-8.51%	8.47%	-10.93%	-143.61%
8232	47 Neutral	HK$61.33M	―	-60.82%	―	-1.71%	39.00%