Tsui Wah Holdings Ltd. (1314) AI Stock Analysis

• Market Cap: HK$217.82M
• Dividend Yield: 21.88%
• Average Volume (3M): 576.81K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.50
• Revenue Growth: 1.02%
• EPS Growth: -71.48%
• Country: HK
• Employees: 1,619
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): <0.01
• Shares Outstanding: 1,411,226,400
• 10 Day Avg. Volume: 509,400
• 30 Day Avg. Volume: 576,810
• PEG Ratio: -0.37
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 4.72
• 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: 50 Neutral
• Price Target: HK$0.16 ▼(-1.25% Downside)
• Action: Reiterated Date: 10/15/25
• Date: Action: Reiterated 10/15/25

Tsui Wah Holdings Ltd. scores moderately due to mixed financial performance and bearish technical indicators. While the high dividend yield is a positive aspect, operational inefficiencies and lack of market momentum are significant concerns.

Positive Factors

Improved Leverage

An improved debt-to-equity ratio of 0.53 indicates materially lower leverage and enhanced balance-sheet resilience. This structural improvement increases financial flexibility for capex or selective expansion, reduces interest and refinancing risk, and strengthens the firm's ability to withstand economic downturns over the medium term.

Stronger Gross Margins

Gross profit margins rising to 35.62% point to better unit-level economics via pricing or cost control. Sustained higher gross margins create a structural buffer against rising rent and labor expenses common in restaurants, improving the potential to restore operating margins if SG&A is managed.

Revenue Stabilization

A return to modest revenue growth (1.02%) after declines suggests demand normalization and operational stabilization. Over the next several months this stabilizing top line is a necessary foundation for leveraging fixed costs, improving capacity utilization, and enabling sustainable margin recovery if trends continue.

Negative Factors

Low Net Profitability

Net margins of just 1.36% show the company retains little profit after operating and non-operating costs. Structurally low bottom-line profitability limits retained earnings for reinvestment or reserves and makes the business highly sensitive to cost inflation or traffic declines, constraining long-term financial resilience.

Declining Free Cash Flow

A 38.59% drop in free cash flow is a material deterioration in cash generation capacity. Persistently lower FCF reduces ability to fund maintenance capex, pay down debt, or sustain distributions without tapping external funding, raising structural liquidity and financing risks in a cyclical restaurant sector.

Low Return on Equity / Operating Efficiency

ROE of 2.66% combined with reported weak EBIT margins points to structural operating inefficiencies and low asset productivity. Low returns on shareholder capital signal the business struggles to convert revenues into meaningful shareholder value absent operational improvements or strategic repositioning.

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 makes money mainly by selling food and beverages to customers through its Tsui Wah restaurants. Revenue is generated from customer transactions (primarily dine-in; other channels such as takeaway/delivery may exist but specific mix is null). Its earnings are influenced by restaurant-level economics, including guest traffic, average spend per customer, menu pricing, and the number and performance of operating locations. Costs that typically impact profitability include food and beverage ingredients, labor, rental/occupancy expenses, and utilities; however, specific cost structure details are null. Any material contributions from franchising, licensing, packaged goods, catering, or other partnerships are null because they are not confirmed here.

Tsui Wah Holdings Ltd. Financial Statement Overview

Summary

Tsui Wah Holdings Ltd. shows mixed financial health. Improvements in leverage and gross profit margins are overshadowed by low net profit margins and declining free cash flow, indicating operational inefficiencies and challenges in profitability.

Income Statement

Tsui Wah Holdings Ltd. has shown inconsistent revenue growth with a recent slight increase of 1.02% after a previous decline. Gross profit margins have improved over the years, reaching 35.62%, but net profit margins remain low at 1.36%. The company struggles with EBIT margins, indicating operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.53, reflecting better leverage management. However, return on equity is low at 2.66%, suggesting limited profitability from equity investments. The equity ratio is stable, indicating a balanced asset structure.

Cash Flow

Free cash flow has decreased significantly by 38.59%, raising concerns about cash generation. The operating cash flow to net income ratio is 0.50, indicating moderate cash conversion efficiency. The free cash flow to net income ratio is relatively healthy at 0.62.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	914.43M	906.04M	954.13M	845.80M	993.32M	956.38M
Gross Profit	248.75M	322.78M	358.04M	120.85M	115.38M	80.81M
EBITDA	120.84M	144.64M	176.85M	238.84M	146.08M	168.64M
Net Income	10.82M	12.34M	39.09M	60.58M	-118.25M	-124.11M
Balance Sheet
Total Assets	854.72M	827.91M	890.32M	1.04B	1.27B	1.55B
Cash, Cash Equivalents and Short-Term Investments	150.50M	146.58M	235.01M	288.89M	119.75M	170.21M
Total Debt	265.52M	248.25M	244.58M	331.63M	580.51M	720.87M
Total Liabilities	410.85M	387.20M	405.01M	505.46M	760.80M	935.63M
Stockholders Equity	468.80M	464.27M	507.28M	550.01M	518.27M	617.05M
Cash Flow
Free Cash Flow	100.46M	65.14M	151.34M	113.90M	98.39M	115.54M
Operating Cash Flow	150.26M	105.66M	183.93M	135.66M	139.31M	181.05M
Investing Cash Flow	-55.39M	-26.58M	67.41M	148.04M	-40.35M	-63.58M
Financing Cash Flow	-136.95M	-170.36M	-200.48M	-205.08M	-157.10M	-197.89M

Tsui Wah Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 0.16 is below the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.16, and below the 200-day MA of 0.18, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.74 is Neutral, neither overbought nor oversold. The STOCH value of 27.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1181	52 Neutral	HK$213.05M	-2.31	-20.60%	5.15%	-9.92%	-1260.00%
1978	51 Neutral	HK$272.00M	-113.78	-2.65%	24.14%	-5.71%	-144.00%
0573	51 Neutral	HK$289.09M	-2.06	-8.37%	17.91%	-16.50%	-311.44%
1314	50 Neutral	HK$217.82M	12.23	2.32%	21.88%	1.02%	-71.48%
1443	44 Neutral	HK$66.30M	-0.57	-54.64%	4.48%	-13.13%	-873.33%
8232	43 Neutral	HK$88.08M	-16.30	-103.49%	―	-2.95%	56.44%