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Tsui Wah Holdings Ltd. (HK:1314)
:1314
Hong Kong Market
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Tsui Wah Holdings Ltd. (1314) AI Stock Analysis

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HK:1314

Tsui Wah Holdings Ltd.

(1314)

Rating:62Neutral
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. (1314) vs. iShares MSCI Hong Kong ETF (EWH)

Tsui Wah Holdings Ltd. Business Overview & Revenue Model

Company DescriptionTsui Wah Holdings Ltd. (1314) is a renowned restaurant chain based in Hong Kong, primarily operating in the casual dining sector. The company is well-known for its 'Cha Chaan Teng' style cuisine, offering a diverse menu that includes traditional Hong Kong dishes, Western-style dishes, and fusion creations. Tsui Wah operates numerous outlets across Hong Kong, Mainland China, and Macau, catering to a wide demographic of customers who enjoy its vibrant dining experience and quality food offerings.
How the Company Makes MoneyTsui 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
60
Neutral
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
55
Neutral
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
65
Positive
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.
BreakdownMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue954.13M845.80M993.32M956.38M1.38B
Gross Profit358.04M120.85M115.38M80.81M79.51M
EBITDA179.98M238.84M139.36M168.64M9.88M
Net Income39.09M60.58M-118.25M-124.11M-317.39M
Balance Sheet
Total Assets890.32M1.04B1.27B1.55B1.64B
Cash, Cash Equivalents and Short-Term Investments235.01M288.89M119.75M170.21M238.90M
Total Debt244.58M331.63M580.51M720.87M767.48M
Total Liabilities405.01M505.46M760.80M935.63M934.66M
Stockholders Equity507.28M550.01M518.27M617.05M701.52M
Cash Flow
Free Cash Flow151.34M113.90M98.39M115.54M14.76M
Operating Cash Flow183.93M135.66M139.31M181.05M104.44M
Investing Cash Flow67.41M148.04M-40.35M-63.58M-81.98M
Financing Cash Flow-200.48M-205.08M-157.10M-197.89M-204.31M

Tsui Wah Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.20
Price Trends
50DMA
0.21
Negative
100DMA
0.21
Negative
200DMA
0.22
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
50.32
Neutral
STOCH
64.75
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 0.2 is above the 20-day moving average (MA) of 0.19, below the 50-day MA of 0.21, and below the 200-day MA of 0.22, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.32 is Neutral, neither overbought nor oversold. The STOCH value of 64.75 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

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
HK$922.85M15.226.54%5.72%2.49%-33.12%
62
Neutral
HK$268.83M21.202.54%17.50%-2.52%45.64%
57
Neutral
HK$24.98B3.78-1.97%5.91%-0.17%-66.83%
54
Neutral
HK$1.18B14.056.29%-21.48%-7.50%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1314
Tsui Wah Holdings Ltd.
0.20
>-0.01
-4.76%
HK:6828
Beijing Gas Blue Sky Holdings Ltd
0.05
0.02
66.67%
HK:6811
Tai Hing Group Holdings Ltd.
0.94
0.27
40.30%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 01, 2025