Best Food Holding Co. Ltd. (1488) AI Stock Analysis

• Market Cap: HK$915.62M
• Dividend Yield: N/A
• Average Volume (3M): 448.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• Revenue Growth: -23.57%
• EPS Growth: -22.19%
• Country: HK
• Employees: 1,582
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -0.02
• Shares Outstanding: 1,578,664,000
• 10 Day Avg. Volume: 651,000
• 30 Day Avg. Volume: 448,870
• PEG Ratio: -0.10
• Price to Book (P/B): -5.64
• Price to Sales (P/S): 2.85
• P/FCF Ratio: 53.62
• 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: 0

• Rating: 37 Underperform
• Price Target: HK$0.50 ▼(-16.67% Downside)

The overall stock score is heavily influenced by the company's poor financial performance, characterized by declining revenues, negative equity, and zero operating cash flow. Technical indicators suggest oversold conditions, but the bearish trend persists. Valuation metrics are weak due to negative earnings and lack of dividends, indicating high risk.

Best Food Holding Co. Ltd. Business Overview & Revenue Model

Company Description

Best Food Holding Company Limited, an investment holding company, operates a chain of restaurants in the People's Republic of China and internationally. It operates Chinese fast food and hot pot restaurants. As of December 31, 2021, the company operated approximately 700 stores under Best Food brands, including 500 direct-owned and 216 franchised stores. It also provides technical consultation, wholesale and retail, leasing and business, and catering management services; and manufactures condiments. The company was formerly known as Lee & Man Handbags Holding Limited and changed its name to Best Food Holding Company Limited in October 2016. The company was incorporated in 2011 and is based in Central, Hong Kong. Best Food Holding Company Limited is a subsidiary of Sonic Tycoon Limited.

How the Company Makes Money

Best Food Holding Co. Ltd. generates revenue through multiple streams, including the sale of its processed food products, snacks, and beverages. The company's primary revenue model is based on direct sales to retail chains, distributors, and food service providers. Additionally, it may also engage in private label production for other brands, which can provide significant margins. Strategic partnerships with major retailers and food distributors enhance its market reach, while ongoing investments in marketing and product development help to drive sales growth. Seasonal promotions and product launches further contribute to increased consumer engagement and revenue generation.

Best Food Holding Co. Ltd. Financial Statement Overview

Summary

The financial performance of Best Food Holding Co. Ltd. is concerning, with declining revenues, negative profit margins, and a negative equity position. The company has also seen zero operating cash flow, indicating severe liquidity issues and a precarious financial situation.

Income Statement

The company has been experiencing declining revenues and profits over recent years, with a significant drop in revenue from 752.96M in 2021 to 494.17M in 2024. Gross profit margins are also shrinking, from 35.2% in 2020 to 23.7% in 2024, indicating declining operational efficiency. Net profit margin remains negative, with increasing losses, highlighting profitability challenges.

Balance Sheet

The balance sheet reveals a concerning negative equity position as of 2024, with stockholders' equity at -249.63M, indicating financial instability. The debt-to-equity ratio is not meaningful due to negative equity, but total debt remains high, posing a risk of over-leverage. The equity ratio has deteriorated from 40.2% in 2019 to a negative position, reflecting a weakened financial structure.

Cash Flow

The cash flow statement shows a troubling trend with zero operating cash flow in 2024, down from 83.48M in 2023, indicating a lack of liquidity. Free cash flow has turned negative, and the company has been unable to generate positive cash flow from operations, which is critical for sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	435.84M	494.17M	610.62M	537.51M	752.96M	655.14M
Gross Profit	102.21M	117.17M	165.03M	117.81M	209.89M	177.59M
EBITDA	-16.86M	-12.77M	-18.23M	-18.38M	-473.49M	-44.90M
Net Income	-229.56M	-241.83M	-151.66M	-156.24M	-639.64M	-140.94M
Balance Sheet
Total Assets	772.97M	801.68M	1.11B	1.34B	1.52B	2.16B
Cash, Cash Equivalents and Short-Term Investments	52.89M	44.83M	71.76M	100.82M	120.39M	151.67M
Total Debt	776.35M	772.46M	760.09M	781.37M	801.19M	817.79M
Total Liabilities	1.02B	1.02B	1.06B	1.13B	1.16B	1.16B
Stockholders Equity	-276.48M	-249.63M	-17.00K	152.80M	286.99M	924.12M
Cash Flow
Free Cash Flow	31.20M	26.27M	71.59M	65.52M	28.95M	80.12M
Operating Cash Flow	34.61M	32.64M	83.48M	81.91M	63.23M	112.90M
Investing Cash Flow	-2.49M	9.69M	24.50M	-31.86M	-7.68M	2.05M
Financing Cash Flow	-40.22M	-56.51M	-106.28M	-78.84M	-114.13M	-123.36M

Best Food Holding Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.60
• 50DMA: Negative
• 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:1488, the sentiment is Neutral. The current price of 0.6 is above the 20-day moving average (MA) of 0.59, below the 50-day MA of 0.65, and below the 200-day MA of 0.90, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 48.21 is Neutral, neither overbought nor oversold. The STOCH value of 48.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1488.

Best Food Holding Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6811	68 Neutral	HK$1.11B	12.17	10.47%	5.31%	4.16%	59.08%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0538	57 Neutral	HK$1.11B	93.58	0.38%	6.34%	0.26%	-73.09%
9869	51 Neutral	HK$1.29B	―	-7.85%	23.46%	-36.08%	-206.05%
2150	40 Underperform	HK$2.03B	―	-14.61%	―	-11.19%	-22.98%
1488	37 Underperform	HK$915.62M	―	―	―	-23.57%	-22.19%

Best Food Holding Co. Ltd. Corporate Events

Best Food Holding Co. Ltd. Announces Equity Disposal in Strategic Move

Best Food Holding Co. Ltd. has announced a supplemental disclosure regarding the disposal of its equity interest in a target company. The consideration for this transaction was determined using a market approach, specifically the price-to-earnings ratio, to appraise the company’s equity value at approximately RMB2,716.8 million. This strategic move is likely to impact the company’s financial positioning and could influence its market strategy in the restaurant industry.

The most recent analyst rating on (HK:1488) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Best Food Holding Co. Ltd. stock, see the HK:1488 Stock Forecast page.

Best Food Holding Co. Faces Revenue Decline Amid Market Challenges

Best Food Holding Company Limited reported a decrease in revenue and adjusted loss for the first half of 2025, attributed to fierce market competition and a slowdown in China’s catering industry. Despite these challenges, the company is adapting through strategic changes, such as leveraging food delivery platforms and introducing new menu items. The company is also expanding its brand presence through joint partnerships and store renovations, aiming to enhance competitiveness and cope with market pressures.

The most recent analyst rating on (HK:1488) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Best Food Holding Co. Ltd. stock, see the HK:1488 Stock Forecast page.

Best Food Holding Co. Ltd. Sells Partial Equity Stake in Target Company

Best Food Holding Co. Ltd. has announced the disposal of a 1.71% equity interest in a target company for RMB48,000,000. This transaction reduces their holding from 17.16% to 15.46%, but the target company remains an associate. The disposal is classified as a discloseable transaction under Hong Kong’s Listing Rules, necessitating reporting and announcement requirements.

Best Food Holding Co. Ltd. Schedules Board Meeting for Interim Results

Best Food Holding Co. Ltd. has announced a board meeting scheduled for August 20, 2025, to approve and publish its interim results for the first half of the year and to consider the payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential returns for shareholders.