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

• Market Cap: HK$1.18B
• Dividend Yield: N/A
• Average Volume (3M): 448.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: HK$0.79 ▲(13.14% Upside)

The score is held down primarily by very weak financial performance (declining revenue/margins, negative equity, and zero operating cash flow) and a loss-making profile reflected in the negative P/E with no dividend yield provided. Technical indicators are the main offset, showing moderately positive momentum with the price above key moving averages and a positive MACD.

Positive Factors

Scale of operations

Despite recent declines, a near-half-billion HKD revenue run‑rate shows the company operates at meaningful scale. That operational scale supports supplier contracts, multi‑unit cost leverage and provides a base to rebuild topline and margins over a multi‑month recovery period.

Historical margin headroom

The company previously achieved materially higher gross margins (35.2%), indicating structural levers exist — pricing, mix, procurement or operating efficiencies. If management executes cost control and mix improvement, there is scope to restore margins toward historical levels over several quarters.

Established operating footprint

A workforce of ~1,582 implies a sizable, retained operating footprint and experienced personnel to run multi‑unit restaurant operations. That human capital and operational capability lower restart/scale costs and support consistent service delivery during a structured turnaround.

Negative Factors

Negative equity

A negative shareholders’ equity position signals a structurally weakened balance sheet, limiting the firm's ability to absorb further losses, secure debt or equity financing on normal terms, and increases long‑term insolvency risk if profitability is not restored within months.

Operating cash flow collapse

Zero operating cash flow and negative free cash flow eliminate internal funding for stores, working capital and capex. Over a multi‑month horizon this forces reliance on external financing or asset sales, constraining strategic flexibility and raising refinancing risk.

Sustained revenue and margin decline

Material, multi‑year declines in revenue and gross margins indicate persistent demand loss or cost pressure versus peers. Structurally lower volumes and compressed margins reduce profitability runway, hinder reinvestment, and make a durable recovery more challenging without strategic change.

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

Company Description

Best Food Holding Co. Ltd. (1488) is a prominent player in the food and beverage sector, primarily focused on the production and distribution of high-quality food products. The company operates in various segments, including processed foods, snacks, and beverages, catering to both retail and wholesale markets. With an emphasis on innovation and quality, Best Food Holding is dedicated to meeting consumer demands and expanding its market presence through a diverse portfolio of brands and products.

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

Financials are very weak: revenues and profitability have declined materially (revenue down from 752.96M in 2021 to 494.17M in 2024), gross margin compressed (35.2% in 2020 to 23.7% in 2024), equity is negative (-249.63M in 2024), and operating cash flow fell to 0 in 2024 with negative free cash flow.

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: Negative
• Last Price: 0.70
• 50DMA: Positive
• 100DMA: Positive
• 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 Negative. The current price of 0.7 is below the 20-day moving average (MA) of 0.71, above the 50-day MA of 0.66, and below the 200-day MA of 0.78, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 51.03 is Neutral, neither overbought nor oversold. The STOCH value of 35.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$1.02B	11.21	10.47%	5.56%	4.16%	59.08%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9869	52 Neutral	HK$1.13B	-10.69	-7.85%	25.19%	-36.08%	-206.05%
1488	48 Neutral	HK$1.18B	-4.51	―	―	-23.57%	-22.19%
2150	47 Neutral	HK$1.84B	-2.84	-14.61%	―	-11.19%	-22.98%
0538	47 Neutral	HK$982.38M	82.57	0.38%	7.11%	0.26%	-73.09%

Best Food Holding Co. Ltd. Corporate Events

Best Food Holding Co. Ltd. Forms Partnership to Establish Shenzhen Shendianbao

Best Food Holding Co. Ltd. has announced a connected transaction involving the formation of a partnership to establish Shenzhen Shendianbao. The partnership includes Qianhai Youfu, a wholly-owned subsidiary of Best Food, Beijing Shendianbao, Yancheng Baihe, and six other limited partners, with a total capital contribution of RMB50,000,000. This transaction, which involves connected persons under the Hong Kong Listing Rules, is subject to reporting and announcement requirements but does not require independent shareholders’ approval.

The most recent analyst rating on (HK:1488) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Best Food Holding Co. Ltd. stock, see the HK:1488 Stock Forecast page.