Snack Empire Holdings Limited (1843) AI Stock Analysis

• Market Cap: HK$108.00M
• Dividend Yield: 7.12%
• Average Volume (3M): 144.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.37
• Revenue Growth: 10.21%
• EPS Growth: -110.81%
• Country: HK
• Employees: 265
• Sector: Consumer Cyclical
• Sector Strength: 69
• Industry: Restaurants
• EPS (TTM): >-0.01
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 263,200
• 30 Day Avg. Volume: 144,936
• PEG Ratio: 2.69
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -45.86
• 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: 54 Neutral
• Price Target: ―

Snack Empire Holdings Limited shows financial stability with low leverage, but struggles with revenue growth and profitability, impacting its financial performance score. The stock's technical indicators suggest a neutral trend with some caution due to potential overbought conditions. Valuation metrics are weak, highlighted by a negative P/E ratio, contributing to a lower overall score. Improving cost structures could enhance performance, but current profitability challenges and valuation concerns weigh significantly on the score.

Snack Empire Holdings Limited Business Overview & Revenue Model

Company Description

Snack Empire Holdings Limited, a food and beverage company, engages in the wholesale and retail of food and beverages. The company provides Taiwanese snacks and beverages under the Shihlin Taiwan Street Snacks brand. It operates approximately 233 outlets and restaurants in Singapore, Malaysia, Indonesia, the United States, Egypt, and Cambodia. The company was founded in 2003 and is headquartered in Singapore. Snack Empire Holdings Limited is a subsidiary of Brilliant Stride Limited.

How the Company Makes Money

Snack Empire Holdings Limited generates revenue through the sale of food and beverages at its quick service restaurants. The company operates a combination of franchise and self-operated outlets, earning money from direct sales in self-operated locations and franchise fees and royalties from franchised outlets. Additionally, the company benefits from economies of scale in purchasing and distribution, enhancing its profit margins. Snack Empire's strategic partnerships with local suppliers and marketing initiatives also contribute to its overall revenue generation.

Snack Empire Holdings Limited Financial Statement Overview

Summary

Snack Empire Holdings Limited demonstrates financial stability with strong equity and low leverage, but faces challenges in revenue growth and profitability. While operational inefficiencies are evident, cash flow generation remains relatively robust compared to net income, indicating potential for recovery if cost structures are improved.

Income Statement

The company shows a declining revenue trend with a significant decrease in net income from the previous year. Gross profit margin remains healthy at approximately 62%, but the net profit margin has decreased to 0.72% due to a negative EBIT. The negative EBIT margin indicates operational inefficiencies. However, EBITDA margin is positive, suggesting some resilience in cash earnings.

Balance Sheet

Snack Empire Holdings Limited maintains a strong equity position with an equity ratio of 71.77%. The debt-to-equity ratio is low at 0.22, indicating low leverage and reduced financial risk. However, return on equity has significantly decreased to 0.74%, reflecting diminished profitability.

Cash Flow

The operating cash flow to net income ratio is favorable, indicating strong cash generation relative to net income. However, free cash flow has declined by 71.85% over the last year, suggesting potential challenges in maintaining liquidity without impacting operations.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	27.30M	25.16M	26.41M	24.05M	21.45M	24.26M
Gross Profit	17.21M	15.60M	16.12M	15.06M	13.15M	15.37M
EBITDA	245.00K	49.00K	2.13M	2.46M	1.03M	3.92M
Net Income	-58.00K	180.00K	1.84M	2.83M	1.04M	3.56M
Balance Sheet
Total Assets	34.49M	33.92M	32.90M	37.13M	34.22M	32.93M
Cash, Cash Equivalents and Short-Term Investments	21.49M	22.13M	23.49M	28.43M	25.39M	21.55M
Total Debt	5.75M	5.45M	4.50M	4.25M	4.17M	4.03M
Total Liabilities	9.49M	9.58M	8.41M	8.25M	8.15M	7.86M
Stockholders Equity	25.00M	24.34M	24.49M	28.88M	26.07M	25.07M
Cash Flow
Free Cash Flow	-339.00K	869.00K	3.09M	4.87M	5.64M	1.44M
Operating Cash Flow	1.24M	2.15M	3.39M	5.18M	5.93M	1.75M
Investing Cash Flow	-1.38M	-921.00K	-111.00K	-242.00K	-205.00K	-228.00K
Financing Cash Flow	-2.62M	-2.42M	-8.05M	-1.89M	-1.86M	15.77M

Snack Empire Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1843, the sentiment is Positive. The current price of 0.13 is above the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.12, and below the 200-day MA of 0.13, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.30 is Neutral, neither overbought nor oversold. The STOCH value of 99.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1843.

Snack Empire Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6826	76 Outperform	HK$12.81B	15.48	7.25%	3.76%	-1.81%	-3.79%
6823	73 Outperform	$93.84B	18.50	13.76%	6.32%	1.23%	1.58%
Sector *	57 Neutral	HK$26.15B	4.16	-2.03%	5.83%	-0.24%	-68.05%
1843	54 Neutral	HK$108.00M	―	-1.99%	7.12%	10.21%	-110.81%
6828	54 Neutral	HK$1.21B	14.05	6.29%	―	-21.48%	-7.50%
1539	52 Neutral	HK$1.29B	36.06	13.78%	―	58.29%	-85.39%

Snack Empire Holdings Limited Corporate Events

Snack Empire Granted Compliance Waiver for Singapore Property Acquisition

Snack Empire Holdings Limited has been granted a waiver from strict compliance with Rule 14.41(a) of the Listing Rules by the Hong Kong Stock Exchange. This waiver allows the company additional time to prepare and finalize necessary information for a Circular related to a property acquisition in Singapore, with the condition that the Circular will be dispatched to shareholders by March 28, 2025. This development may impact the company’s operational timelines and stakeholder communications.

Snack Empire Holdings Faces Delay in Property Acquisition

Snack Empire Holdings Limited announced a delay in the completion of a property acquisition due to the need for Malaysian government approval, as the purchaser is a foreign-owned entity. The completion date is now expected to be in July 2025, impacting the company’s timeline for expanding its property assets.

Snack Empire Holdings Delays Circular Dispatch for Singapore Property Acquisition

Snack Empire Holdings Limited has announced a further delay in the dispatch of a circular related to its acquisition of a property in Singapore. The circular, which includes detailed information about the acquisition and a valuation report, was initially expected to be sent to shareholders by 12 March 2025, but has now been postponed to on or before 28 March 2025 due to additional time needed for preparation. This delay may impact stakeholders’ timelines and expectations regarding the acquisition process.

Snack Empire Delays Circular Dispatch on Major Property Acquisition

Snack Empire Holdings Limited has announced a delay in the dispatch of a circular regarding its recent major transaction, the acquisition of a property in Singapore. Initially scheduled for dispatch by 13 February 2025, the circular will now be sent out around 12 March 2025 due to the need for additional time to finalize critical information, such as the indebtedness statement, affected by delays in bank confirmations due to public holidays. This delay has been approved by the Stock Exchange, reflecting the logistical challenges the company faces in finalizing the transaction details, which could impact its strategic operations and stakeholder communications.