Ten Pao Group Holdings Limited (1979) AI Stock Analysis

• Market Cap: HK$2.32B
• Dividend Yield: 4.98%
• Average Volume (3M): 567.62K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 0.62
• Revenue Growth: 18.32%
• EPS Growth: 14.06%
• Country: HK
• Employees: 7,600
• Sector: Industrials
• Sector Strength: 73
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.21
• Shares Outstanding: 1,030,388,900
• 10 Day Avg. Volume: 614,854
• 30 Day Avg. Volume: 567,618
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$2.50
• Price Target Upside: 11.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: HK$2.50 ▲(11.11% Upside)

The overall stock score of 74 reflects strong technical analysis and attractive valuation. The stock's bullish momentum and undervaluation are significant positives. However, concerns about cash flow data absence slightly temper the financial performance score, highlighting the need for careful liquidity management.

Ten Pao Group Holdings Limited Business Overview & Revenue Model

Company Description

Ten Pao Group Holdings Limited, an investment holding company, develops, manufactures, and sells electric charging products in the People's Republic of China, the rest of Asia, the United States, Europe, Africa, and internationally. It operates through six segments: Telecommunication, Media and Entertainment, Electrical Home Appliances, Lighting, Smart Chargers and Controllers, and Others. The company offers switching power supply units, such as quick chargers, wireless chargers, and adapters; LED power supply products; electric vehicle chargers; switched-mode power supply units; power tools; power inverters; and other power supply solutions for clients in the security, industrial automation and control system, machinery, electrical equipment, and communication applications. It is also involved in trading audio devices, substation cabinets, and power supply devices and raw materials. In addition, the company provides building decoration services. Ten Pao Group Holdings Limited was founded in 1979 and is headquartered in Kwun Tong, Hong Kong.

How the Company Makes Money

Ten Pao Group Holdings Limited generates revenue primarily through the design, manufacturing, and sale of power supply products and components. The company's key revenue streams include the sale of switching power supply units, battery chargers, and LED power supplies to consumer electronics companies, telecommunications firms, and industrial electronics manufacturers. Ten Pao also benefits from strategic partnerships and long-term contracts with major global brands, which contribute significantly to its earnings. Additionally, the company invests in research and development to innovate and expand its product offerings, ensuring a competitive edge in the market.

Ten Pao Group Holdings Limited Financial Statement Overview

Summary

Ten Pao Group Holdings Limited shows robust revenue growth and improved gross profit margins, reflecting effective operational management. The balance sheet suggests a solid capital base with a favorable debt-to-equity ratio and improved ROE. However, the absence of cash flow data in 2024 presents potential concerns regarding liquidity and financial flexibility. Overall, while financial performance is strong, attention to cash flow generation is crucial.

Income Statement

The company demonstrated strong revenue growth from 2023 to 2024 with a 11.67% increase. Gross profit margin improved to 19.46% in 2024 from 18.81% in 2023, indicating efficiency in cost management. However, the net profit margin saw a slight decline to 7.13% in 2024 from 6.82% in 2023, suggesting increased expenses or other financial impacts affecting net income. EBIT and EBITDA margins showed stability, reflecting consistent operational performance.

Balance Sheet

The debt-to-equity ratio improved slightly to 0.38 in 2024 from 0.43 in 2023, indicating a better leverage position. The return on equity (ROE) increased to 20.68% in 2024 from 19.87% in 2023, showing improved profitability relative to shareholder investments. Equity ratio remained strong at 34.32%, suggesting a solid capital structure. The overall financial stability is good, but vigilance on debt levels is advised.

Cash Flow

Significant concern arises from the absence of operating, investing, and free cash flows in 2024, reflecting potential liquidity management issues. In 2023, the operating cash flow to net income ratio was healthy at 1.47, but the current lack of data on cash flows hampers an accurate assessment of the company's cash position and operational efficiency.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.39B	4.82B	5.48B	6.36B	4.49B
Gross Profit	1.05B	907.20M	841.93M	1.01B	790.01M
EBITDA	554.37M	567.51M	520.78M	595.25M	474.52M
Net Income	383.90M	328.86M	296.90M	378.62M	289.06M
Balance Sheet
Total Assets	5.41B	4.32B	3.89B	4.17B	3.63B
Cash, Cash Equivalents and Short-Term Investments	345.03M	150.48M	511.97M	351.70M	565.43M
Total Debt	705.14M	713.29M	709.29M	746.74M	428.10M
Total Liabilities	3.56B	2.67B	2.42B	2.81B	2.59B
Stockholders Equity	1.86B	1.66B	1.41B	1.30B	1.00B
Cash Flow
Free Cash Flow	420.91M	177.02M	359.69M	-326.76M	295.35M
Operating Cash Flow	813.65M	484.70M	595.93M	245.16M	552.42M
Investing Cash Flow	-358.76M	-294.97M	-230.02M	-607.42M	-251.49M
Financing Cash Flow	-276.43M	-377.27M	-191.03M	141.11M	89.33M

Ten Pao Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1979, the sentiment is Positive. The current price of 2.25 is above the 20-day moving average (MA) of 2.11, above the 50-day MA of 1.96, and above the 200-day MA of 1.64, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 78.79 is Negative, neither overbought nor oversold. The STOCH value of 81.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1979.

Ten Pao Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1979	74 Outperform	HK$2.32B	5.52	22.34%	4.98%	18.32%	14.06%
0842	67 Neutral	HK$2.61B	5.61	9.11%	6.04%	13.14%	-28.26%
1729	66 Neutral	HK$31.09B	68.61		0.14%	―	―
Sector *	64 Neutral	$10.73B	15.74	7.60%	2.01%	2.75%	-15.09%
1710	54 Neutral	HK$204.00M	10.36	5.04%	5.88%	4.01%	―
1539	52 Neutral	HK$1.19B	33.17	13.78%	―	69.91%	188.89%

Ten Pao Group Holdings Limited Corporate Events

Ten Pao Group Successfully Passes All AGM Resolutions

Ten Pao Group Holdings Limited announced the successful passing of all resolutions at its Annual General Meeting held on June 13, 2025. Key resolutions included the adoption of financial statements, declaration of a final dividend, re-election of directors, and approval of mandates for share repurchase and issuance. These decisions are poised to strengthen the company’s governance and operational strategies, potentially impacting its market positioning and stakeholder interests positively.