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Ten Pao Group Holdings Limited (HK:1979)
:1979
Hong Kong Market

Ten Pao Group Holdings Limited (1979) AI Stock Analysis

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HK

Ten Pao Group Holdings Limited

(1979)

Rating:70Outperform
Price Target:
Ten Pao Group Holdings Limited presents a strong financial position with notable revenue growth and improved profitability margins. The valuation is particularly attractive, featuring a low P/E ratio and high dividend yield, which enhance its appeal for value investors. However, the absence of recent cash flow data raises concerns about liquidity, and mixed technical indicators suggest potential stock price volatility. Investors should monitor cash flow management closely while considering the stock's potential undervaluation.

Ten Pao Group Holdings Limited (1979) vs. iShares MSCI Hong Kong ETF (EWH)

Ten Pao Group Holdings Limited Business Overview & Revenue Model

Company DescriptionTen Pao Group Holdings Limited, established in 1979, is a prominent player in the electronics manufacturing industry, specializing in the design, development, and production of power supply units. With a diverse product range including adapters, chargers, and power inverters, the company serves sectors such as consumer electronics, telecommunications, and home appliances, meeting the growing global demand for efficient power solutions.
How the Company Makes MoneyTen Pao Group Holdings Limited generates revenue primarily through the sale of its power supply products, which are integral to a wide array of electronic devices. The company benefits from its vertically integrated manufacturing processes, allowing for cost-effective production and consistent quality. Key revenue streams include direct sales to major electronics manufacturers, which often involve long-term contracts, and collaborations with leading brands in various industries to supply customized power solutions. Additionally, the company's strategic partnerships with technology firms enhance its market reach and contribute to its earnings by ensuring a steady demand for its innovative power supply products.

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
75
Positive
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
70
Positive
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
50
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.39B4.82B5.48B6.36B4.49B
Gross Profit1.05B907.20M841.93M1.01B790.01M
EBITDA554.37M567.51M520.78M595.25M474.52M
Net Income383.90M328.86M296.90M378.62M289.06M
Balance Sheet
Total Assets5.41B4.32B3.89B4.17B3.63B
Cash, Cash Equivalents and Short-Term Investments345.03M150.48M511.97M351.70M565.43M
Total Debt705.14M713.29M709.29M746.74M428.10M
Total Liabilities3.56B2.67B2.42B2.81B2.59B
Stockholders Equity1.86B1.66B1.41B1.30B1.00B
Cash Flow
Free Cash Flow420.91M177.02M359.69M-326.76M295.35M
Operating Cash Flow813.65M484.70M595.93M245.16M552.42M
Investing Cash Flow-358.76M-294.97M-230.02M-607.42M-251.49M
Financing Cash Flow-276.43M-377.27M-191.03M141.11M89.33M

Ten Pao Group Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.66
Price Trends
50DMA
1.54
Positive
100DMA
1.59
Positive
200DMA
1.51
Positive
Market Momentum
MACD
0.04
Negative
RSI
62.88
Neutral
STOCH
62.17
Neutral
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 1.66 is above the 20-day moving average (MA) of 1.59, above the 50-day MA of 1.54, and above the 200-day MA of 1.51, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 62.88 is Neutral, neither overbought nor oversold. The STOCH value of 62.17 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
HK$3.55B5.5512.91%5.60%17.69%3.08%
70
Outperform
HK$1.71B4.4621.87%7.23%11.66%16.73%
63
Neutral
HK$15.27B33.77
0.51%
60
Neutral
HK$145.00M16.862.07%8.28%-13.16%-81.74%
58
Neutral
$1.34B4.24-2.93%7.38%3.67%-51.13%
52
Neutral
HK$1.34B38.4613.78%58.29%-85.39%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1979
Ten Pao Group Holdings Limited
1.66
0.64
62.75%
HK:0842
Leoch International Technology Limited
2.51
0.91
56.87%
HK:1729
Time Interconnect Technology Limited
7.83
4.36
125.65%
HK:1710
Trio Industrial Electronics Group Limited
0.14
-0.08
-36.36%
HK:1539
Unity Group Holdings International Limited
0.40
-0.16
-28.57%

Ten Pao Group Holdings Limited Corporate Events

Ten Pao Group Successfully Passes All AGM Resolutions
Jun 13, 2025

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.

Ten Pao Group Announces 2025 AGM and Strategic Resolutions
Apr 28, 2025

Ten Pao Group Holdings Limited has announced its 2025 Annual General Meeting, scheduled for June 13, 2025. Key agenda items include the adoption of the 2024 financial statements, declaration of a final dividend, re-election of directors, and re-appointment of auditors. The meeting will also address resolutions on share repurchase and issuance, reflecting the company’s strategic initiatives to enhance shareholder value and maintain its competitive position in the industry.

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: Apr 30, 2025