Ten Pao Group Holdings Limited (1979) AI Stock Analysis

• Market Cap: HK$2.34B
• Dividend Yield: 5.75%
• Average Volume (3M): 773.70K
• Price to Earnings (P/E): 5.6
• Beta (1Y): 0.66
• Revenue Growth: 18.32%
• EPS Growth: 14.06%
• Country: HK
• Employees: 7,600
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.21
• Shares Outstanding: 1,030,388,900
• 10 Day Avg. Volume: 363,300
• 30 Day Avg. Volume: 773,697
• PEG Ratio: 0.26
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 3.67
• 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: 76 Outperform
• Price Target: HK$2.50 ▲(15.21% Upside)

The stock of Ten Pao Group Holdings Limited is supported by strong technical indicators and an attractive valuation, with a low P/E ratio and high dividend yield. Financial performance is robust, but the absence of cash flow data raises concerns about liquidity. The lack of earnings call and corporate events data does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and product demand, supporting long-term business sustainability and competitive positioning.

Improved Profit Margins

Improved profit margins reflect effective cost management and operational efficiency, enhancing profitability and competitive advantage.

Solid Capital Structure

A strong capital structure with improved leverage positions the company well for future growth and financial stability, reducing risk.

Negative Factors

Cash Flow Concerns

Lack of cash flow data raises concerns about liquidity management and financial flexibility, potentially impacting operational efficiency.

Net Profit Margin Decline

A decline in net profit margin suggests increased expenses or financial impacts, which could affect overall profitability and shareholder returns.

Cash Flow Data Absence

Without current cash flow data, assessing the company's cash position and operational efficiency is challenging, posing risks to financial health.

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 manufacturing and sale of power supply products. The company’s key revenue streams include the production of power adapters and chargers for consumer electronics, which are sold to OEM and ODM clients worldwide. Additionally, Ten Pao may benefit from strategic partnerships with major technology firms that require reliable power supply solutions, thus securing long-term contracts that contribute to stable revenue. The company also focuses on expanding its product range and enhancing its manufacturing capabilities, which can lead to increased market share and higher sales volumes. Factors such as growing demand for electronic devices and the ongoing shift towards renewable energy solutions may further drive revenue growth for Ten Pao.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.86B	5.39B	4.82B	5.48B	6.36B	4.49B
Gross Profit	1.07B	1.05B	907.20M	841.93M	1.01B	790.01M
EBITDA	577.47M	554.37M	567.51M	520.78M	595.25M	474.52M
Net Income	419.72M	383.90M	328.86M	296.90M	378.62M	289.06M
Balance Sheet
Total Assets	5.12B	5.41B	4.32B	3.89B	4.17B	3.63B
Cash, Cash Equivalents and Short-Term Investments	212.22M	345.03M	828.03M	511.97M	351.70M	441.61M
Total Debt	664.00M	705.14M	713.29M	476.61M	611.50M	316.95M
Total Liabilities	3.08B	3.56B	2.67B	2.48B	2.86B	2.63B
Stockholders Equity	2.05B	1.86B	1.66B	1.41B	1.30B	1.00B
Cash Flow
Free Cash Flow	219.53M	420.91M	177.02M	359.69M	-326.76M	295.35M
Operating Cash Flow	580.37M	813.65M	484.70M	595.93M	245.16M	552.42M
Investing Cash Flow	-405.29M	-358.76M	-294.97M	-230.02M	-607.42M	-251.49M
Financing Cash Flow	-265.75M	-276.43M	-377.27M	-191.03M	220.38M	89.33M

Ten Pao Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 2.17 is above the 20-day moving average (MA) of 2.14, above the 50-day MA of 2.17, and above the 200-day MA of 1.88, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 69.42 is Neutral, neither overbought nor oversold. The STOCH value of 89.33 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	76 Outperform	HK$2.34B	5.57	22.34%	5.75%	18.32%	14.06%
0842	74 Outperform	HK$1.22B	2.62	9.11%	6.40%	13.14%	-28.26%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1710	63 Neutral	HK$236.00M	11.98	5.04%	7.47%	4.01%	―
1729	57 Neutral	HK$31.16B	54.49	32.21%	0.17%	―	―
1539	52 Neutral	HK$929.91M	21.77	14.19%	―	11.61%	287.50%

Ten Pao Group Holdings Limited Corporate Events

Ten Pao Renews 2026 Related-Party Tenancy Agreements for Key Operating Premises

Ten Pao Group Holdings Limited has renewed a series of related‑party tenancy arrangements under which subsidiaries Ten Pao Precision, Ten Pao International and Ten Pao Chuangneng lease properties from entities connected to the group’s chairman, including Sky Fortune, Golden Lake and Tiannengyuan Charging. The company has extended the existing 2025 tenancy agreements to new 2026 tenancy agreements, ensuring ongoing access to key operational premises while classifying the leases as continuing connected transactions under Hong Kong listing rules; because the relevant transaction size ratios fall between 0.1% and 5%, the deals are subject to reporting, annual review and announcement requirements but are exempt from circular issuance and independent shareholders’ approval, streamlining compliance while maintaining regulatory oversight of these related‑party arrangements.

The most recent analyst rating on (HK:1979) stock is a Buy with a HK$2.50 price target. To see the full list of analyst forecasts on Ten Pao Group Holdings Limited stock, see the HK:1979 Stock Forecast page.

Ten Pao Group Holdings Limited Issues Supplemental Announcement on Share Schemes

Ten Pao Group Holdings Limited has issued a supplemental announcement to its annual report for the year ended 31 December 2024, providing additional details on its share schemes. The company disclosed the total number of options available under its Share Option Scheme and the equity available under the Ten Pao Electronic (Huizhou) Share Award Scheme. This announcement provides shareholders and potential investors with further insights into the company’s equity distribution and potential future capital structure.

The most recent analyst rating on (HK:1979) stock is a Buy with a HK$2.50 price target. To see the full list of analyst forecasts on Ten Pao Group Holdings Limited stock, see the HK:1979 Stock Forecast page.