Ten Pao Group Holdings Limited (1979) AI Stock Analysis

• Market Cap: HK$2.13B
• Dividend Yield: 5.89%
• Average Volume (3M): 773.70K
• Price to Earnings (P/E): 5.1
• Beta (1Y): 0.64
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: HK$2.50 ▲(20.77% 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 (1979) is a Hong Kong-based company specializing in the design, manufacturing, and distribution of power supply products. The company operates primarily within the electronics sector, focusing on providing high-quality power adapters, chargers, and other related components for a variety of applications, including consumer electronics, telecommunications, and industrial equipment. With a commitment to innovation and quality, Ten Pao serves a global market, catering to both original equipment manufacturers (OEMs) and original design manufacturers (ODMs).

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: Negative
• Last Price: 2.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1979, the sentiment is Negative. The current price of 2.07 is below the 20-day moving average (MA) of 2.11, below the 50-day MA of 2.18, and above the 200-day MA of 1.86, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 39.70 is Neutral, neither overbought nor oversold. The STOCH value of 22.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
0842	76 Outperform	HK$2.58B	5.55	9.11%	6.11%	13.14%	-28.26%
1979	76 Outperform	HK$2.13B	5.08	22.34%	5.89%	18.32%	14.06%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1710	63 Neutral	HK$246.00M	12.49	5.04%	7.32%	4.01%	―
1729	57 Neutral	HK$32.29B	56.50	32.21%	0.18%	―	―
1539	52 Neutral	HK$1.03B	24.19	14.19%	―	11.61%	287.50%

Ten Pao Group Holdings Limited Corporate Events

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.