Ten Pao Group Holdings Limited (1979) AI Stock Analysis

• Market Cap: HK$2.29B
• Dividend Yield: 5.52%
• Average Volume (3M): 773.70K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 0.60
• 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 ▲(12.61% 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.

Ten Pao Group Holdings Limited Business Overview & Revenue Model

Company Description

Ten Pao Group Holdings Limited, founded in 1979, is a leading manufacturer and supplier of power supply units and related components. The company primarily operates in the electronics manufacturing sector, offering a broad range of products such as switching power supply units, chargers, adapters, and LED power supplies. Ten Pao serves a variety of industries, including consumer electronics, telecommunications, and industrial electronics, delivering high-quality and reliable power solutions to its global clientele.

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	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: 2.22
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 2.22 is below the 20-day moving average (MA) of 2.22, above the 50-day MA of 2.19, and above the 200-day MA of 1.76, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 51.19 is Neutral, neither overbought nor oversold. The STOCH value of 38.60 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1979	76 Outperform	HK$2.29B	5.45	22.34%	5.52%	18.32%	14.06%
0842	68 Neutral	HK$2.08B	4.47	9.11%	7.28%	13.14%	-28.26%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1729	59 Neutral	HK$28.23B	49.95	32.21%	0.19%	―	―
1710	56 Neutral	HK$194.00M	9.85	5.04%	9.14%	4.01%	―
1539	55 Neutral	HK$1.26B	35.10	13.78%	―	69.91%	188.89%

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.

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 Updates Nomination Committee Terms

Ten Pao Group Holdings Limited has amended the terms of reference for its Nomination Committee, which was initially adopted in 2015. The committee, primarily composed of independent non-executive directors, is responsible for overseeing the nomination process within the company. The amendments include procedural details about the committee’s meetings, quorum, and the role of the company secretary. These changes aim to enhance the governance structure and ensure effective decision-making within the company.

The most recent analyst rating on (HK:1979) stock is a Hold with a HK$2.00 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 Reports Strong Interim Financial Results for 2025

Ten Pao Group Holdings Limited reported a significant financial performance for the first half of 2025, with a 19.3% increase in revenue to HK$2,948.1 million and a 20.4% rise in profit attributable to owners, reaching HK$211.7 million. Despite a decrease in gross profit margin by 2.4 percentage points, the company announced an increased interim dividend, reflecting strong financial health and a positive outlook for stakeholders.

The most recent analyst rating on (HK:1979) stock is a Hold with a HK$2.00 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 Announces Interim Dividend for 2025

Ten Pao Group Holdings Limited has announced an interim cash dividend of HKD 0.062 per share for the six months ending June 30, 2025. The dividend will be paid on October 27, 2025, with an ex-dividend date of October 3, 2025, and a record date of October 10, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders.

The most recent analyst rating on (HK:1979) stock is a Hold with a HK$2.00 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 Announces Board Composition and Roles

Ten Pao Group Holdings Limited has announced the composition of its board of directors and their respective roles within the company. The announcement details the members of the board and their participation in key committees, which include the Audit, Remuneration, and Nomination Committees. This update is significant for stakeholders as it outlines the governance structure and leadership roles, potentially impacting the company’s strategic direction and operational decision-making.

The most recent analyst rating on (HK:1979) stock is a Hold with a HK$2.00 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 to Review Interim Results and Dividend

Ten Pao Group Holdings Limited has announced a board meeting scheduled for August 21, 2025, to approve the unaudited consolidated interim results for the first half of 2025 and consider a potential dividend payment. This meeting is significant as it could impact the company’s financial strategy and shareholder returns, reflecting its operational performance and market positioning.