K2 F&B Holdings Limited (2108) AI Stock Analysis

• Market Cap: HK$236.00M
• Dividend Yield: N/A
• Average Volume (3M): 647.73K
• Price to Earnings (P/E): 12.6
• Beta (1Y): -0.05
• Revenue Growth: -4.47%
• EPS Growth: -58.44%
• Country: HK
• Employees: 321
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): <0.01
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 976,000
• 30 Day Avg. Volume: 647,733
• PEG Ratio: -0.18
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.54
• P/FCF Ratio: 5.07
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: HK$0.50 ▲(78.57% Upside)

The stock's overall score is driven by strong revenue growth and positive technical indicators. However, liquidity challenges and increased financial leverage are significant risks. The valuation is reasonable, but the lack of dividend yield may deter some investors.

K2 F&B Holdings Limited Business Overview & Revenue Model

Company Description

K2 F&B Holdings Limited (2108) is a prominent player in the food and beverage sector, primarily focused on the development, operation, and management of restaurants and food-related businesses. The company operates a diverse portfolio of dining concepts, catering to various market segments and consumer preferences. With a commitment to quality and innovation, K2 F&B Holdings aims to deliver exceptional culinary experiences through its brands, which include both casual dining and fine dining establishments.

How the Company Makes Money

K2 F&B Holdings generates revenue primarily through the operation of its restaurant chains, which contribute significantly to its overall earnings. The company adopts a multi-faceted revenue model that includes direct sales from food and beverage services, catering services, and special events hosted at its venues. Additionally, K2 F&B Holdings may engage in franchising agreements, allowing it to expand its brand presence while receiving franchise fees and royalties from franchisees. Strategic partnerships with suppliers and local businesses also enhance its operational efficiency and profitability. Seasonal promotions and loyalty programs further drive customer retention and spending, contributing to the company's financial performance.

K2 F&B Holdings Limited Financial Statement Overview

Summary

The company shows strong revenue growth and improved operational efficiency, but declining net profit margin and increased financial leverage pose risks. Liquidity challenges are evident with zero operating cash flow in 2024.

Income Statement

The revenue showed consistent growth over the years, with a notable increase in gross profit margin from 27.3% in 2020 to 66.2% in 2024. The EBIT margin improved from 11.9% to 21.8% during the same period, indicating enhanced operational efficiency. However, the net profit margin decreased from 13.7% in 2023 to 4.9% in 2024, suggesting increased expenses or operational challenges affecting net income.

Balance Sheet

The company's debt-to-equity ratio increased over the years, reaching 1.17 in 2024, reflecting higher leverage and potential financial risk. The return on equity fell from 8.5% in 2023 to 3.1% in 2024, indicating reduced profitability for shareholders. Despite this, the equity ratio remained stable at around 43.7% in 2024, showing a balanced capital structure.

Cash Flow

The cash flow situation shows some concerns, with operating cash flow dropping to zero in 2024, indicating potential liquidity issues. The free cash flow was positive in previous years but turned zero in 2024, signaling challenges in generating cash. The free cash flow to net income ratio was not applicable for 2024 due to the absence of free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	54.62M	57.17M	55.74M	47.29M	37.39M	34.90M
Gross Profit	36.99M	37.84M	36.22M	19.14M	13.81M	13.12M
EBITDA	6.47M	6.11M	15.71M	11.32M	7.87M	5.63M
Net Income	3.18M	2.81M	7.31M	5.67M	4.57M	2.19M
Balance Sheet
Total Assets	198.29M	204.04M	198.13M	190.81M	167.84M	147.76M
Cash, Cash Equivalents and Short-Term Investments	3.85M	7.21M	7.43M	6.93M	8.49M	10.89M
Total Debt	98.67M	103.99M	100.47M	104.76M	88.96M	74.64M
Total Liabilities	108.82M	114.84M	111.71M	113.24M	95.94M	80.42M
Stockholders Equity	89.49M	89.23M	86.42M	77.57M	71.90M	67.33M
Cash Flow
Free Cash Flow	5.98M	6.10M	5.33M	6.10M	6.00M	7.34M
Operating Cash Flow	9.49M	9.61M	8.89M	9.83M	6.92M	7.72M
Investing Cash Flow	3.54M	-1.58M	3.68M	-5.97M	-4.84M	-6.82M
Financing Cash Flow	-15.72M	-8.25M	-11.13M	-4.83M	-5.36M	-2.39M

K2 F&B Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.28
• 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:2108, the sentiment is Positive. The current price of 0.28 is above the 20-day moving average (MA) of 0.28, above the 50-day MA of 0.27, and above the 200-day MA of 0.23, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.14 is Neutral, neither overbought nor oversold. The STOCH value of 47.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2108.

K2 F&B Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2108	66 Neutral	HK$236.00M	12.61	3.56%	―	-4.47%	-58.44%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1181	57 Neutral	HK$222.74M	-5.10	-18.74%	4.90%	-9.92%	-1260.00%
0126	50 Neutral	HK$257.70M	―	-4.46%	―	-12.74%	46.01%
1869	45 Neutral	HK$180.51M	-3.89	―	―	-18.92%	-2250.00%
8213	38 Underperform	HK$166.52M	-7.11	―	―	-62.35%	-35.69%
8300	38 Underperform	HK$200.90M	―	―	―	-48.33%	88.70%

K2 F&B Holdings Limited Corporate Events

K2 F&B Holdings Completes Property Disposal

K2 F&B Holdings Limited, a company listed on the Hong Kong Stock Exchange, has announced the completion of a property disposal. The transaction was finalized on September 17, 2025, with the purchaser paying the remaining balance of S$1,852,500 plus GST. This disposal marks a significant step for K2 F&B Holdings Limited, potentially impacting its financial position and strategic direction.

K2 F&B Holdings Limited Reports Improved Profit Amid Revenue Decline

K2 F&B Holdings Limited reported its unaudited interim results for the first half of 2025, showing a decrease in revenue to S$26,065,000 compared to S$28,619,000 in the same period of 2024. Despite the revenue decline, the company achieved a profit of S$247,000, a significant improvement from a loss of S$130,000 in the previous year, indicating better cost management and operational efficiency.

K2 F&B Holdings Limited Schedules Board Meeting for Interim Results

K2 F&B Holdings Limited has announced a board meeting scheduled for August 29, 2025, to review and approve the interim results for the first half of 2025 and to consider the payment of an interim dividend. This meeting could potentially impact the company’s financial strategy and shareholder returns, reflecting its operational performance and market positioning.

K2 F&B Holdings Implements Remedial Actions for Compliance

K2 F&B Holdings Limited, a company incorporated in the Cayman Islands, has announced a series of remedial actions following a discloseable transaction related to the disposal of property. These measures aim to ensure compliance with the Hong Kong Listing Rules and involve training for directors, maintaining detailed transaction records, and centralizing reporting procedures. The company expects to fully implement these measures by the end of August 2025 to enhance internal processes and prevent similar incidents in the future.