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

• Market Cap: HK$162.40M
• Dividend Yield: N/A
• Average Volume (3M): 27.60K
• Price to Earnings (P/E): 9.8
• Beta (1Y): -0.14
• Revenue Growth: 2.77%
• EPS Growth: -60.87%
• Country: HK
• Employees: 321
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Restaurants
• EPS (TTM): 0.02
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 24,000
• 30 Day Avg. Volume: 27,600
• PEG Ratio: -0.15
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.57
• 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

• Rating: 56 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall stock score is primarily influenced by strong revenue growth and operational efficiency. However, significant financial risks, such as declining profit margins and liquidity issues, coupled with bearish technical indicators, weigh negatively on the score. The valuation is moderately balanced, but lacks a dividend yield, reducing its appeal for some investors.

K2 F&B Holdings Limited Business Overview & Revenue Model

Company Description

K2 F&B Holdings Limited is a Singapore-based food and beverage company that owns and operates food centers and food street. The Company operates through two segments: Outlet management, and Food and beverage stalls. Its Outlet management operations are involved in the leasing of food establishment premises to tenants and the provision of management, cleaning and utilities services to tenants. It’s Food and beverage operations are involved in retailing of beverage, tobacco products and cooked food directly to consumers through the stalls. It provides mixed vegetable rice, zi char, roasted meat and chicken rice. Its beverage stalls sells coffee, tea, canned drinks and juices made from syrup, such as calamansi and water chestnut. It provides food, such as kaya toast, boiled eggs and noodles. It also sells alcohol and cigarettes from its beverage stalls. It operates and manages 13 food outlets under its outlet management and leasing business.

How the Company Makes Money

K2 F&B Holdings Limited generates revenue primarily through the operation of its restaurant outlets. The company earns income from the sale of food and beverages to customers dining at its various establishments. It may also engage in franchising, which involves granting licenses to third parties to operate restaurants under its brands, in exchange for franchise fees and royalties. Additionally, the company might explore strategic partnerships with suppliers or other food service entities to enhance its market presence and product offerings, though specific partnerships are not detailed.

K2 F&B Holdings Limited Financial Statement Overview

Summary

The company shows strong revenue growth and improved operational efficiency. However, the declining net profit margin, increased financial leverage, and liquidity challenges are significant concerns.

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

K2 F&B Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2108, the sentiment is Negative. The current price of 0.2 is below the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.22, and below the 200-day MA of 0.22, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 29.28 is Positive, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Sector *	66 Neutral	€9.21B	14.68	5.85%	3.06%	3.86%	-31.71%
1181	58 Neutral	HK$201.22M	53.14	-8.51%	5.35%	-10.93%	-143.61%
2108	56 Neutral	HK$162.40M	9.81	3.24%	―	2.77%	-60.87%
0126	49 Neutral	HK$193.28M	―	-4.46%	―	-7.62%	-46.31%
1869	46 Neutral	HK$105.77M	―		―	-21.79%	-613.89%
8213	45 Neutral	HK$183.17M	―		―	-56.57%	-49.64%
8300	27 Underperform	HK$243.19M	―		―	38.63%	-4.26%

K2 F&B Holdings Limited Corporate Events

K2 F&B Holdings Announces Property Disposal

K2 F&B Holdings Limited has announced the exercise of an option by Genting0800 Pte. Ltd. to purchase a property for S$1,950,000. The completion of this transaction is expected to occur by 17 September 2025. The property has been valued at S$1,950,000 by an independent valuer, and the disposal is subject to conditions outlined in the Option Agreement. This transaction could impact K2 F&B Holdings Limited’s financial standing and market positioning, although shareholders are advised to exercise caution as the deal may not proceed.

K2 F&B Holdings Limited Successfully Passes All Resolutions at AGM

K2 F&B Holdings Limited announced that all proposed resolutions were successfully passed at their Annual General Meeting held on June 27, 2025. The resolutions included the adoption of financial statements, re-election of directors, and granting mandates for share repurchase and issuance, indicating strong shareholder support and strategic positioning for future growth.

K2 F&B Holdings Announces Property Disposal Transaction

K2 F&B Holdings Limited, a company incorporated in the Cayman Islands, announced a discloseable transaction involving the disposal of a property. The transaction involves granting an option to a purchaser to buy the property for a consideration between S$1,900,000 and S$2,000,000. This transaction is subject to the reporting and announcement requirements under the Listing Rules due to its size. The completion of the transaction is contingent upon certain conditions, including satisfactory legal requisitions and the property being sold on an ‘as is where is’ basis.

K2 F&B Holdings Limited Announces 2025 Annual General Meeting Agenda

K2 F&B Holdings Limited has announced its upcoming annual general meeting scheduled for June 27, 2025, in Singapore. Key agenda items include the adoption of financial statements, re-election of directors, approval of director remuneration, re-appointment of auditors, and resolutions for share repurchase and issuance. These actions aim to strengthen governance and operational flexibility, potentially impacting shareholder value and market positioning.