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

• Market Cap: HK$195.20M
• Dividend Yield: N/A
• Average Volume (3M): 1.98M
• Price to Earnings (P/E): 10.4
• Beta (1Y): -0.12
• Revenue Growth: -4.47%
• EPS Growth: -58.44%
• Country: HK
• Employees: 321
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Restaurants
• EPS (TTM): <0.01
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 62,000
• 30 Day Avg. Volume: 1,982,933
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 1

• Rating: 62 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily influenced by financial performance, which shows strong revenue growth but is offset by declining net profit margins and liquidity challenges. Technical analysis indicates neutral momentum, and valuation suggests the stock is reasonably priced. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Operational Efficiency

Improved EBIT margin reflects enhanced operational efficiency, which can lead to better profitability and competitive positioning in the market.

Gross Profit Margin

A significant increase in gross profit margin suggests effective cost management and pricing power, which are crucial for sustaining profitability.

Negative Factors

Net Profit Margin Decline

Declining net profit margin indicates rising costs or inefficiencies, which could impact long-term profitability and shareholder returns.

Liquidity Challenges

Zero operating cash flow suggests liquidity issues, potentially limiting the company's ability to invest in growth or weather financial downturns.

Increased Financial Leverage

Higher financial leverage can increase financial risk, potentially affecting the company's ability to manage debt and finance future operations.

K2 F&B Holdings Limited Business Overview & Revenue Model

Company Description

K2 F&B Holdings Limited (2108) is an investment holding company primarily engaged in the food and beverage industry. The company operates through its subsidiaries and is involved in the processing, distribution, and sale of a wide range of food and beverage products. Its offerings include packaged food items, culinary ingredients, and beverages, catering to both retail and wholesale markets.

How the Company Makes Money

K2 F&B Holdings Limited generates revenue through the sale of its food and beverage products. The company operates in various segments of the food industry, including packaged goods and ingredients, which are sold to both individual consumers and businesses. Its revenue model is based on retail sales, wholesale distribution, and strategic partnerships with other companies in the food sector. Additionally, K2 F&B Holdings may engage in private label manufacturing for other brands, which can provide an additional revenue stream. The company's earnings are influenced by factors such as market demand, product quality, distribution network efficiency, and partnerships with suppliers and retailers.

K2 F&B Holdings Limited Financial Statement Overview

Summary

K2 F&B Holdings Limited shows strong revenue growth and improved operational efficiency. However, the declining net profit margin and increased financial leverage pose potential risks. Liquidity challenges are evident with operating cash flow dropping to zero 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	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: Positive
• Last Price: 0.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 0.24 is above the 20-day moving average (MA) of 0.23, above the 50-day MA of 0.22, and above the 200-day MA of 0.22, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 61.26 is Neutral, neither overbought nor oversold. The STOCH value of 68.46 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	62 Neutral	HK$195.20M	10.43	3.56%	―	-4.47%	-58.44%
Sector *	61 Neutral	$17.83B	12.89	-1.60%	3.03%	1.39%	-14.45%
0126	52 Neutral	HK$186.99M	―	-4.46%	―	-12.74%	46.01%
1181	50 Neutral	HK$194.76M	53.14	-18.74%	5.52%	-9.92%	-1260.00%
1869	46 Neutral	HK$165.00M	―		―	-18.92%	-2250.00%
8213	40 Underperform	HK$183.17M	―		―	-62.35%	-35.69%
8300	39 Underperform	HK$229.97M	―		―	-48.33%	88.70%

K2 F&B Holdings Limited Corporate Events

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.

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.