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

• Market Cap: HK$252.00M
• Dividend Yield: N/A
• Average Volume (3M): 647.73K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.07
• 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: 68 Neutral
• Price Target: HK$0.32 ▼(-1.25% Downside)

The stock's overall score is driven by strong technical indicators and reasonable valuation. However, financial performance concerns, particularly liquidity issues and increased leverage, weigh on the score.

Positive Factors

Operational Efficiency

Improved EBIT margin indicates better cost management and operational efficiency, which can enhance profitability over the long term.

Gross Profit Margin

A higher gross profit margin suggests strong pricing power and effective cost control, contributing to sustainable business growth.

Revenue Model

A diversified revenue model reduces dependency on a single income stream, enhancing resilience and growth potential in the long term.

Negative Factors

Net Profit Margin Decline

A declining net profit margin suggests rising costs or inefficiencies, which could impact future profitability and shareholder returns.

Liquidity Challenges

Lack of operating cash flow indicates potential liquidity issues, which may hinder the company's ability to fund operations and growth.

Increased Financial Leverage

Higher financial leverage increases risk, potentially limiting financial flexibility and increasing vulnerability to economic downturns.

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 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: Neutral
• Last Price: 0.32
• 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 Neutral. The current price of 0.32 is below the 20-day moving average (MA) of 0.34, above the 50-day MA of 0.30, and above the 200-day MA of 0.25, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 48.75 is Neutral, neither overbought nor oversold. The STOCH value of 46.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	68 Neutral	HK$252.00M	13.46	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$208.75M	-4.78	-18.74%	5.15%	-9.92%	-1260.00%
0126	45 Neutral	HK$205.85M	-3.63	-1.85%	―	-6.71%	74.72%
1869	44 Neutral	HK$163.59M	-3.53	―	―	-18.92%	-2250.00%
8213	41 Neutral	HK$166.52M	-7.69	―	―	-58.36%	6.25%
8300	40 Underperform	HK$153.31M	82.86	―	―	-24.92%	―

K2 F&B Holdings Limited Corporate Events

K2 F&B Holdings Announces Key Leadership Change

K2 F&B Holdings Limited has announced a change in its company secretary and authorized representative roles. Mr. Man Yun Wah will be replaced by Ms. Lam Wing Chi, who has over 12 years of experience in corporate secretarial and compliance work, effective from November 13, 2025. This change reflects the company’s commitment to maintaining strong governance and compliance standards, potentially impacting its operational efficiency and stakeholder confidence positively.

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.