Tsit Wing International Holdings Limited (2119) AI Stock Analysis

• Market Cap: HK$410.82M
• Dividend Yield: 7.52%
• Average Volume (3M): 109.27K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.32
• Revenue Growth: 4.61%
• EPS Growth: -23.88%
• Country: HK
• Employees: 374
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 0.03
• Shares Outstanding: 720,731,500
• 10 Day Avg. Volume: 67,800
• 30 Day Avg. Volume: 109,266
• PEG Ratio: 0.33
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 8.52
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: HK$0.50 ▼(-7.41% Downside)

The overall stock score is primarily driven by stable financial performance and attractive valuation. However, technical indicators suggest bearish momentum, which poses a risk. The lack of earnings call data and corporate events limits additional insights.

Positive Factors

Strong Profit Margins

Strong profit margins indicate efficient cost management and pricing power, supporting long-term profitability and competitive positioning.

Conservative Balance Sheet

A conservative balance sheet with low leverage enhances financial stability and provides flexibility for future investments or downturns.

Cash Generation Ability

Strong cash generation relative to earnings supports ongoing operations and potential reinvestment, crucial for sustaining growth and financial health.

Negative Factors

Revenue Growth Challenges

Negative revenue growth indicates challenges in expanding market share or product adoption, which could impact future earnings potential.

Cash Flow Volatility

Volatile cash flow can strain liquidity and limit the company's ability to invest in growth initiatives or weather economic downturns.

Decline in EPS Growth

A decline in EPS growth reflects potential issues in profitability or cost management, which could affect investor confidence and future valuation.

Tsit Wing International Holdings Limited Business Overview & Revenue Model

Company Description

Tsit Wing International Holdings Limited, listed as 2119, is a leading player in the beverage industry, primarily focusing on the production and distribution of tea and coffee products. The company operates through various sectors, including retail, wholesale, and food service, offering a diverse range of products that cater to both domestic and international markets. Tsit Wing is well-known for its expertise in tea blending and sourcing, as well as for its innovative coffee solutions, positioning itself as a key supplier to numerous cafes, restaurants, and retailers.

How the Company Makes Money

Tsit Wing International Holdings Limited generates its revenue through multiple streams, primarily from the sale of tea and coffee products. The company earns money by supplying bulk tea and coffee to businesses in the food service and retail sectors, along with direct sales to consumers through its own retail outlets. Additionally, Tsit Wing engages in private label production, allowing other brands to market its products under their own labels, which further diversifies its revenue. Strategic partnerships with various distributors and retailers enhance its market reach, while ongoing investments in product development and marketing campaigns contribute to sustained revenue growth.

Tsit Wing International Holdings Limited Financial Statement Overview

Summary

Tsit Wing International Holdings Limited maintains a stable financial position with strong profit margins and a conservative balance sheet. However, the company faces challenges with revenue growth and cash flow volatility, which may impact future performance.

Income Statement

The company shows stable gross and net profit margins with a slight decline in revenue over the recent period. Gross profit margin for 2024 was 33.96%, and net profit margin was 8.19%. EBIT and EBITDA margins are healthy at 8.47% and 11.82% respectively. Revenue growth has been slightly negative, highlighting some challenges in top-line expansion.

Balance Sheet

The balance sheet remains strong with a low debt-to-equity ratio of 0.07, indicating conservative leverage. Return on Equity (ROE) is modest at 11.59% for 2024. The equity ratio is solid at 74.91%, reflecting a strong equity position relative to total assets, which supports financial stability.

Cash Flow

Cash flow performance is mixed with a decrease in operating cash flow compared to the previous year. Free cash flow has declined significantly, resulting in a lower free cash flow to net income ratio. However, the operating cash flow to net income ratio remains robust at 1.30, indicating good cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	566.27M	721.12M	728.93M	695.94M	766.79M	638.51M
Gross Profit	176.05M	245.96M	239.50M	234.76M	298.98M	263.05M
EBITDA	60.12M	110.16M	99.33M	98.92M	140.70M	132.15M
Net Income	36.33M	59.09M	48.71M	47.42M	80.24M	76.80M
Balance Sheet
Total Assets	705.68M	680.17M	735.12M	730.57M	762.45M	684.74M
Cash, Cash Equivalents and Short-Term Investments	146.56M	170.45M	253.75M	189.79M	272.11M	276.81M
Total Debt	27.65M	33.23M	25.09M	26.65M	29.11M	25.46M
Total Liabilities	183.22M	170.51M	144.68M	155.34M	173.93M	132.24M
Stockholders Equity	522.46M	509.66M	590.44M	575.24M	588.52M	552.50M
Cash Flow
Free Cash Flow	-4.59M	49.04M	105.56M	-34.53M	66.38M	71.83M
Operating Cash Flow	15.72M	77.13M	143.35M	41.80M	97.59M	106.11M
Investing Cash Flow	-33.46M	-7.12M	-32.04M	-72.87M	-30.04M	-31.02M
Financing Cash Flow	-57.36M	-152.33M	-46.01M	-44.68M	-74.30M	-117.21M

Tsit Wing International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2119, the sentiment is Negative. The current price of 0.54 is below the 20-day moving average (MA) of 0.55, below the 50-day MA of 0.56, and below the 200-day MA of 0.55, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.15 is Neutral, 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:2119.

Tsit Wing International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1587	71 Outperform	HK$442.00M	9.64	8.56%	3.46%	3.24%	47.81%
0506	70 Outperform	HK$11.72B	12.46	13.57%	3.98%	10.05%	9.01%
2119	67 Neutral	HK$410.82M	8.60	9.28%	7.52%	4.61%	-23.88%
9633	63 Neutral	HK$576.94B	39.60	46.45%	1.76%	4.14%	7.35%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
0236	56 Neutral	HK$452.02M	-56.02	-1.15%	4.13%	2.77%	-110.76%
1446	38 Underperform	HK$275.50M	-16.54	-6.43%	―	-6.79%	49.40%

Tsit Wing International Holdings Limited Corporate Events

Tsit Wing Expands OEM Services with Tai Luen Under New Agreement

Tsit Wing International Holdings Limited has announced that its subsidiary, TW Coffee, has been providing OEM services to Tai Luen, a subsidiary of DCH Food, since March 2024 under a three-year agreement. These transactions are considered continuing connected transactions under the Listing Rules due to DCH Food’s substantial shareholding in Tsit Wing. While current transaction amounts are below the reporting threshold, future transactions are expected to exceed this, requiring reporting and annual review but not independent shareholder approval.