Tsit Wing International Holdings Limited (2119) AI Stock Analysis

• Market Cap: HK$432.44M
• Dividend Yield: 8.2%
• Average Volume (3M): 306.08K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.34
• Revenue Growth: -1.07%
• EPS Growth: 21.30%
• Country: HK
• Employees: 374
• Sector: Consumer Defensive
• Sector Strength: 54
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 0.03
• Shares Outstanding: 720,731,500
• 10 Day Avg. Volume: 384,400
• 30 Day Avg. Volume: 306,085
• PEG Ratio: -0.36
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.64
• 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: HK$0.50
• Price Target Upside: -16.67% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: HK$0.50 ▼(-16.67%Downside)

The overall stock score is driven primarily by strong valuation metrics, with a low P/E ratio and high dividend yield enhancing attractiveness. Financial performance is stable but hampered by revenue and cash flow challenges. Technical indicators show positive momentum, though caution is advised due to overbought signals.

Tsit Wing International Holdings Limited Business Overview & Revenue Model

Company Description

Tsit Wing International Holdings Limited (2119) is a leading integrated B2B coffee and black tea solutions provider based in Hong Kong. With a legacy dating back to 1932, the company specializes in the procurement, processing, and distribution of coffee beans, tea leaves, and related products. Tsit Wing caters to a diverse clientele, including cafes, restaurants, hotels, and other foodservice businesses, offering customized beverage solutions that align with the specific needs of its customers.

How the Company Makes Money

Tsit Wing International Holdings Limited generates revenue primarily through the sale of coffee and tea products to business clients in the foodservice industry. The company's revenue streams include the distribution of roasted and ground coffee, instant coffee, and tea products. Additionally, Tsit Wing offers value-added services such as product customization, equipment leasing, and maintenance support, which enhance customer loyalty and generate repeat business. The company has established significant partnerships with various international coffee and tea suppliers to ensure a consistent supply of high-quality raw materials, which is key to maintaining its competitive edge and profitability in the market.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	721.12M	728.93M	695.94M	766.79M	638.51M
Gross Profit	245.96M	239.50M	234.76M	298.98M	263.05M
EBITDA	110.16M	99.33M	98.92M	140.70M	132.15M
Net Income	59.09M	48.71M	47.42M	80.24M	76.80M
Balance Sheet
Total Assets	680.17M	735.12M	730.57M	762.45M	684.74M
Cash, Cash Equivalents and Short-Term Investments	170.45M	253.75M	189.79M	210.31M	276.81M
Total Debt	33.23M	25.09M	26.65M	29.11M	25.46M
Total Liabilities	170.51M	144.68M	155.34M	173.93M	132.24M
Stockholders Equity	509.66M	590.44M	575.24M	588.52M	552.50M
Cash Flow
Free Cash Flow	49.04M	105.56M	-34.53M	66.38M	71.83M
Operating Cash Flow	77.13M	143.35M	41.80M	97.59M	106.11M
Investing Cash Flow	-7.12M	-32.04M	-72.87M	-30.04M	-31.02M
Financing Cash Flow	-152.33M	-46.01M	-44.68M	-74.30M	-117.21M

Tsit Wing International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.60
• 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:2119, the sentiment is Positive. The current price of 0.6 is below the 20-day moving average (MA) of 0.60, above the 50-day MA of 0.58, and above the 200-day MA of 0.55, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.23 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
0506	78 Outperform	HK$9.17B	9.83	13.82%	5.06%	-2.10%	0.33%
9633	73 Outperform	HK$505.53B	38.46	39.94%	1.85%	-1.32%	-1.49%
2119	71 Outperform	HK$432.44M	7.32	10.74%	8.20%	-1.07%	21.30%
1587	71 Outperform	HK$428.40M	9.04	9.10%	3.57%	-4.97%	111.21%
0236	64 Neutral	HK$466.96M	4.08	-1.15%	3.85%	2.77%	-110.76%
Sector *	62 Neutral	HK$22.22B	11.79	4.06%	5.04%	-0.34%	-45.72%
1446	44 Neutral	HK$268.94M	―	-5.09%	―	-7.73%	60.42%

Tsit Wing International Holdings Limited Corporate Events

Tsit Wing International Issues Profit Warning Amid Rising Costs

Tsit Wing International Holdings Limited has issued a profit warning, anticipating a 30% to 35% decrease in profit for the first half of 2025 compared to the same period in 2024. This decline is attributed to the absence of a one-off asset disposal gain and increased procurement costs due to rising coffee bean prices, impacting the company’s financial performance and potentially affecting stakeholders.

Tsit Wing International Strengthens Board with New Appointments

Tsit Wing International Holdings Limited has appointed Ms. Yeung Po Yan and Mr. Ho Hung Wai as non-executive directors, effective June 12, 2025. Both bring extensive experience in management and finance, which is expected to strengthen the company’s strategic direction and governance. Their appointments, nominated by Dah Chong Hong Food International Holdings Limited, reflect a strategic alignment and potential for enhanced collaboration within the industry.

Tsit Wing International Holdings Limited Announces Board Composition

Tsit Wing International Holdings Limited announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement provides clarity on the leadership structure of the company, which is crucial for stakeholders to understand the governance and strategic direction of the company.

Tsit Wing International Holdings Enhances Governance with New Nomination Committee

Tsit Wing International Holdings Limited has established a Nomination Committee to oversee the appointment of directors and ensure proper governance. The committee will consist of at least three members, primarily independent non-executive directors, with a focus on gender diversity. This move is expected to enhance the company’s governance structure and ensure a more transparent and inclusive process for board appointments.

Tsit Wing International Holdings Announces New Board Structure

Tsit Wing International Holdings Limited has announced changes to its board of directors, effective from May 10, 2025. The company, which operates under the laws of Bermuda and is listed under stock code 2119, has appointed Wong Tat Tong as Chairman, with Fan Yee Man and Kam Chun Pong Bernard as Executive Directors. The board also includes Independent Non-executive Directors Tang Kwai Chang, Wong Man Fai, and Lok Kung Chin Hardy. The announcement outlines the roles and functions of the directors within the company’s audit, remuneration, and nomination committees, indicating a structured approach to governance and oversight.