Tat Hong Equipment Service Co. Ltd. (2153) AI Stock Analysis

• Market Cap: €1.28B
• Dividend Yield: N/A
• Average Volume (3M): 257.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• Revenue Growth: -7.98%
• EPS Growth: -25.03%
• Country: HK
• Employees: 691
• Sector: Industrials
• Sector Strength: 78
• Industry: Agricultural - Machinery
• EPS (TTM): -0.08
• Shares Outstanding: 1,166,871,200
• 10 Day Avg. Volume: 672,878
• 30 Day Avg. Volume: 257,326
• PEG Ratio: -0.51
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 2.14
• P/FCF Ratio: 61.31
• 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: €1.00
• Price Target Upside: -9.31% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 47 Neutral
• Price Target: HK$1.00 ▼(-9.09% Downside)

The overall stock score of 47 reflects significant financial challenges, including declining revenue, high leverage, and weak cash flow. Technical indicators suggest a bearish trend, and the negative P/E ratio highlights valuation concerns. The absence of earnings call data and corporate events limits further insights.

Tat Hong Equipment Service Co. Ltd. Business Overview & Revenue Model

Company Description

Tat Hong Equipment Service Co., Ltd. provides tower crane solutions in the People's Republic of China. The company offers consultation, technical design, commissioning, construction, and after-sales services to construction contractors in infrastructure, clean energy, traditional energy, general construction, commercial building, and residential buildings. It also engages in the installation, maintenance, and leasing of construction machinery and equipment. The company manages a fleet of 1,080 tower cranes. The company was founded in 2007 and is headquartered in Shanghai, China. Tat Hong Equipment Service Co., Ltd. is a subsidiary of Tat Hong Equipment (China) Pte. Ltd.

How the Company Makes Money

Tat Hong Equipment Service Co. Ltd. generates revenue through several key streams. The primary source of income comes from the sale of new and used heavy machinery, catering to a wide range of industries. Additionally, the company earns substantial revenue from the rental of equipment, which provides clients with flexible options without the need for large upfront investments. Service and maintenance contracts also contribute to recurring revenue, as clients seek ongoing support for their equipment. Strategic partnerships with renowned manufacturers enhance their product offerings and market reach, while participation in large infrastructure projects can lead to significant contract opportunities, further bolstering their earnings.

Tat Hong Equipment Service Co. Ltd. Financial Statement Overview

Summary

Tat Hong Equipment Service Co. Ltd. faces significant financial challenges, particularly in maintaining profitability and generating cash flow. The company has experienced declining revenue and profitability issues, with a negative net income and EBIT margin. The balance sheet is leveraged, but the equity ratio is stable, indicating moderate financial stability. Cash flow remains negative despite improvements, highlighting continued challenges in cash generation.

Income Statement

Tat Hong Equipment Service Co. Ltd. has experienced declining revenue from 770,752,000 to 682,292,000 and a negative net income, indicating profitability challenges. The gross profit margin has decreased significantly from previous years, with a negative EBIT margin. The decline in net profit margin and EBIT margin signals significant profitability issues.

Balance Sheet

The company's debt-to-equity ratio is relatively high, indicating a leveraged position. However, the equity ratio remains stable, reflecting a balanced asset structure. Despite a decrease in stockholders' equity, the company maintains moderate financial stability.

Cash Flow

The free cash flow has improved from the previous year but remains negative, indicating continued cash challenges. The operating cash flow to net income ratio is positive, suggesting efficient cash conversion despite net losses. However, the company struggles to generate positive free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	664.57M	634.56M	682.29M	770.75M	867.02M	792.96M
Gross Profit	64.98M	71.10M	80.76M	173.23M	234.14M	273.28M
EBITDA	181.06M	231.88M	244.75M	284.95M	308.39M	394.75M
Net Income	-111.41M	-120.55M	-95.64M	-35.81M	47.63M	101.23M
Balance Sheet
Total Assets	3.22B	3.11B	3.08B	3.15B	2.92B	2.48B
Cash, Cash Equivalents and Short-Term Investments	185.13M	158.56M	154.51M	177.48M	195.22M	364.39M
Total Debt	1.29B	1.26B	1.18B	1.07B	700.69M	549.82M
Total Liabilities	1.83B	1.80B	1.66B	1.64B	1.35B	930.81M
Stockholders Equity	1.38B	1.30B	1.42B	1.52B	1.57B	1.55B
Cash Flow
Free Cash Flow	-33.39M	22.18M	-104.33M	-253.33M	-355.15M	-23.26M
Operating Cash Flow	88.77M	310.83M	90.67M	231.58M	223.97M	265.57M
Investing Cash Flow	-92.26M	-253.61M	-158.58M	-464.23M	-313.90M	-465.45M
Financing Cash Flow	29.84M	-51.31M	51.33M	219.00M	110.73M	306.67M

Tat Hong Equipment Service Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2153, the sentiment is Positive. The current price of 1.1 is above the 20-day moving average (MA) of 1.04, above the 50-day MA of 1.05, and below the 200-day MA of 1.14, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 57.92 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2153.

Tat Hong Equipment Service Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2102	64 Neutral	HK$208.00M	16.51	2.83%	6.74%	9.25%	23.53%
1463	58 Neutral	HK$847.90M	357.14	-11.77%	―	2.77%	-322.58%
Sector *	58 Neutral	HK$14.03B	4.81	-3.64%	5.73%	2.12%	-62.24%
1539	52 Neutral	HK$1.26B	35.58	13.78%	―	69.91%	188.89%
2153	47 Neutral	€1.28B	―	-8.98%	―	-7.98%	-25.03%
0840	42 Neutral	HK$111.70M	―	-9.93%	―	-33.66%	―

Tat Hong Equipment Service Co. Ltd. Corporate Events

Tat Hong Launches Sixth Digital Securities Issue to Boost Operations

Tat Hong Equipment Service Co., Ltd. announced the launch of its sixth issue of commercial papers in digital securities under the SDAX Multicurrency CP Facility Programme. This issuance is expected to raise between SGD20 million and SGD25 million, with proceeds intended for use as working capital for the company’s principal businesses, potentially enhancing its operational capabilities and market positioning.

Tat Hong Equipment Service Reports Revenue Decline and Increased Losses for FY2025

Tat Hong Equipment Service Co., Ltd. reported a revenue decrease of 7% for the year ending March 31, 2025, amounting to RMB634.6 million. The company also experienced an increase in losses attributable to equity holders, reaching RMB120.5 million, primarily due to declining revenue and adjustments in deferred tax. Consequently, the board has decided not to recommend a final dividend for the year.

Tat Hong Equipment Service Co., Ltd. Issues Profit Warning Amid Economic Slowdown

Tat Hong Equipment Service Co., Ltd. has issued a profit warning, indicating an expected increase in net loss for the year ended 31 March 2025, ranging between RMB115.0 million and RMB125.0 million, compared to a loss of approximately RMB95.6 million the previous year. This increase is attributed to a decline in revenue due to slower economic growth and a sluggish construction sector, as well as higher income tax expenses from deferred tax adjustments. The company’s annual results are still being finalized and are subject to review, with audited results expected to be announced on 13 June 2025.

Tat Hong Equipment Service Co., Ltd. Schedules Board Meeting for Annual Results

Tat Hong Equipment Service Co., Ltd. has announced a board meeting scheduled for June 13, 2025, to discuss and approve the annual results for the fiscal year ending March 31, 2025. The meeting will also consider the recommendation of a final dividend payment, which could impact shareholder returns and reflect the company’s financial health.