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

• Market Cap: HK$1.12B
• Dividend Yield: N/A
• Average Volume (3M): 199.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: -10.78%
• EPS Growth: -25.12%
• Country: HK
• Employees: 691
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): -0.05
• Shares Outstanding: 1,166,871,200
• 10 Day Avg. Volume: 158,000
• 30 Day Avg. Volume: 199,666
• 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: 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: 44 Neutral
• Price Target: HK$0.92 ▼(-2.95% Downside)

The overall stock score is primarily impacted by the company's weak financial performance and bearish technical indicators. The negative P/E ratio and lack of dividend yield further contribute to a low valuation score. The absence of earnings call data and corporate events did not influence the score.

Positive Factors

Strategic Partnerships

Strategic partnerships enhance product offerings and market competitiveness, supporting long-term growth and customer retention.

Market Demand

Growing market demand in key sectors supports revenue potential and business expansion opportunities over the long term.

Diverse Revenue Streams

A diversified revenue model ensures stability and resilience against market fluctuations, supporting consistent cash flow.

Negative Factors

Declining Revenue

Declining revenue trends indicate challenges in market position and competitiveness, potentially impacting long-term profitability.

High Leverage

High leverage can strain financial flexibility and increase risk, potentially affecting the company's ability to invest in growth.

Weak Cash Flow

Weak cash flow generation limits the company's ability to fund operations and growth initiatives, posing liquidity concerns.

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

Company Description

Tat Hong Equipment Service Co. Ltd. (2153) is a leading provider of heavy equipment and machinery in the Asia-Pacific region, specializing in the sale, rental, and servicing of construction and industrial equipment. The company operates in sectors such as construction, mining, and infrastructure development, offering a diverse range of products including cranes, excavators, and other heavy machinery. With a strong commitment to quality and customer service, Tat Hong has established itself as a reliable partner for businesses seeking equipment solutions and support.

How the Company Makes Money

Tat Hong Equipment Service Co. Ltd. generates revenue through multiple channels, primarily by selling and renting heavy machinery to construction and industrial companies. The company's revenue model is supported by its extensive fleet of equipment available for lease, which caters to both short-term and long-term project needs. Additionally, Tat Hong earns income from providing maintenance and repair services for the equipment it sells and rents, ensuring ongoing client relationships and repeat business. The company also benefits from strategic partnerships with leading global equipment manufacturers, which enhances its product offerings and market competitiveness. Factors contributing to its earnings include the increasing demand for construction and infrastructure development in the Asia-Pacific region, as well as the company's reputation for reliability and service excellence.

Tat Hong Equipment Service Co. Ltd. Financial Statement Overview

Summary

Tat Hong Equipment Service Co. Ltd. faces significant financial challenges, with declining revenue and profitability, high leverage, and weak cash flow generation. The company needs to address operational inefficiencies and improve cash flow management to enhance financial stability and shareholder returns.

Income Statement

The income statement reveals a declining trend in revenue and profitability. Revenue has decreased over the past few years, with a negative growth rate of -4.52% in the most recent year. Gross profit and net profit margins have also deteriorated, indicating challenges in maintaining profitability. The company has been operating at a net loss, with a negative net profit margin of -18.99% for the latest period. Despite a strong EBITDA margin of 36.54%, the negative EBIT margin highlights operational inefficiencies.

Balance Sheet

The balance sheet shows a moderate financial position with a debt-to-equity ratio of 0.97, indicating a relatively high level of leverage. The return on equity is negative at -9.27%, reflecting the company's struggles to generate returns for shareholders. However, the equity ratio stands at a healthy level, suggesting a stable capital structure. The increasing debt levels over the years pose a potential risk to financial stability.

Cash Flow

Cash flow analysis indicates challenges in generating free cash flow, with a significant decline of -166.43% in the latest year. The operating cash flow to net income ratio is low at 0.28, suggesting difficulties in converting earnings into cash. The free cash flow to net income ratio is also weak, highlighting issues in cash generation relative to net losses. These factors point to potential liquidity concerns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	634.56M	634.56M	682.29M	770.75M	867.02M	792.96M
Gross Profit	71.10M	71.10M	80.76M	173.23M	234.14M	273.28M
EBITDA	185.07M	231.88M	244.75M	284.95M	308.39M	394.75M
Net Income	-120.55M	-120.55M	-95.64M	-35.81M	47.63M	101.23M
Balance Sheet
Total Assets	3.11B	3.11B	3.08B	3.15B	2.92B	2.48B
Cash, Cash Equivalents and Short-Term Investments	158.56M	158.56M	154.51M	177.48M	195.22M	364.39M
Total Debt	1.26B	1.26B	1.18B	1.07B	700.69M	549.82M
Total Liabilities	1.80B	1.80B	1.66B	1.64B	1.35B	930.81M
Stockholders Equity	1.30B	1.30B	1.42B	1.52B	1.57B	1.55B
Cash Flow
Free Cash Flow	23.02M	22.18M	-104.33M	-253.33M	-355.15M	-23.26M
Operating Cash Flow	310.83M	310.83M	90.67M	231.58M	223.97M	265.57M
Investing Cash Flow	-253.61M	-253.61M	-158.58M	-464.23M	-313.90M	-465.45M
Financing Cash Flow	-51.31M	-51.31M	51.33M	219.00M	110.73M	306.67M

Tat Hong Equipment Service Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.95
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 0.95 is below the 20-day moving average (MA) of 0.97, below the 50-day MA of 1.02, and below the 200-day MA of 1.08, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 44.66 is Neutral, neither overbought nor oversold. The STOCH value of 45.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	76 Outperform	HK$270.00M	9.57	6.36%	12.96%	18.37%	297.18%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1463	52 Neutral	HK$732.93M	-2.19	-89.45%	―	12.16%	-16700.00%
1539	52 Neutral	HK$1.05B	24.19	14.19%	―	11.61%	287.50%
0840	52 Neutral	HK$132.48M	-1.71	-17.69%	―	-65.44%	-149200.00%
2153	44 Neutral	HK$1.12B	-7.41	-10.88%	―	-10.78%	-25.12%

Tat Hong Equipment Service Co. Ltd. Corporate Events

Tat Hong Equipment Service Reports Increased Loss Amid Revenue Decline

Tat Hong Equipment Service Co., Ltd. reported a revenue decline of 11.7% to RMB301.1 million for the six months ended September 30, 2025, compared to the same period in 2024. The company’s loss increased by 52.1% to RMB55.1 million, largely due to slower economic growth and a sluggish construction sector. Consequently, the board decided not to declare an interim dividend for this period.

Tat Hong Equipment Service Issues Profit Warning Amid Economic Slowdown

Tat Hong Equipment Service Co., Ltd. has issued a profit warning, anticipating a net loss between RMB50.0 million and RMB60.0 million for the six months ending September 30, 2025, compared to a loss of RMB36.2 million in the same period last year. This increase in net loss is attributed to a decline in revenue due to slower economic growth and a sluggish construction sector.

Tat Hong Equipment Service Co., Ltd. Announces Upcoming Board Meeting

Tat Hong Equipment Service Co., Ltd. has announced a board meeting scheduled for November 27, 2025, to consider and approve the unaudited interim results for the six months ending September 30, 2025, and to discuss the potential payment of an interim dividend. This meeting is significant as it will address key financial outcomes and decisions that could impact the company’s financial health and shareholder returns.

Tat Hong Equipment Service Co. Ltd. Launches Seventh Digital Securities Issue

Tat Hong Equipment Service Co., Ltd. announced the launch of its seventh issue of commercial papers in digital securities under the SDAX Multicurrency CP Facility Programme. The issuance, denominated in Singapore Dollars with a 4.50% interest rate, aims to raise between SGD20 million and SGD25 million from accredited and institutional investors, with proceeds intended for working capital in the company’s principal businesses.

Tat Hong Equipment Service Co., Ltd. Announces Unanimous Approval of AGM Resolutions

Tat Hong Equipment Service Co., Ltd. held its 2025 Annual General Meeting on September 26, 2025, where all proposed resolutions were unanimously approved. These resolutions included the re-election of directors, re-appointment of auditors, and granting of mandates for share issuance and buybacks, as well as the adoption of amended articles of association. This unanimous approval reflects strong shareholder support and positions the company for continued stability and governance improvements.

Tat Hong Clarifies Purchase Agreement with China Nuclear Industry

Tat Hong Equipment Service Co., Ltd. has clarified the nature and payment terms of its Purchase Agreement with China Nuclear Industry Huaxing Construction Co., Ltd. The agreement involves the procurement of machines to support the company’s ongoing projects, with a total value of RMB350 million. The payment terms include an offset mechanism where 30% of lease service fees receivable will be used to offset the equipment purchase, amounting to approximately RMB42 million. The company anticipates that the offset will be completed over four to five years, with the remaining balance covered by future projects. This arrangement is expected to optimize cash flow and does not obligate China Nuclear Industry to increase the offset ratio or provide additional collateral.