Tenfu (Cayman) Holdings Co (6868) AI Stock Analysis

• Market Cap: HK$2.88B
• Dividend Yield: 3.7%
• Average Volume (3M): 24.13K
• Price to Earnings (P/E): 22.6
• Beta (1Y): 0.17
• Revenue Growth: -16.51%
• EPS Growth: -35.38%
• Country: HK
• Employees: 3,354
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.05
• Shares Outstanding: 1,083,062,500
• 10 Day Avg. Volume: 5,500
• 30 Day Avg. Volume: 24,133
• PEG Ratio: -0.83
• Price to Book (P/B): 2.28
• Price to Sales (P/S): 2.58
• P/FCF Ratio: 19.79
• 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: 61 Neutral
• Price Target: HK$3.00 ▲(12.36% Upside)

The overall stock score of 61 reflects concerns over declining financial performance and weak technical indicators. While the company maintains a strong equity position and offers a reasonable dividend yield, the lack of recent cash flow data and bearish market trends weigh heavily on the stock's outlook.

Positive Factors

Strong Equity Position

A strong equity position with moderate leverage provides financial stability and flexibility, supporting long-term strategic initiatives.

High Gross Profit Margin

A high gross profit margin indicates efficient production and pricing strategies, enhancing profitability and competitive advantage.

Multi-Channel Distribution Strategy

A diverse distribution strategy enhances market reach and resilience against market fluctuations, supporting sustained revenue growth.

Negative Factors

Declining Revenue

Declining revenue trends can signal weakening demand or competitive pressures, potentially impacting long-term growth and profitability.

Zero Recent Cash Flow

Lack of recent cash flow data raises concerns about liquidity and the ability to fund operations and growth initiatives sustainably.

Decreased Return on Equity

A decrease in return on equity reflects reduced profitability and efficiency in using shareholder funds, affecting investor confidence.

Tenfu (Cayman) Holdings Co Business Overview & Revenue Model

Company Description

Tenfu (Cayman) Holdings Company Limited, together with its subsidiaries, operates as a traditional Chinese tea-product company. It sells and markets various tea products; and develops product concepts, tastes, and packaging designs. The company offers approximately 1,300 varieties of traditional Chinese tea-leaf products; 300 varieties of tea snacks; and tea ware. It sells its products primarily under the Tenfu, Tenfu Ten Xin, and Uncle Lee brands. As of December 31, 2021, the company sold tea products in 1,313 retail outlets and retail points in 31 provinces, autonomous regions, and municipalities in the People's Republic of China, which included stores with shop fronts at street level; and shopping malls and concession counters in the department stores and hypermarkets. It is also involved in the classification and packaging of tea leaves; manufacture of tea snacks; catering management, beverage production, pre-packaged food and tea drink selling, and property management activities; and provision of hotel, restaurant, tourist, and related services. Further, the company sells tea leaves, tea snacks, and tea ware through internet. The company was founded in 1993 and is headquartered in Xiamen, the People's Republic of China.

How the Company Makes Money

Tenfu generates revenue primarily through the sale of its tea products, which include packaged teas, bulk teas, and tea-related merchandise. The company operates a multi-channel distribution strategy that includes online sales through e-commerce platforms and traditional retail outlets. Key revenue streams include direct sales from retail outlets, wholesale to distributors, and online sales through its proprietary platforms and third-party e-commerce partners. Additionally, Tenfu engages in promotional activities and collaborations that enhance brand visibility and drive sales. The company's strong supply chain management and focus on premium quality products contribute to its profitability, alongside strategic partnerships with retailers and distributors, which expand its market reach.

Tenfu (Cayman) Holdings Co Financial Statement Overview

Summary

Tenfu (Cayman) Holdings Co exhibits solid profitability with a strong equity position. However, recent declines in revenue, income, and return on equity, coupled with missing recent cash flow data, raise concerns about growth and cash management.

Income Statement

The income statement shows a decrease in both revenue and net income for the most recent year compared to the previous year, indicating a negative growth trend. The gross profit margin is strong at approximately 51.6%, and the net profit margin is healthy at about 8.9%, but both have declined from the prior year. The EBIT and EBITDA margins are also favorable but have worsened over the last year. Overall profitability is solid, but the declining trend is a concern.

Balance Sheet

The balance sheet is stable with a debt-to-equity ratio of approximately 0.42, indicating moderate leverage. The equity ratio is robust at 59.4%, showing a strong equity foundation. However, the return on equity has decreased to 7.9%, reflecting reduced profitability. Overall, the balance sheet shows strength in equity but highlights a decrease in returns.

Cash Flow

Cash flow metrics indicate challenges, with zero operating and free cash flow reported for the most recent year. This lack of cash flow data hinders a comprehensive analysis. Historically, the company has maintained positive free cash flow, but the absence of recent data presents a risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.42B	1.56B	1.73B	1.72B	1.92B	1.71B
Gross Profit	736.50M	806.33M	940.42M	920.12M	1.14B	1.05B
EBITDA	268.44M	303.03M	484.11M	377.19M	684.89M	654.00M
Net Income	118.51M	138.88M	213.24M	206.45M	359.48M	305.41M
Balance Sheet
Total Assets	2.95B	2.97B	3.00B	3.14B	3.21B	2.97B
Cash, Cash Equivalents and Short-Term Investments	558.78M	361.98M	278.45M	352.59M	373.38M	362.00M
Total Debt	761.96M	734.06M	681.44M	855.71M	757.62M	726.97M
Total Liabilities	1.22B	1.21B	1.22B	1.37B	1.38B	1.22B
Stockholders Equity	1.73B	1.77B	1.79B	1.77B	1.83B	1.75B
Cash Flow
Free Cash Flow	404.64M	203.59M	406.71M	307.78M	211.99M	262.26M
Operating Cash Flow	446.11M	280.71M	488.85M	405.29M	308.58M	304.73M
Investing Cash Flow	-71.21M	-9.42M	-129.15M	-38.93M	-114.14M	91.04M
Financing Cash Flow	-177.47M	-206.21M	-435.17M	-272.98M	-314.12M	-224.38M

Tenfu (Cayman) Holdings Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6868, the sentiment is Negative. The current price of 2.67 is below the 20-day moving average (MA) of 2.68, below the 50-day MA of 2.82, and below the 200-day MA of 3.07, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 40.81 is Neutral, neither overbought nor oversold. The STOCH value of 12.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6868.

Tenfu (Cayman) Holdings Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2317	72 Outperform	HK$989.78M	8.29	5.08%	10.44%	-1.19%	-9.05%
1767	71 Outperform	HK$295.00M	11.17	5.48%	0.78%	5.43%	-25.42%
1837	68 Neutral	HK$2.30B	10.33	13.72%	3.74%	11.89%	27.80%
1695	63 Neutral	HK$104.76M	4.16	11.24%	―	37.73%	150.54%
3838	63 Neutral	HK$1.08B	2.38	10.38%	5.38%	-6.58%	16.23%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
6868	61 Neutral	HK$2.88B	22.63	6.81%	3.70%	-16.51%	-35.38%

Tenfu (Cayman) Holdings Co Corporate Events

Tenfu Holdings Updates Annual Report with Leasing Agreement Details

Tenfu (Cayman) Holdings Co. announced a supplemental update to its annual report for the year ended December 31, 2024, concerning a leasing agreement with Xiamen Mingfeng Commercial Management Co., Ltd. The agreement, which spans from January 1, 2023, to December 31, 2025, involves leasing properties from Mingfeng, a company connected to Tenfu’s core personnel. This constitutes a continuing connected transaction under the listing rules, highlighting the company’s ongoing business relationships and compliance with regulatory requirements.

Tenfu (Cayman) Holdings Co Approves Renewed Samoa Master Purchase Agreement

Tenfu (Cayman) Holdings Co announced that the resolution to approve the renewed Samoa master purchase agreement with Tenfu Group (Samoa) Holdings was successfully passed at their extraordinary general meeting. This agreement, which includes continuing connected transactions and renewed annual caps, was supported by 100% of the votes cast, indicating strong shareholder backing. The approval is expected to facilitate ongoing business operations and strengthen the company’s strategic partnerships, potentially enhancing its market position.

Tenfu (Cayman) Holdings Co Schedules EGM for Key Agreement Approval

Tenfu (Cayman) Holdings Co has announced an extraordinary general meeting scheduled for October 21, 2025, to discuss and potentially approve a renewed master purchase agreement with Tenfu Group (Samoa) Holdings Co. This agreement includes continuing connected transactions and renewed annual caps, which are significant for the company’s operational strategies and stakeholder interests. The meeting will be held virtually, allowing shareholders to participate and vote online, reflecting the company’s adaptation to digital engagement in corporate governance.