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

• Market Cap: HK$3.27B
• Dividend Yield: 3.3%
• Average Volume (3M): 24.13K
• Price to Earnings (P/E): 25.4
• Beta (1Y): 0.19
• 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: 1,083,228,500
• 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

• Rating: 61 Neutral
• Price Target: HK$3.00 ▼(-0.99% Downside)

The overall stock score of 61 reflects concerns about declining financial performance and high valuation, despite a strong equity position and decent dividend yield. Technical indicators suggest a neutral to slightly bearish trend, further impacting the score.

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 (Cayman) Holdings Co. generates revenue through the sale of its diverse tea product offerings. The company's primary revenue streams include retail sales from its extensive network of retail stores, both owned and franchised, and wholesale distribution to other retailers and partners. Additionally, Tenfu capitalizes on its brand reputation and extensive product line by engaging in online sales through e-commerce platforms. Key factors contributing to its earnings include its strong brand presence, a wide range of high-quality products, and strategic partnerships with distributors and retailers that help expand its market reach.

Tenfu (Cayman) Holdings Co Financial Statement Overview

Summary

Tenfu (Cayman) Holdings Co shows solid profitability and 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: 3.03
• 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:6868, the sentiment is Negative. The current price of 3.03 is above the 20-day moving average (MA) of 3.00, above the 50-day MA of 3.01, and below the 200-day MA of 3.23, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.59 is Neutral, neither overbought nor oversold. The STOCH value of 58.67 is Neutral, 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	75 Outperform	HK$1.04B	8.67	5.08%	9.98%	-1.19%	-9.05%
1837	71 Outperform	HK$2.49B	11.22	13.72%	3.36%	11.89%	27.80%
1767	68 Neutral	HK$280.00M	10.61	5.48%	0.82%	5.43%	-25.42%
1695	66 Neutral	HK$104.76M	4.16	11.24%	―	37.73%	150.54%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
6868	61 Neutral	HK$3.27B	25.42	6.81%	3.30%	-16.51%	-35.38%
3838	60 Neutral	HK$1.15B	2.53	10.38%	5.10%	-6.58%	16.23%

Tenfu (Cayman) Holdings Co Corporate Events

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.

The most recent analyst rating on (HK:6868) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Tenfu (Cayman) Holdings Co stock, see the HK:6868 Stock Forecast page.

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.

The most recent analyst rating on (HK:6868) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Tenfu (Cayman) Holdings Co stock, see the HK:6868 Stock Forecast page.

Tenfu Renews Tea Purchase Agreement with Samoa Company

Tenfu (Cayman) Holdings Co has entered into a renewed agreement with Samoa Company to continue purchasing tea leaves for three years starting January 2026. This agreement, involving substantial shareholder Mr. Lee Chia Ling, is classified as a continuing connected transaction under Hong Kong’s Listing Rules, requiring independent shareholder approval due to the significant transaction size. The renewed agreement sets annual purchase caps based on projected increases in tea demand, reflecting the company’s strategic planning to meet market needs.

Tenfu Reports Decline in Revenue and Profit for H1 2025

Tenfu (Cayman) Holdings Co reported its interim financial results for the first half of 2025, revealing a 17.1% decrease in revenue to approximately RMB672.9 million compared to the same period in 2024. Despite a slight increase in gross profit margin to 52.6%, the company’s profit dropped to RMB48.7 million from RMB69.1 million in the previous year. The board has decided to distribute an interim dividend of HKD0.02 per share. These results indicate challenges in maintaining revenue and profit levels, potentially impacting the company’s market positioning and stakeholder confidence.

Tenfu (Cayman) Holdings Announces Interim Dividend for 2025

Tenfu (Cayman) Holdings Co. announced an interim dividend of HKD 0.02 per share for the six months ending June 30, 2025. This decision reflects the company’s financial performance and commitment to returning value to its shareholders. The ex-dividend date is set for September 2, 2025, with the payment date scheduled for September 29, 2025. This announcement may impact the company’s market positioning and shareholder satisfaction.

Tenfu (Cayman) Holdings Enhances Board Governance with New Nomination Committee

Tenfu (Cayman) Holdings Company Limited has established a nomination committee to oversee the appointment and composition of its board of directors. The committee is composed of a majority of independent non-executive directors and is tasked with reviewing the board’s structure, size, and diversity, as well as identifying and recommending qualified individuals for board positions. This move is aimed at enhancing the governance framework of the company and ensuring that the board’s composition aligns with the company’s corporate strategy.

Tenfu (Cayman) Holdings Schedules Board Meeting for Interim Results and Dividend Consideration

Tenfu (Cayman) Holdings Company Limited has announced a board meeting scheduled for August 18, 2025, in Hong Kong. The meeting will focus on approving and publishing the interim results for the first half of 2025 and considering the payment of an ordinary interim dividend. This announcement indicates the company’s ongoing commitment to transparency and shareholder engagement, potentially impacting its financial strategy and investor relations.