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

• Market Cap: HK$3.12B
• Dividend Yield: 3.57%
• Average Volume (3M): 7.47K
• Price to Earnings (P/E): 24.5
• Beta (1Y): 0.20
• Revenue Growth: -16.51%
• EPS Growth: -35.38%
• Country: HK
• Employees: 3,354
• Sector: Consumer Defensive
• Sector Strength: 58
• Industry: Packaged Foods
• EPS (TTM): 0.05
• Shares Outstanding: 1,083,228,500
• 10 Day Avg. Volume: 5,900
• 30 Day Avg. Volume: 7,466
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$3.50
• Price Target Upside: 21.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: HK$3.50 ▲(21.11% Upside)

The overall stock score reflects solid profitability and a strong equity position, which are undermined by declining revenue, income, and return on equity. Technical analysis shows a lack of strong momentum, and valuation metrics present a fair but not compelling investment case. The absence of recent cash flow data and earnings call insights adds uncertainty.

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

Tenfu (Cayman) Holdings Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 2.89 is below the 20-day moving average (MA) of 3.09, below the 50-day MA of 3.14, and below the 200-day MA of 3.38, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 25.63 is Positive, neither overbought nor oversold. The STOCH value of 43.40 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
1837	79 Outperform	HK$1.90B	9.27	12.91%	4.49%	9.63%	20.08%
2317	77 Outperform	HK$1.16B	9.25	5.39%	8.42%	-1.88%	129.25%
1695	72 Outperform	HK$104.76M	6.47	7.65%	―	33.75%	―
1767	68 Neutral	HK$300.00M	8.13	8.18%	0.78%	>-0.01%	16.04%
6868	65 Neutral	HK$3.12B	24.49	6.81%	3.57%	-16.51%	-35.38%
3838	64 Neutral	HK$1.32B	2.92	10.38%	4.83%	-6.58%	16.23%
Sector *	63 Neutral	$20.91B	14.58	-4.08%	3.07%	2.70%	-8.71%

Tenfu (Cayman) Holdings Co Corporate Events

Tenfu (Cayman) Holdings Co Ensures Compliance with Taiwan Investment Regulations

Tenfu (Cayman) Holdings Co announced its compliance with Taiwan/Mainland Investment Regulations for the first half of 2025, confirming no proceeds from its Hong Kong listing were injected into its PRC subsidiaries during this period. The company will continue to ensure that its Taiwanese founding members and original investors adhere to investment regulations, maintaining transparency through biannual announcements.

Tenfu (Cayman) Holdings Co Approves Key Resolutions at AGM

Tenfu (Cayman) Holdings Co announced that all proposed resolutions at their annual general meeting held on May 9, 2025, were approved. These resolutions included the adoption of financial statements, declaration of a final dividend, re-election of directors, and granting mandates for share issuance and repurchase. The approval of these resolutions reflects strong shareholder support and is expected to positively impact the company’s governance and operational strategies.