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

• Market Cap: HK$2.91B
• Dividend Yield: 3.7%
• Average Volume (3M): 24.13K
• Price to Earnings (P/E): 22.9
• Beta (1Y): 0.16
• 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: 1,082,954,500
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: HK$2.50 ▼(-7.41% Downside)

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

High Gross Margin

A gross profit margin around 51.6% indicates strong product-level economics and pricing power. For a premium tea business this supports durable profitability, helps absorb operating cost variability, and underpins long-term margin sustainability.

Stable Balance Sheet

A robust equity ratio and moderate leverage provide financial flexibility and lower solvency risk. This balance sheet strength supports investment in retail and supply chain, and helps the company withstand cyclical downturns without excessive refinancing needs.

Diversified Distribution

Established retail network, wholesale relationships and e-commerce channels diversify revenue sources and expand customer reach. This multi-channel model improves resilience to single-channel shocks and supports steady market penetration over the medium term.

Negative Factors

Revenue Decline

A ~16.5% decline in revenue signals weakening top-line momentum. Prolonged revenue contraction can erode scale economics, pressure margins and limit reinvestment in brand and channels, posing a meaningful medium-term risk to growth prospects.

Falling Return on Equity

ROE declining to 7.9% reflects reduced capital efficiency and weaker profitability relative to equity. Persistent lower ROE can indicate margin pressure or suboptimal capital allocation, undermining long-term shareholder returns and internal funding capacity.

Weak Cash Flow Visibility

Reported zero operating and free cash flow and missing recent cash flow detail hinder assessment of cash generation. Insufficient demonstrated FCF limits ability to fund expansion, sustain dividends, or absorb shocks without external financing.

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: Neutral
• Last Price: 2.70
• 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 Neutral. The current price of 2.7 is above the 20-day moving average (MA) of 2.65, below the 50-day MA of 2.72, and below the 200-day MA of 3.01, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 54.60 is Neutral, neither overbought nor oversold. The STOCH value of 79.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$1.01B	8.42	5.08%	10.44%	-1.19%	-9.05%
1767	71 Outperform	HK$300.00M	11.36	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$99.36M	3.95	11.24%	―	37.73%	150.54%
3838	63 Neutral	HK$1.09B	2.41	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$2.91B	22.88	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.

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 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.