Classified Group (Holdings) Limited (8232) AI Stock Analysis

• Market Cap: HK$104.81M
• Dividend Yield: N/A
• Average Volume (3M): 26.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.10
• Revenue Growth: -2.95%
• EPS Growth: 56.44%
• Country: HK
• Employees: 54
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): N/A
• Shares Outstanding: 55,750,000
• 10 Day Avg. Volume: 24,130
• 30 Day Avg. Volume: 26,035
• PEG Ratio: 0.05
• Price to Book (P/B): 3.11
• Price to Sales (P/S): 0.81
• P/FCF Ratio: -13.67
• 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: 41 Neutral
• Price Target: HK$2.00 ▼(-39.39% Downside)

The overall stock score is primarily influenced by the company's poor financial performance, characterized by declining revenues and persistent losses. Technical analysis indicates weak momentum, and valuation metrics are unattractive due to a negative P/E ratio and lack of dividends. These factors collectively suggest significant risks and challenges for the company.

Positive Factors

Positive equity base

Despite declines, the company retains a positive equity ratio, providing a solvency buffer. This durable capital cushion supports ongoing operations, creditor confidence and gives management time to implement restructuring or turnaround actions without immediate liquidation risk.

Improving EPS trend

A material EPS growth rate indicates an improving profitability trajectory versus prior periods. If driven by cost control or margin recovery rather than one-offs, this trend can be a durable sign management is arresting losses and restoring operating leverage over the medium term.

Low market sensitivity (beta)

Very low beta shows the business is less correlated with market swings, reducing external volatility risk. That stability can provide management a steadier environment to execute strategic changes, negotiate with creditors and pursue a structural recovery over several quarters.

Negative Factors

Steep revenue decline

Revenue has fallen sharply over multiple years, eroding scale and pricing leverage. Persistent top-line contraction undermines margin sustainability, reduces bargaining power with suppliers, and hampers the firm's ability to cover fixed costs, challenging long-term viability.

Negative operating cash flow

Consistent negative operating and free cash flow indicate the business does not generate internal funds to sustain operations or investment. This forces reliance on external financing, which is structurally risky and can limit the firm's ability to invest in growth or endure a prolonged turnaround.

Shrinking equity and rising leverage

A pronounced decline in equity alongside higher debt-to-equity raises solvency and interest-cover risks. Higher leverage constrains financial flexibility, increases refinancing risk and may force asset sales or restructuring, impairing the company's ability to execute long-term recovery plans.

Classified Group (Holdings) Limited Business Overview & Revenue Model

Company Description

THAC Group (Holdings) Limited, an investment holding company, owns and operates casual dining restaurants in Hong Kong. The company operates seven restaurants, including five restaurants under the Classified brand and two restaurants under the Rise by Classified brand; and three franchised restaurants in Indonesia. It also provides management services. The company was formerly known as Press Room Group (Holdings) Limited and changed its name to Classified Group (Holdings) Limited in February 2016. Classified Group (Holdings) Limited was founded in 2006 and is headquartered in Wong Chuk Hang, Hong Kong.

How the Company Makes Money

Classified Group (Holdings) Limited generates revenue through multiple streams, primarily from its classified advertising services, which include fees charged for listings and promotional placements on its platforms. The company may also earn income through subscription models, where businesses pay for enhanced visibility or additional features. Additionally, revenue can be derived from partnerships with other businesses that utilize their advertising solutions or from data analytics services offered to clients seeking market insights. Factors contributing to its earnings include the company’s ability to attract a large user base, effective marketing strategies, and the growing trend of online commerce, which boosts demand for its advertising services.

Classified Group (Holdings) Limited Financial Statement Overview

Summary

Classified Group (Holdings) Limited is facing significant financial challenges, with declining revenues and persistent losses impacting its income statement. The balance sheet reflects increasing leverage and shrinking equity, suggesting financial instability. Cash flows indicate operational difficulties, with negative free cash flow pointing to liquidity concerns. The company needs strategic changes to improve financial performance and stability.

Income Statement

The company has experienced a significant decline in revenue over recent years, with a drop from 107.47M in 2019 to 36.25M in 2024. The net income has remained negative, indicating consistent losses. Gross profit margin has also decreased over time, reflecting reduced operational efficiency. The company struggles with profitability as evidenced by negative EBIT and EBITDA margins.

Balance Sheet

The company has seen declining stockholders' equity, notably dropping from 73.70M in 2019 to 9.51M in 2024, which indicates potential solvency issues. The debt-to-equity ratio has increased, reflecting higher financial leverage. However, the company maintains a positive equity ratio, suggesting it still funds a portion of its assets with equity.

Cash Flow

Operating cash flow is consistently negative, indicating operational challenges. Free cash flow remains negative, demonstrating the company struggles with generating cash from its operations after capital expenditures. Although there were fluctuations in financing cash flow, reliance on external funding seems evident.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	36.25M	36.25M	36.36M	37.47M	59.90M	57.48M
Gross Profit	2.56M	2.55M	8.87M	2.66M	10.42M	6.16M
EBITDA	1.11M	107.00K	-13.03M	-15.42M	-8.23M	5.60M
Net Income	-8.30M	-8.31M	-15.35M	-20.39M	-16.55M	-16.39M
Balance Sheet
Total Assets	26.24M	27.34M	35.93M	38.93M	77.69M	90.83M
Cash, Cash Equivalents and Short-Term Investments	249.00K	815.00K	6.18M	1.74M	17.27M	25.61M
Total Debt	9.44M	9.12M	5.42M	5.84M	24.33M	24.83M
Total Liabilities	19.71M	17.83M	18.11M	18.57M	36.94M	33.53M
Stockholders Equity	6.53M	9.51M	17.82M	20.36M	40.75M	57.30M
Cash Flow
Free Cash Flow	-2.17M	-2.16M	-5.39M	1.94M	-5.66M	-17.31M
Operating Cash Flow	-2.17M	-2.16M	-4.59M	2.01M	-3.34M	-15.51M
Investing Cash Flow	633.00K	13.00K	-797.00K	-258.00K	-2.10M	-1.42M
Financing Cash Flow	1.52M	-3.22M	9.84M	-17.29M	-2.89M	-15.11M

Classified Group (Holdings) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.30
• 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:8232, the sentiment is Negative. The current price of 3.3 is above the 20-day moving average (MA) of 2.00, above the 50-day MA of 2.15, and above the 200-day MA of 2.31, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 26.72 is Positive, neither overbought nor oversold. The STOCH value of 47.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8232.

Classified Group (Holdings) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8447	50 Neutral	HK$41.00M	-68.33	-3.70%	―	6.55%	98.02%
8432	49 Neutral	HK$37.81M	-4.39	-48.61%	―	1.39%	-206.25%
8495	45 Neutral	HK$136.32M	313.64	0.78%	―	-2.67%	22.22%
1443	42 Neutral	HK$67.60M	-1.12	-48.91%	4.48%	-13.13%	-873.33%
8519	42 Neutral	HK$34.79M	-7.49	-350.87%	―	-5.22%	-7.65%
8232	41 Neutral	HK$104.81M	-12.03	-77.73%	―	-2.95%	56.44%