Ying Kee Tea House Group Ltd. (8241) AI Stock Analysis

• Market Cap: HK$41.95M
• Dividend Yield: N/A
• Average Volume (3M): 20.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• Revenue Growth: -10.78%
• EPS Growth: -15.02%
• Country: HK
• Employees: 50
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -0.03
• Shares Outstanding: 361,650,000
• 10 Day Avg. Volume: 51,000
• 30 Day Avg. Volume: 20,666
• PEG Ratio: -0.18
• Price to Book (P/B): -4.21
• Price to Sales (P/S): 1.49
• P/FCF Ratio: 9.16
• 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: 44 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by declining revenues and high leverage. Technical indicators suggest a bearish trend with some potential for a rebound, but valuation concerns persist due to negative earnings and lack of dividends.

Ying Kee Tea House Group Ltd. Business Overview & Revenue Model

Company Description

Ying Kee Tea House Group Limited, an investment holding company, engages in the retail trading of tea products. The company offers various Chinese tea leaves under the Pu-erh Tea, Oolong Tea, Fragrant tea, Green Tea, White Tea, Old Luk On Tea, Black Tea, and miscellaneous categories; and tea wares and tea gift sets. It also distributes food and beverage products; and holds trademarks and properties. The company serves individual and corporate customers in Hong Kong. As of March 31, 2022, it operated 11 retail shops and concession counters selling approximately 80 products. The company was incorporated in 2017 and is headquartered in Siu Sai Wan, Hong Kong. Ying Kee Tea House Group Limited is a subsidiary of Profit Ocean Enterprises Limited.

How the Company Makes Money

Ying Kee Tea House Group Ltd. generates revenue through multiple streams, primarily from the sale of its premium tea products in retail outlets and online platforms. The company benefits from a strong brand reputation, which enables it to command higher prices for its quality offerings. Key revenue streams include direct sales in physical tea houses, e-commerce sales through its website and third-party platforms, and wholesale distribution to restaurants and retailers. Additionally, partnerships with local and international distributors can enhance market reach and drive sales. Seasonal promotions and special product launches may also contribute to increased revenue during peak periods.

Ying Kee Tea House Group Ltd. Financial Statement Overview

Summary

Ying Kee Tea House Group Ltd. faces significant financial challenges, with declining revenues, persistent losses, and high leverage. While gross profit margins are strong, operational inefficiencies and high debt levels pose risks to financial stability.

Income Statement

The income statement shows a declining revenue trend with a negative revenue growth rate of -5.05% in the latest period. The company has consistently reported negative net profit margins, indicating ongoing losses. Gross profit margins remain relatively high, but the negative EBIT and EBITDA margins highlight operational inefficiencies and challenges in achieving profitability.

Balance Sheet

The balance sheet reveals significant financial leverage with a negative stockholders' equity and a high debt-to-equity ratio of -8.53. This indicates potential solvency issues. The return on equity is positive due to negative equity, but this is misleading as it results from substantial losses. The equity ratio is negative, reflecting a precarious financial position.

Cash Flow

Cash flow analysis shows a decrease in free cash flow growth, but the company maintains a positive operating cash flow. The free cash flow to net income ratio is close to 1, suggesting that cash generation is relatively stable compared to net losses. However, the overall cash flow position is weak due to declining free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.89M	30.28M	33.94M	37.44M	36.06M	36.09M
Gross Profit	24.57M	23.22M	26.17M	28.75M	27.94M	27.80M
EBITDA	-706.00K	-5.53M	436.00K	7.79M	5.85M	4.84M
Net Income	-14.94M	-16.88M	-14.68M	-6.07M	-7.78M	-9.14M
Balance Sheet
Total Assets	100.60M	87.15M	101.58M	110.61M	117.49M	126.15M
Cash, Cash Equivalents and Short-Term Investments	2.37M	1.47M	2.91M	2.28M	1.87M	3.91M
Total Debt	96.21M	91.72M	92.21M	86.91M	94.71M	95.67M
Total Liabilities	100.59M	97.90M	95.01M	89.23M	97.10M	98.25M
Stockholders Equity	13.00K	-10.75M	6.57M	21.38M	20.39M	27.90M
Cash Flow
Free Cash Flow	6.08M	4.94M	3.63M	9.28M	7.71M	8.78M
Operating Cash Flow	6.40M	5.06M	3.91M	9.33M	7.88M	9.07M
Investing Cash Flow	-386.00K	-125.00K	-349.00K	-48.00K	-163.00K	10.77M
Financing Cash Flow	-3.41M	-6.38M	-5.04M	-8.88M	-9.76M	-21.73M

Ying Kee Tea House Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.12
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8241, the sentiment is Negative. The current price of 0.12 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.12, and above the 200-day MA of 0.12, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 37.53 is Neutral, neither overbought nor oversold. The STOCH value of 60.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8241.

Ying Kee Tea House Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1767	68 Neutral	HK$290.00M	10.98	7.70%	0.79%	5.43%	-25.42%
6868	65 Neutral	HK$3.24B	25.08	7.87%	3.33%	-16.51%	-35.38%
3838	63 Neutral	HK$1.18B	2.60	11.75%	4.90%	-6.58%	16.23%
1717	62 Neutral	HK$4.55B	16.14	4.12%	2.34%	0.52%	99.51%
8241	44 Neutral	HK$41.95M	―	-206.10%	―	-10.78%	-15.02%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%