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

• Market Cap: HK$39.78M
• Dividend Yield: N/A
• Average Volume (3M): 20.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: -12.58%
• EPS Growth: -60.08%
• Country: HK
• Employees: 50
• Sector: Consumer Defensive
• Sector Strength: 66
• Industry: Packaged Foods
• EPS (TTM): -0.02
• Shares Outstanding: 361,650,000
• 10 Day Avg. Volume: 23,000
• 30 Day Avg. Volume: 20,500
• PEG Ratio: 0.80
• Price to Book (P/B): 3.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.02
• 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

• Rating: 44 Neutral
• Price Target: ―

The overall stock score of 44 reflects significant financial challenges and bearish technical indicators. Despite strong gross profit margins, the company's high debt levels and negative profitability metrics present substantial risks. The stock's valuation is unattractive due to negative earnings, and technical indicators signal a bearish trend, reducing its investment appeal.

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 primarily through the sale of tea products both in retail and wholesale capacities. The company operates a network of retail stores and an online platform, allowing it to reach a broad customer base locally and internationally. Additionally, it may engage in collaborations with hospitality businesses, supplying tea products to restaurants, hotels, and other establishments. The company's earnings are significantly influenced by its ability to maintain high quality and authenticity in its products, which supports its brand reputation and customer loyalty.

Ying Kee Tea House Group Ltd. Financial Statement Overview

Summary

Ying Kee Tea House Group Ltd. is facing considerable financial challenges, characterized by declining revenues, high leverage, and sustained losses. While the company demonstrates strong gross profit margins, the negative profitability metrics and high debt levels pose significant risks. Cash flow generation is a concern, but positive free cash flow indicates some operational efficiency.

Income Statement

The company has faced declining revenue over the past year, noted by a revenue decrease of 9.36%. Gross profit margin stands at 77.12%, indicating strong cost management. However, the negative EBIT and net income margins at -30.53% and -43.26% respectively reflect ongoing operational challenges and profitability issues.

Balance Sheet

The balance sheet shows high leverage with a debt-to-equity ratio of 14.03, indicating significant financial risk. The equity ratio is low at 6.47%, which suggests a need for strengthening the equity base. Return on equity is negative at -223.54%, mainly due to net losses.

Cash Flow

Free cash flow has decreased by 60.91%, reflecting challenges in generating cash. The operating cash flow to net income ratio of -0.27 indicates difficulties in converting earnings to cash. However, the company maintains positive free cash flow, suggesting some resilience in cash management.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
31.89M	33.94M	37.44M	36.06M	36.09M	37.15M
	Gross Profit
24.57M	26.17M	28.75M	27.94M	27.80M	28.39M
	EBIT
-4.71M	-10.36M	-2.74M	-4.50M	-7.57M	-12.56M
	EBITDA
-706.00K	436.00K	7.79M	5.85M	4.84M	-9.65M
	Net Income Common Stockholders
-14.94M	-14.68M	-6.07M	-7.78M	-9.14M	-12.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.37M	2.91M	2.28M	1.87M	3.91M	16.80M
	Total Assets
100.60M	101.58M	110.61M	117.49M	126.15M	140.20M
	Total Debt
96.21M	92.21M	86.91M	94.71M	95.67M	101.17M
	Net Debt
93.84M	89.30M	84.63M	92.84M	91.76M	95.38M
	Total Liabilities
100.59M	95.01M	89.23M	97.10M	98.25M	103.69M
	Stockholders Equity
13.00K	6.57M	21.38M	20.39M	27.90M	36.51M
Cash Flow		Free Cash Flow
6.08M	3.63M	9.28M	7.71M	8.78M	-63.28M
	Operating Cash Flow
6.40M	3.91M	9.33M	7.88M	9.07M	-6.73M
	Investing Cash Flow
-384.00K	-349.00K	-48.00K	-163.00K	10.77M	-51.25M
	Financing Cash Flow
-4.70M	-5.04M	-8.88M	-9.76M	-21.73M	53.60M

Ying Kee Tea House Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.11
• 50DMA: Positive
• 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:8241, the sentiment is Positive. The current price of 0.11 is above the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.11, and below the 200-day MA of 0.13, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.13 is Neutral, neither overbought nor oversold. The STOCH value of 63.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Sector *	65 Neutral	$8.75B	15.13	4.69%	4.84%	3.64%	-2.51%
8241	44 Neutral	HK$39.78M	―	-206.10%	―	-12.58%	-60.08%
CGNMF		$2.18B	50.97	13.49%	0.13%	―	―
HDALF		$10.25B	17.63	42.85%	6.08%	―	―
SLNLF		$1.48B	9.99	15.89%	10.39%	―	―
VNL1		€20.13M	―	-18.59%	―	―	―
8473	76 Outperform	HK$125.44M	12.44	7.02%	92.86%	-17.13%	-51.35%