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

• Market Cap: HK$46.65M
• Dividend Yield: N/A
• Average Volume (3M): 22.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: -7.42%
• EPS Growth: -0.97%
• Country: HK
• Employees: 50
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -0.01
• Shares Outstanding: 361,650,000
• 10 Day Avg. Volume: 6,500
• 30 Day Avg. Volume: 22,500
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: HK$0.10 ▲(1.00% Upside)

The overall stock score is heavily influenced by the company's poor financial performance and weak valuation metrics. Technical analysis also indicates a bearish trend, further contributing to the low score. The absence of earnings call data and corporate events means these factors did not impact the score.

Positive Factors

Strong Gross Profit Margins

Strong gross profit margins indicate effective pricing strategies and cost management at the product level, which can support profitability if operational inefficiencies are addressed.

Positive Operating Cash Flow

Positive operating cash flow suggests the company can cover its operating expenses and reinvest in the business, providing a foundation for potential recovery and growth.

Strategic Partnerships

Partnerships with retailers expand market reach and enhance brand visibility, potentially driving sales growth and market penetration over time.

Negative Factors

Declining Revenue Trend

A declining revenue trend reflects challenges in market demand or competitive positioning, which could impact long-term growth prospects if not addressed.

High Financial Leverage

High leverage and negative equity indicate potential solvency issues, limiting financial flexibility and increasing risk during economic downturns.

Operational Inefficiencies

Operational inefficiencies, as indicated by negative EBIT and EBITDA margins, suggest difficulties in managing costs and achieving scale, impacting long-term profitability.

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

Company Description

Ying Kee Tea House Group Ltd. (8241) is a Hong Kong-based company that specializes in the production, retail, and distribution of premium tea products. The company operates in the beverage sector, focusing particularly on high-quality Chinese teas, including green, black, oolong, and herbal varieties. Ying Kee also engages in the development of tea-related products and accessories, catering to both individual consumers and businesses. With a strong commitment to quality and tradition, the company aims to enhance the tea-drinking experience through its diverse offerings.

How the Company Makes Money

Ying Kee Tea House Group Ltd. generates revenue primarily through the sale of its tea products in retail outlets and online platforms. The company has established a network of distribution channels that includes direct-to-consumer sales, partnerships with restaurants, and collaborations with specialty stores. Key revenue streams include the sale of packaged teas, tea accessories, and premium tea gifts. Additionally, the company may engage in wholesale distribution to expand its market reach. Strategic partnerships with local and international retailers further enhance its visibility and sales potential, contributing significantly to its overall earnings.

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. The company needs to address these issues to improve its financial health and achieve sustainable growth.

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	422.00K	7.83M	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: Neutral
• Last Price: 0.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 0.1 is below the 20-day moving average (MA) of 0.11, below the 50-day MA of 0.12, and below the 200-day MA of 0.12, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.46 is Neutral, neither overbought nor oversold. The STOCH value of 23.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$285.00M	10.80	5.48%	0.82%	5.43%	-25.42%
3838	63 Neutral	HK$1.09B	2.40	10.38%	5.33%	-6.58%	16.23%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
6868	61 Neutral	HK$3.13B	24.58	6.81%	3.75%	-16.51%	-35.38%
1717	59 Neutral	HK$3.97B	13.58	4.53%	2.69%	0.52%	99.51%
8241	40 Underperform	HK$46.65M	-2.76	―	―	-7.42%	-0.97%