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

• Market Cap: HK$41.95M
• Dividend Yield: N/A
• Average Volume (3M): 22.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.24
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: HK$0.11 ▲(25.56% Upside)
• Action: Reiterated Date: 02/05/26
• Date: Action: Reiterated 02/05/26

The score is held down primarily by weak financial performance (declining revenue, persistent losses, and a highly risky balance sheet with negative equity). Technicals provide some offset with improving short-term momentum, but valuation remains constrained because the negative P/E reflects unprofitability and there is no dividend yield data to support the investment case.

Positive Factors

Stable cash generation

The group reports positive operating cash flow and a free cash flow to net income ratio near 1, indicating accounting losses are accompanied by real cash conversion. This durable cash-generation ability supports working capital and gives management time to execute turnarounds without immediate reliance on new external financing.

Relatively high gross margins

Sustained gross margin strength implies the product sourcing and pricing mix yields unit-level profitability. That structural margin provides a clear pathway: if operating expenses are controlled or sales scale recovers, gross margins can be leveraged to restore operating profits and improve long-term earnings power.

Diversified sales channels

Operating both retail (direct-to-consumer) and trading/wholesale channels spreads revenue sources across consumer and business customers. This structural diversification reduces single-channel concentration risk, supports cross-channel growth strategies, and provides flexibility to shift emphasis if one channel softens over the medium term.

Negative Factors

Negative shareholders' equity

Negative equity and extreme leverage reflect a precarious capital structure and raise solvency and refinancing risk. Structurally, this limits the company's ability to invest, borrow, or absorb shocks without dilutive capital raises or asset disposals, constraining strategic options over coming months.

Declining revenue trend

A persistent top-line decline weakens scale economies and makes fixed-cost absorption harder, pressuring margins and cash flow. Without sustainable revenue stabilization or new growth drivers, the company faces a structurally tougher path to profitability and less room to rebuild financial resilience.

Sustained unprofitability

Ongoing negative operating and net margins indicate the core business has not reached breakeven. Structural unprofitability requires meaningful margin expansion, pricing power, or cost restructuring to become sustainable; absent those changes, the business will continue to depend on cash buffers or external financing.

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

The company makes money primarily by selling tea products and tea-related goods to customers. Its revenue model is mainly transaction-based: (1) Retail sales—income generated from sales of tea products and related items to end customers via its retail stores and other direct-to-consumer channels operated by the group. (2) Trading/wholesale sales—income from supplying tea products to business customers (e.g., distributors or corporate customers), where revenue is recognized based on product orders and deliveries. Key factors influencing earnings typically include sales volume, product mix (e.g., premium vs. mass-market teas), pricing, and gross margin management (sourcing costs, inventory, and retail operating costs). Specific information on major partnerships, customer concentration, or channel contribution breakdown is null.

Ying Kee Tea House Group Ltd. Financial Statement Overview

Summary

Overall fundamentals are weak: revenue declined (-5.05%) and profitability remains negative with negative EBIT/EBITDA margins. The balance sheet is a key risk with negative shareholders’ equity and very high leverage (debt-to-equity -8.53), while cash flow is somewhat supportive due to positive operating cash flow but weakening free cash flow 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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	29.52M	30.28M	33.94M	37.44M	36.06M	36.09M
Gross Profit	20.13M	23.22M	26.17M	28.75M	27.94M	27.80M
EBITDA	-5.30M	-5.53M	422.00K	7.83M	5.85M	4.84M
Net Income	-15.09M	-16.88M	-14.68M	-6.07M	-7.78M	-9.14M
Balance Sheet
Total Assets	85.57M	87.15M	101.58M	110.61M	117.49M	126.15M
Cash, Cash Equivalents and Short-Term Investments	1.36M	1.47M	2.91M	2.28M	1.87M	3.91M
Total Debt	90.44M	91.72M	92.21M	86.91M	94.71M	95.67M
Total Liabilities	101.08M	97.90M	95.01M	89.23M	97.10M	98.25M
Stockholders Equity	-15.52M	-10.75M	6.57M	21.38M	20.39M	27.90M
Cash Flow
Free Cash Flow	3.30M	4.94M	3.63M	9.28M	7.71M	8.78M
Operating Cash Flow	3.43M	5.06M	3.91M	9.33M	7.88M	9.07M
Investing Cash Flow	2.96M	-125.00K	-349.00K	-48.00K	-163.00K	10.77M
Financing Cash Flow	-6.38M	-6.38M	-5.04M	-8.88M	-9.76M	-21.73M

Ying Kee Tea House Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 0.09 is below the 20-day moving average (MA) of 0.11, below the 50-day MA of 0.10, and below the 200-day MA of 0.11, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 64.03 is Neutral, neither overbought nor oversold. The STOCH value of 133.33 is Negative, 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
1767	71 Outperform	HK$370.00M	12.59	5.48%	0.78%	5.43%	-25.42%
3838	63 Neutral	HK$1.05B	1.71	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$3.15B	18.24	6.78%	3.70%	-16.51%	-35.38%
1717	59 Neutral	HK$3.45B	9.22	4.53%	2.90%	0.52%	99.51%
8241	45 Neutral	HK$41.95M	-2.20	114.90%	―	-7.42%	-0.97%