Tong Kee (Holding) Ltd. (8305) AI Stock Analysis

• Market Cap: HK$756.00M
• Dividend Yield: N/A
• Average Volume (3M): 6.14M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.06
• Revenue Growth: -0.84%
• EPS Growth: 72.06%
• Country: HK
• Employees: 67
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): N/A
• Shares Outstanding: 1,512,000,000
• 10 Day Avg. Volume: 3,877,000
• 30 Day Avg. Volume: 6,142,666
• PEG Ratio: 0.71
• Price to Book (P/B): 4.06
• Price to Sales (P/S): 1.34
• P/FCF Ratio: -45.49
• 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: 43 Neutral
• Price Target: HK$0.19 ▼(-25.20% Downside)

The overall stock score reflects significant financial challenges, bearish technical indicators, and unattractive valuation. The company's declining revenue, persistent losses, and cash flow volatility are major concerns. Additionally, the technical analysis indicates weak market momentum, and the negative P/E ratio further detracts from the stock's appeal.

Positive Factors

Brand Recognition

Strong brand recognition in the food and beverage sector can lead to customer loyalty and repeat business, which supports long-term revenue stability.

Diverse Revenue Streams

Diversified revenue streams reduce dependency on a single sales channel, enhancing resilience against market fluctuations and supporting sustainable growth.

Product Quality Focus

A focus on quality can differentiate products in a competitive market, fostering customer loyalty and potentially leading to higher margins over time.

Negative Factors

Declining Revenue

Declining revenue indicates potential market share loss or decreased demand, which can impact long-term profitability and business sustainability.

Cash Flow Volatility

Volatile cash flows can hinder the company's ability to reinvest in growth opportunities and manage financial obligations, affecting long-term stability.

Negative Profit Margins

Sustained negative profit margins suggest operational inefficiencies and cost management issues, which can undermine financial health over time.

Tong Kee (Holding) Ltd. Business Overview & Revenue Model

Company Description

Tong Kee (Holding) Ltd. is a Hong Kong-based company primarily involved in the food and beverage sector, specializing in the production and distribution of traditional Chinese pastries and desserts. The company operates through various segments, including the manufacturing of mooncakes, egg tarts, and other baked goods, catering to both retail and wholesale markets. Tong Kee has established a strong brand presence and is recognized for its commitment to quality and authenticity in its products.

How the Company Makes Money

Tong Kee (Holding) Ltd. generates revenue through multiple streams, primarily from the sale of its baked goods, including seasonal specialties like mooncakes, which are particularly popular during the Mid-Autumn Festival. The company sells its products through various channels, including its own retail outlets, online sales platforms, and partnerships with supermarkets and food distributors. Additionally, Tong Kee may engage in bulk sales for corporate gifting and special events, further diversifying its income sources. The company's focus on product quality and customer loyalty also contributes to repeat business and brand recognition, which are essential for its profitability.

Tong Kee (Holding) Ltd. Financial Statement Overview

Summary

Tong Kee (Holding) Ltd. faces significant financial challenges, including declining revenue, negative profit margins, and volatile cash flows. The balance sheet shows moderate leverage but declining assets and equity, indicating financial instability.

Income Statement

The company has been experiencing declining revenue over the past few years, with a negative revenue growth rate from 2019 to 2024. Gross profit margin has also decreased, reflecting potential issues in cost management or pricing power. Net profit margin remains negative, indicating ongoing profitability challenges. The negative EBIT and EBITDA margins further emphasize operational inefficiencies.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, indicating a manageable level of leverage. However, the declining equity ratio and negative return on equity suggest that the company is not generating adequate returns on shareholder investment. The trend of decreasing total assets over the years also poses concerns about asset management.

Cash Flow

Operating cash flow has been volatile, with significant fluctuations over the years. The absence of free cash flow growth highlights the company's challenges in generating cash from operations. The operating cash flow to net income ratio is unfavorable, indicating inefficiencies in converting profits into cash. Additionally, the free cash flow to net income ratio suggests insufficient cash available for reinvestment and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	135.34M	150.02M	143.41M	185.01M	154.25M	173.48M
Gross Profit	5.25M	9.78M	7.86M	22.49M	17.08M	22.77M
EBITDA	-3.76M	-2.45M	-25.34M	-18.62M	-36.77M	3.54M
Net Income	-3.94M	-3.14M	-30.32M	-24.64M	-42.64M	-2.29M
Balance Sheet
Total Assets	129.81M	138.10M	132.74M	188.08M	235.53M	181.37M
Cash, Cash Equivalents and Short-Term Investments	2.81M	6.04M	362.00K	10.87M	9.73M	23.64M
Total Debt	5.85M	7.22M	9.37M	34.07M	57.84M	39.82M
Total Liabilities	80.22M	88.70M	91.27M	116.28M	139.10M	99.35M
Stockholders Equity	49.59M	49.40M	41.47M	71.79M	96.43M	82.02M
Cash Flow
Free Cash Flow	-28.67M	-4.41M	7.45M	7.06M	-21.21M	9.68M
Operating Cash Flow	-28.46M	-4.29M	7.45M	7.26M	-21.14M	14.88M
Investing Cash Flow	18.92M	915.00K	-451.00K	18.38M	-1.76M	-5.38M
Financing Cash Flow	19.73M	9.06M	-17.51M	-24.51M	9.00M	272.00K

Tong Kee (Holding) Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.25
• 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:8305, the sentiment is Negative. The current price of 0.25 is below the 20-day moving average (MA) of 0.44, below the 50-day MA of 0.47, and below the 200-day MA of 0.33, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 30.96 is Neutral, neither overbought nor oversold. The STOCH value of 21.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8305.

Tong Kee (Holding) Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1447	62 Neutral	HK$192.00M	7.89	6.66%	15.22%	13.59%	-12.52%
6063	54 Neutral	HK$410.00M	170.83	1.91%	―	-6.17%	-42.86%
1746	47 Neutral	HK$295.00M	-45.38	-4.80%	―	-30.56%	-160.00%
8021	45 Neutral	HK$215.51M	-30.00	-1.80%	―	-3.98%	37.50%
8305	43 Neutral	HK$756.00M	-128.95	-8.56%	―	-0.84%	72.06%