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

• Market Cap: HK$559.59M
• Dividend Yield: N/A
• Average Volume (3M): 6.14M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.23
• 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: 1,622,000,000
• 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: 48 Neutral
• Price Target: HK$0.42 ▲(23.82% Upside)

Tong Kee (Holding) Ltd. receives a low overall stock score due to significant financial challenges, including declining revenue and persistent losses. The technical analysis shows mixed signals, with short-term strength but medium-term weakness. The valuation is unattractive, with a negative P/E ratio and no dividend yield. These factors combined suggest a cautious outlook for the stock.

Positive Factors

Brand Recognition

Strong brand recognition in the food and beverage sector supports customer loyalty and repeat business, which are crucial for long-term revenue stability.

Diverse Revenue Streams

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

Product Quality Focus

Commitment to quality ensures a competitive edge in the market, fostering customer trust and long-term business sustainability.

Negative Factors

Declining Revenue

Persistent revenue decline suggests challenges in market demand or competitive positioning, impacting long-term financial health and growth potential.

Negative Profit Margins

Negative profit margins highlight operational inefficiencies and cost management issues, threatening the company's ability to sustain operations profitably.

Cash Flow Volatility

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

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

Company Description

Sheng Tang Holdings Limited, an investment holding company, operates as a multi-disciplinary contractor in the construction industry in Hong Kong. The company provides repair, alteration and addition, maintenance, modification, rehabilitation, steel, civil, and demolition works in various venues, such as residential and commercial buildings, carparks, roads, footbridges, and theme parks. It also offers various constructions and related alterations, and additions works and facilities, including noise mitigation works, architectural metalworks, bus shelters, and dangerous goods store buildings, as well as structures, such as air balloons. In addition, the company provides various corrosion protection solutions comprising installation of cathodic protection systems that consists of sacrificial anodes protection and impressed current systems; and consultancy services. The company was formerly known as Allurefem Holding Limited and changed its name to Sheng Tang Holdings Limited in March 2025. Sheng Tang Holdings Limited was founded in 1994 and is headquartered in North Point, Hong Kong.

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, with declining revenue and persistent losses indicating difficulties in maintaining profitability. The balance sheet reflects moderate leverage, but asset and equity declines are concerning. Cash flow volatility further complicates the financial outlook, indicating the need for strategic improvements to stabilize and enhance financial performance.

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: 0.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 0.34 is above the 20-day moving average (MA) of 0.34, below the 50-day MA of 0.45, and above the 200-day MA of 0.34, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 42.62 is Neutral, neither overbought nor oversold. The STOCH value of 27.38 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$182.00M	7.48	6.66%	15.38%	13.59%	-12.52%
8305	48 Neutral	HK$559.59M	-88.16	-8.56%	―	-0.84%	72.06%
6063	48 Neutral	HK$396.00M	165.00	1.91%	―	-6.17%	-42.86%
1746	47 Neutral	HK$300.00M	-46.15	-4.80%	―	-30.56%	-160.00%
8021	43 Neutral	HK$172.41M	-24.00	-1.80%	―	-3.98%	37.50%