Taste Gourmet Group Ltd. (8371) AI Stock Analysis

• Market Cap: HK$780.83M
• Dividend Yield: 7.77%
• Average Volume (3M): 364.00K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.41
• Revenue Growth: 15.24%
• EPS Growth: 16.25%
• Country: HK
• Employees: 1,615
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.14
• Shares Outstanding: 380,894,000
• 10 Day Avg. Volume: 282,000
• 30 Day Avg. Volume: 364,000
• PEG Ratio: 1.54
• Price to Book (P/B): 2.24
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 2.18
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: HK$2.50 ▲(21.36% Upside)

Taste Gourmet Group Ltd. scores well due to its strong financial performance and attractive valuation. The company's ability to generate cash and maintain operational efficiency supports its financial health. However, high leverage and overbought technical indicators pose risks. The stock's low P/E ratio and high dividend yield enhance its appeal as a value and income investment.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health and expansion.

Cash Generation

Strong cash generation enhances financial flexibility, enabling the company to invest in growth opportunities and manage debt effectively.

Operational Efficiency

Healthy EBIT and EBITDA margins reflect effective cost management and operational efficiency, contributing to sustainable profitability.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth or weather downturns.

Gross Margin Decline

Declining gross margins suggest rising costs or pricing pressures, which could erode profitability if not addressed effectively.

Debt Management

Effective debt management is essential to maintain financial stability and support long-term growth, especially in a high-leverage environment.

Taste Gourmet Group Ltd. Business Overview & Revenue Model

Company Description

Taste Gourmet Group Limited, an investment holding company, operates full-service restaurants and kiosks in Hong Kong and the People's Republic of China. It operates 38 restaurants under the Nabe Urawa, Dab-Pa, La'taste, Rakuraku Ramen, Yakiniku Guu, Parkview, Takano Ramen, Moments Together, Sankinn, Tirpse, Urawa, Wasyokuya Yamaichi, Xianghui, and Same Same brands. The company also provides management services. The company was incorporated in 2017 and is headquartered in Sheung Wan, Hong Kong. Taste Gourmet Group Limited is a subsidiary of IKEAB Limited.

How the Company Makes Money

Taste Gourmet Group Ltd. generates revenue through multiple key streams. The primary source of income comes from the sale of its gourmet food products through various distribution channels, including retail grocery stores, specialty food shops, and online platforms. The company may also engage in wholesale distribution to restaurants and catering businesses, expanding its market reach. Additionally, Taste Gourmet Group may develop strategic partnerships with culinary institutions and food service providers, further enhancing its visibility and sales. Seasonal promotions and limited edition product lines can also contribute to revenue spikes, particularly around holidays and special occasions.

Taste Gourmet Group Ltd. Financial Statement Overview

Summary

Taste Gourmet Group Ltd. exhibits strong revenue growth and operational efficiency, but faces challenges with high leverage. The company effectively converts profits into cash, supporting its financial health. Continued focus on managing debt levels and improving gross margins will be crucial for sustained financial stability.

Income Statement

Taste Gourmet Group Ltd. has demonstrated consistent revenue growth, with a notable 8.68% increase in the latest year. However, the gross profit margin has decreased from previous years, indicating potential cost management issues. The net profit margin remains stable, reflecting effective cost control at the net income level. EBIT and EBITDA margins are healthy, suggesting operational efficiency.

Balance Sheet

The company maintains a high debt-to-equity ratio, which poses a risk of financial leverage. However, the return on equity is strong, indicating effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced approach to financing assets through equity.

Cash Flow

Operating cash flow has shown robust growth, supporting the company's ability to generate cash from operations. Free cash flow growth is positive, enhancing financial flexibility. The ratios of operating and free cash flow to net income are strong, indicating efficient cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.29B	1.22B	1.02B	747.52M	568.06M	379.02M
Gross Profit	366.17M	292.65M	441.30M	176.67M	110.58M	68.47M
EBITDA	283.59M	350.06M	307.35M	216.89M	150.63M	118.03M
Net Income	103.03M	95.53M	90.46M	68.57M	26.38M	24.97M
Balance Sheet
Total Assets	907.82M	876.76M	835.15M	688.55M	506.01M	446.20M
Cash, Cash Equivalents and Short-Term Investments	242.44M	190.89M	142.97M	118.72M	64.50M	81.30M
Total Debt	420.00M	449.68M	464.86M	399.30M	304.85M	244.48M
Total Liabilities	610.60M	603.95M	595.81M	498.59M	351.07M	288.08M
Stockholders Equity	299.36M	274.81M	231.76M	182.15M	147.63M	151.68M
Cash Flow
Free Cash Flow	306.12M	281.41M	205.82M	188.85M	94.13M	88.84M
Operating Cash Flow	371.45M	349.48M	300.48M	248.00M	146.41M	122.67M
Investing Cash Flow	-106.54M	-73.52M	-96.72M	-65.03M	-55.09M	-45.86M
Financing Cash Flow	-291.08M	-227.79M	-178.79M	-128.33M	-108.38M	-60.66M

Taste Gourmet Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8371, the sentiment is Positive. The current price of 2.06 is above the 20-day moving average (MA) of 1.98, above the 50-day MA of 1.85, and above the 200-day MA of 1.66, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 71.57 is Negative, neither overbought nor oversold. The STOCH value of 59.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8371.

Taste Gourmet Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8371	72 Outperform	HK$780.83M	7.56	37.48%	7.77%	15.24%	16.25%
6811	68 Neutral	HK$1.03B	11.31	10.47%	5.66%	4.16%	59.08%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1978	51 Neutral	HK$288.00M	-48.05	-2.62%	24.47%	-5.71%	-144.00%
1314	50 Neutral	HK$226.09M	20.25	2.28%	21.34%	1.02%	-71.48%
0538	47 Neutral	HK$960.55M	80.73	0.38%	7.03%	0.26%	-73.09%
0520	45 Neutral	HK$811.50M	-3.60	-26.56%	―	-21.42%	55.86%