CBK Holdings Limited (8428) AI Stock Analysis

• Market Cap: HK$76.14M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 1.95
• Revenue Growth: -23.17%
• EPS Growth: 56.37%
• Country: HK
• Employees: 37
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Restaurants
• EPS (TTM): N/A
• Shares Outstanding: 111,971,510
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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

• Rating: 48 Neutral
• Price Target: ―

CBK Holdings Limited faces considerable financial challenges, with declining revenue and negative profitability impacting its financial performance. While the technical analysis suggests potential upward momentum, significant concerns in liquidity, cash flow generation, and valuation weigh heavily on the stock's overall attractiveness.

Positive Factors

Improved Equity Position

The improvement in equity position indicates a strengthening balance sheet, which enhances financial stability and reduces leverage risk.

Reduced Leverage Risk

Lower leverage risk improves financial flexibility and reduces the burden of interest payments, supporting long-term operational resilience.

Stable Gross Profit Margin

A stable gross profit margin suggests consistent cost management, which is crucial for maintaining profitability as revenue challenges are addressed.

Negative Factors

Declining Revenue

The significant decline in revenue highlights challenges in market demand or competitive positioning, which could impact long-term growth prospects.

Negative Cash Flows

Ongoing negative cash flows indicate operational inefficiencies and reliance on external funding, posing sustainability risks without improvement.

Operational Losses

Persistent operational losses reflect challenges in achieving profitability, which could hinder reinvestment and growth opportunities.

CBK Holdings Limited Business Overview & Revenue Model

Company Description

CBK Holdings Limited (8428), a company listed on the Hong Kong Stock Exchange, operates primarily in the food and beverage industry. The company focuses on the management and operation of restaurants, offering a wide range of dining options that cater to various customer preferences. CBK Holdings Limited strives to deliver high-quality food and service through its established chain of restaurant brands.

How the Company Makes Money

CBK Holdings Limited generates its revenue primarily through the operation of its restaurant chains. The company earns money by providing dining services and selling food and beverages to its customers. Its revenue streams are largely driven by the volume of customer traffic and average spending per customer at its restaurant locations. Additionally, the company may engage in strategic partnerships and marketing initiatives to enhance brand recognition and customer loyalty, contributing to its overall earnings. Factors such as location, menu offerings, and customer experience play significant roles in influencing the company's revenue generation.

CBK Holdings Limited Financial Statement Overview

Summary

CBK Holdings Limited is facing challenges with declining revenue and persistent operational losses, as evidenced by negative EBIT and net income. Although there is an improvement in equity position and reduced leverage risk, liquidity concerns and negative cash flows remain significant issues.

Income Statement

CBK Holdings Limited has exhibited a decline in revenue over recent years, with a sharp revenue decrease from HK$43.02M in 2020 to HK$25.37M in 2024. The company has consistently posted negative EBIT and net income, indicating persistent operational losses. Gross profit margin remains relatively stable but insufficient to cover operating expenses, resulting in negative net profit margins.

Balance Sheet

The balance sheet shows a gradual improvement in equity position, with stockholders' equity increasing from HK$3.60M in 2023 to HK$7.88M in 2024. The company's debt-to-equity ratio has improved as a result of reduced total debt, indicating reduced leverage risk. However, liquidity remains a concern with modest cash reserves relative to liabilities.

Cash Flow

CBK Holdings faces significant challenges in generating positive cash flows, with persistent negative free cash flow and operating cash flow over the years. Although the company has managed to secure financing, the reliance on external funding raises concerns about sustainability without improved operational cash generation.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	23.63M	25.36M	30.04M	27.30M	12.63M	43.02M
Gross Profit	13.08M	14.04M	17.05M	15.80M	5.85M	24.01M
EBITDA	-15.97M	-9.04M	-14.32M	-25.56M	-6.22M	-16.86M
Net Income	-24.31M	-24.59M	-22.23M	-40.30M	-9.94M	-32.88M
Balance Sheet
Total Assets	15.78M	20.59M	21.36M	36.73M	37.28M	48.32M
Cash, Cash Equivalents and Short-Term Investments	3.94M	7.80M	2.73M	5.72M	17.27M	34.09M
Total Debt	10.72M	4.58M	12.29M	8.95M	4.70M	13.56M
Total Liabilities	17.68M	12.84M	23.65M	17.05M	11.07M	20.76M
Stockholders Equity	-1.08M	7.88M	3.60M	22.82M	24.38M	27.56M
Cash Flow
Free Cash Flow	-15.22M	-13.32M	-6.39M	-40.26M	-14.77M	-1.03M
Operating Cash Flow	-8.70M	-6.79M	-4.45M	-24.18M	-11.94M	1.22M
Investing Cash Flow	-2.24M	-5.34M	-1.94M	-21.59M	-7.73M	-1.07M
Financing Cash Flow	6.71M	17.20M	3.39M	34.55M	2.84M	-11.52M

CBK Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.68
• 50DMA: Neutral
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8428, the sentiment is Positive. The current price of 0.68 is above the 20-day moving average (MA) of 0.68, equal to the 50-day MA of 0.68, and above the 200-day MA of 0.55, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 62.76 is Neutral, neither overbought nor oversold. The STOCH value of 85.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8428.

CBK Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.09B	12.97	-1.60%	2.98%	1.42%	-15.92%
8232	54 Neutral	HK$240.28M	―	-77.73%	―	-2.95%	56.44%
8428	48 Neutral	HK$76.14M	―	-392.91%	―	-23.17%	56.37%
8447	48 Neutral	HK$38.00M	―	-88.20%	―	12.29%	7.53%
8493	26 Underperform	HK$13.06M	―		―	-77.80%	-586.04%
8495	―	HK$86.02M	203.64	0.78%	―	―	―
8527	―	HK$85.50M	―		―	―	―