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Bar Pacific Group Holdings Ltd. (HK:8432)
:8432
Hong Kong Market

Bar Pacific Group Holdings Ltd. (8432) AI Stock Analysis

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HK

Bar Pacific Group Holdings Ltd.

(8432)

Rating:45Neutral
Price Target:
The overall stock score reflects significant financial challenges, including high leverage and inconsistent profitability. Technical indicators point to a bearish trend, and valuation metrics suggest potential overvaluation. These factors combine to produce a cautiously negative outlook for the stock.

Bar Pacific Group Holdings Ltd. (8432) vs. iShares MSCI Hong Kong ETF (EWH)

Bar Pacific Group Holdings Ltd. Business Overview & Revenue Model

Company DescriptionBar Pacific Group Holdings Ltd. (8432) operates a chain of bars in Hong Kong under the brand name 'Bar Pacific.' The company is primarily engaged in the hospitality industry, offering a casual drinking environment and serving a variety of alcoholic and non-alcoholic beverages, as well as light snacks. Bar Pacific is known for its laid-back atmosphere, catering to a wide range of customers seeking a relaxed social setting.
How the Company Makes MoneyBar Pacific Group Holdings Ltd. generates revenue primarily through the sale of beverages, both alcoholic and non-alcoholic, and food items at its chain of bars. The company capitalizes on its strategic locations across Hong Kong to attract a broad customer base, including both locals and tourists. Additional revenue streams include promotional events and partnerships with beverage suppliers, which may offer marketing incentives or discounts. The company's earnings are also influenced by its ability to efficiently manage operational costs and maintain a consistent customer experience across its venues.

Bar Pacific Group Holdings Ltd. Financial Statement Overview

Summary
Bar Pacific Group Holdings Ltd. displays some growth in revenue but faces significant profitability and leverage challenges. High debt levels and negative EBIT margins point to financial strain, while cash flow generation remains inconsistent. These factors suggest a need for strategic improvements to stabilize and enhance financial performance.
Income Statement
45
Neutral
The company has shown a fluctuating revenue trend, with a notable increase in revenue from 2022 to 2024. However, the profitability margins are concerning; the Gross Profit Margin declined significantly from 2020 to 2024, and the Net Profit Margin has been volatile, with a positive net income only in 2020 and 2023. The EBIT has been negative for several years, impacting the overall profitability. Despite a positive EBITDA in recent years, the operational challenges remain evident.
Balance Sheet
40
Negative
The company's balance sheet reveals high leverage, with a Debt-to-Equity ratio above 6 in recent years, indicating significant financial risk. The Return on Equity has been inconsistent, with positive ROE only in 2020 and 2023. The Equity Ratio is relatively low, suggesting limited buffer to absorb losses. These factors highlight financial vulnerabilities, although the recent increase in equity provides a slight improvement.
Cash Flow
55
Neutral
The cash flow statement shows positive operating cash flow in recent years, indicating some operational efficiency. However, the Free Cash Flow has been inconsistent, with significant fluctuations. The Free Cash Flow to Net Income Ratio shows the company has at times generated more free cash flow than net income, but the variability signals potential volatility in cash generation.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue203.71M208.09M174.93M95.73M57.84M167.17M
Gross Profit76.02M37.08M72.50M34.82M11.07M83.48M
EBITDA13.14M55.74M59.40M29.93M7.29M45.43M
Net Income-2.76M604.00K9.67M-10.26M-36.91M4.43M
Balance Sheet
Total Assets191.70M183.84M204.26M196.04M160.93M185.38M
Cash, Cash Equivalents and Short-Term Investments3.46M2.11M1.57M2.08M3.51M32.59M
Total Debt147.42M136.54M151.12M156.54M121.47M103.82M
Total Liabilities163.71M154.48M176.40M179.09M133.52M114.81M
Stockholders Equity21.26M22.63M21.32M11.64M21.90M63.54M
Cash Flow
Free Cash Flow45.74M45.81M36.06M9.25M-51.17M34.94M
Operating Cash Flow56.03M57.65M49.80M20.95M-5.00M50.17M
Investing Cash Flow-12.45M-11.83M-13.74M-11.70M-46.12M-64.36M
Financing Cash Flow-41.61M-45.80M-37.79M-9.00M19.14M-3.51M

Bar Pacific Group Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.03
Price Trends
50DMA
0.03
Negative
100DMA
0.03
Negative
200DMA
0.04
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
33.36
Neutral
STOCH
25.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8432, the sentiment is Negative. The current price of 0.03 is above the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and below the 200-day MA of 0.04, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 33.36 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8432.

Bar Pacific Group Holdings Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
HK$883.99M14.586.54%5.49%2.49%-33.12%
56
Neutral
HK$24.88B3.87-2.03%6.54%-0.32%-67.68%
54
Neutral
HK$2.29B33.92-7.51%1.10%-0.56%-323.09%
45
Neutral
HK$186.15M-18.41%-33.87%-144.63%
45
Neutral
HK$29.57M-124.73%-7.31%-128.32%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:8432
Bar Pacific Group Holdings Ltd.
0.03
-0.02
-40.00%
HK:6811
Tai Hing Group Holdings Ltd.
0.93
0.24
34.78%
HK:3309
C-MER Eye Care Holdings Limited
1.82
-0.75
-29.18%
HK:1532
China Partytime Culture Holdings Ltd.
0.10
0.01
11.11%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 22, 2025