Takbo Group Holdings Ltd. (8436) AI Stock Analysis

• Market Cap: HK$98.80M
• Dividend Yield: N/A
• Average Volume (3M): 113.33K
• Price to Earnings (P/E): 21.5
• Beta (1Y): 0.08
• Revenue Growth: -20.10%
• EPS Growth: -74.16%
• Country: HK
• Employees: 161
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): N/A
• Shares Outstanding: 400,000,000
• 10 Day Avg. Volume: 18,500
• 30 Day Avg. Volume: 113,333
• PEG Ratio: -0.20
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.39
• P/FCF Ratio: -170.57
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: HK$0.29 ▲(35.71% Upside)

The score is primarily supported by a strong, low-leverage balance sheet, but constrained by declining revenue/margins and deteriorating cash generation (including negative recent free cash flow). Technicals are supportive with price above major moving averages, though overbought signals increase near-term risk, and valuation (P/E ~23 with no dividend yield provided) does not look compelling given the weaker operating trends.

Positive Factors

Balance sheet strength

Low financial leverage and a high equity ratio provide durable financial stability, allowing the company to absorb cyclical shocks, access cheaper financing, and fund strategic investments or acquisitions without forcing dilutive capital raises. This underpins long-term operational flexibility.

Diversified business model

A multi-segment model across logistics, trading and technology reduces reliance on any single market and supports cross-selling. Structural exposure to e-commerce and supply-chain services increases resilience to sector-specific downturns and offers multiple pathways for sustained revenue over months to years.

Reasonable EBITDA margin

Maintaining a reasonable EBITDA margin provides operating cash cushion and reflects underlying service-level economics. Even with erosion, a positive margin base supports scalability and gives management room to restore efficiency through cost controls, process improvements, or pricing adjustments.

Negative Factors

Declining revenue trend

Sustained revenue decline signals weakening market traction and reduces fixed-cost absorption, harming long-term profitability and competitive positioning. If not reversed, shrinking top-line limits reinvestment capacity and heightens execution pressure on any turnaround initiatives.

Deteriorating cash generation

Falling operating cash flow and recent negative free cash flow reduce internal funding for capex, working capital, or strategic projects. Over months this forces reliance on external financing or asset sales, constraining growth initiatives and increasing liquidity risk if the trend persists.

Margin compression and low profitability

Declining gross, EBIT and net margins point to pricing pressure or rising costs that erode returns on invested capital. Persisting margin compression undermines the company's ability to fund innovation, maintain competitive investment, and deliver sustainable shareholder returns over the medium term.

Takbo Group Holdings Ltd. Business Overview & Revenue Model

Company Description

Takbo Group Holdings Limited, an investment holding company, designs, develops, manufactures, and sells beauty products in Mainland China, the United States, Mexico, Belgium, Canada, the United Kingdom, and internationally. It offers color cosmetics, shower gels, body lotions, misty sprays, and perfumes; and beauty bags, including tote bags, packaging bags, cosmetics bag sets, cosmetics clutches, and pouches. The company provides beauty products and beauty bags under the Pink Viva, Secret Lace, and Gorgeous Girl Forever brand names. Its principal customers include retailers, beauty product brand owners, and trading companies. The company was incorporated in 1994 and is based in Kwun Tong, Hong Kong. Takbo Group Holdings Limited is a subsidiary of Classic Charm Investments Limited.

How the Company Makes Money

Takbo Group Holdings Ltd. generates revenue through multiple streams, primarily by offering logistics services and technology-based solutions to businesses. The company earns money through service fees for logistics management, which includes warehousing, transportation, and supply chain optimization. Additionally, revenue is derived from trading activities, where the company engages in the buying and selling of goods, often leveraging its established networks and partnerships. Further income is generated from technology consulting services, which involve advising clients on implementing and utilizing technological solutions to enhance their operations. Strategic partnerships with other companies in the logistics and technology sectors also contribute to Takbo's revenue, providing access to new markets and collaborative opportunities that can bolster earnings.

Takbo Group Holdings Ltd. Financial Statement Overview

Summary

Balance sheet strength (low leverage, high equity ratio) supports financial stability, but this is offset by declining revenue and margins plus weakening operating cash flow and most-recent negative free cash flow.

Income Statement

The company shows a declining trend in revenue over the years, with a significant drop from 2020. Gross profit margins have also decreased, indicating potential pricing pressures or increased costs. Net profit margins are low, and EBIT margins have declined, signaling operational challenges. The EBITDA margin is reasonable but has decreased over time, reflecting reduced operational efficiency.

Balance Sheet

The balance sheet reveals a strong equity position with a decreasing debt-to-equity ratio, indicating low financial leverage and risk. The equity ratio is high, suggesting a strong capital structure. Stockholders' equity has been stable, contributing to a solid financial foundation.

Cash Flow

Operating cash flow has decreased, which could impact liquidity. Free cash flow is negative in the most recent period, a concern for sustainability if it persists. The operating cash flow to net income ratio is low, indicating potential difficulty in converting income into cash. The free cash flow to net income ratio is negative, highlighting cash generation challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	178.08M	186.91M	215.59M	209.30M	207.18M	287.77M
Gross Profit	56.10M	59.60M	75.41M	70.57M	65.35M	91.64M
EBITDA	1.10M	18.54M	25.80M	11.15M	14.82M	30.31M
Net Income	4.60M	6.48M	14.66M	1.01M	4.38M	18.41M
Balance Sheet
Total Assets	278.47M	276.79M	279.77M	263.41M	269.22M	304.85M
Cash, Cash Equivalents and Short-Term Investments	184.52M	195.87M	195.14M	182.41M	156.85M	122.57M
Total Debt	7.37M	9.56M	11.53M	12.14M	15.74M	18.71M
Total Liabilities	32.30M	36.10M	42.85M	38.69M	39.34M	82.39M
Stockholders Equity	246.17M	240.69M	236.93M	224.71M	229.89M	222.46M
Cash Flow
Free Cash Flow	8.77M	-432.00K	14.83M	41.37M	37.80M	9.88M
Operating Cash Flow	15.69M	6.88M	18.39M	42.88M	40.10M	15.17M
Investing Cash Flow	-1.31M	-12.71M	-6.95M	1.60M	-15.07M	-7.73M
Financing Cash Flow	-5.11M	-4.53M	-4.75M	-4.49M	-4.79M	-4.10M

Takbo Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.21
• 50DMA: Positive
• 100DMA: Positive
• 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:8436, the sentiment is Positive. The current price of 0.21 is below the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.22, and below the 200-day MA of 0.23, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.76 is Neutral, neither overbought nor oversold. The STOCH value of 37.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8436.

Takbo Group Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8512	73 Outperform	HK$289.33M	2.37	19.34%	―	-3.12%	1.92%
1962	69 Neutral	HK$308.38M	10.28	3.77%	10.32%	-6.67%	-29.55%
8436	65 Neutral	HK$98.80M	21.48	1.89%	―	-20.10%	-74.16%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2023	58 Neutral	HK$368.85M	6.48	10.92%	―	11.10%	-4.38%
6893	49 Neutral	HK$333.00M	-8.31	-23.55%	―	10.42%	11.14%
8281	45 Neutral	HK$104.00M	15.76	2.37%	―	-1.65%	230.00%