K Group Holdings Limited (8475) AI Stock Analysis

• Market Cap: HK$4.70M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 1.65
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 24
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -0.05
• Shares Outstanding: 68,160,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: >-0.01
• Price to Book (P/B): -1.15
• Price to Sales (P/S): 8.60
• P/FCF Ratio: -6.16
• 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: 38 Underperform
• Price Target: HK$0.07 ▼(-7.14% Downside)

K Group Holdings Limited is facing critical financial hurdles, with declining revenues, negative equity, and cash flow issues being the most significant factors impacting its stock score. Technical analysis further supports a bearish outlook, with the stock trading below key moving averages and exhibiting weak momentum. Poor valuation metrics add to the challenges, making it a high-risk investment.

Positive Factors

Market Position

The company's diverse portfolio of casual dining brands in the Asian cuisine sector positions it well to capture a broad customer base, enhancing its market presence and resilience against market fluctuations.

Business Model Strength

A focus on food and beverage sales through a network of restaurants provides a stable revenue stream, leveraging brand management and menu innovation to drive customer engagement and sales.

Strategic Partnerships

Strategic partnerships can enhance market presence and expand offerings, providing opportunities for growth and diversification, which are critical for long-term sustainability.

Negative Factors

Declining Revenue

Consistent revenue decline indicates challenges in maintaining market share and customer retention, which could hinder long-term growth and profitability.

Negative Equity

Negative equity highlights solvency risks and limits financial flexibility, potentially impacting the company's ability to invest in growth and manage debt obligations.

Cash Flow Issues

Negative operating cash flow indicates difficulties in generating sufficient cash from operations, which could strain liquidity and limit the ability to fund day-to-day operations and strategic initiatives.

K Group Holdings Limited Business Overview & Revenue Model

Company Description

E-Station Green Technology Group Co., Ltd. engages in the operation of restaurants and selling of food ingredients. The company was founded on January 24, 2018 and is headquartered in Singapore.

How the Company Makes Money

K Group Holdings Limited generates revenue primarily through its network of restaurants, which serve as the main revenue stream. The company earns money by offering dining services to customers, with income derived from food and beverage sales. Additionally, the company may engage in strategic partnerships or collaborations to enhance its market presence and expand its offerings. Factors contributing to its earnings include effective brand management, menu innovation, and customer engagement initiatives to drive foot traffic and sales. The company's ability to maintain quality and adapt to consumer preferences is crucial to sustaining its revenue model.

K Group Holdings Limited Financial Statement Overview

Summary

The company faces significant financial challenges, with declining revenues and gross profits, a negative gross profit margin, and a weak balance sheet with negative equity. Cash flow issues further compound the situation, highlighting the need for strategic improvements to ensure viability.

Income Statement

The income statement reveals a concerning trajectory with declining revenues and gross profits over the years. The most recent period shows a gross profit margin of -60.76% and a shift from a net loss to a net income, primarily due to extraordinary items or adjustments rather than operational improvements. Revenue has decreased significantly from previous years, showcasing a negative growth trend. The EBIT and EBITDA margins have fluctuated, indicating instability in operational efficiency.

Balance Sheet

The balance sheet displays a weak financial position with negative stockholders' equity, suggesting potential solvency issues. The debt-to-equity ratio is not meaningful due to negative equity, indicating high leverage. Although total debt has decreased, the equity deficit has widened, impacting the equity ratio negatively. The company needs to address its capital structure to ensure long-term sustainability.

Cash Flow

Cash flow analysis shows variability in free cash flow with a notable decline in the latest period. Operating cash flow has turned negative, raising concerns about operational cash generation. The free cash flow to net income ratio is unfavorable, and the operating cash flow to net income ratio suggests inconsistencies in converting income into cash. The company must improve its cash flow management to support operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	-644.62K	3.28M	5.94M	13.32M	15.43M	14.92M
Gross Profit	-2.13M	-1.99M	1.22M	4.82M	5.79M	4.95M
EBITDA	-1.44M	41.08M	-1.19M	145.00K	-969.00K	-1.71M
Net Income	6.66M	40.24M	-2.32M	-2.63M	-6.93M	-7.96M
Balance Sheet
Total Assets	6.93M	8.26M	1.63M	2.87M	7.31M	19.80M
Cash, Cash Equivalents and Short-Term Investments	532.00K	626.00K	234.00K	108.00K	379.00K	1.42M
Total Debt	22.01M	1.72M	3.60M	2.62M	6.43M	11.88M
Total Liabilities	31.52M	32.02M	10.03M	9.36M	11.20M	16.77M
Stockholders Equity	-25.14M	-24.44M	-7.38M	-5.54M	-3.00M	3.72M
Cash Flow
Free Cash Flow	-2.37M	-4.57M	101.00K	2.41M	2.15M	1.61M
Operating Cash Flow	-2.31M	-4.57M	124.00K	2.42M	2.49M	4.22M
Investing Cash Flow	2.54M	-512.00K	-537.00K	221.00K	-94.00K	-2.53M
Financing Cash Flow	-206.83K	4.77M	539.00K	-2.91M	-3.44M	-1.82M

K Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8475, the sentiment is Negative. The current price of 0.07 is equal to the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.07, and below the 200-day MA of 0.11, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 25.23 is Positive, neither overbought nor oversold. The STOCH value of 8.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8475.

K Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8096	49 Neutral	HK$25.41M	-5.64	-27.31%	―	14.18%	42.51%
8510	46 Neutral	HK$39.65M	-4.04	―	―	144.78%	10.07%
8367	44 Neutral	HK$30.24M	-1.31	-120.93%	―	2.67%	-264.58%
8493	41 Neutral	HK$10.16M	-0.23	―	―	-77.80%	-586.04%
8475	38 Underperform	HK$4.70M	―	―	―	―	―