K Group Holdings Limited (8475) AI Stock Analysis

• Market Cap: HK$11.52M
• Dividend Yield: N/A
• Average Volume (3M): 98.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.43
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 18
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Restaurants
• EPS (TTM): -0.24
• Shares Outstanding: 68,160,000
• 10 Day Avg. Volume: 238,000
• 30 Day Avg. Volume: 98,333
• PEG Ratio: -0.24
• Price to Book (P/B): -0.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 29.46
• 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: 41 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

K Group Holdings Limited's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues, negative equity, and poor cash flow management. Technical analysis shows bearish signals, and valuation metrics are unfavorable due to negative earnings and lack of dividends. Without improvements in financial health and operational efficiency, the stock remains risky.

K Group Holdings Limited Business Overview & Revenue Model

Company Description

K Group Holdings Limited (8475) is an investment holding company primarily engaged in the operation of restaurants in Hong Kong. The company offers a diverse range of dining experiences across various cuisines and service styles, catering to a broad customer base. Its portfolio includes casual dining establishments, quick service restaurants, and specialty eateries, aiming to deliver quality food and excellent customer service.

How the Company Makes Money

K Group Holdings Limited generates revenue primarily through the operation and management of its restaurant portfolio. The company earns money from direct sales of food and beverages to customers in its various dining establishments. Key revenue streams include dine-in services, takeaway orders, and delivery services. The company may also engage in strategic partnerships with food delivery platforms to expand its market reach. Additionally, K Group Holdings Limited can enhance its revenue through marketing promotions, customer loyalty programs, and menu innovations aimed at attracting more customers and increasing average spend per visit.

K Group Holdings Limited Financial Statement Overview

Summary

Overall, K Group Holdings Limited demonstrates significant financial challenges. The income statement shows declining revenues and profitability, while the balance sheet reflects a concerning capital structure with negative equity. Cash flow issues further complicate the financial outlook, highlighting the need for strategic improvements in revenue growth, cost management, and capital restructuring to ensure the company's viability in the restaurant industry.

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
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
3.28M	5.94M	13.32M	15.43M	14.92M
	Gross Profit
-1.99M	1.22M	4.82M	5.79M	4.95M
	EBIT
-10.50M	67.00K	-821.00K	-1.95M	-3.93M
	EBITDA
41.08M	-1.19M	145.00K	-969.00K	-1.71M
	Net Income Common Stockholders
40.24M	-2.32M	-2.63M	-6.93M	-7.96M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
626.00K	234.00K	108.00K	379.00K	1.42M
	Total Assets
8.26M	1.63M	2.87M	7.31M	19.80M
	Total Debt
1.72M	3.52M	2.62M	6.43M	11.79M
	Net Debt
1.10M	3.29M	2.51M	6.05M	10.37M
	Total Liabilities
32.02M	10.03M	9.36M	11.20M	16.77M
	Stockholders Equity
-24.44M	-7.38M	-5.54M	-3.00M	3.72M
Cash Flow		Free Cash Flow
-4.57M	101.00K	2.41M	2.15M	1.61M
	Operating Cash Flow
-4.57M	124.00K	2.42M	2.49M	4.22M
	Investing Cash Flow
-512.00K	-537.00K	221.00K	-94.00K	-2.53M
	Financing Cash Flow
4.77M	539.00K	-2.91M	-3.44M	-1.82M

K Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

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 0.26 is above the 20-day moving average (MA) of 0.23, above the 50-day MA of 0.20, and below the 200-day MA of 0.26, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 29.97 is Positive, neither overbought nor oversold. The STOCH value of 65.03 is Neutral, 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
8423	72 Outperform	HK$33.60M	2.58	8.14%	―	44.26%	16.43%
8480	66 Neutral	HK$184.66M	7.81	6.39%	5.00%	-12.11%	-26.86%
Sector *	62 Neutral	$6.76B	11.06	2.80%	6.66%	2.68%	-24.89%
8412	50 Neutral	HK$45.84M	―	-202.81%	―	-55.08%	-316.18%
1566	41 Neutral	HK$60.28M	―		―	11.17%	89.08%
8475	41 Neutral	HK$11.52M	―		―	―	―