1957 & Co. (Hospitality) Limited (8495) AI Stock Analysis

• Market Cap: HK$136.32M
• Dividend Yield: N/A
• Average Volume (3M): 19.07K
• Price to Earnings (P/E): 313.6
• Beta (1Y): 0.33
• Revenue Growth: -2.67%
• EPS Growth: 22.22%
• Country: HK
• Employees: 441
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): N/A
• Shares Outstanding: 384,000,000
• 10 Day Avg. Volume: 44,400
• 30 Day Avg. Volume: 19,066
• PEG Ratio: 0.81
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 1.06
• 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: 45 Neutral
• Price Target: HK$0.35 ▼(-2.50% Downside)

The score is held down primarily by weak financial performance—declining revenue, compressed margins, ongoing losses, and high leverage—despite positive operating cash flow. Technicals provide only modest support (price above moving averages but MACD remains negative), while valuation is a significant negative due to the extremely high P/E and no stated dividend yield.

Positive Factors

Positive operating cash flow

Consistent positive operating cash flow provides a durable liquidity buffer to fund working capital and daily operations without immediate external financing. Over 2-6 months this supports stability while management works to restore margins and reduces refinancing pressure.

Improving operational margins

Evidence of rising EBIT/EBITDA margins indicates management is generating operational efficiencies or cost control. If sustained, margin improvements are a structural lever to translate revenue into profits and improve resilience even if top-line growth is slow.

Low earnings volatility

A low beta reflects relatively muted sensitivity to broad market swings. For a restaurant operator, lower volatility can mean steadier cash flows and reduced financing cost risk, enabling management to execute strategic fixes with less market disruption.

Negative Factors

Revenue decline and margin compression

Falling revenue combined with a severe gross margin decline materially undermines the company's ability to achieve sustainable profitability. This suggests structural pricing pressure or cost inflation that will impair recovery unless revenues or cost structure are meaningfully improved.

High leverage and weak equity base

Very high debt relative to equity raises refinancing and interest-coverage risk, constraining capital allocation and investment. With negative ROE and a thin equity cushion, the company is more vulnerable to shocks and has less flexibility to execute a turnaround.

Ongoing losses and falling free cash flow growth

Persistent net losses plus declining free cash flow growth indicate cash generation is not translating into sustainable profit expansion. Over months this limits capacity to deleverage or reinvest, potentially forcing dilutive equity raises or more debt.

1957 & Co. (Hospitality) Limited Business Overview & Revenue Model

Company Description

1957 & Co. (Hospitality) Limited, an investment holding company, operates full service restaurants in Hong Kong and the People's Republic of China. The company also provides restaurant and catering management, as well as consultancy services. As of December 31, 2021, it operated twelve restaurants under five self-owned brands, including Ta-ke, An Nam, Modern Shanghai, 10 Shanghai, and Hokkaidon; and three franchised or sublicensed brands, such as Mango Tree, Gonpachi, and Paper Moon. The company was incorporated in 2016 and is headquartered in Hong Kong, Hong Kong.

How the Company Makes Money

The company generates revenue primarily through its hotel and restaurant operations. Key revenue streams include room bookings, food and beverage sales, and event hosting services. The hotels charge guests for accommodations, often supplemented by additional services such as spa treatments and concierge services. Restaurants within the hotels attract both guests and local patrons, contributing significantly to overall earnings. Additionally, 1957 & Co. may engage in partnerships with travel agencies and online booking platforms, enhancing visibility and customer reach, which further drives bookings and restaurant reservations. The company may also benefit from seasonal promotions and loyalty programs that encourage repeat business.

1957 & Co. (Hospitality) Limited Financial Statement Overview

Summary

Revenue declined (-1.42%) and profitability weakened materially, with gross margin falling from 34.55% to 19.13% and net margin still negative. The balance sheet is a key risk with high leverage (debt-to-equity 2.97), negative ROE, and a low equity ratio. Cash flow is a relative positive (operating cash flow remains positive), but free cash flow growth is declining and cash generation is not translating into profits.

Income Statement

The company has shown a decline in revenue growth with a negative growth rate of -1.42% in the latest year. Gross profit margin has decreased significantly from 34.55% to 19.13%, indicating reduced profitability. The net profit margin remains negative, reflecting ongoing losses. However, there is a slight improvement in EBIT and EBITDA margins, suggesting some operational efficiency gains.

Balance Sheet

The company has a high debt-to-equity ratio of 2.97, indicating significant leverage and potential financial risk. Return on equity is negative, showing that the company is not generating positive returns for shareholders. The equity ratio is low, suggesting limited financial stability.

Cash Flow

Operating cash flow remains positive, but there is a decline in free cash flow growth. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to net income. However, the free cash flow to net income ratio is high, suggesting reliance on cash flow rather than profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	585.58M	470.35M	471.85M	352.88M	394.19M	320.45M
Gross Profit	156.29M	89.99M	163.00M	108.71M	138.30M	105.72M
EBITDA	77.79M	102.51M	95.61M	71.40M	90.36M	74.27M
Net Income	2.02M	-1.17M	-6.25M	-533.00K	13.16M	-12.91M
Balance Sheet
Total Assets	259.15M	305.04M	333.04M	251.52M	205.98M	221.63M
Cash, Cash Equivalents and Short-Term Investments	41.98M	56.12M	78.86M	64.27M	98.79M	64.71M
Total Debt	140.43M	169.40M	197.41M	113.79M	80.77M	127.73M
Total Liabilities	194.90M	234.19M	261.69M	175.74M	133.11M	165.25M
Stockholders Equity	54.45M	57.11M	58.39M	64.72M	65.65M	52.32M
Cash Flow
Free Cash Flow	80.96M	72.65M	58.03M	-8.14M	100.28M	81.10M
Operating Cash Flow	89.31M	82.06M	130.72M	38.31M	102.98M	82.87M
Investing Cash Flow	-16.14M	-14.47M	-72.14M	-46.39M	-2.66M	-1.75M
Financing Cash Flow	-116.71M	-81.20M	-47.91M	-31.85M	-70.73M	-56.37M

1957 & Co. (Hospitality) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8495, the sentiment is Negative. The current price of 0.36 is below the 20-day moving average (MA) of 0.36, below the 50-day MA of 0.39, and above the 200-day MA of 0.27, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.16 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8495.

1957 & Co. (Hospitality) 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%
1843	53 Neutral	HK$95.20M	-9.14	-7.04%	―	16.43%	-3100.00%
8495	45 Neutral	HK$136.32M	313.64	0.78%	―	-2.67%	22.22%
1443	42 Neutral	HK$67.60M	-1.12	-48.91%	4.48%	-13.13%	-873.33%
8519	42 Neutral	HK$34.79M	-7.49	-350.87%	―	-5.22%	-7.65%
8213	41 Neutral	HK$132.10M	-6.10	―	―	-58.36%	6.25%