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Ajisen (China) Holdings Limited
(0538)
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Rating:62Neutral
Price Target:
HK$0.86
â–¼(-15.29% Downside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by stable fundamentals supported by low leverage and strong, consistently positive free cash flow, despite weak and volatile profitability (notably the sharp 2025 gross margin decline and thin net margin). Valuation is mixed (very high yield but a high P/E), and technical indicators point to neutral-to-soft momentum, limiting the overall score.
Positive Factors
Conservative Leverage
Conservative leverage gives Ajisen greater resilience against operating volatility and preserves financial flexibility for restaurant maintenance, selective expansion, and ongoing obligations without excessive debt-service pressure.
Negative Factors
Gross Margin Pressure
The sharp margin deterioration indicates substantial pressure from food, labor, pricing, or operating costs. Unless reversed, it can limit the profitability of existing restaurants and reduce the benefit of revenue growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Leverage
Conservative leverage gives Ajisen greater resilience against operating volatility and preserves financial flexibility for restaurant maintenance, selective expansion, and ongoing obligations without excessive debt-service pressure.
Read all positive factors
Ajisen (China) Holdings Limited (0538) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$873.23M
Dividend Yield9.89%
Average Volume (3M)993.90K
Price to Earnings (P/E)35.5
Beta (1Y)0.54
Revenue Growth8.18%
EPS Growth100.92%
CountryHK
Employees1,600
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)0.02
Shares Outstanding1,091,538,800
10 Day Avg. Volume2,418,192
30 Day Avg. Volume993,897
Financial Highlights & Ratios
PEG Ratio-0.13
Price to Book (P/B)0.30
Price to Sales (P/S)0.47
P/FCF Ratio2.27
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Ajisen (China) Holdings Limited Business Overview & Revenue Model
Company Description
Ajisen (China) Holdings Limited, an investment holding company, operates a chain of fast casual restaurants in the People's Republic of China and Hong Kong Special Administrative Region. It operates through Operation of Restaurants; Manufacture an...
How the Company Makes Money
Ajisen (China) Holdings Limited primarily makes money by operating its restaurant network and selling food and beverages to customers. Its core revenue stream is restaurant sales (e.g., ramen and other menu items) generated from customer traffic a...
Ajisen (China) Holdings Limited Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
78
Positive
Cash Flow
73
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.83B | 1.78B | 1.72B | 1.82B | 1.43B | 2.00B |
| Gross Profit | 744.79M | 568.07M | 829.10M | 892.30M | 626.05M | 911.23M |
| EBITDA | 278.17M | 395.95M | 128.44M | 583.75M | 216.74M | 162.59M |
| Net Income | 21.07M | 27.67M | -20.22M | 181.19M | -143.91M | 20.94M |
Balance Sheet | ||||||
| Total Assets | 3.86B | 3.99B | 3.99B | 3.96B | 3.87B | 4.30B |
| Cash, Cash Equivalents and Short-Term Investments | 1.66B | 1.68B | 1.64B | 1.63B | 1.47B | 1.53B |
| Total Debt | 595.45M | 653.17M | 611.57M | 439.79M | 503.13M | 681.37M |
| Total Liabilities | 1.06B | 1.08B | 1.02B | 903.59M | 947.27M | 1.19B |
| Stockholders Equity | 2.74B | 2.85B | 2.91B | 3.00B | 2.87B | 3.06B |
Cash Flow | ||||||
| Free Cash Flow | 215.59M | 371.04M | 319.48M | 432.86M | 244.87M | 296.46M |
| Operating Cash Flow | 259.03M | 453.15M | 429.94M | 503.18M | 299.92M | 417.72M |
| Investing Cash Flow | 108.35M | 42.31M | -392.44M | -506.58M | -47.91M | -104.57M |
| Financing Cash Flow | -202.49M | -328.08M | -333.31M | -329.04M | -347.82M | -519.84M |
Ajisen (China) Holdings Limited Technical Analysis
Neutral
1.02
Price Trends
0.81
Negative
0.83
Negative
0.81
Negative
Market Momentum
>-0.01
Negative
48.90
Neutral
58.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0538, the sentiment is Neutral. The current price of 1.02 is above the 20-day moving average (MA) of 0.80, above the 50-day MA of 0.81, and above the 200-day MA of 0.81, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.90 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0538.
Ajisen (China) Holdings Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | HK$63.43B | 12.12 | 40.40% | 7.36% | 10.63% | -5.49% | |
66 Neutral | HK$3.02B | 18.48 | 6.13% | 7.42% | -4.50% | -29.22% | |
63 Neutral | HK$1.47B | 10.35 | 15.54% | 7.59% | 8.46% | 56.14% | |
62 Neutral | HK$873.23M | 35.46 | 0.75% | 9.89% | 8.18% | 100.92% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | HK$624.44M | 14.27 | 6.33% | 6.56% | -0.04% | 16.95% | |
60 Neutral | HK$246.77M | 25.57 | 1.95% | 14.52% | -2.56% | -23.91% |
* Consumer Cyclical Sector Average
HK:0538
Ajisen (China) Holdings Limited
0.80
-0.15
-15.61%
HK:0052
Fairwood Holdings
4.57
-0.61
-11.87%
HK:6862
Haidilao International Holding
10.34
-2.33
-18.40%
HK:1314
Tsui Wah Holdings Ltd.
0.18
>-0.01
-3.76%
HK:0341
Cafe de Coral Holdings Ltd.
5.39
-1.07
-16.50%
HK:6811
Tai Hing Group Holdings Ltd.
1.52
0.50
50.00%
Ajisen (China) Holdings Limited Corporate Events
Ajisen China Flags Lower Interim Profit on Rising Costs and Falling Rental Income
Aug 18, 2026
Ajisen (China) Holdings Limited has warned that profit attributable to shareholders for the six months ended 30 June 2026 is expected to fall to no more than RMB20.0 million, down from approximately RMB24.2 million a year earlier. The drop undersc...
Ajisen China Sets August Board Meeting to Approve Interim Results and Mull Dividend
Aug 13, 2026
Ajisen (China) Holdings Limited has scheduled a board meeting for 27 August 2026 to review and approve the group’s interim results for the six months ended 30 June 2026, with subsequent publication of these figures. The board will also consi...
Ajisen China Renews Related-Party Leases for Shenzhen Offices
Jun 30, 2026
Ajisen (China) Holdings Limited has renewed lease agreements for its Shenzhen office premises, with its wholly owned subsidiaries Weiqian Noodle Food Service and Weiqian Noodle entering new leases with chairwoman and controlling shareholder Ms. Po...
Ajisen (China) Shareholders Approve All AGM Resolutions, Back Dividends and Capital Mandates
Jun 23, 2026
Ajisen (China) Holdings reported that all resolutions proposed at its 23 June 2026 annual general meeting were approved by shareholders, covering financial statements for the year ended 31 December 2025, a final and special dividend, re-election o...
Ajisen (China) Sets 2026 AGM to Approve Results, Dividends and New Share Mandate
May 29, 2026
Ajisen (China) Holdings Limited has called its annual general meeting for 23 June 2026 in Hong Kong, where shareholders will review and adopt the audited consolidated financial statements and directors’ and auditor’s reports for the ye...
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.