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Ajisen (China) Holdings Limited (0538) AI Stock Analysis
Ajisen (China) Holdings Limited
(HKEX:0538)
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.
Ajisen (China) Holdings Limited (0538) vs. iShares MSCI Hong Kong ETF (EWH)
- Market Cap
- HKD 845.94M
- Dividend Yield
- 10.21%
- Average Volume (3M)
- 702.30K
- Price to Earnings (P/E)
- 34.0
- Beta (1Y)
- 0.40
- Revenue Growth
- 8.18%
- EPS Growth
- 100.92%
- Country
- Hong Kong
- Employees
- 1,600
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Restaurants
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 and S...
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 acro...
Ajisen (China) Holdings Limited Financial Statement Overview
Summary
Balance sheet strength (low leverage; debt-to-equity ~0.23) and consistently positive/free cash flow (FCF 371M in 2025) support financial stability. Offsetting this, profitability is uneven: gross margin fell sharply in 2025 (~32% vs ~48–49% prior years) and net margin is thin (~1.6%) after a 2024 loss, indicating weak and volatile earnings power.
Income Statement
54NeutralBalance Sheet
78PositiveCash Flow
73Positive| 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 | 407.32M | 404.79M | 336.64M | 583.75M | 216.74M | 403.84M |
| 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 | 327.98M | 371.04M | 319.48M | 432.86M | 244.87M | 296.46M |
| Operating Cash Flow | 400.40M | 453.15M | 429.94M | 503.18M | 299.92M | 417.72M |
| Investing Cash Flow | -213.70M | 42.31M | -392.44M | -506.58M | -47.91M | -104.57M |
| Financing Cash Flow | -353.15M | -328.08M | -333.31M | -329.04M | -347.82M | -519.84M |
Ajisen (China) Holdings Limited Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0538, the sentiment is Negative. The current price of 0.78 is below the 20-day moving average (MA) of 0.79, below the 50-day MA of 0.79, and below the 200-day MA of 0.82, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 43.10 is Neutral, neither overbought nor oversold. The STOCH value of 29.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0538.
Ajisen (China) Holdings Limited Peers Comparison
Overall Rating
HK:681172Outperform
HK:686268Neutral
HK:005263Neutral
HK:034162Neutral- HK:053862Neutral
HK:131451Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| HK:6811 | 72Outperform | HKD 1.52B | 10.69 | 15.54% | 7.13% | 8.46% | 56.14% |
| HK:6862 | 68Neutral | HKD 52.53B | 10.93 | 40.40% | 8.07% | 10.63% | -5.49% |
| HK:0052 | 63Neutral | HKD 642.58M | 15.50 | 6.33% | 6.04% | -0.04% | 16.95% |
| HK:0341 | 62Neutral | HKD 3.35B | 20.37 | 6.13% | 6.73% | -4.50% | -29.22% |
| HK:0538 | 62Neutral | HKD 845.94M | 34.00 | 0.75% | 10.21% | 8.18% | 100.92% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| HK:1314 | 51Neutral | HKD 223.33M | 23.14 | 1.95% | ― | -2.56% | -23.91% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HK:0538 | Ajisen (China) Holdings Limited | 0.78 | -0.08 | -9.04% | |
| HK:0052 | Fairwood Holdings | 4.96 | 0.16 | 3.23% | |
| HK:6862 | Haidilao International Holding | 9.43 | -2.67 | -22.08% | |
| HK:1314 | Tsui Wah Holdings Ltd. | 0.16 | -0.02 | -10.50% | |
| HK:0341 | Cafe de Coral Holdings Ltd. | 5.94 | 0.10 | 1.69% | |
| HK:6811 | Tai Hing Group Holdings Ltd. | 1.56 | 0.53 | 51.35% |
Ajisen (China) Holdings Limited Corporate Events
Ajisen China Flags Lower Interim Profit on Rising Costs and Falling Rental Income
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 underscore...
Ajisen China Sets August Board Meeting to Approve Interim Results and Mull Dividend
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 consider...
Ajisen China Renews Related-Party Leases for Shenzhen Offices
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. Poon...
Ajisen (China) Shareholders Approve All AGM Resolutions, Back Dividends and Capital Mandates
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 of d...
Ajisen (China) Sets 2026 AGM to Approve Results, Dividends and New Share Mandate
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 year...
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.
Date of analysis: Aug 06, 2026