Tsit Wing International Holdings Limited (2119) AI Stock Analysis

• Market Cap: HK$396.40M
• Dividend Yield: 7.12%
• Average Volume (3M): 85.13K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.34
• Revenue Growth: 4.61%
• EPS Growth: -23.88%
• Country: HK
• Employees: 374
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 0.03
• Shares Outstanding: 720,731,500
• 10 Day Avg. Volume: 61,000
• 30 Day Avg. Volume: 85,133
• PEG Ratio: 0.33
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 8.52
• 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: HK$0.50
• Price Target Upside: -9.09% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: HK$0.50 ▼(-9.09% Downside)

The overall stock score of 67 reflects a stable financial performance with strong profit margins and a conservative balance sheet. The stock's valuation is attractive due to a low P/E ratio and high dividend yield, appealing to value and income investors. However, bearish technical indicators suggest caution in the short term.

Tsit Wing International Holdings Limited Business Overview & Revenue Model

Company Description

Tsit Wing International Holdings Limited, an investment holding company, provides beverages and food products in Hong Kong, Mainland China, Canada, Australia, the United States, Taiwan, the Philippines, Malaysia, Singapore, and Macau. It operates in two segments, Beverage Solutions and Food Products. The Beverage Solutions segment processes and distributes coffee, tea, and related complementary products; sells food and beverages, coffee machines, and other related products; operates food and beverage stores; and leases coffee and tea machines. The Food Products segment trades in frozen foods. The company also engages in the processing of coffee beans. In addition, it provides catering training services. The company was founded in 1932 and is headquartered in Kwai Chung, Hong Kong. Tsit Wing International Holdings Limited is a subsidiary of Hero Valour Limited.

How the Company Makes Money

Tsit Wing International Holdings Limited generates its revenue through multiple streams, primarily from the sale of tea and coffee products. The company earns money by supplying bulk tea and coffee to businesses in the food service and retail sectors, along with direct sales to consumers through its own retail outlets. Additionally, Tsit Wing engages in private label production, allowing other brands to market its products under their own labels, which further diversifies its revenue. Strategic partnerships with various distributors and retailers enhance its market reach, while ongoing investments in product development and marketing campaigns contribute to sustained revenue growth.

Tsit Wing International Holdings Limited Financial Statement Overview

Summary

Tsit Wing International Holdings Limited maintains a stable financial position with strong profit margins and a conservative balance sheet. However, the company faces challenges with revenue growth and cash flow volatility, which may impact future performance.

Income Statement

The company shows stable gross and net profit margins with a slight decline in revenue over the recent period. Gross profit margin for 2024 was 33.96%, and net profit margin was 8.19%. EBIT and EBITDA margins are healthy at 8.47% and 11.82% respectively. Revenue growth has been slightly negative, highlighting some challenges in top-line expansion.

Balance Sheet

The balance sheet remains strong with a low debt-to-equity ratio of 0.07, indicating conservative leverage. Return on Equity (ROE) is modest at 11.59% for 2024. The equity ratio is solid at 74.91%, reflecting a strong equity position relative to total assets, which supports financial stability.

Cash Flow

Cash flow performance is mixed with a decrease in operating cash flow compared to the previous year. Free cash flow has declined significantly, resulting in a lower free cash flow to net income ratio. However, the operating cash flow to net income ratio remains robust at 1.30, indicating good cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	566.27M	721.12M	728.93M	695.94M	766.79M	638.51M
Gross Profit	176.05M	245.96M	239.50M	234.76M	298.98M	263.05M
EBITDA	60.12M	110.16M	99.33M	98.92M	140.70M	132.15M
Net Income	36.33M	59.09M	48.71M	47.42M	80.24M	76.80M
Balance Sheet
Total Assets	705.68M	680.17M	735.12M	730.57M	762.45M	684.74M
Cash, Cash Equivalents and Short-Term Investments	146.56M	170.45M	253.75M	189.79M	272.11M	276.81M
Total Debt	27.65M	33.23M	25.09M	26.65M	29.11M	25.46M
Total Liabilities	183.22M	170.51M	144.68M	155.34M	173.93M	132.24M
Stockholders Equity	522.46M	509.66M	590.44M	575.24M	588.52M	552.50M
Cash Flow
Free Cash Flow	-4.59M	49.04M	105.56M	-34.53M	66.38M	71.83M
Operating Cash Flow	15.72M	77.13M	143.35M	41.80M	97.59M	106.11M
Investing Cash Flow	-33.46M	-7.12M	-32.04M	-72.87M	-30.04M	-31.02M
Financing Cash Flow	-57.36M	-152.33M	-46.01M	-44.68M	-74.30M	-117.21M

Tsit Wing International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.55
• 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:2119, the sentiment is Negative. The current price of 0.55 is below the 20-day moving average (MA) of 0.57, below the 50-day MA of 0.58, and above the 200-day MA of 0.55, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 34.77 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2119.

Tsit Wing International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0506	78 Outperform	HK$11.30B	12.01	13.57%	4.11%	10.05%	9.01%
1587	71 Outperform	HK$421.60M	9.20	8.56%	3.63%	3.24%	47.81%
9633	69 Neutral	HK$616.31B	42.30	46.45%	1.56%	4.14%	7.35%
2119	67 Neutral	HK$396.40M	8.30	9.28%	7.12%	4.61%	-23.88%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
0236	56 Neutral	HK$466.96M	4.08	-1.15%	4.00%	2.77%	-110.76%
1446	44 Neutral	HK$288.62M	―	-6.43%	―	-6.79%	49.40%

Tsit Wing International Holdings Limited Corporate Events

Tsit Wing International Schedules Board Meeting for Financial Review

Tsit Wing International Holdings Limited has announced a board meeting scheduled for August 14, 2025, to discuss and approve the unaudited financial results for the first half of 2025 and to consider the declaration of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.

Tsit Wing International Issues Profit Warning Amid Rising Costs

Tsit Wing International Holdings Limited has issued a profit warning, anticipating a 30% to 35% decrease in profit for the first half of 2025 compared to the same period in 2024. This decline is attributed to the absence of a one-off asset disposal gain and increased procurement costs due to rising coffee bean prices, impacting the company’s financial performance and potentially affecting stakeholders.

Tsit Wing International Strengthens Board with New Appointments

Tsit Wing International Holdings Limited has appointed Ms. Yeung Po Yan and Mr. Ho Hung Wai as non-executive directors, effective June 12, 2025. Both bring extensive experience in management and finance, which is expected to strengthen the company’s strategic direction and governance. Their appointments, nominated by Dah Chong Hong Food International Holdings Limited, reflect a strategic alignment and potential for enhanced collaboration within the industry.

Tsit Wing International Holdings Limited Announces Board Composition

Tsit Wing International Holdings Limited announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement provides clarity on the leadership structure of the company, which is crucial for stakeholders to understand the governance and strategic direction of the company.

Tsit Wing International Holdings Enhances Governance with New Nomination Committee

Tsit Wing International Holdings Limited has established a Nomination Committee to oversee the appointment of directors and ensure proper governance. The committee will consist of at least three members, primarily independent non-executive directors, with a focus on gender diversity. This move is expected to enhance the company’s governance structure and ensure a more transparent and inclusive process for board appointments.

Tsit Wing International Holdings Announces New Board Structure

Tsit Wing International Holdings Limited has announced changes to its board of directors, effective from May 10, 2025. The company, which operates under the laws of Bermuda and is listed under stock code 2119, has appointed Wong Tat Tong as Chairman, with Fan Yee Man and Kam Chun Pong Bernard as Executive Directors. The board also includes Independent Non-executive Directors Tang Kwai Chang, Wong Man Fai, and Lok Kung Chin Hardy. The announcement outlines the roles and functions of the directors within the company’s audit, remuneration, and nomination committees, indicating a structured approach to governance and oversight.