Ying Kee Tea House Group Ltd. (8241) AI Stock Analysis

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Ying Kee Tea House Group Ltd.

(HKEX:8241)

Select Model

Rating:41.3Neutral

Price Target:HKD 0.14▼(-4.17% Downside)

Action:reiterated

Date:10/01/26

The overall score is low primarily due to very weak fundamentals: shrinking revenue, rapidly widening losses, and a highly leveraged balance sheet with negative equity and only modest, declining cash flows create significant financial risk. Technical indicators add further caution, with negative momentum and deeply oversold readings suggesting continued selling pressure despite the price holding slightly above key moving averages. Valuation does little to offset these concerns, as a negative P/E and lack of dividend leave investors exposed to high risk without clear compensation or evidence of improving profitability.

Positive Factors

Positive Cash GenerationPositive operating and free cash flow show that the tea business still converts operations into cash despite reported losses. This provides some internal funding capacity and a measurable cushion for ongoing obligations, although the benefit is weakened by the recent decline in cash generation.

Negative Factors

Multi-Year Revenue DeclineA multi-year revenue decline signals weakening scale and makes it harder for fixed operating costs to be absorbed efficiently. Continued contraction could reduce purchasing leverage, restrict reinvestment, and undermine the company’s ability to restore profitability over the next several quarters.

Ying Kee Tea House Group Ltd. (8241) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 52.08M
Dividend Yield: ―
Average Volume (3M): 83.03K
Price to Earnings (P/E): -1.9
Beta (1Y): 0.19
Revenue Growth: -4.28%
EPS Growth: -65.10%
Country: Hong Kong
Employees: 47
Sector: Consumer Defensive
Sector Strength: 62
Industry: Grocery Stores

Ying Kee Tea House Group Ltd. Business Overview & Revenue Model

Company Description

Ying Kee Tea House Group Limited, an investment holding company, engages in the retail trading of tea products for individual and corporate customers in Hong Kong. The company offers various tea products, including pu-erh, green, black, old luk on, w...

Ying Kee Tea House Group Ltd. Financial Statement Overview

Summary

Financial performance is very weak: revenue has declined about 20% from HKD 36.1m in 2021 to HKD 28.98m in 2026, net losses have widened from HKD 9.1m to HKD 27.9m, profit margins have deteriorated to around -96%, and the balance sheet shows high debt with negative equity, only partially offset by still-positive but shrinking operating and free cash flow.

Income Statement

18Very Negative

Balance Sheet

10Very Negative

Cash Flow

32Negative

Financial statement breakdown
Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	28.98M	28.98M	30.28M	33.94M	37.44M	36.06M
Gross Profit	20.94M	19.62M	23.22M	26.17M	28.75M	27.94M
EBITDA	-18.05M	-17.92M	-5.53M	422.00K	7.83M	5.85M
Net Income	-27.88M	-27.88M	-16.88M	-14.68M	-6.07M	-7.78M
Balance Sheet
Total Assets	61.47M	61.47M	87.15M	101.58M	110.61M	117.49M
Cash, Cash Equivalents and Short-Term Investments	2.56M	2.56M	1.47M	2.91M	2.28M	1.87M
Total Debt	81.12M	81.12M	91.72M	92.21M	86.91M	94.71M
Total Liabilities	90.65M	90.65M	97.90M	95.01M	89.23M	97.10M
Stockholders Equity	-29.18M	-29.18M	-10.75M	6.57M	21.38M	20.39M
Cash Flow
Free Cash Flow	2.54M	2.54M	4.94M	3.63M	9.28M	7.71M
Operating Cash Flow	2.69M	2.69M	5.06M	3.91M	9.33M	7.88M
Investing Cash Flow	2.94M	2.94M	-125.00K	-349.00K	-48.00K	-163.00K
Financing Cash Flow	-4.54M	-4.54M	-6.38M	-5.04M	-8.88M	-9.76M

Ying Kee Tea House Group Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price0.14

Price Trends

50DMA0.17Negative

100DMA0.17Negative

200DMA0.14Negative

Market Momentum

MACD-0.01Positive

RSI17.06Positive

STOCH-12.00Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8241, the sentiment is Negative. The current price of 0.14 is below the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.17, and above the 200-day MA of 0.14, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 17.06 is Positive, neither overbought nor oversold. The STOCH value of -12.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8241.

Ying Kee Tea House Group Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

HK:8241 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:0345	75Outperform	HKD 6.21B	23.63	9.30%	2.85%	-3.39%	20.09%
HK:0151	70Outperform	HKD 32.92B	5.78	25.72%	3.82%	5.80%	-9.69%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HK:6868	61Neutral	HKD 2.80B	19.91	6.79%	4.23%	-7.14%	5.00%
HK:0322	57Neutral	HKD 71.31B	12.78	33.44%	3.64%	3.53%	17.26%
HK:8241	41Neutral	HKD 52.08M	-1.87	124.75%	―	-4.28%	-65.10%

* Consumer Defensive Sector Average

Performance Comparison

HK:8241 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:8241	Ying Kee Tea House Group Ltd.	0.14	0.01	10.77%
HK:0151	Want Want China	2.83	-2.09	-42.54%
HK:0322	Tingyi (Cayman Islands) Holding Corp	12.65	2.50	24.68%
HK:6868	Tenfu (Cayman) Holdings Co	2.60	-0.23	-8.26%
HK:0345	Vitasoy International Holdings	6.14	-1.21	-16.39%
HK:6980	Bama Tea Co. Ltd. Class H	19.70	-64.51	-76.61%

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.

Date of analysis: Oct 01, 2026

Ying Kee Tea House Group Ltd. AI Stock Analysis

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