Taste Gourmet Group Ltd. (8371) AI Stock Analysis

• Market Cap: HK$628.48M
• Dividend Yield: 8.12%
• Average Volume (3M): 175.07K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.30
• Revenue Growth: 23.80%
• EPS Growth: 6.14%
• Country: HK
• Employees: 1,615
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Restaurants
• EPS (TTM): 0.23
• Shares Outstanding: 380,894,000
• 10 Day Avg. Volume: 255,600
• 30 Day Avg. Volume: 175,066
• PEG Ratio: -0.28
• Price to Book (P/B): 2.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.19
• 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

• Rating: 73 Outperform
• Price Target: ―

Taste Gourmet Group Ltd. has a strong financial foundation with robust revenue growth and profitability. Despite the technical indicators suggesting a cautious outlook, the stock's attractive valuation, including a low P/E ratio and high dividend yield, provide significant upside potential. The absence of new earnings call data or corporate events means the score heavily relies on financial performance and valuation.

Taste Gourmet Group Ltd. Business Overview & Revenue Model

Company Description

Taste Gourmet Group Ltd. (8371) is a Hong Kong-based company primarily engaged in the operation of restaurants. The company operates a diverse portfolio of dining brands that cater to different culinary preferences, including Japanese, Chinese, Western, and other Asian cuisines. Taste Gourmet Group is committed to providing high-quality dining experiences through its well-established brands across a variety of market segments, ensuring a broad appeal to consumers in the region.

How the Company Makes Money

The company makes money primarily through its restaurant operations, which generate revenue from direct sales to customers dining in their establishments. Key revenue streams include the sale of food and beverages across their various dining brands, with each brand targeting specific culinary tastes and customer demographics. Additionally, Taste Gourmet Group may engage in partnerships and collaborations with suppliers and other food service providers to optimize its supply chain and enhance operational efficiency, contributing to its profitability. The company's strategic location choices and brand diversification also play significant roles in attracting a steady flow of customers, thus driving consistent revenue growth.

Taste Gourmet Group Ltd. Financial Statement Overview

Summary

Taste Gourmet Group Ltd. demonstrates strong financial performance with impressive revenue growth, high profitability, and effective cash flow management. While the company has moderate leverage, it maintains a strong equity base and delivers excellent shareholder returns. Overall, the financials reflect a well-managed company poised for continued success in the restaurant industry.

Income Statement

Taste Gourmet Group Ltd. showed impressive revenue growth of 37% in the most recent period, indicating strong market demand and expansion. Gross profit margin improved to 25.1%, and net profit margin increased to 8.8%, highlighting enhanced profitability. The company's EBIT margin of 11.4% and EBITDA margin of 30% also reflect strong operational efficiency. Overall, the income statement reveals robust growth and profitability, positioning the company well in the competitive restaurant industry.

Balance Sheet

The balance sheet of Taste Gourmet Group Ltd. shows a moderate debt-to-equity ratio of 2.0, suggesting reliance on debt financing but within manageable levels. The equity ratio is 27.7%, indicating a stable equity base, though there's room for strengthening. Return on equity (ROE) at 39% reflects strong returns for shareholders. Despite the high leverage, the company maintains a solid equity position and delivers excellent returns.

Cash Flow

The company achieved a 9% growth in free cash flow, reinforcing its ability to generate cash effectively. The operating cash flow to net income ratio of 3.3 and free cash flow to net income ratio of 2.3 indicate strong cash generation capabilities relative to profits. These metrics underscore the company's robust cash flow management, supporting its operational and financial stability.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
1.12B	1.02B	747.52M	568.06M	379.02M	370.51M
	Gross Profit
423.88M	441.30M	306.78M	224.41M	154.91M	160.44M
	EBIT
317.94M	168.22M	67.22M	22.80M	3.38M	41.24M
	EBITDA
243.88M	307.35M	216.89M	150.63M	118.03M	115.35M
	Net Income Common Stockholders
88.42M	90.46M	68.57M	26.38M	24.97M	30.07M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
142.97M	142.97M	118.72M	64.50M	81.30M	64.20M
	Total Assets
835.15M	835.15M	688.55M	506.01M	446.20M	326.97M
	Total Debt
464.86M	464.86M	399.30M	304.85M	244.48M	183.26M
	Net Debt
321.88M	321.88M	280.58M	240.35M	163.18M	119.06M
	Total Liabilities
595.81M	595.81M	498.59M	351.07M	288.08M	205.90M
	Stockholders Equity
231.76M	231.76M	182.15M	147.63M	151.68M	121.07M
Cash Flow		Free Cash Flow
260.40M	205.82M	188.85M	94.13M	88.84M	77.79M
	Operating Cash Flow
326.53M	300.48M	248.00M	146.41M	122.67M	107.83M
	Investing Cash Flow
-71.59M	-96.72M	-65.03M	-55.09M	-45.86M	-31.78M
	Financing Cash Flow
-108.54M	-178.79M	-128.33M	-108.38M	-60.66M	-67.12M

Taste Gourmet Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8371, the sentiment is Positive. The current price of 1.65 is above the 20-day moving average (MA) of 1.59, above the 50-day MA of 1.55, and above the 200-day MA of 1.41, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 63.44 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8371.

Taste Gourmet Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8371	73 Outperform	HK$628.48M	7.08	38.43%	8.12%	23.80%	6.14%
6811	64 Neutral	HK$913.13M	15.06	6.54%	5.32%	2.49%	-33.12%
Sector *	62 Neutral	$6.88B	11.32	2.95%	3.87%	2.70%	-24.57%
1443	58 Neutral	HK$89.70M	11.50	5.22%	4.35%	1.74%	-46.43%
6820	53 Neutral	HK$1.74B	―	-4.15%	―	7.55%	64.78%
1181	53 Neutral	HK$188.30M	53.14	-8.51%	8.57%	-10.93%	-143.61%