Taste Gourmet Group Ltd. (8371) AI Stock Analysis

Taste Gourmet Group Ltd.

(HKEX:8371)

Select Model

Rating:70Outperform

Price Target:HKD 1.50▼(-11.76% Downside)

Action:reiterated

Date:10/24/26

Strong financial performance and very attractive valuation are the main positives, led by robust cash generation, profitability, a low P/E ratio, and a high dividend yield. These strengths are offset by substantial leverage and clear technical weakness, resulting in an overall score of 70.

Positive Factors

Revenue and profitability growthRevenue has continued scaling through 2026, while healthy gross, net, and EBIT margins indicate the enlarged business remains profitable. Improving profitability on a larger revenue base supports reinvestment capacity and provides a durable earnings foundation over the coming quarters.

Negative Factors

Debt exceeds equityDebt remains higher than equity, leaving the company more sensitive to operating setbacks and financing conditions than a less leveraged business. Interest and repayment obligations can constrain capital allocation, even though leverage has improved materially from earlier years.

Taste Gourmet Group Ltd. (8371) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 641.15M
Dividend Yield: 10.00%
Average Volume (3M): 221.68K
Price to Earnings (P/E): 3.7
Beta (1Y): 0.43
Revenue Growth: 10.70%
EPS Growth: 22.44%
Country: Hong Kong
Employees: 1,670
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Restaurants

Taste Gourmet Group Ltd. Business Overview & Revenue Model

Company Description

Taste Gourmet Group Limited functions as an investment firm, overseeing and operating a network of full-service restaurants and kiosks throughout Hong Kong and mainland China. Its portfolio currently encompasses 38 dining establishments, trading unde...

Taste Gourmet Group Ltd. Financial Statement Overview

Summary

Strong revenue growth, profitability, and cash generation support a high score. Positive free cash flow and operating cash flow exceeding net income are key strengths, while elevated leverage and recent gross-margin compression remain risks.

Income Statement

83Very Positive

Balance Sheet

69Positive

Cash Flow

88Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.65B	1.35B	1.22B	1.02B	747.52M	568.06M
Gross Profit	369.24M	336.98M	292.65M	441.30M	176.67M	110.58M
EBITDA	529.05M	386.92M	350.06M	307.35M	216.89M	150.63M
Net Income	136.83M	117.40M	95.53M	90.46M	68.57M	26.38M
Balance Sheet
Total Assets	912.04M	912.04M	876.76M	835.15M	688.55M	506.01M
Cash, Cash Equivalents and Short-Term Investments	265.58M	265.58M	190.89M	142.97M	118.72M	64.50M
Total Debt	411.12M	411.12M	449.68M	464.86M	399.30M	304.85M
Total Liabilities	579.61M	579.61M	603.95M	595.81M	498.59M	351.07M
Stockholders Equity	334.65M	334.65M	274.81M	231.76M	182.15M	147.63M
Cash Flow
Free Cash Flow	405.24M	328.28M	281.41M	205.82M	188.85M	94.13M
Operating Cash Flow	479.56M	386.15M	349.48M	300.48M	248.00M	146.41M
Investing Cash Flow	-118.65M	-69.40M	-73.52M	-96.72M	-65.03M	-55.09M
Financing Cash Flow	-352.95M	-242.98M	-227.79M	-178.79M	-128.33M	-108.38M

Taste Gourmet Group Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1.70

Price Trends

50DMA1.97Negative

100DMA1.89Negative

200DMA1.86Negative

Market Momentum

MACD-0.10Positive

RSI35.88Neutral

STOCH34.37Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8371, the sentiment is Negative. The current price of 1.70 is below the 20-day moving average (MA) of 1.93, below the 50-day MA of 1.97, and below the 200-day MA of 1.86, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 35.88 is Neutral, neither overbought nor oversold. The STOCH value of 34.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8371.

Taste Gourmet Group Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

HK:8371 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:6811	72Outperform	HKD 1.52B	10.79	15.54%	7.06%	8.46%	56.14%
HK:8371	70Outperform	HKD 650.72M	3.67	55.55%	10.00%	10.70%	22.44%
HK:0052	63Neutral	HKD 642.58M	15.27	6.33%	6.13%	-0.04%	16.95%
HK:0341	62Neutral	HKD 3.35B	20.40	6.13%	6.72%	-4.50%	-29.22%
HK:0538	62Neutral	HKD 845.94M	33.41	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	23.00	1.95%	―	-2.56%	-23.91%

* Consumer Cyclical Sector Average

Performance Comparison

HK:8371 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:8371	Taste Gourmet Group Ltd.	1.70	0.02	0.95%
HK:0052	Fairwood Holdings	4.88	0.05	1.08%
HK:1314	Tsui Wah Holdings Ltd.	0.16	-0.02	-9.94%
HK:0341	Cafe de Coral Holdings Ltd.	5.95	0.10	1.69%
HK:0538	Ajisen (China) Holdings Limited	0.76	-0.08	-9.85%
HK:6811	Tai Hing Group Holdings Ltd.	1.58	0.54	51.49%

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 24, 2026

Taste Gourmet Group Ltd. AI Stock Analysis