MASTERBEEF GROUP

Leading Hong Kong Taiwanese-hotpot chain whose FY2024 profit was driven by a one-time disposal gain.

Strengths

• Category leader (~9.7% share) with decent ROA (10.7%, 84th pct) and net margin (6.5%, 78.6th pct)
• Positive FCF/OCF generation

Risks

• FY2024 profit largely from a HK$58.7M one-off disposal gain; the subsequent year swung to a HK$52.5M loss
• High leverage (D/E 2.18, 89.7th pct), declining revenue (-4.8%) and inflated ROE (115%)

Notable findings

• High leverageHigh leverage (debt/equity 2.18)
• Weak liquidityCurrent ratio 0.83 (<1)