Happy City Holdings Limited (HCHL) AI Stock Analysis
HCHL AI stock analysis summary
AI ResearchHappy City Holdings Limited operates hotpot restaurants in Hong Kong under the Thai Pot and Gyu! Gyu! Shabu Shabu brands. In FY2025, revenue fell 18.0% to $6.8M, resulting in a net loss of -$2.4M and negative free cash flow of -$2.2M. Over the trailing twelve months, revenue totaled $5.0M with an operating margin of -110.0%.
- Market cap
- $118.2M
- Revenue (TTM)
- $5.0M
- P/E
- —
- 1Y return
- — S&P 500 16.8%
- Avg. target
- —
Bull case
- Happy City achieved profitability in FY2024, generating $8.3M in revenue and $1.3M in net income.
- The balance sheet held $3.7M in cash and short-term investments as of November 30, 2025.
- Insiders hold 33.8% of the company's equity, aligning leadership with public shareholders.
Bear case
- Revenue dropped 18.0% in FY2025 to $6.8M, resulting in a net loss of -$2.4M.
- The trailing twelve-month operating margin fell to -110.0%, driving an EPS of -$0.52.
- Free cash flow was negative at -$2.2M in FY2025, accompanied by net debt of $868,319.
What Happy City does
Happy City Holdings Limited, through its subsidiaries, operates hotpot restaurants providing food and beverage services to customers in Hong Kong. The company runs Thai and Japanese hotpot restaurants under the Thai Pot and Gyu! Gyu! Shabu Shabu brand names. Incorporated in 2021, Happy City Holdings is headquartered in Kwai Chung, Hong Kong, and operates as a subsidiary of Happy City Group Limited. The company has 33 employees.
Growth and profitability
Revenue stood at $6.8M in FY2023 before rising 22.8% to $8.3M in FY2024, when net income reached $1.3M and operating margin turned positive at 15.8%. In FY2025, revenue fell 18.0% to $6.8M and net income declined to -$2.4M, with a gross margin of 12.6% and an operating margin of -33.4%. Over the two-year period from FY2023 to FY2025, revenue increased at a CAGR of 0.3%. For the trailing twelve months ending August 31, 2025, revenue fell to $5.0M, with quarterly revenue declining 44.2% year-over-year. The trailing twelve-month operating margin was -110.0% and diluted earnings per share were -$0.52.
Balance sheet and cash flow
As of November 30, 2025, Happy City Holdings held $3.7M in cash and short-term investments alongside total debt of $4.6M, resulting in net debt of $868,319. Total assets stood at $8.0M and shareholders' equity was $2.2M, with a debt-to-equity ratio of 2.06 and a current ratio of 0.83. Operating cash flow in FY2025 was -$1.3M, and free cash flow was -$2.2M following capital expenditures of $908,185.
Valuation and performance
Happy City Holdings has a market capitalization of $118.2M and an enterprise value of $118.7M. The stock trades at a price-to-sales ratio of 23.8x and an enterprise value-to-revenue multiple of 23.9x, compared to the median of 0.7x for its US-listed Consumer Cyclical peers. Its enterprise value-to-EBITDA multiple is 21.3x, above the peer median of 11.1x, and its price-to-book ratio is 45.3x. The stock last closed at $3.96 on October 16, 2026, identical to its 52-week high of $3.96 and 52-week low of $3.96, while the S&P 500 generated a 1-year return of 16.8%.
What analysts expect
Happy City Holdings completed its initial public offering in 2025 and currently has no published consensus analyst ratings, price targets, or earnings estimates. There is no recorded earnings track record or scheduled next earnings date. The stock last closed at $3.96 on October 16, 2026. Company insiders own 33.8% of the equity, while institutions hold 2.3%, and short interest accounts for 2.4% of the float.
Key risks and what to watch
- Quarterly revenue fell 44.2% year-over-year for the period ending August 31, 2025, reflecting steep top-line contraction.
- A current ratio of 0.83 as of November 30, 2025, signals that short-term obligations exceed liquid assets.
- Ongoing cash burn of -$1.3M in operating cash flow during FY2025 threatens the existing cash position of $3.7M.
- The company trades at a price-to-sales multiple of 23.8x, well above the US-listed Consumer Cyclical peer median of 0.7x.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this HCHL AI stock analysis
This page is an AI-written research summary of Happy City Holdings Limited (HCHL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: HCHL income statement, HCHL balance sheet, HCHL key metrics, HCHL chart. See the HCHL stock overview for the latest quote and news.
HCHL AI stock analysis FAQ
What restaurants does Happy City Holdings Limited operate?
Happy City Holdings operates hotpot restaurants in Hong Kong under the Thai Pot and Gyu! Gyu! Shabu Shabu brand names.
What were Happy City's financial results in FY2025?
In FY2025, Happy City recorded revenue of $6.8M, a net loss of -$2.4M, and negative free cash flow of -$2.2M.
How much debt and cash does Happy City have?
As of November 30, 2025, the company had $3.7M in cash and short-term investments, $4.6M in total debt, and net debt of $868,319.
Does Happy City Holdings pay a dividend?
Happy City Holdings does not pay a dividend.
Who owns Happy City Holdings Limited?
Happy City Holdings is a subsidiary of Happy City Group Limited. Insiders hold 33.8% of the equity, while institutions hold 2.3%.