MasterBeef Group (NasdaqCM:MB) Swings to TTM Loss, Reinforcing Bearish Margin Narratives

MasterBeef Group (NasdaqCM:MB) has just posted its H1 2025 scorecard, with trailing twelve month revenue of about HK$490 million and Basic EPS of roughly negative HK$2.21, underscoring that the business is still in the red. The company has seen revenue move from about HK$520 million with Basic EPS of HK$5.97 in early 2024 to roughly HK$491 million and Basic EPS of negative HK$2.21 over the latest twelve months, a shift that keeps investor attention firmly on whether margins can stabilize from here.

See our full analysis for MasterBeef Group.

With the numbers on the table, the next step is to weigh them against the most widely held narratives around MasterBeef, to see which margin stories still hold up and which ones need a rethink.

Curious how numbers become stories that shape markets? Explore Community Narratives

Revenue Slips 5.7 percent Year on Year

• Over the last 12 months, MasterBeef’s revenue fell 5.7 percent to about HK$490 million, compared with roughly HK$520 million a year earlier.
• Critics highlight that this top line pressure, together with trailing 12 month net income of about negative HK$39 million, supports a bearish angle that the business is still struggling to convert sales into sustainable profits.
  • The move from HK$519.6 million in revenue in early 2024 to about HK$490.2 million more recently lines up with that concern about softer demand.
  • At the same time, the swing from HK$40.2 million profit in H1 2024 to a loss of HK$39.1 million over the latest 12 months shows how quickly earnings can move when sales weaken.

Profits Swing From HK$40 Million to Loss

• Net income excluding extra items moved from a profit of HK$40.2 million in H1 2024 and HK$32.9 million in H2 2024 to a trailing 12 month loss of HK$39.1 million.
• Bears argue that this reversal backs a cautious stance, since the company has gone from positive Basic EPS of HK$6.47 in H1 2024 and HK$2.56 in H2 2024 to negative HK$2.21 over the latest year.
  • The combination of a smaller revenue base and a nearly HK$72 million swing from H1 2024 profit to the current loss is a clear stress point for the bearish view.
  • Even H2 2024, which showed HK$259.7 million in revenue, ended with a loss of HK$7.3 million, reinforcing that recent profitability has been uneven at best.

Investors who see this profit reversal as the start of a longer downtrend may want to explore how that view stacks up against detailed bear case scenarios. 🐻 MasterBeef Group Bear Case

Valuation Stretched Versus DCF Fair Value

• On valuation, MasterBeef trades at a price to sales of 1.7 times, in line with the wider hospitality industry and below peers at 2.6 times. However, its HK$6.13 share price still sits far above the US$0.53 DCF fair value estimate.
• What is striking for valuation focused investors is the tension between a seemingly reasonable sales multiple and a bearish DCF view that points to limited support for the current price.
  • Being cheaper than peers on price to sales can look attractive, but the stock trading at a level more than ten times the DCF fair value of 0.53 suggests the cash flow outlook is not backing that relative multiple.
  • Combined with the trailing 12 month loss of HK$39.1 million, the gap between fundamentals and the DCF fair value anchors a cautious interpretation of today’s valuation.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on MasterBeef Group's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

Explore Alternatives

MasterBeef’s shrinking revenue base, swing into losses and stretched valuation versus DCF fair value suggest its current risk reward trade off looks unappealing.

If you would rather focus on stocks where price better reflects fundamentals, use our these 914 undervalued stocks based on cash flows to quickly find candidates that may offer stronger value right now.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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