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Crown International Corporation Limited (HK:0727)
:0727
Hong Kong Market

Crown International Corporation Limited (0727) AI Stock Analysis

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HK:0727

Crown International Corporation Limited

(0727)

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Neutral 45 (OpenAI - 5.2)
Rating:45Neutral
Price Target:
HK$0.88
▲(17.07% Upside)
Crown International Corporation Limited's overall stock score reflects significant financial challenges and bearish technical indicators. The company's high leverage and negative cash flow trends pose substantial risks, while technical analysis indicates weak market sentiment. The reasonable P/E ratio provides some valuation support but is insufficient to offset the financial and technical concerns.
Positive Factors
Operational Efficiency
Improved operational efficiency as indicated by positive EBIT and EBITDA margins suggests better cost management and potential for profitability.
Profitability
A strong gross profit margin indicates effective pricing strategies and cost control, contributing to sustainable profitability.
Product Diversification
Diversification across multiple product lines helps mitigate risks associated with reliance on a single market or product.
Negative Factors
High Leverage
Significant leverage increases financial risk and can limit the company's ability to invest in growth opportunities.
Negative Cash Flow
Negative cash flow trends indicate potential liquidity issues, affecting the company's ability to fund operations and growth.
Revenue Decline
Inconsistent revenue growth can hinder long-term planning and investment, impacting overall business stability.

Crown International Corporation Limited (0727) vs. iShares MSCI Hong Kong ETF (EWH)

Crown International Corporation Limited Business Overview & Revenue Model

Company DescriptionCrown International Corporation Limited, an investment holding company, engages in the property investment and development business in the People's Republic of China. It operates through Property Investment, Property Development, Hotel Operations, Financial Consultancy Service, and Comprehensive Healthcare Planning and Management Services segments. The company also invests in and operates hotels; and offers financial consultancy, healthcare planning and management, and administration services. In addition, it engages in the hotel rental and food and beverage business, as well as sells healthcare products. The company was formerly known as VXL Capital Limited and changed its name to Crown International Corporation Limited in August 2014. Crown International Corporation Limited was incorporated in 1993 and is based in Wan Chai, Hong Kong.
How the Company Makes MoneyCrown International Corporation Limited generates revenue through several key streams: the sale of manufactured products, including electronics and textiles, which constitute a significant portion of its earnings. The company also profits from trading activities, where it acts as an intermediary in the supply chain, facilitating the distribution of goods. Additionally, Crown International may engage in partnerships with other manufacturers and distributors to expand its market reach, allowing for shared resources and increased sales opportunities. The company's strategic focus on innovation and quality assurance plays a crucial role in securing long-term contracts and repeat business, further enhancing its financial performance.

Crown International Corporation Limited Financial Statement Overview

Summary
Crown International Corporation Limited faces significant financial challenges. Despite some improvements in profitability and operational efficiency, the company is heavily leveraged with a high debt-to-equity ratio and negative cash flow trends, indicating potential liquidity issues and financial risk.
Income Statement
Crown International Corporation Limited has shown significant volatility in its income statement metrics. The gross profit margin for the latest year is approximately 27.9%, which is a positive indicator of profitability. However, the net profit margin is around 14.5%, reflecting a substantial improvement from previous years but still indicating challenges in converting revenue to profit. Revenue growth has been inconsistent, with a significant decline in the most recent period. The EBIT and EBITDA margins are positive at 21.1% and 22.4% respectively, showing improved operational efficiency compared to previous losses.
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 2.21, indicating significant leverage which poses financial risk. Return on equity is approximately 4.3%, suggesting modest returns for shareholders. The equity ratio stands at 24.8%, reflecting a relatively low proportion of equity financing. Overall, the balance sheet shows a heavily leveraged position, which could be a concern if revenue growth does not stabilize.
Cash Flow
Cash flow analysis indicates negative free cash flow growth, with a substantial decline in operating cash flow compared to the previous year. The operating cash flow to net income ratio is negative, highlighting inefficiencies in cash generation relative to net income. The free cash flow to net income ratio is also negative, indicating challenges in generating free cash flow from earnings. These factors suggest potential liquidity issues and a need for improved cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue111.41M111.41M183.46M417.00K17.50M13.87M
Gross Profit17.46M31.11M47.32M417.00K4.00M13.87M
EBITDA23.39M24.90M-66.69M-334.54M-804.73M0.00
Net Income16.14M16.14M-126.78M-1.07B-726.37M-105.24M
Balance Sheet
Total Assets1.51B1.51B1.44B1.66B2.97B3.63B
Cash, Cash Equivalents and Short-Term Investments110.73M110.73M177.59M4.26M714.00K1.05M
Total Debt827.14M827.14M810.83M866.07M659.05M657.25M
Total Liabilities1.14B1.14B1.32B1.49B1.66B1.68B
Stockholders Equity374.70M374.70M121.20M164.78M1.31B1.95B
Cash Flow
Free Cash Flow0.00-316.76M270.66M-270.58M-19.92M-4.22M
Operating Cash Flow0.00-316.76M270.66M-270.58M-19.92M71.14M
Investing Cash Flow0.007.65M-32.20M242.46M84.63M-74.73M
Financing Cash Flow0.00241.25M-58.98M25.13M-65.11M3.07M

Crown International Corporation Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.75
Price Trends
50DMA
0.82
Negative
100DMA
1.02
Negative
200DMA
1.12
Negative
Market Momentum
MACD
<0.01
Negative
RSI
43.49
Neutral
STOCH
59.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0727, the sentiment is Negative. The current price of 0.75 is below the 20-day moving average (MA) of 0.79, below the 50-day MA of 0.82, and below the 200-day MA of 1.12, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 43.49 is Neutral, neither overbought nor oversold. The STOCH value of 59.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0727.

Crown International Corporation Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
HK$945.00M22.305.26%4.14%-5.08%27.33%
63
Neutral
HK$541.80M48.280.38%-5.91%-94.58%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
54
Neutral
HK$405.47M-11.72-4.27%1303.01%-45.00%
45
Neutral
HK$286.16M-42.65-7.00%-49.07%94.90%
44
Neutral
HK$407.65M-1.2719.34%18.13%
41
Neutral
HK$349.93M-16.91-4.23%-32.80%57.37%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0727
Crown International Corporation Limited
0.90
-0.80
-47.06%
HK:0021
Great China Holdings (Hong Kong) Limited
0.10
-0.01
-11.30%
HK:2205
Kangqiao Service Group Limited
1.34
0.64
91.43%
HK:0037
Far East Hotels & Entertainment Ltd.
0.46
-0.04
-8.00%
HK:0432
Pacific Century Premium Developments Limited
0.20
0.01
6.84%
HK:0606
SCE Intelligent Commercial Management Holdings Limited
0.28
0.03
12.00%

Crown International Corporation Limited Corporate Events

Crown International Moves to Withdraw Unapproved Liquidation of Mainland Subsidiary
Jan 14, 2026

Crown International Corporation has disclosed that its indirect wholly owned subsidiary, Weihai Guosheng Runhe Property Development Co. Ltd., filed for voluntary liquidation with a court in Shandong Province last year without the knowledge or approval of the company’s board, which only became aware of the move in January 2026. The company, having obtained PRC legal advice that the liquidation application can be withdrawn at any time and noting that control of the subsidiary, its assets and creditor payments remain unchanged, plans to procure the withdrawal of the application, believes the incident has not had a material adverse impact on the group’s financial position, and will conduct an internal inquiry while cautioning investors when dealing in its securities.

The most recent analyst rating on (HK:0727) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Crown International Corporation Limited stock, see the HK:0727 Stock Forecast page.

Crown International Calls EGM to Approve Major Rights Issue
Dec 19, 2025

Crown International Corporation Limited has called an extraordinary general meeting in Hong Kong on 15 January 2026 for shareholders to vote on a proposed rights issue of up to 953,883,000 new shares at HK$0.65 per share, on the basis of three rights shares for every one existing share held on the record date. The fundraising plan, which is conditional on shareholder approval and the Hong Kong Stock Exchange’s agreement to list the new rights shares, would significantly expand the company’s share capital and give directors broad authority to implement the issue and make necessary exclusions or arrangements for non-qualifying overseas shareholders, potentially affecting ownership structure and capital resources for existing investors.

The most recent analyst rating on (HK:0727) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Crown International Corporation Limited stock, see the HK:0727 Stock Forecast page.

Crown International Reports Interim Financial Results for 2025
Nov 28, 2025

Crown International Corporation Limited, incorporated in Hong Kong, has announced its unaudited interim results for the six months ending September 30, 2025. The results, reviewed by the company’s audit committee, provide comparative figures for the same period in 2024, highlighting the company’s financial performance and operational insights.

The most recent analyst rating on (HK:0727) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Crown International Corporation Limited stock, see the HK:0727 Stock Forecast page.

Crown International Issues Profit Warning Amid Rising Losses
Nov 24, 2025

Crown International Corporation Limited has issued a profit warning, indicating a significant increase in consolidated losses for the period ending 30 September 2025, ranging between HK$32 million and HK$36 million, compared to a HK$2 million loss in the previous year. The increased losses are attributed to a rise in operating and marketing expenses related to premium white spirit trading and recognized impairment losses, impacting the company’s financial standing and advising caution to shareholders and investors.

The most recent analyst rating on (HK:0727) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Crown International Corporation Limited stock, see the HK:0727 Stock Forecast page.

Crown International Proposes HK$620 Million Rights Issue
Nov 21, 2025

Crown International Corporation Limited has announced a proposed rights issue to raise approximately HK$620 million by offering three rights shares for every existing share at HK$0.65 per share. The rights issue is aimed at qualifying shareholders and will proceed on a non-underwritten basis, with the potential to significantly increase the company’s share capital. The initiative requires approval from independent shareholders and is supported by an independent board committee and financial adviser to ensure the terms are fair and reasonable.

The most recent analyst rating on (HK:0727) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Crown International Corporation Limited stock, see the HK:0727 Stock Forecast page.

Crown International Announces Board Meeting for Interim Results and Dividend Consideration
Nov 12, 2025

Crown International Corporation Limited has announced a board meeting scheduled for November 28, 2025, to discuss and approve the interim financial results for the six months ending September 30, 2025. The meeting will also consider the possibility of declaring a dividend, which could impact the company’s financial strategy and shareholder returns.

The most recent analyst rating on (HK:0727) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Crown International Corporation Limited stock, see the HK:0727 Stock Forecast page.

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: Nov 22, 2025