Crown International Corporation Limited (0727) AI Stock Analysis

• Market Cap: HK$435.61M
• Dividend Yield: N/A
• Average Volume (3M): 502.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 19
• Sector: Real Estate
• Sector Strength: 69
• Industry: Real Estate - Services
• EPS (TTM): -0.41
• Shares Outstanding: 317,961,000
• 10 Day Avg. Volume: 842,794
• 30 Day Avg. Volume: 502,191
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.84
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 39 Underperform
• Price Target: ―

Crown International Corporation Limited's overall stock score is low due to significant financial performance challenges, including negative profitability and high leverage, despite some improvements in cash flow. Technical analysis offers mixed signals, with no indication of a clear upward trend. Valuation metrics underscore the market's skepticism about the company's future earnings potential. The lack of a dividend yield further diminishes its appeal to investors. Overall, substantial improvements in financial stability and profitability are needed to enhance investor confidence.

Crown International Corporation Limited Business Overview & Revenue Model

Company Description

Crown 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 Money

Crown International Corporation Limited generates revenue through several key streams. The primary source of income is the development and sale of residential and commercial properties. The company invests in land and property development projects, subsequently selling the completed units to generate revenue. Another significant revenue stream is property investment, where the company earns rental income from its portfolio of investment properties. Additionally, the company operates in the hospitality sector, managing hotels and earning income through hotel operations, which includes room rentals, food and beverage services, and other related services. Strategic partnerships with construction companies, real estate agencies, and hospitality service providers also contribute to its earnings by enhancing operational efficiency and market reach.

Crown International Corporation Limited Financial Statement Overview

Summary

Crown International Corporation Limited faces critical challenges in turning revenue into profit, maintaining financial stability, and managing cash flows efficiently. Despite improvements in cash flow and revenue growth, persistent negative profitability and high leverage ratios highlight underlying financial risks. The firm's trajectory shows potential for recovery, but significant structural and operational adjustments are necessary for long-term financial health.

Income Statement

Over the last five years, the company has experienced significant volatility in revenue and a challenging profitability situation. Despite a revenue increase to HK$183.5M in 2024 from HK$0.417M in 2023, the net profit margin remains severely negative at -69.1%, indicating substantial losses. The gross profit margin improved to 25.8% in 2024, but EBIT and EBITDA margins are both negative, showing operational inefficiencies. Revenue growth is positive but comes from a low base, and the firm struggles to convert revenue into profit.

Balance Sheet

The company's balance sheet reflects high leverage with a debt-to-equity ratio of approximately 6.69 in 2024. While there is a slight improvement in stockholders' equity, the equity ratio remains low at 8.4%, indicating potential financial instability. Return on equity is negative due to persistent losses, suggesting the company is not generating sufficient returns for shareholders. The balance sheet shows some resilience in asset management, but overall financial leverage poses risks.

Cash Flow

The cash flow statement reveals a positive shift in operating cash flow to HK$270.7M in 2024 from negative figures previously, improving the operating cash flow to net income ratio. However, the free cash flow growth rate is challenging to assess due to fluctuations, though the company reports positive free cash flow in 2024, indicating better cash management. While there is improvement, sustainability remains uncertain amid ongoing financial challenges.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
200.92M	183.46M	417.00K	17.50M	13.87M	14.91M
	Gross Profit
-74.69M	47.32M	417.00K	4.00M	13.87M	14.91M
	EBIT
-63.56M	-68.50M	-338.94M	-812.22M	-121.16M	22.90M
	EBITDA
-100.27M	-66.69M	-334.54M	-804.73M	0.00	-9.74M
	Net Income Common Stockholders
-73.06M	-126.78M	-1.07B	-726.37M	-105.24M	9.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
166.47M	177.59M	4.26M	714.00K	1.05M	1.50M
	Total Assets
1.48B	1.44B	1.66B	2.97B	3.63B	3.28B
	Total Debt
0.00	810.83M	866.07M	659.05M	657.25M	609.52M
	Net Debt
-166.47M	631.61M	861.81M	658.34M	656.19M	608.02M
	Total Liabilities
1.36B	1.32B	1.49B	1.66B	1.68B	1.37B
	Stockholders Equity
125.49M	121.20M	164.78M	1.31B	1.95B	1.90B
Cash Flow		Free Cash Flow
93.33M	270.66M	-270.58M	-19.92M	-4.22M	-139.36M
	Operating Cash Flow
93.33M	270.66M	-270.58M	-19.92M	71.14M	-104.42M
	Investing Cash Flow
-32.20M	-32.20M	242.46M	84.63M	-74.73M	-25.63M
	Financing Cash Flow
-34.91M	-58.98M	25.13M	-65.11M	3.07M	-2.33M

Crown International Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0727, the sentiment is Positive. The current price of 1.39 is above the 20-day moving average (MA) of 1.12, above the 50-day MA of 1.07, and below the 200-day MA of 1.60, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 61.08 is Neutral, neither overbought nor oversold. The STOCH value of 52.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0727.

Crown International Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$2.83B	10.72	0.40%	6.10%	5.80%	-21.26%
0727	39 Underperform	HK$435.61M	―	-69.34%	―	―	―
FSHUF		$1.08B	43.86	6.48%	1.69%	―	―
KWHAF		$739.01M	17.63	0.81%	6.93%	―	―
0331	78 Outperform	HK$2.52B	5.31	49.10%	3.76%	3.11%	-2.34%
0115	36 Underperform	HK$46.54M	―	-67.47%	―	-65.78%	-434.47%
1246	29 Underperform	HK$28.52M	―		―	―	―

Crown International Corporation Limited Corporate Events

Crown International Announces Change of Receivers and Stake Sale Status

Crown International Corporation Limited announced a change in receivers, with Mr. Tai Shaw Hoong and Mr. Kenny Li being appointed as the new joint and several receivers and managers over the company’s relevant shares, replacing the previous receivers from Alvarez & Marsal Asia Limited. The new receivers are not actively seeking potential buyers for the company’s controlling stake, and no imminent offer is expected for the charged shares. As a result, the possible mandatory general offer will not be reopened at this time, although the company will make further announcements if the situation changes.

Crown International Acquires Full Stake in Target Company

Crown International Corporation Limited has announced a discloseable transaction involving the acquisition of 100% equity interest in a target company for RMB30,000,000 (equivalent to HK$32,100,000). This acquisition is a strategic move by Crown International, executed through its indirect wholly-owned subsidiary, and is expected to enhance the company’s market position. The transaction, which does not require shareholder approval under the Listing Rules, will be completed with the issuance of a note to satisfy the purchase consideration.

Crown International Approves Share Consolidation

Crown International Corporation Limited announced that the resolution for share consolidation was approved by shareholders at the extraordinary general meeting held on March 26, 2025. The share consolidation will become effective on March 28, 2025, which may impact the company’s stock structure and trading arrangements.

Crown International Proposes Share Consolidation at Upcoming EGM

Crown International Corporation Limited has announced an extraordinary general meeting to discuss a proposed share consolidation. The proposal involves consolidating every twenty issued existing shares into one consolidated share, which aims to streamline the company’s share structure. This move is expected to affect the company’s stock trading and shareholder arrangements, with fractional shares being aggregated and potentially sold for the company’s benefit.

Crown International Proposes Share Consolidation

Crown International Corporation Limited has announced a proposed share consolidation, aiming to consolidate every twenty existing shares into one consolidated share. This move will reduce the number of shares from 6,359,220,000 to 317,961,000, assuming no further shares are issued or repurchased before the effective date. The consolidation is subject to shareholder approval at an extraordinary general meeting and other regulatory conditions. The company states that the consolidation will not affect its underlying assets, business operations, management, or financial position, aside from the expenses incurred for the process.

Crown International Completes Major Share Subscription to Fund Expansion

Crown International Corporation Limited has successfully completed the subscription of 1,059,870,000 new shares under its General Mandate, which has raised approximately HK$93,000,000. The net proceeds will be used for expanding its premium white spirit retail network and general working capital, with the subscription representing a significant 16.67% of the company’s enlarged share capital.

Crown International Announces New Share Subscription to Fund Expansion

Crown International Corporation Limited, incorporated in Hong Kong, announced a subscription of new shares under a general mandate. The company has entered into agreements to issue 1,059,870,000 new shares at HK$0.088 per share, a premium to recent trading prices. This issuance represents a significant portion of the current share capital and is expected to raise about HK$93 million for expanding its premium white spirit retail network and general working capital. The subscription is conditional upon stock exchange approval, and investors are advised to exercise caution.