CEC International Holdings Limited (0759) AI Stock Analysis

• Market Cap: HK$226.50M
• Dividend Yield: 9.09%
• Average Volume (3M): 9.69M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: -1.72%
• EPS Growth: -46.88%
• Country: HK
• Employees: 1,380
• Sector: Consumer Defensive
• Sector Strength: 60
• Industry: Grocery Stores
• EPS (TTM): -0.02
• Shares Outstanding: 666,190,800
• 10 Day Avg. Volume: 5,075,400
• 30 Day Avg. Volume: 9,693,866
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 55 Neutral
• Price Target: ―

CEC International Holdings Limited receives a score of 55, reflecting its financial challenges with declining revenues and profitability, significant leverage, and net losses. Despite these issues, the company shows resilience in cash management with positive free cash flow. Technically, the stock exhibits neutral to slightly bullish momentum. However, the negative P/E ratio and absence of dividends weigh heavily on its valuation, contributing to a moderate overall score.

CEC International Holdings Limited Business Overview & Revenue Model

Company Description

CEC International Holdings Limited (0759) is a diversified investment holding company based in Hong Kong, primarily engaged in the retail business. It operates through its core segment, the retailing of general merchandise, with a strong presence in the convenience store sector under the brand name 759 Store. The company also has interests in the manufacturing and distribution of electronic components and products, showcasing its diversified business operations.

How the Company Makes Money

CEC International Holdings Limited generates revenue primarily through its retail operations under the 759 Store brand, which includes the sale of a wide range of consumer goods such as snacks, beverages, personal care products, and household items. The extensive network of retail outlets across Hong Kong allows the company to capitalize on the growing demand for convenience shopping. Additionally, the company earns income from its electronics manufacturing segment, which involves the production and distribution of electronic components and products. Strategic location advantages and a focus on cost-effective sourcing contribute to the company's revenue streams.

CEC International Holdings Limited Financial Statement Overview

Summary

CEC International Holdings Limited faces challenges with declining revenues and profitability, as evidenced by negative net income and deteriorating EBIT margins, reflecting operational issues. The balance sheet shows moderate leverage but increasing debt levels, which may pose future risks. Despite these challenges, the company maintains positive free cash flow, indicating some resilience in cash management. The financial position suggests the need for strategic improvements to regain revenue growth and profitability.

Income Statement

CEC International Holdings Limited shows a decline in revenue over the past year, with a significant drop in net income from a profit to a net loss, indicating a challenging year. Gross Profit Margin remains stable at around 39.4%, but EBIT and EBITDA margins have turned negative and decreased respectively, highlighting operational inefficiencies and cost pressures. The revenue growth rate has been negative, raising concerns about market competitiveness and demand.

Balance Sheet

The Debt-to-Equity Ratio stands at 0.51, indicating moderate leverage but an increase from the previous year, which suggests growing debt relative to equity. The Return on Equity has turned negative, reflecting the net loss and its adverse impact on shareholder returns. The Equity Ratio is about 55.4%, indicating more than half of the assets are financed by equity, which is relatively stable but shows a slight decline from previous years. Overall, the balance sheet shows moderate financial stability but with rising debt concerns.

Cash Flow

The company experienced a notable reduction in Operating Cash Flow by approximately 24% over the year, yet it maintains positive Free Cash Flow, reflecting effective capital expenditure management. The Free Cash Flow to Net Income Ratio is considerably strong, indicating cash generation capability despite net losses. The Operating Cash Flow to Net Income Ratio is negative due to net losses, but the ability to generate cash remains a positive aspect.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	1.47B	1.69B	2.01B	2.10B	1.96B
Gross Profit	579.39M	576.22M	612.56M	579.98M	579.25M
EBITDA	178.43M	259.87M	255.41M	252.76M	263.45M
Net Income	-29.81M	49.56M	39.88M	32.32M	12.35M
Balance Sheet
Total Assets	886.30M	917.09M	919.52M	983.42M	1.14B
Cash, Cash Equivalents and Short-Term Investments	108.18M	107.46M	100.17M	101.75M	93.61M
Total Debt	252.48M	231.64M	227.49M	332.41M	520.96M
Total Liabilities	395.31M	383.55M	419.86M	515.05M	722.72M
Stockholders Equity	490.99M	533.54M	499.65M	468.37M	412.29M
Cash Flow
Free Cash Flow	148.72M	194.85M	285.05M	335.62M	315.93M
Operating Cash Flow	160.93M	211.43M	303.88M	349.39M	323.73M
Investing Cash Flow	-12.21M	-16.53M	-18.69M	-12.58M	4.64M
Financing Cash Flow	-163.01M	-187.10M	-286.92M	-329.76M	-290.06M

CEC International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0759, the sentiment is Positive. The current price of 0.36 is above the 20-day moving average (MA) of 0.30, above the 50-day MA of 0.21, and above the 200-day MA of 0.15, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 61.81 is Neutral, neither overbought nor oversold. The STOCH value of 68.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0759.

CEC International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0992	82 Outperform	$136.20B	10.51	26.62%	3.55%	21.51%	50.43%
0331	78 Outperform	HK$2.68B	5.60	49.10%	3.56%	3.11%	-2.34%
1093	77 Outperform	$122.39B	26.61	13.20%	2.51%	-18.07%	-33.27%
1177	68 Neutral	$132.17B	33.11	11.72%	0.94%	13.69%	50.71%
Sector *	63 Neutral	$20.95B	14.50	-4.08%	3.12%	2.72%	-11.24%
0759	55 Neutral	HK$226.50M	―	-9.41%	9.09%	-1.72%	-46.88%
0683	53 Neutral	$29.26B	46.30	0.61%	6.50%	76.12%	-72.35%