CEC International Holdings Limited (0759) AI Stock Analysis

• Market Cap: HK$86.60M
• Dividend Yield: 9.09%
• Average Volume (3M): 51.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• Revenue Growth: -8.59%
• EPS Growth: -464.46%
• Country: HK
• Employees: 1,380
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Grocery Stores
• EPS (TTM): -0.09
• Shares Outstanding: 666,190,800
• 10 Day Avg. Volume: 60,400
• 30 Day Avg. Volume: 51,333
• PEG Ratio: 0.25
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.56
• 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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.42B	1.47B	1.69B	2.01B	2.10B	1.96B
	Gross Profit
552.64M	579.39M	576.22M	612.56M	579.98M	579.25M
	EBIT
-50.45M	-19.82M	2.89M	16.59M	2.69M	3.26M
	EBITDA
65.21M	178.43M	259.87M	255.41M	252.76M	263.45M
	Net Income Common Stockholders
-58.79M	-29.81M	49.56M	39.88M	32.32M	12.35M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
97.25M	108.18M	107.46M	100.17M	101.75M	93.61M
	Total Assets
880.59M	886.30M	917.09M	919.52M	983.42M	1.14B
	Total Debt
255.28M	252.48M	231.64M	227.49M	332.41M	520.96M
	Net Debt
200.74M	181.06M	124.17M	127.31M	230.66M	427.35M
	Total Liabilities
418.95M	395.31M	383.55M	419.86M	515.05M	722.72M
	Stockholders Equity
461.65M	490.99M	533.54M	499.65M	468.37M	412.29M
Cash Flow		Free Cash Flow
149.39M	148.72M	194.85M	285.05M	335.62M	315.93M
	Operating Cash Flow
159.04M	160.93M	211.43M	303.88M	349.39M	323.73M
	Investing Cash Flow
-9.65M	-12.21M	-16.53M	-18.69M	-12.58M	4.64M
	Financing Cash Flow
-170.87M	-163.01M	-187.10M	-286.92M	-329.76M	-290.06M

CEC International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 0.13 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.12, and below the 200-day MA of 0.13, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 74.70 is Negative, neither overbought nor oversold. The STOCH value of 90.00 is Negative, 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
0331	78 Outperform	HK$2.55B	5.33	49.10%	3.72%	3.11%	-2.34%
1093	76 Outperform	$100.62B	21.89	13.20%	2.29%	-9.60%	-27.18%
0992	70 Outperform	$114.74B	10.51	23.76%	3.70%	18.03%	71.00%
1177	66 Neutral	$94.43B	49.76	6.14%	1.51%	7.63%	-24.23%
Sector *	62 Neutral	$6.86B	11.07	2.77%	4.27%	2.66%	-24.95%
0759	55 Neutral	HK$86.60M	―	-11.99%	9.09%	-8.59%	-464.46%
0683	52 Neutral	$28.16B	34.85	0.76%	9.79%	50.11%	-75.09%