Convenience Retail Asia Limited (0831) AI Stock Analysis

• Market Cap: HK$252.66M
• Dividend Yield: 6.06%
• Average Volume (3M): 473.87K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.30
• Revenue Growth: -3.58%
• EPS Growth: -52.60%
• Country: HK
• Employees: 2,077
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 0.02
• Shares Outstanding: 777,417,000
• 10 Day Avg. Volume: 209,200
• 30 Day Avg. Volume: 473,866
• PEG Ratio: -0.23
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 1.59
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: HK$0.50 ▲(56.25% Upside)

The overall stock score reflects the company's challenges with declining profitability and cash flow, offset by a stable balance sheet and attractive valuation metrics. The technical analysis indicates a lack of strong momentum, but the low P/E ratio and high dividend yield suggest potential value for income-focused investors.

Positive Factors

Stable Balance Sheet

A stable balance sheet with moderate leverage suggests financial stability, providing a solid foundation for potential future growth and resilience against economic fluctuations.

Strong Equity Financing

High equity financing reduces dependency on debt, lowering financial risk and interest obligations, which can enhance long-term financial health and investment capacity.

Stable Gross Profit Margin

A stable gross profit margin indicates effective cost management and pricing strategies, which can sustain profitability even in challenging market conditions.

Negative Factors

Declining Profitability

A significant decline in net profit margin reflects challenges in maintaining profitability, which can impact long-term shareholder value and investment attractiveness.

Zero Operating Cash Flow

Zero operating cash flow indicates difficulties in generating cash from core operations, limiting the company's ability to reinvest or return value to shareholders.

Decreasing Return on Equity

A declining return on equity suggests reduced efficiency in using shareholder funds to generate profits, potentially affecting investor confidence and capital raising capabilities.

Convenience Retail Asia Limited Business Overview & Revenue Model

Company Description

Convenience Retail Asia Limited, an investment holding company, operates a chain of bakeries under the Saint Honore brand name in Hong Kong, Macau, and the Chinese Mainland. The company operates through Bakery and Eyewear segments. It also operates a chain of eyewear business under the Zoff brand name; pâtisserie under the Mon cher brand; and food factory. The company offers its products online. As of December 31, 2021, it operated 136 Saint Honore stores; 4 Mon cher store; and 13 Zoff eyewear stores. Convenience Retail Asia Limited was founded in 1972 and is headquartered in Sha Tin, Hong Kong.

How the Company Makes Money

The company generates revenue primarily through the sale of merchandise in its retail outlets, with key revenue streams coming from food and beverage sales, as well as convenience items such as toiletries and household products. Additionally, Convenience Retail Asia earns income from franchise fees and royalties from franchise operations. The company's strategic partnerships with suppliers and local businesses enhance its product offerings and optimize pricing, contributing to its overall profitability. Seasonal promotions and special product launches also play a significant role in driving sales and boosting revenue.

Convenience Retail Asia Limited Financial Statement Overview

Summary

Convenience Retail Asia Limited is experiencing declining profitability and cash flow generation. The stable balance sheet with moderate leverage is a positive, but the declining return on equity and zero operating cash flow in 2024 highlight operational challenges.

Income Statement

Convenience Retail Asia Limited showed a consistent revenue stream with a slight decline in recent years. The gross profit margin remained stable, but there was a noticeable decrease in EBIT margin from 4.91% in 2021 to 2.79% in 2024, indicating pressure on operational efficiency. Net profit margin dropped from 5.90% in 2021 to 1.61% in 2024, reflecting challenges in maintaining bottom-line profitability. The revenue growth was negative, with a slight decline from 2023 to 2024.

Balance Sheet

The company's balance sheet reflects a stable equity position, with a debt-to-equity ratio of 0.37 in 2024, indicating moderate leverage. The equity ratio was approximately 52.36% in 2024, suggesting a strong reliance on equity financing. However, the return on equity declined from 12.47% in 2020 to 3.76% in 2024, indicating reduced efficiency in generating returns for shareholders.

Cash Flow

The cash flow statement shows a decline in operating cash flow, with zero reported in 2024, indicating challenges in cash generation from operations. The free cash flow was also zero in 2024, suggesting limited capacity for reinvestment or returning value to shareholders. Previous years showed positive free cash flow, indicating a downward trend.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.45B	1.49B	1.49B	1.46B	1.36B	1.19B
Gross Profit	754.39M	786.18M	794.55M	739.54M	682.95M	638.47M
EBITDA	79.49M	258.63M	285.38M	273.45M	258.87M	245.34M
Net Income	26.21M	23.91M	57.71M	67.78M	80.37M	61.15M
Balance Sheet
Total Assets	1.15B	1.21B	1.29B	1.32B	1.32B	1.34B
Cash, Cash Equivalents and Short-Term Investments	165.57M	206.02M	220.64M	256.13M	290.29M	373.14M
Total Debt	204.02M	233.75M	274.60M	257.01M	234.76M	205.04M
Total Liabilities	510.19M	578.18M	625.90M	668.02M	676.22M	765.31M
Stockholders Equity	643.35M	635.42M	660.19M	655.82M	644.35M	578.85M
Cash Flow
Free Cash Flow	170.31M	200.76M	181.08M	173.62M	152.22M	328.38M
Operating Cash Flow	211.41M	238.86M	219.10M	234.23M	202.31M	356.79M
Investing Cash Flow	-40.98M	-34.91M	-32.75M	-59.60M	-119.00M	3.14B
Financing Cash Flow	-182.09M	-218.46M	-221.55M	-206.30M	-166.84M	-3.42B

Convenience Retail Asia Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.32
• 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:0831, the sentiment is Positive. The current price of 0.32 is below the 20-day moving average (MA) of 0.32, below the 50-day MA of 0.32, and above the 200-day MA of 0.31, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 67.90 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0831.

Convenience Retail Asia Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1587	71 Outperform	HK$414.80M	9.05	8.56%	3.63%	3.24%	47.81%
2119	67 Neutral	HK$389.20M	8.14	9.28%	7.38%	4.61%	-23.88%
1285	64 Neutral	HK$439.90M	9.19	4.62%	13.51%	2.82%	-22.62%
0831	63 Neutral	HK$252.66M	9.50	4.08%	6.06%	-3.58%	-52.60%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
0236	56 Neutral	HK$455.76M	-56.48	-1.15%	4.07%	2.77%	-110.76%

Convenience Retail Asia Limited Corporate Events

Convenience Retail Asia Limited Announces Board Composition

Convenience Retail Asia Limited announced the composition of its Board of Directors, which includes a mix of executive, non-executive, and independent non-executive directors. This announcement is significant as it outlines the leadership structure and governance roles within the company, potentially impacting its strategic direction and stakeholder confidence.

The most recent analyst rating on (HK:0831) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Convenience Retail Asia Limited stock, see the HK:0831 Stock Forecast page.