Convenience Retail Asia Limited (0831) AI Stock Analysis

• Market Cap: HK$295.42M
• Dividend Yield: 18.92%
• Average Volume (3M): 2.50M
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.29
• Revenue Growth: -0.04%
• EPS Growth: -58.49%
• Country: HK
• Employees: 2,077
• Sector: Consumer Defensive
• Sector Strength: 60
• Industry: Grocery Stores
• EPS (TTM): 0.01
• Shares Outstanding: 777,417,000
• 10 Day Avg. Volume: 2,747,400
• 30 Day Avg. Volume: 2,500,886
• PEG Ratio: -0.20
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.66
• 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: HK$0.50
• Price Target Upside: 35.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: HK$0.50 ▲(35.14%Upside)

Convenience Retail Asia Limited's stock score is driven by a challenging financial performance due to declining profitability and cash flow generation, despite a stable balance sheet. The technical analysis shows bullish trends, tempered by overbought signals. Valuation is favorable with a low P/E ratio and high dividend yield, offering potential appeal to value and income investors.

Convenience Retail Asia Limited Business Overview & Revenue Model

Company Description

Convenience Retail Asia Limited (0831) is a leading retail company operating in the fast-moving consumer goods industry in Asia. The company specializes in the operation of convenience stores under the Circle K brand, providing a wide range of products including groceries, snacks, beverages, and daily necessities. Additionally, it runs the Saint Honore Cake Shop, which offers bakery products and confectioneries. The company is committed to delivering convenience and quality service to its customers across its retail network.

How the Company Makes Money

Convenience Retail Asia Limited generates revenue primarily through the sale of consumer goods and bakery products in its convenience stores and cake shops. The company's key revenue streams include direct sales from its Circle K stores, where customers purchase a variety of everyday products, and from its Saint Honore Cake Shops, where bakery items are sold. The company leverages strategic locations, efficient supply chain management, and a strong brand presence to attract a steady customer base. Partnerships with suppliers and vendors help to ensure a diverse and appealing product range, contributing to sustained earnings. The company's revenue is also influenced by retail pricing strategies and promotional activities designed to boost sales and customer loyalty.

Convenience Retail Asia Limited Financial Statement Overview

Summary

Convenience Retail Asia Limited is facing challenges with declining profitability and cash flow generation. Despite a stable balance sheet with moderate leverage, the declining return on equity and negative revenue growth indicate operational inefficiencies and financial 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.49B	1.49B	1.46B	1.36B	1.19B
Gross Profit	786.18M	794.55M	739.54M	682.95M	638.47M
EBITDA	258.63M	285.38M	273.45M	258.87M	245.34M
Net Income	23.91M	57.71M	67.78M	80.37M	61.15M
Balance Sheet
Total Assets	1.21B	1.29B	1.32B	1.32B	1.34B
Cash, Cash Equivalents and Short-Term Investments	206.02M	220.64M	256.13M	290.29M	373.14M
Total Debt	233.75M	274.60M	257.01M	234.76M	205.04M
Total Liabilities	578.18M	625.90M	668.02M	676.22M	765.31M
Stockholders Equity	635.42M	660.19M	655.82M	644.35M	578.85M
Cash Flow
Free Cash Flow	200.76M	181.08M	173.62M	152.22M	328.38M
Operating Cash Flow	244.79M	219.10M	234.23M	202.31M	356.79M
Investing Cash Flow	-34.91M	-32.75M	-59.60M	-119.00M	3.14B
Financing Cash Flow	-218.46M	-221.55M	-206.30M	-166.84M	-3.42B

Convenience Retail Asia Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 0.37 is above the 20-day moving average (MA) of 0.35, above the 50-day MA of 0.32, and above the 200-day MA of 0.36, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 70.37 is Negative, neither overbought nor oversold. The STOCH value of 103.70 is Negative, 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
2119	71 Outperform	HK$454.06M	7.68	10.74%	11.33%	-1.07%	21.30%
1587	71 Outperform	HK$428.40M	9.04	9.10%	6.38%	-4.97%	111.21%
1285	68 Neutral	HK$431.60M	7.31	5.59%	9.62%	4.97%	-16.24%
0831	67 Neutral	HK$295.42M	12.34	3.69%	18.92%	-0.04%	-58.49%
Sector *	61 Neutral	HK$20.46B	12.08	0.81%	5.24%	2.72%	-47.45%
0236	60 Neutral	HK$373.57M	4.08	-2.97%	5.00%	-4.11%	-123.40%

Convenience Retail Asia Limited Corporate Events

Convenience Retail Asia Limited Announces Leadership Changes

Convenience Retail Asia Limited has announced the re-designation of Mr. Terence Fung from a Non-executive Director to an Executive Director, alongside his appointment as Vice Chairman of the Board, effective June 1, 2025. This strategic move is expected to strengthen the company’s leadership, potentially enhancing its operational efficiency and market positioning within the retail sector.

Convenience Retail Asia Limited Announces Board Composition

Convenience Retail Asia Limited has announced the composition of its Board of Directors, which includes nine directors with various roles and functions. The announcement highlights the leadership structure, including executive, non-executive, and independent non-executive directors, which is crucial for stakeholders to understand the governance and strategic direction of the company.

Convenience Retail Asia Limited AGM Resolutions Passed Successfully

Convenience Retail Asia Limited announced the successful passing of all proposed resolutions at its Annual General Meeting held on 15 May 2025. Key resolutions included the adoption of financial statements, declaration of a final dividend, re-election of directors, and the re-appointment of PricewaterhouseCoopers as auditors. Additionally, the company granted mandates to its directors to issue and repurchase shares. This outcome reflects strong shareholder support and positions the company for continued strategic operations and governance.