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Convenience Retail Asia Limited (HK:0831)
:0831
Hong Kong Market
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Convenience Retail Asia Limited (0831) AI Stock Analysis

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HK

Convenience Retail Asia Limited

(0831)

Rating:67Neutral
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 (0831) vs. iShares MSCI Hong Kong ETF (EWH)

Convenience Retail Asia Limited Business Overview & Revenue Model

Company DescriptionConvenience 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 MoneyConvenience 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
65
Positive
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
70
Positive
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
50
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.49B1.49B1.46B1.36B1.19B
Gross Profit786.18M794.55M739.54M682.95M638.47M
EBITDA258.63M285.38M273.45M258.87M245.34M
Net Income23.91M57.71M67.78M80.37M61.15M
Balance Sheet
Total Assets1.21B1.29B1.32B1.32B1.34B
Cash, Cash Equivalents and Short-Term Investments206.02M220.64M256.13M290.29M373.14M
Total Debt233.75M274.60M257.01M234.76M205.04M
Total Liabilities578.18M625.90M668.02M676.22M765.31M
Stockholders Equity635.42M660.19M655.82M644.35M578.85M
Cash Flow
Free Cash Flow200.76M181.08M173.62M152.22M328.38M
Operating Cash Flow244.79M219.10M234.23M202.31M356.79M
Investing Cash Flow-34.91M-32.75M-59.60M-119.00M3.14B
Financing Cash Flow-218.46M-221.55M-206.30M-166.84M-3.42B

Convenience Retail Asia Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.37
Price Trends
50DMA
0.32
Positive
100DMA
0.30
Positive
200DMA
0.36
Positive
Market Momentum
MACD
0.01
Negative
RSI
70.37
Negative
STOCH
103.70
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
HK$454.06M7.6810.74%11.33%-1.07%21.30%
71
Outperform
HK$428.40M9.049.10%6.38%-4.97%111.21%
68
Neutral
HK$431.60M7.315.59%9.62%4.97%-16.24%
67
Neutral
HK$295.42M12.343.69%18.92%-0.04%-58.49%
61
Neutral
HK$20.46B12.080.81%5.24%2.72%-47.45%
60
Neutral
HK$373.57M4.08-2.97%5.00%-4.11%-123.40%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0831
Convenience Retail Asia Limited
0.37
-0.17
-31.48%
HK:0236
San Miguel Brewery HK Ltd.
1.00
-0.02
-1.96%
HK:2119
Tsit Wing International Holdings Limited
0.63
0.07
12.50%
HK:1587
Shineroad International Holdings Limited
0.63
0.25
65.79%
HK:1285
Jiashili Group Ltd
1.04
0.03
2.97%

Convenience Retail Asia Limited Corporate Events

Convenience Retail Asia Limited Announces Leadership Changes
Jun 2, 2025

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
Jun 2, 2025

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
May 15, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 17, 2025