Convenience Retail Asia Limited (0831) AI Stock Analysis

• Market Cap: HK$256.55M
• Dividend Yield: 6.06%
• Average Volume (3M): 915.53K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.29
• 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: 1,164,600
• 30 Day Avg. Volume: 915,533
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 51.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: HK$0.50 ▲(51.52% Upside)

The overall stock score of 63 reflects the company's challenges with declining profitability and cash flow, as well as bearish technical indicators. However, the stock's attractive valuation with a low P/E ratio and high dividend yield provides some positive offset.

Positive Factors

Stable Balance Sheet

A stable balance sheet with moderate leverage indicates financial health and the ability to withstand economic fluctuations, supporting long-term operations.

Strong Brand Presence

A strong brand presence and strategic locations enhance customer loyalty and market reach, providing a competitive edge in the retail sector.

Diverse Product Range

A diverse product range attracts a broad customer base and supports sustained earnings, crucial for long-term growth in the competitive retail market.

Negative Factors

Declining Profitability

Declining profitability indicates challenges in maintaining cost efficiency and pricing power, which can impact long-term financial performance.

Zero Operating Cash Flow

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

Revenue Decline

A decline in revenue growth reflects potential market share loss and demand challenges, which can hinder long-term expansion and profitability.

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 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 significant 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: Negative
• Last Price: 0.33
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Negative. The current price of 0.33 is below the 20-day moving average (MA) of 0.34, below the 50-day MA of 0.34, and above the 200-day MA of 0.33, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.32 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$408.00M	8.90	8.56%	3.75%	3.24%	47.81%
2119	71 Outperform	HK$418.02M	8.75	9.28%	7.00%	4.61%	-23.88%
0236	64 Neutral	HK$455.76M	4.08	-1.15%	4.10%	2.77%	-110.76%
1285	64 Neutral	HK$406.70M	9.11	4.62%	9.52%	2.82%	-22.62%
0831	63 Neutral	HK$256.55M	9.79	4.08%	6.06%	-3.58%	-52.60%
Sector *	62 Neutral	$20.56B	14.66	-3.18%	3.15%	1.93%	-6.58%
1699	―	HK$89.96M	―		―	―	―

Convenience Retail Asia Limited Corporate Events

Convenience Retail Asia Reports Revenue Decline but Increased Profitability in 1H 2025

Convenience Retail Asia Limited reported a 4.6% decrease in revenue for the first half of 2025 due to a challenging operating environment. Despite this, the company achieved a 17.3% increase in core operating profit through stringent cost controls, which helped offset sales and margin pressures. The company maintains a strong financial position with net cash of HK$167 million and no bank borrowings. The closure of competitors presents opportunities for market share growth, although the local retail market remains challenging.

Convenience Retail Asia Limited Announces Interim Dividend

Convenience Retail Asia Limited has announced an interim cash dividend of HKD 0.01 per share for the period ending 30 June 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may influence its market positioning by demonstrating financial stability and shareholder value focus.

Convenience Retail Asia Limited Enhances Governance with Updated Nomination Committee Terms

Convenience Retail Asia Limited has outlined the terms of reference for its Nomination Committee, which was established by the Board in 2012. The committee is tasked with reviewing the board’s structure, identifying qualified board members, assessing director independence, and making recommendations on director appointments and succession planning. Additionally, the committee supports the company’s evaluation of board performance and ensures continuous professional development for directors and senior management. These measures are aimed at aligning the board’s composition with the company’s corporate strategy, thereby enhancing its governance framework.

Convenience Retail Asia Announces Key Leadership Change

Convenience Retail Asia Limited has announced a change in its company secretary and authorized representative roles, effective August 15, 2025. Mr. Chan Chor Fai has resigned, and Ms. Chu Wai Ling, who has been with the company since 2015 and has extensive experience in corporate secretarial services, will take over the position. This transition is expected to maintain the company’s strong governance practices and ensure continuity in its corporate operations.

Convenience Retail Asia Schedules Board Meeting for Interim Results

Convenience Retail Asia Limited has announced that its Board of Directors will meet on August 14, 2025, to approve the interim results for the first half of the year and consider the payment of an interim dividend. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and potential returns on investment.